Company Press Release
HEARx reports first quarter results
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--May 9, 1997--Paul A. Brown, M.D., chairman of HEARx Ltd. (AMEX:EAR) announced today that
revenues for the first quarter of this fiscal year increased 22 percent to $5,748,257 from $4,718,192 as a result of both the expanded center network and the
effects of managed care contracts signed in 1996.
As expected, revenues have increased substantially, both from year to year and quarter to quarter. At the same time, increased losses were incurred as a result of
establishing 44 new centers since January 1996 in advance of the membership of the company's managed care clients. The loss for the quarter was significantly
reduced, by approximately 50 percent, as compared to the loss in the fourth quarter of 1996 and is the lowest loss in the last three quarters. It is the company's
expectation that revenues will continue to increase and losses will continue to be reduced as a result of the company's advertising programs and the success of
the membership drives of HEARx's various managed care clients. Although a considerable amount of capital has been expanded in developing the HEARx
network and system, contracts continue to be signed and revenues continue to increase.
HEARx, with the largest network of audio-vestibular rehabilitative centers in the $2 billion field of hearing services, operates 72 company-owned centers in
Connecticut, Florida, New Jersey, New York, Pennsylvania, Oregon and Virginia. The company provides hearing care primarily to patients whose health
insurance and managed care organizations have contracted with HEARx.
March 28, 1997 March 29, 1996
Revenues $5,748,257 $4,718,192
Operating income (loss) (1,891,483) 99,177
Dividends on preferred stock 55,186 ---
Net income (loss) (1,946,669) 99,177
Net income (loss) per common
share ($0.02) $0.00
Weighted average number of shares
of common stock outstanding 82,964,258 51,093,536
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