Subj: ProMedCo Announces First Quarter Results
Date: 5/14/98 6:07:51 AM Mountain Daylight Time
From: AOL News
BCC: FOW3
ProMedCo Announces First Quarter Results
FORT WORTH, Texas--(BUSINESS WIRE)--May 14, 1998--
Highlights: - Five consecutive quarters of achieving profit expectations since
IPO in March 1997
- Strong same-clinic performance
- Completion of $63 million equity offering
- Concludes major transaction totaling 108 providers
- Expansion of credit facility from $50 million to $70 million
-0-
ProMedCo Management Company (Nasdaq/NM:PMCO) today announced financial results for the first quarter ended March 31, 1998.
H. Wayne Posey, ProMedCo's president and chief executive officer, said, "Last year was an excellent year for ProMedCo, and I am pleased to report that our momentum is continuing. Our positive financial results reflect our ability to add value and maintain strong relationships with our physician partners. Our same-clinic revenue growth for the quarter, once again exceeding 15% over the same period a year ago, translates into high approval ratings from our physicians, better care for patients, and growth potential for our shareholders."
For the quarter ended March 31, 1998, net physician groups revenue was $61.2 million, up 195% from $20.7 million a year ago. Net income for the quarter totaled $2.4 million, or $0.15 per share (diluted), on 16.5 million shares, versus net income of $455,000, or $0.04 per share (diluted), on 11.6 million shares, in the prior-year period. Results for both 1998 and 1997 include the operations of Western Medical Management Corp., Inc., which was consummated on March 17, 1997, and accounted for as a pooling of interests.
Subsequent to the close of the first quarter, ProMedCo announced two important transactions. The Company completed its affiliation with Berkshire Physicians and Surgeons, PC (Berkshire), a multi-specialty group in Pittsfield, Massachusetts, with 108 providers, including 79 physicians and 15 mid-level providers plus a 14-physician IPA. In addition, the Company expanded its credit facility from $50 million to $70 million through a facility with its existing lenders, NationsCredit Commercial Corporation and AmSouth Bank, and adding BankBoston.
In May, the Company completed a public offering of 6.0 million shares of Common Stock at $11.00 per share, with net proceeds to the Company of approximately $63 million. Coupled with the additional funds available from the Company's recently expanded credit facility, the Company has a solid financial platform to continue its expansion goals and take advantage of its active pipeline of affiliation opportunities.
In closing, Mr. Posey said, "At our initial public offering in March 1997, we were affiliated with 192 providers. Today, that number has increased to 1,090, including 435 physicians and 115 mid-level providers in our affiliated groups and 540 physicians in associated IPAs. In addition, our exclusive focus on secondary markets presents us with an enormous market opportunity. Research indicates that there are over 1,200 markets which meet our criteria with 120 million in population being served by approximately 144,000 physicians. Furthermore, our pipeline is more active than I have ever seen it, and physician concern about certain developments in our industry clearly is benefitting ProMedCo."
This press release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on current expectations and may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 1997. There can be no assurance that statements made in this press release relating to future events will be achieved.
ProMedCo, headquartered in Fort Worth, Texas, is a physician practice management company. ProMedCo's focus is to facilitate the consolidation of physician groups into primary care-driven, multi-specialty networks. ProMedCo is focused on pre-managed care, secondary markets and, within those markets, primary-care driven multi-specialty physician groups. -0- *T
PROMEDCO MANAGEMENT COMPANY
Financial Highlights(1) (In thousands, except per share amounts)
Three Months Ended
March 31, ------------------ 1998 1997
Physician groups revenue, net $61,179 $20,725
Net income $ 2,426 $ 455
Net earnings per share: Basic $ 0.18 $ 0.05
Diluted $ 0.15 $ 0.04
Weighted average shares outstanding: Basic 13,616 8,669
Diluted 16,491 11,617
(1) Includes results for the full period in each year for Western
Medical Management Corp., Inc., which was consummated on
March 17, 1997, and accounted for as a pooling-of-interests. *T
CONTACT:
ProMedCo Management Co., Fort Worth
H. Wayne Posey, 817/335-5035
To edit your profile, go to keyword NewsProfiles.
For all of today's news, go to keyword News. |
