Thursday July 24 8:30 AM EDT
Company Press Release
Prime Medical Services, Inc. Announces Record Results for
Second Quarter
AUSTIN, Texas--(BW HealthWire)--July 24, 1997--Prime Medical Services, Inc. (``Prime'')
(Nasdaq/NM:PMSI) today announced record second quarter results.
Prime reported that pretax income for the second quarter increased by 38% to $4,841,000 from
$3,503,000 for the second quarter last year. (The 1996 second quarter pretax results were actually a
loss of $32,000, due to a non-recurring writeoff of $3,535,000 related to financing costs). Net
income for the second quarter increased by 15% to $3,670,000, or $.19 per share compared to
$3,182,000, or $.17 per share for the year ago period, despite an increase in the tax rate from 9% in
1996 to 24% in 1997.
Pretax income for the six month period ending June 30, 1997 increased by 59% to $9,007,000 from
$5,673,000 for the year ago period (excluding financing costs). Net income for the six month period
ending June 30, 1997 increased by 36% to $6,906,000, or $.35 per share, from $5,088,000, or $.28
per share for the year ago period, despite the higher tax rate in 1997.
Revenues for the second quarter increased by 24% to $23,220,000 from $18,695,000 for the same
period in 1996. Revenues for the six month period ending June 30, 1997 increased by 70% to
$44,109,000 from $25,919,000 for the year ago period.
Joseph Jenkins, M.D., president, stated, ``The increases in revenue and income are the result of
expansion, from 31 lithotripters at March 31, 1996 to 54 lithotripters at June 30, 1996 and to 58
lithotripters today. Our larger size has enabled us to generate cost efficiencies, resulting in
improved margins. In addition to producing favorable growth in revenue and earnings, we have
successfully completed two acquisitions of three lithotripters during this quarter, which are not
fully reflected in these results. We are currently reviewing additional acquisition opportunities.''
Ken Shifrin, chairman, added, ``In addition to our acquisition efforts, we are continuing our
development of new mobile routes to provide thermotherapy services for the treatment of benign
prostatic hyperplasia (BPH). We are encouraged by the response in the urology community with
regards to this new technology. We are currently developing three mobile routes which we expect
to be operational in 1997 and plan to accelerate our development efforts throughout the United
States in 1998.''
Lithotripsy is a cost-effective, non-invasive method for treating kidney stones through the use of
extracorporeal shock waves which pulverize kidney stones and permit them to pass painlessly from
the body. Prime Medical is the largest operator of lithotripters in the United States, currently
performing over 36,000 procedures annually, through contracts with approximately 400 hospitals
and 255 managed care companies. Prime Medical operates a fleet of 58 lithotripters in 33 states.
Prime is also developing mobile routes to provide thermotherapy services to hospitals and surgery
centers to treat benign prostatic hyperplasia (BPH).
For more information, visit Prime's website at: www.primemedical.com .
Condensed and Consolidated Financial Data
(In thousands, except per share)
Statements of Operations
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- ---------------
1997 1996 1997 1996
---- ---- ---- ----
Revenue $23,220 $18,695 $44,109 $25,919
Costs and expenses:
Cost of services and
administrative expenses 8,072 6,256 15,324 9,277
Depreciation and amortization 2,064 1,851 4,148 3,000
------- ------- ------- -------
10,136 8,107 19,472 12,277
Operating income 13,084 10,588 24,637 13,642
Other income (expense) 206 147 448 249
Interest expense (1,979) (1,467) (3,743) (1,976)
Minority interest 6,470 5,765 12,335 6,242
------- ------- ------- -------
Pretax income excluding
financing costs 4,841 3,503 9,007 5,673
Financing costs -- (3,535) (360) (3,535)
------- ------- ------- -------
Pretax income 4,841 (32) 8,647 2,138
Provision for income taxes 1,171 321 2,101 585
------- ------- ------- -------
Net income $ 3,670 $ (353) $ 6,546 $ 1,553
======= ======= ======= =======
Net income excluding
financing costs $ 3,670 $ 3,182 $ 6,906 $ 5,088
======= ======= ======= =======
Net income per share (fully
diluted) $ 0.19 $ (0.02) $ 0.34 $ 0.09
Net income per share (fully
diluted) excluding financing
costs $ 0.19 $ 0.17 $ 0.35 $ 0.28
Weighted average shares
outstanding (fully diluted) 19,517 19,142 19,498 18,317 |
