UNILAB REPORTS THIRD QUARTER RESULTS
UNILAB REPORTS THIRD QUARTER RESULTS NEW YORK, Nov. 11 /PRNewswire/ -- Unilab Corporation (NASDAQ: ULAB)
today reported a net profit of $362,754 or 1 cent per share, for the third quarter ending Sept. 30, 1991, versus a net loss of $3,453,001 or 13 cents per share for the comparable three months last year. The current quarter includes a one-time non-cash pre-tax charge of $1.55 million or 4 cents per share, associated with the sale of a small Belgian subsidiary, DLMC N.V., which the company described as "a minor contributor to net sales that did not fit Unilab's geographic and strategic objectives."
Revenues for the quarter were $52.1 million compared with $34.6 million for the three months ending Sept. 30, 1990. Income from operations in the 1991 third quarter was $8,229,312 versus $2,226,580 for the same period in 1990, representing the strongest quarterly operating income, both in absolute dollars and margin percent, in Unilab's history. Effective as of Oct. 16, 1991, the company completed the sale of DLMC, its wholly owned subsidiary, to Pamex S.A., a Swiss corporation. DLMC provides administrative support to clinical laboratories in Brussels, Antwerp and Ostend, Belgium. Under the terms of the transaction, Unilab sold 100 percent of the outstanding stock of DLMC to Pamex in exchange for shares of common stock held by Pamex in United Fashions, Inc., a publicly traded corporation. In connection with the sale of DLMC, Unilab has entered into put and call arrangements with a related party with respect to the shares of United Fashions common stock, and an option arrangement with the same party as to its own common stock. The $1.55 million non-cash charge recorded in the third quarter for this transaction contemplates the company selling its United Fashions stock for $1.87 million cash in January 1993, under its put option. The company said that "ownership of DLMC was inconsistent with Unilab's stated goal of achieving profitable growth through cost reductions and consolidation in its clinical laboratories in the western United States." Other noteworthy developments during the current quarter included completion of the previously announced acquisition of AMLaboratories in Dallas. This acquisition, which was completed on Sept. 1, 1991, will improve Unilab's position in the Texas clinical laboratory market, which is one of the largest in the United States. UNILAB CORPORATION (Amounts in thousands, except per share data) Periods ended Three Months Nine Months Sept. 30 1991 1990 1991 1990 Net revenues $52,058 $34,618 $151,093 $101,151 Operating income 8,229 2,227 21,163 4,231 Loss on sale of DLMC (1,550) -- (1,550) -- Net inc. (loss) available to common shareholders $ 363 $(3,453) $ 197 $(12,220) Earnings (loss) per common share $0.01 ($0.13) $0.01 ($0.46) NOTE: In October 1990, the company changed to a calendar year end effective for the year ending Dec. 31, 1990. Accordingly, the comparative Sept. 30, 1990, results have been restated to reflect this change. -0- 11/11/91 /CONTACT: Richard Michaelson of Unilab, 212-941-1191/ (ULAB) CO: Unilab Corporation ST: New York IN: SU: ERN GK-TS -- NY022 -- 2977 11/11/91 10:59 EST
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|Date:||Nov 11, 1991|
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