Wednesday March 26 8:02 AM EDT
PhyMatrix Reports Fourth Quarter and Year-End Results and Announces
Acquisition of 1,200 Physician IPA
The Company Exceeds Analysts' Expectations
WEST PALM BEACH, Fla., March 26 -- Phymatrix Corp , a multispecialty, integrated physician practice management
company, today announced results for the fourth quarter and year ended January 31, 1997.
Revenues for the quarter were $60,592,000, up 98 percent from the $30,616,000 reported during the quarter ended December
31, 1995. Pre-tax income for the quarter ended January 31, 1997 was $5,630,000, compared with a pre-tax loss of
$(4,541,000) during the quarter ended December 31, 1995. Net income for the three months ended January 31, 1997 was
$3,712,000, or $0.16 per share. Weighted average shares outstanding for the fourth quarter were 23,198,000.
For the year ended January 31, 1997, revenues rose 169 percent to 189,961,000, compared to $70,733,000 during the year
ended December 31, 1995. Pre-tax income for the year ended January 31, 1997 was $18,893,000 versus a pre-tax loss of
$(11,025,000) during the year ended December 31, 1995. Net income for the year ended January 31, 1997 was $12,057,000, or
$0.54 per share. Weighted average shares outstanding for the year were 22,511,000.
Abraham D. Gosman, CEO and President of PhyMatrix, said, "We are pleased to report that our results for the year ended
January 31, 1997 exceeded analysts' estimates. Earnings per share for the year ended January 31, 1997 were $0.54, which
exceeded analysts' earnings estimates of $0.50 per share which were originally established during January 1996 at the Initial
Public Offering. We have been able to meet or exceed the analysts' earnings estimates for each of our reporting periods. The
Company, as of January 31, 1997, had $80 million in cash available and a strong balance sheet which will provide capital to be
used for future expansion."
PhyMatrix also announced it has signed two agreements to expand its South Florida network and physician group affiliation.
The first is an agreement with National Physician Services Inc. to form a general partnership named National Physician's
Network Associates to own and operate an IPA/MSO with 1,200 physician providers located in Dade, Broward and Palm Beach
counties in Florida.
Concurrently, the Company also signed an escrow agreement to acquire a 50 percent interest in a Florida MSO, National
Physician Services, Ltd. The MSO is entering into a 40 year management services agreement with the Medical Health Alliance,
Ltd., a 25-physician multispecialty medical group practice located in Dade County, Florida.
"These two most recent acquisitions continue the growth of the PhyMatrix integrated delivery services capability in South Florida
and extend its capacity to expand its managed care contracting networks," added Mr. Gosman.
Headquartered in West Palm Beach, Florida, PhyMatrix, a multispecialty, integrated physician practice management company,
provides management services to disease specialty and primary care physicians, and provides related medical support services.
The Company's primary strategy is to develop disease management networks in specific geographic locations by affiliating with
disease specialty and primary care physicians. Where appropriate, the Company supports its affiliated physicians with related
diagnostic and therapeutic medical support services as well as medical malls or health parks.
PHYMATRIX CORP.
FINANCIAL RESULTS
(In thousands, except per share data)
Three Months Ended Year Ended
Jan. 31 Dec. 31 Jan. 31 Dec. 31
1997 1995 1997 1995
(unaudited) (audited)
Net revenue $60,592 $30,616 $189,961 $70,733
Operating expenses
Cost of affiliated physician
management services 12,581 7,376 42,245 9,656
Salaries, wages and benefits 14,013 10,552 52,313 31,976
Depreciation and amortization 1,928 1,515 7,144 3,863
Rent 2,010 1,802 7,653 4,503
Provision for closure loss -- 2,500 -- 2,500
Earnout payment -- -- -- 1,271
Other 24,078 9,553 60,764 23,706
Total 54,610 33,298 170,119 77,475
Interest expense 565 2,086 1,658 4,852
(Income) from investment in
affiliates (213) (227) (709) (569)
Pre-tax income (loss) 5,630 (4,541) 18,893 (11,025)
Income tax expense 1,918 ** 6,836 **
Net income (loss) $3,712 $(4,541) $12,057 $(11,025)
Earnings per weighted average
share $0.16 -- $0.54 --
Weighted average number of shares
outstanding 23,198 -- 22,511 --
Revenues
Cancer services $25,384 $20,445 $94,970 $44,905
Non-cancer services 22,792 5,089 55,353 7,705
Other medical services 7,182 5,082 22,379 18,123
Medical facility development 5,234 -- 17,259 --
Total $60,592 $30,616 $189,961 $70,733
** Provision for income taxes has not been reflected in the combined financial statements for the three and twelve months ended
December 31, 1995 since there was no taxable income on a combined basis. SOURCE PhyMatrix Corp. |
