Third Qtr. results for Unilab (Amex: ULB ) just released.
They seem to be holding their own. Better yet (if I read their report..right), it's indicated their Revenues more than Quadrupled, and their Earnings per Share Tripled.
IMHO, the next Qtr. numbers will even be Better when they include the soon to be concluded Meris Labs acquisition.
I'm holding my Shares and thinking to purchase in a Cost average with what appears to be a well managed Company.
Comments from anyone would be appreciated.
Here's a copy of their PR Release:
(hope it copies 'OK' (?) !
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"PRESS RELEASE UNILAB CORPORATION
(AMEX:ULB)
18448 Oxnard Street
Tarzana, CA 91356
www.Unilab.com
For Further Information:
Charles Kim
Phone: (818) 758-6607
e-mail: IRelations@Unilab.com
IMMEDIATE RELEASE
November 2, 1998
UNILAB CORPORATION ANNOUNCES THIRD QUARTER RESULTS
TARZANA, CA, November 2, 1998 -- UNILAB Corporation (AMEX: ULB) announced today that net sales for the quarter ended September 30, 1998 were $53.2 million versus $54.2 million in the same period last year. The Company reported net income for the quarter of $3.1 million, or $0.07 per common share, compared to net income of $0.7 million, or $0.02 per common share in the same period last year.
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") were $8.2 million for the quarter, or 15.5% of sales, compared to $6.4 million, or 11.9% of sales, for the same period last year.
For the first nine months, sales were $162.0 million compared to $161.3 million during the same period last year. Net income was $9.6 million, or $0.22 per common share, compared to a net loss of ($0.4) million, or ($0.01) per common share in the prior year. EBITDA was $25.4 million, or 15.7% of sales, compared to $16.9 million, or 10.5% of sales in the same period last year.
"Our third quarter results evidence management's continued success in addressing the Company's critical issues and objectives," said David Weavil, Unilab's Chairman and CEO. "Additionally, I am pleased with our year-to-date operating results which show a better than 50% EBITDA improvement and net income growth from a slight loss last year to a $9.6 million profit. It is satisfying to see the commitment and focus to our detailed operating plan translate into meaningful financial results."
The Company's volume for the 3rd quarter was 4% below the same quarter last year, and pricing increased by 2.5%. Year to date, pricing has increased 4% compared to the same period in 1997. "We're encouraged by the pricing trends of the last year, even in light of this year's HCFA chemistry profile changes, which have now been incorporated into our test ordering and claims filing processes," stated Mr. Weavil. "With increased confidence in our strengthened operations, leaner expense base, and commitment to managing a more reasonable pricing environment, we see exciting opportunities—including volume growth—available to the Company. While we plan to use organic and transactional growth as a means to leverage our infrastructure and earnings, we don't plan to pursue growth at the expense of profit margins."
Mr. Weavil added, "Unilab is excited about our recently announced purchase of substantially all of the assets of Meris Laboratories, Inc., and we expect the transaction to close within a week. We are enthusiastic about this opportunity to enhance shareholder value, as well as expand our presence in the California marketplace to better serve our clients throughout the state."
The statements in this press release that are not historical facts may be deemed to be forward-looking statements. Each of the above forward-looking statements is subject to change based on various risks and uncertainties, including without limitation, legislative and regulatory developments and competitive actions in the marketplace that could cause the outcome to be materially different from stated. Certain of these risks and uncertainties are listed in the Company's 1997 Form 10-K.
Unilab Corporation is the largest provider of clinical laboratory testing services in California through its primary testing facilities in Los Angeles, San Jose and Sacramento and over 200 regional service and testing facilities located throughout the state.
- tables to follow –
Unilab Corporation
Statement of Operations
(amounts in thousands, except per share data)
Three months ended Sept. 30, Nine months ended Sept. 30,
1998 1997 1998 1997
Revenue $53,160 $54,238 $162,046 $161,298
Direct Laboratory and Field Expenses:
Salaries, Wages and Benefits 16,255 17,174 49,645 52,346
Supplies 7,480 7,488 22,585 22,655 Other Operating Expenses 13,075 14,649 39,404 43,224
36,810 39,311 111,634 118,225
Amortization and Depreciation 1,848 2,210 5,774 6,675
Selling, General and Administrative Expenses 8,132 8,491 24,990 26,185
Total Operating Expenses 46,790 50,012 142,398 151,085
Operating Income 6,370 4,226 19,648 10,213
Other Income (Expenses)
Interest Expense, net (3,308) (3,535) (10,068) (10,603)
Income (Loss) Before Income Taxes 3,062 691 9,580 (390)
Net Income (Loss) 3,062 691 9,580 (390)
Preferred Stock Dividends 33 36 99 108
Net Income (Loss) Available to Common
Stockholders $3,029 $655 $9,481 ($498)
Basic and Diluted Earnings per Share:
Net Income (Loss) $0.07 $0.02 $0.22 ($0.01)
EBITDA $8,218 $6,436 $25,422 $16,888
Unilab Corporation
Balance Sheet
(amounts in thousands)
September 30 December 31,
1998 1997
Cash and Cash Equivalents $19,901 $11,652
Accounts Receivable, net 40,395 36,583
Other Current Assets 4,357 4,106
Total Current Assets 64,653 52,341
Fixed Assets, net 11,510 13,160
Goodwill and Other Intangible Assets 45,034 46,430
Other Assets 6,446 6,769
Total Assets $127,643 $118,700
Total Current Liabilities 24,695 23,791
Long-Term Debt, net of current portion 123,450 124,285
Other Liabilities 2,043 2,907
Total Shareholders' Deficit (22,545) (32,283)
Total Liabilities and Shareholders' Deficit $127,643 $118,700 |
