Tuesday October 28 8:33 AM EST
Company Press Release
Prime Medical Services, Inc. Reports Record Third Quarter
and Nine Month Results
AUSTIN, Texas--(BUSINESS WIRE)--Oct. 28, 1997--Prime Medical Services, Inc.
(''Prime'')(NASDAQ/NM:PMSI) today announced record results in revenue, pretax income and
net income.
Pretax income for the third quarter increased by 34% to $6,446,000 from $4,808,000 for the third
quarter last year. Net income for the third quarter, despite almost doubling of the effective tax rate,
increased by 13% to $4,520,000, or $.23 per share compared to $4,017,000 or $.21 per share for the
year ago period.
For the nine month period ending September 30, 1997 pretax income advanced by 117% to
$15,093,000 from $6,946,000 in the year earlier comparable period, which included $3,535,000 in
nonrecurring financing costs. Net income for the nine month period ending September 30, 1997
increased by 99% to $11,066,000, or $.56 per share, from $5,570,000, or $.31 per share for the year
ago period, despite a higher tax rate in 1997.
Revenues for the third quarter were in line with expectations increasing by 8% to $26,361,000
from $24,300,000 for the same period in 1996. Revenues for the nine month period ending
September 30, 1997 increased by 40% to $70,470,000 from $50,219,000 for the year ago period.
Ken Shifrin, Chairman, stated, ''Our core business of lithotripsy continues to reflect strong
demand. In this regard, we recently added our 60th lithotripter, versus 55 a year ago, which will
service the Tennessee and Georgia markets.''
Joseph Jenkins, M.D., President, added, ''In addition, we took a significant step toward broadening
our services to the urology community with the start up of our North Carolina prostatherapy
partnership. This mobile microwave thermotherapy procedure provides another treatment option
for men suffering from benign prostatic hyperplasia (BPH), a prostate problem affecting an
estimated 7.5 million men in the U.S. Prime currently has another 8 prostatherapy operations in
various stages of development. In support of this broadening of services, as well as our ongoing
needs in our lithotripsy business, we significantly enhanced our business platform with the recent
acquisition of a manufacturer of mobile trailers for major medical equipment.''
Prime currently operates a fleet of 60 lithotripters in 34 states which perform over 36,000
procedures annually through contracts with over 400 hospitals and 225 managed care companies.
Lithotripsy is a cost effective, non-invasive method for treating kidney stones through the use of
extracorporeal shock waves which pulverize kidney stones and permit them to pass painlessly from
the body. Prime also operates one mobile thermotherapy device and is currently developing
additional mobile routes to provide thermotherapy services to hospitals and surgery centers to treat
benign prostatic hyperplasia (BPH). Thermotherapy uses microwaves to apply heat to the prostate
resulting in relief of the symptoms of BPH without damaging surrounding tissues. In addition,
Prime provides installation, upgrade, manufacturing, refurbishment, and repair services for major
medical equipment manufacturers and mobile medical service providers.
For more information, visit Prime's website at: www.primemedical.com .
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Condensed and Consolidated Financial Data
(In thousands, except per share)
Statements of Operations
Three Months Nine Months
Ended Ended
September 30, September 30,
1997 1996 1997 1996
Revenue $26,361 $24,300 $70,470 $50,219
Costs and expenses:
Cost of services and
administrative expenses 8,377 7,803 23,701 16,767
Depreciation and amortization 2,129 2,286 6,277 5,286
-------- -------- -------- --------
10,506 10,089 29,978 22,053
Operating income 15,855 14,211 40,492 28,166
Other income (expense) 130 235 578 484
Interest expense (1,859) (1,922) ( 5,602) (4,211)
Minority interest 7,680 7,716 20,015 13,958
-------- -------- -------- --------
Pretax income excluding
financing costs 6,446 4,808 15,453 10,481
Financing costs -- -- ( 360) ( 3,535)
-------- -------- -------- --------
Pretax income 6,446 4,808 15,093 6,946
Provision for income taxes 1,926 791 4,027 1,376
Net income $ 4,520 $ 4,017 $11,066 $ 5,570
Net income excluding financing
costs $ 4,520 $ 4,017 $11,426 $ 9,105
Net income per share
(fully diluted) $ 0.23 $ 0.21 $ 0.56 $ 0.31
Net income per share
(fully diluted) excluding
financing costs $ 0.23 $ 0.21 $ 0.58 $ 0.49
Weighted average shares
outstanding (fully diluted) 19,626 19,515 19,613 18,478 |
