HORIZON Pharmacies, Inc. Releases
Third Quarter Results Ended September 30, 1998, Reports
Strong Sales and Earnings; Net Revenues Rose to Over $20
Million, a 195% Increase EPS of $0.06 in 1998 vs. ($0.01)
in 1997
PRINCETON, Texas, Nov. 12 /PRNewswire/ -- HORIZON Pharmacies, Inc. (Amex: HZP -
news) released its third quarter results November 12, 1998. The Company reported basic earnings
(loss) per share of $0.06 in the third quarter of 1998 on 5,491,023 shares compared to ($0.01) in
the third quarter of 1997 on 2,388,508 shares. The Company reported diluted EPS of $0.06 in the
third quarter of 1998 on 5,758,417 shares compared to ($0.01) on 2,388,508 shares in the third
quarter of 1997. ''Our aggressive acquisition schedule continues to produce outstanding results in
revenues and earnings,'' stated Rick McCord, President and CEO, ''lead by exceptionally strong
same store sales.'' The third quarter ended with the company acquiring eight pharmacies and one
home medical equipment location. At the end of the third quarter, the chain consisted of 41
pharmacies in 13 states, 12 home medical equipment (''HME'') locations, five closed-door
institutional pharmacies, five intravenous (IV) infusion operations and two home healthcare agencies,
and one wholesale operation.
Net revenues increased 195% for the three months ended September 30, 1998, over the same
period in 1997 to $20,322,000 from $6,880,000 primarily because the Company had more stores
operating during the third quarter 1998. Same store sales also increased 13.9% during the third
quarter of 1998.
Pretax income for the third quarter increased $350,000 or 179% from $195,000 in 1997 to
$545,000 in 1998. The Company reported a net income of $333,000 for the third quarter of 1998
compared to net loss of $13,000 in the third quarter of 1997.
For the first nine months of 1998, net revenues increased 173% to $49,011,000 from $17,940,000
over the same period in 1997. Same store sales increased 13.7% for the first nine months of 1998.
Total prescriptions filled were 436,651 for the third quarter and 1,112,924 year-to-date.
Prescription sales represented 75% of total revenues for the third quarter and 76% of total revenues
year-to-date.
Pretax income for the first nine months of 1998 increased 165% to $1,359,000 from $513,000 over
the same period in 1997.
The Company reported basic EPS of $0.17 for the nine months ended September 30, 1998 on
4,888,251 shares compared to $0.13 on 1,547,510 shares for the nine months ended 1997. The
Company reported diluted EPS of $0.15 for the nine months ended September 30, 1998 on
5,458,879 shares compared to $0.13 on 1,547,510 shares for the same period in 1997.
Total assets increased $8,331,000 or 26.1% in three months from $31,895,000 at June 30, 1998, to
$40,226,000 at September 30, 1998. Shareholders' equity increased $2,741,000 or 13.5% increase
in three months from $20,361,000 at June 30, 1998, to $23,102,000 at September 30, 1998.
Rick McCord, also stated, ''We continued our strategic consolidation plan with the purchase of eight
additional pharmacies and one medical equipment location during the third quarter. We will continue
to look for strategic alliances throughout the pharmacy industry, such as the one established with the
McKesson Corporation [NYSE:MCK - news]. We will continue to be an aggressive growth
company through the acquisition of profitable neighborhood pharmacies and home medical
equipment locations. Our future is one of total healthcare and one stop shopping. Our mission is to be
the best pharmacy company in America by fulfilling the total healthcare needs of customers in the
communities we serve.''
Since September 30, 1998, the Company has acquired four additional retail pharmacies bringing the
current totals to 45 retail pharmacies in 13 states, 12 HME locations, five closed-door institutional
pharmacies, five intravenous (IV) infusion operations, two home healthcare agencies and one
wholesale operation.
HORIZON Pharmacies, Inc.
Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30 September 30
1997 1998 1997 1998
Net revenues
Prescription drugs
sales $5,496,385 $15,329,075 $14,399,535 $37,334,239
Other sales and
services 1,383,301 4,993,053 3,540,210 11,677,081
Total net revenues 6,879,686 20,322,128 17,939,745 49,011,320
Costs and expenses
Cost of sales and
services
Prescription
drugs 3,779,860 10,895,943 9,997,930 26,886,060
Other 814,829 2,826,480 2,179,343 6,484,332
Depreciation and
amortization 80,078 230,570 204,966 560,392
Selling, general
and administrative
expenses 1,978,932 5,731,517 4,868,718 13,475,575
Total costs and
expenses 6,653,699 19,684,510 17,250,957 47,406,359
Income from
operations 225,987 637,618 688,788 1,604,961
Other income (expense)
Interest and other
income 26,825 64,433 25,393 148,531
Interest expense (57,835) (157,272) (200,748) (394,513)
Total other income
(expense) (31,010) (92,839) (175,355) (245,982)
Income before
provision for taxes 194,977 544,779 513,433 1,358,979
Provision for income
taxes 208,291 212,000 319,291 534,000
Net income (loss) ($13,314) $332,779 $194,142 $824,979
Basic earnings (loss)
per share ($0.01) $0.06 $0.13 $0.17
Diluted earnings (loss)
per share ($0.01) $0.06 $0.13 $0.15
Weighted average
shares outstanding
-basic 2,388,508 5,491,023 1,547,510 4,888,251
Weighted average
shares outstanding
-diluted 2,388,508 5,758,417 1,547,510 5,458,879
Summary Balance Sheet Information
December 31 September 30
1997 1998
Assets
Current assets $16,389,431 $28,235,373
Property, equipment and
capital lease assets 1,738,617 3,371,247
Intangibles, net 2,525,659 8,619,550
Total assets $20,653,707 $40,226,170
Liabilities and
Shareholders' Equity
Current liabilities $5,102,592 $10,884,303
Long-term debt 3,530,457 6,083,809
Deferred taxes 182,000 156,339
Total liabilities $8,815,049 $17,124,451
Total shareholders'
equity $11,838,658 $23,101,719
Total liabilities and
shareholders' equity $20,653,707 $40,226,170
SOURCE: HORIZON Pharmacies, Inc.
This is $0.01 below estimates. |
