UNILAB Corporation Announces Second Quarter Results
BusinessWire, Monday, August 04, 1997 at 16:37
TARZANA, Calif.--(BUSINESS WIRE)--Aug. 4, 1997--UNILAB
Corporation (AMEX:ULB) announced today that net sales for the quarter
ended June 30, 1997 increased to $54.0 million from $52.1 million in
the same period last year. The Company reported net income for the
second quarter of 1997 of $54 thousand or $0.00 per common share,
compared to a net loss of $2.7 million, or $(0.07) per common share
in the same period last year.
"Our second quarter results, which continue the prior quarter's
improving trends, reflect Unilab's solid progress on our primary
objectives of strengthening our pricing and improving our cost
structure," said David Weavil, Chairman and Chief Executive Officer
of Unilab. "The attention to detail and hard work of our dedicated
employees is helping us meet the challenge of this demanding
environment. Their efforts contributed to achieving the 75% increase
in Earnings before Interest, Taxes, Depreciation and Amortization
(EBITDA) to $5.9 million, from $3.4 million in the second quarter of
last year, and putting us 'in the black' for the first time in almost
two years."
As it had done in the first quarter of this year, Unilab again
reported record sales and record specimen volume in the second
quarter, testing approximately 10% more patients than it did in the
second quarter of last year. Average pricing, though down by
approximately 5% from prior year level, was approximately the same as
the first quarter of 1997, the best quarter to quarter comparison in
over a year.
"We also continued to make encouraging progress on the cost
front," added Mr. Weavil, "not just in performing more testing
without adding to our cost infrastructure, but in reducing our
absolute expense levels in important, controllable areas. Key
operating expenses, particularly staffing, have steadily been reduced
during the year, as we focus our resources on those service areas
that our clients most value. Selling, general and administrative
expense continued to tighten to under 16% of sales, which has
steadily declined from the 20.9% it represented in the second quarter
of 1996."
The Company's cash position at the end of the second quarter was
$8.5 million, reflecting strong receivables collections that further
reduced the number of days sales outstanding (DSO), a measure of
billing and collection efficiency, to 67 days, a reduction of one day
from the previous quarter, and the fourth consecutive quarter of
improved DSO. For the first half of 1997, Unilab reported a net loss
of $1.1 million, or $(0.03) per common share on sales of $107.1
million. For the prior year, the company had a net loss, excluding a
first quarter $3.5 million extraordinary charge, of $4.6 million, or
($0.12) per common share, on sales of $103.6 million. EBITDA for the
first six months of 1997 was $10.5 million, compared to $6.7 million
in the first half of 1996.
Unilab Corporation is the largest provider of clinical laboratory
testing services in California through its primary testing facilities
in Los Angeles, San Jose and Sacramento and over 200 regional service
and testing facilities located throughout the state.
*T
Unilab Corporation
Consolidated Statement of Operations
(amounts in thousands, except per share data)
Three months Six months
ended June 30, ended June 30,
1997 1996 1997 1996
Revenue $54,027 $52,058 $107,060 $103,599
Direct Laboratory and Field
Expenses:
Salaries, Wages and Benefits 17,352 17,291 35,172 34,896
Supplies 7,616 7,152 15,167 13,752
Other Operating Expenses 14,593 13,366 28,575 26,399
39,561 37,809 78,914 75,047
Amortization and Depreciation 2,312 2,905 4,465 5,724
Selling, General and
Administrative Expenses 8,539 10,871 17,694 21,855
Total Operating Expenses 50,412 51,585 101,073 102,626
Operating Income 3,615 473 5,987 973
Other Income (Expenses)
Interest Expense, net (3,561) (3,159) (7,068) (5,549)
Income (Loss) Before Income
Taxes and Extraordinary Item 54 (2,686) (1,081) (4,576)
Extraordinary Item - Loss on
Early Extinguishment of Debt -- -- -- 3,451
Net Income (Loss) 54 (2,686) (1,081) (8,027)
Preferred Stock Dividends 36 36 72 72
Net Income (Loss) Available to
Common Stockholders $ 18 ($2,722) $(1,153) ($8,099)
Net Income (Loss) per Share:
Income (Loss) Before
Extraordinary Item $ 0.00 ($ 0.07)$ ( 0.03) ($ 0.12)
Extraordinary Item -- -- -- ($ 0.10)
Net Income (Loss) $ 0.00 ($ 0.07)$ ( 0.03) ($ 0.22)
Weighted Average Common
Shares Outstanding 40,221 36,666 39,512 36,610
EBITDA, excluding
extraordinary item $ 5,927 $ 3,378 $10,452 $ 6,697
Unilab Corporation
Consolidated Balance Sheet
(amounts in thousands)
June 30, December 31,
1997 1996
Cash, Restricted Cash and
Cash Equivalents $8,466 $13,080
Accounts Receivable, net 40,312 37,279
Other Current Assets 4,413 4,306
Total Current Assets 53,191 54,665
Fixed Assets, net 15,575 17,264
Goodwill and Other Intangible Assets 46,904 48,038
Other Assets 6,658 5,952
Total Assets $122,328 $125,919
Total Current Liabilities 27,466 29,752
Long-Term Debt, net of current
portion 125,138 126,120
Other Liabilities 4,076 4,735
Total Shareholders' Deficit (34,352) (34,688)
Total Liabilities and Shareholders'
Deficit $122,328 $125,919
CONTACT: Unilab Corp., Tarzana
Richard A. Michaelson, 818/758-6607
e-mail: IR@Unilab.com
KEYWORD: NEW JERSEY CALIFORNIA
INDUSTRY KEYWORD: MEDICINE EARNINGS
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