EARNINGS OUT TODAY
Wednesday August 12, 8:01 am Eastern Time
Company Press Release
ProMedCo Announces Second Quarter Results
Highlights:
FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 12, 1998-- -- Sixth consecutive quarter of achieving earnings expectations
since IPO
-- Added record 220 physicians since January 1, 1998
-- Continued excellent same-group growth
-- Growing recognition among physicians as industry leader
-- Successful second quarter equity offering ensures continued financial strength
ProMedCo Management Company (Nasdaq/NM:PMCO - news) today announced financial results for the second quarter and six months ended June 30, 1998.
H. Wayne Posey, ProMedCo's president and chief executive officer, said, ''The past six months has been a very trying period for the physician practice management industry. However, ProMedCo has continued to distinguish and differentiate itself with same-group growth in excess of 15%. This strong internal growth has a number of positive ramifications, including increased physician approval, improving patient care, and ensuring consistent profitability. The Company also announced six transactions totaling approximately 220 physicians during the six-month period. We believe this increasing level of activity proves that physicians still recognize the merits of our industry and that ProMedCo, with its steady, dependable performance, and consistent strategy, has become the PPM of choice.''
For the quarter ended June 30, 1998, net physician groups revenue was $73.1 million, up 184% from $25.7 million a year ago. Net income for the quarter totaled $3.1 million, or $0.15 per share (diluted), on 20.6 million shares, versus net income of $1.1 million, or $0.08 per share (diluted), on 14.7 million shares, in the prior-year period.
For the six months ended June 30, 1998, net physician groups revenue was $134.2 million, up 189% from $46.5 million a year ago. Net income for the quarter totaled $5.5 million, or $0.30 per share (diluted), on 18.5 million shares, versus net income of $1.6 million, or $0.12 per share (diluted), on 13.1 million shares, in the prior-year period. Results for both 1997 and 1996 include the operations of Western Medical Management Corp., Inc., which was consummated on March 17, 1997, and accounted for as a pooling of interests.
In closing, Mr. Posey said, ''Our strong second quarter financial results give further confirmation to ProMedCo's growing stature in the industry. Effective integration of new physician practices, excellent same-group growth and higher affiliation activity are all contributing to our performance. And, we expect this momentum to continue. Our pipeline is full, and with our increasing visibility, much of that interest is coming from physician groups taking the initiative to contact us. We are excited about our prospects.''
During the quarter, ProMedCo completed a secondary offering of 6.9 million shares of Common Stock at $11.00 per share. The Company's net proceeds of approximately $72 million from the offering were used primarily to repay indebtedness under the Company's revolving credit facility, with the balance being used to fund future acquisitions, working capital needs, and for general corporate purposes.
ProMedCo continues to expand its network of affiliated practices. The Company increased its market share in Texas by adding 14 physicians and three mid-level providers through an affiliation with Primary Medical Clinic. Recently, ProMedCo entered two new states, New York and Maryland, through its affiliation with 10 physicians in New York-based Prime Medical Associates, PC and 32 physicians in Maryland-based Shah Associates. The Company also expanded its strong presence in Southwest Florida with its affiliation with Physicians Primary Care, a 39-physician group in Fort Myers, Florida, and Medical Associates of Pinellas, a 48-physician group in northern Pinellas and western Pasco counties.
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 affiliate with primary care-driven, multi-specialty physician groups in pre-managed care, secondary markets. The Company provides expertise in managed care, access to capital, information systems and experienced management.
PROMEDCO MANAGEMENT COMPANY
Financial Highlights(1)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
---------------- ----------------
1998 1997 1998 1997
Physician groups revenue, net $ 73,062 $25,732 $134,242 $46,458
Net income $ 3,049 $ 1,107 $ 5,474 $ 1,562
Net earnings per share:
Basic $ 0.17 $ 0.09 $ 0.35 $ 0.15
Diluted $ 0.15 $ 0.08 $ 0.30 $ 0.12
Weighted average shares
outstanding:
Basic 17,841 12,032 15,784 10,440
Diluted 20,554 14,704 18,511 13,134
(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.
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Contact:
ProMedCo Management Company, Fort Worth
H. Wayne Posey, 817/335-5035
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