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Ross, Andrew: I thought earnings were coming out the 10th but I saw this press release this morning. Phmx was up as much as 7/8 at one point. I bought back in April at 12 and watched it go up to 17 and back down to twelve. I am considering selling if it gets 16-17 soon. Although Ross seems to think it may hit 24 at sometime so I might be better holding into next year and selling so that less goes to Uncle Sam. Any input from you guys would be appreciatted.
JT
Company Press Release
Source: PhyMatrix Corp.
PhyMatrix Exceeds Consensus Estimates for the Second Quarter And Six Months Ended July 31, 1997
WEST PALM BEACH, Fla., Sept. 4 /PRNewswire/ -- PhyMatrix Corp. (Nasdaq:PHMX), a multispecialty, integrated physician management company, today announced that revenues for the second quarter ended July 31, 1997, were $75,489,000, up 87% from the $40,424,000, as reported for the same quarter a year ago. Pretax income was $6,572,000, up 49% from the $4,399,000 for the same quarter a year ago. Net income for the quarter was $4,271,000, or $0.18 per share, compared to net income of $2,771,000, or $0.13 per share, for the same quarter a year ago. The weighted average shares outstanding for the second quarter ended July 31, 1997 were 24,266,939.
Revenues for the six months ended July 31, 1997 were $145,647,000, up 88% from $77,631,000 as reported for the first six months last year. Pretax income for the six months ended July 31, 1997 was $12,742,000, up 57% from $8,094,000 for the first six months last year. Net income for the first six months ended July 31, 1997 was $8,196,000, or $0.34 per share, compared to net income of $5,062,000, or $0.23 per share, for the first six months last year.
``Once again we are happy to report continued growth in earnings during the second quarter,'' said Abraham D. Gosman, Chairman and CEO of PhyMatrix. ``We had earnings of $0.18 per share for the quarter, which exceeds consensus estimates of $0.17, and is up from earnings per share of $0.13 for the same quarter last year.''
Mr. Gosman continued, ``We continued to expand our Northeast operations during the first six months of this year. In July we completed our management services agreement with Beth Israel to manage its DOCS Division, and the acquisition of U.S. Management Systems (USMS), a premier physician practice management organization in Metropolitan New York. Through this acquisition we now provide physician practice management services for DOCS' more than 100-physician multispecialty group located throughout Manhattan, Westchester, the Bronx, Staten Island and Brooklyn. In addition, we recently announced a twenty-year administrative services agreement with BAB Nuclear Radiology, P.C. BAB is a corporation with revenues in excess of $12 million that operates five diagnostic imaging centers in Suffolk County on Long Island, New York.''
The Company also recently signed a letter of intent to acquire interests in MainStreet Practice Management, Inc., a practice management company that manages IPAs in Nassau and Suffolk Counties, and Queens, New York. In addition, PhyMatrix and Beth Israel are moving toward completing the formation of a Management Services Organization to manage the medical risk contracting to the more than 2,000 physicians of Greater Metropolitan Health Systems. Mr. Gosman commented, ``After we close on these two transactions, PhyMatrix will be managing more than 6,000 physicians in IPAs in the Northeast, which is consistent with our strategy to provide a managed care integrated delivery system in this region.''
``In June, we announced the acquisition of two diagnostic imaging centers in Dade County, Florida, and we entered into a management agreement for a radiation therapy center in Westchester, New York. The acquisition of the two diagnostic imaging centers expands our local provider network in Florida and the radiation therapy center enhances our penetration into the New York market. We now own and/or manage ten diagnostic imaging centers (up from two at the beginning of the year), which is consistent with our strategy of expanding these ancillary services.''
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 specialty-care 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.
This release contains forward-looking statements regarding the Company's future plans, operations and prospects. The Company's actual results could differ materially from the results anticipated in these forward-looking statements as a result of uncertainties, including risks relating to demand, pricing, competition, construction, and other factors identified in the Company's filings with the Securities and Exchange Commission.
PHYMATRIX CORP.
FINANCIAL RESULTS
(In thousands, except share data)
Three Months Ended Six Months Ended
July 31, July 31, July 31, July 31,
1997 1996 1997 1996
(unaudited)
Net Revenue $75,489 $40,424 $145,647 $77,631
Operating expenses:
Cost of affiliated physician
management services 16,558 8,879 33,535 17,412
Salaries, wages and
benefits 17,460 12,173 33,812 23,833
Depreciation and
amortization 2,361 1,673 4,533 3,266
Rent 3,449 1,735 6,521 3,441
Other 28,558 11,152 53,534 21,044
Total 68,386 35,612 131,935 68,996
Interest expense 726 540 1,383 810
(Income) from investment
in affiliates (195) (127) (413) (269)
Pretax income 6,572 4,399 12,742 8,094
Income tax expense 2,301 1,628 4,546 3,032
Net income $4,271 $2,771 $8,196 $5,062
Earnings per weighted
average share $0.18 $0.13 $0.34 $0.23
Weighted average number
of shares
outstanding 24,266,939 21,845,841 23,863,289 21,689,631
Revenue:
Cancer services $26,741 $23,140 $52,246 $44,273
Non-cancer physician
services 35,935 8,639 67,933 15,873
Other medical services 7,618 4,914 15,025 10,086
Medical facility
development 5,195 3,731 10,443 7,399
Total $75,489 $40,424 $145,647 $77,631 |
