Press Release on 1st quarter results:
Monday April 27, 5:02 am Eastern Time
Company Press Release
HEARx Reports First Quarter Results
WEST PALM BEACH, Fla.--(BW HealthWire)--April 27, 1998--HEARx Ltd.
(AMEX:EAR - news), the largest audiology-based professional hearing care
network in the United States, today reported that revenues for its first
quarter ending March 27, 1998 increased 23 percent to $7,094,329
compared to $5,748,257 for the comparable quarter last year.
''The company has now shifted emphasis from opening new centers to
achieving profitability,'' said Paul A. Brown, M.D., Board Chairman.
''Our progress toward profitability will be evident by our improved
results in successive quarters,'' he added. Dr. Brown noted that first
quarter revenues increased to $7,094,329 from $6,866,104 in the fourth
quarter of 1997.
At the center level, HEARx realized operating profit from company-owned
centers (before corporate expenses of general and administration,
depreciation, taxes, interest and preferred dividends) of $349,827
compared to a loss of ($342,279) in the fourth quarter of 1997. As a
result of improved financial results at the center level, combined with
a reduction in corporate general and administrative expenses, the loss
from operations (before dividends on preferred stock) decreased from
$2,998,598 in the fourth quarter of 1997 to $1,940,802 in the first
quarter of 1998.
Dr. Brown pointed out that the 11 new contracts signed at the end of the
fourth quarter of 1997 and during the first quarter of 1998 should
result in significant increases in revenues during the next two quarters
and a further reduction in total losses.
HEARx, with the largest network of audio-vestibular rehabilitative
centers in the $2 billion field of hearing services, operates 74
company-owned centers in Connecticut, Florida, New Jersey, New York, and
Pennsylvania. The company provides hearing care primarily to patients
whose health insurance and managed care organizations have contracted
with HEARx and to an increasing extent, to the ''self-pay'' patients who
are unaffiliated with those organizations.
Certain of the statements made in this press release contain
forward-looking information. Such statements involve certain risks and
uncertainties that could cause actual results to differ materially from
those in the forward-looking statements. Potential risks and
uncertainties include the ability of the Company to capitalize on its
newer contracts as well as those risks described in the Company's
filings with the Securities and Exchange Commission, including the Form
10-K for the fiscal year ended December 26, 1997 and the Form S-3 resale
registration statement dated June 25, 1997.
(Table to follow)
HEARx, Ltd.
SUMMARY OF CONSOLIDATED QUARTERLY EARNINGS
PERIODS ENDED MARCH 27, 1998 AND MARCH 27, 1997
As of As of
March 27, 1998 March 27, 1997
Net Sales $ 7,094,329 $ 5,748,257
Net loss applicable to common
stockholders $ (2,044,837) $ (1,946,669)
Net loss per common share $ (0.02) $ (0.02)
Weighted average number of share
of common stock outstanding 100,353,997 82,964,258
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Contact:
Paul A. Brown, M.D. Weber/RBB
Chairman of the Board Sandy Baksys
561/478-8770, Ext. 123 305/448-7450 |
