From BW: BW0062 OCT 24,1997 7:30 PACIFIC 10:30 EASTERN
( BW)(SYNCOR-INTERNATIONAL)(SCOR) Syncor Reports Third Consecutive
Quarter of Double Digit Growth in Net Income From Continuing
Operations
Business Editors & Health/Medical Writers
WOODLAND HILLS, Calif.--(BW HealthWire)--Oct. 24, 1997--Syncor
International Corp. (Nasdaq:SCOR) Friday announced it achieved double
digit growth in net income from continuing operations for the third
quarter ended Sept. 30, 1997.
Net sales for the third quarter ended Sept. 30, 1997, increased
4.7 percent to $94.5 million, up from $90.3 million for the
corresponding period of the prior year. Net income for the third
quarter was $1.8 million, or 17 cents per share, compared with $0.5
million, or 5 cents per share (includes 6 cents non-recurring and net
loss of 8 cents from a discontinued operation) for the corresponding
period of the prior year. Net income from continuing operations
increased more than 26 percent when compared with the same period of
the prior year.
Net sales for the nine months ended Sept. 30, 1997, increased 3.7
percent to $285.8 million as compared with $275.6 million for the
corresponding period of the prior year. Net income for the nine
months ended Sept. 30, 1997, increased by 110 percent to $9.4
million, or 92 cents per share (includes 17 cents non-recurring and
net gain of 10 cents from a discontinued operation), compared with
$4.5 million, or 42 cents per share, for the same period in 1996
(included 9 cents non-recurring and net loss of 13 cents from a
discontinued operation).
Net income from continuing opertions increased 42 percent when
compared with the same nine-month period of the prior year.
"Syncor's financial performance for the first nine months of
1997 reflects the ongoing commitment of Syncor's business partners to the successful achievement of our objectives," said Robert Funari,
Syncor's president and chief executive officer.
"Our company continues to be successful in meeting the challenges
of a changing health care environment due to a strong focus on
customer service and operational excellence. We will continue to
improve the services we provide our customers in the years ahead as a
demonstration of our commitment to leadership and enhanced
stockholder value."
The third quarter financial results reflect the positive impact of
several companywide changes directed at increasing operating
efficiencies and reducing costs. One of the company's key objectives
for 1997 is to improve margins. Syncor's overall gross profit margin
of the third quarter of 1997 increased to 23.6 percent from 20.7
percent in the prior year. For the nine-month period ended Sept.
30,1997, the gross profit margin increased to 23.2 percent from 22
percent.
During the third quarter of 1997, Syncor opened its first "open"
MRI facility in Laguna Hills, Calif. The opening of this facility
reflects Syncor's strategic decision to expand its participation in
the field of diagnostic imaging. The "open" MRI modality uses state-
of-the-art technology, has low operating costs and addresses
significant patient needs.
An additional six facilities are anticipated to be opened prior to
Dec. 31, 1997.
Syncor International compounds and dispenses radiopharmaceutical
products -- in patient-specific unit doses and multidose form -- for
use in diagnostic imaging and therapy. Syncor distributes these time-
critical products through an expanding network of nuclear pharmacy
service centers -- 118 domestic and 12 international. This network
services 7,000 customers and is the premier provider of both
diagnostic and information services to hospitals and alternate site
nuclear medicine facilities nationwide.
Additionally, Syncor is broadening its business base beyond
providing specialized pharmacy services. Through a joint venture
announced in February 1997, Syncor plans to expand its presence in
the medical imaging field.
Syncor anticipates operating 10 "open" MRI (magnetic resonance
imaging) centers across the United States during the first year of
the joint venture's operations. In addition, Syncor has entered the
radiopharmaceutical manufacturing field with the purchase of an
Iodine-123 business.
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Syncor International Corp. and Subsidiaries
Consolidated Statements of Income
(In Thousands, execpt per-share data)
Three Months Ended Sept. 30,
1997 1996
Net sales $94,493 $90,254
Cost of sales 72,233 71,601
Gross profit 22,260 18,653
Operating, selling and
administrative expenses 19,708 17,816
Operating income 2,552 837
Other income, net 371 1,332 (a)
Income before income taxes 2,923 2,169
Provision for income taxes 1,169 779
Net income from continuing
operations $1,754 $1,390
Discontinued operations,
net of tax 0 (918)
Net income $1,754 $472
Net income per share --
Primary
Continuing Operations $0.17 $0.13
Discontinued Operations $0.00 ($0.08)
Net Income Per Share $0.17 $0.05
Weighted average shares
outstanding -- Primary 10,323 10,943
Net income per share --
Fully Diluted
Continuing Operations $0.17 $0.13
Discontinued Operations $0.00 ($0.08)
Net Income Per Share $0.17 $0.05
Weighted average shares
outstanding -- Fully diluted 10,370 10,945
(a) Includes $1,000 non-recurring item in 1996.
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Syncor International Corp. and Subsidiaries
Consolidated Statements of Income
(In Thousands, execpt per-share data)
Nine Months Ended Sept. 30,
1997 1996
Net sales $285,764 $275,571
Cost of sales 219,534 214,949
Gross profit 66,230 60,622
Operating, selling and
administrative expenses 55,847 53,378
Operating income 10,383 7,244
Other income, net 3,511 (a) 2,395 (a)
Income before income taxes 13,894 9,639
Provision for income taxes 5,557 3,761
Net income from continuing
operations $8,337 $5,878
Discontinued operations,
net of tax 1,063 (1,381)
Net income $9,400 $4,497
Net income per share --
Primary
Continuing Operations $0.82 $0.55
Discontinued Operations $0.10 ($0.13)
Net Income Per Share $0.92 $0.42
Weighted average shares
outstanding -- Primary 10,178 10,662
Net income per share --
Fully Diluted
Continuing Operations $0.80 $0.55
Discontinued Operations $0.10 ($0.13)
Net Income Per Share $0.90 $0.42
Weighted average shares
outstanding -- Fully diluted 10,357 10,784
(a) Includes $2,825 non-recurring item in 1997 and $1,543 in 1996.
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CONTACT: Syncor International Corp., Woodland Hills
Mike E. Mikity, 818/737-4610
Mary L. Meusborn, 818/737-4643 |
