Bio-Reference Laboratories Announces Increase in Net Revenues for the First Quarter
Business Wire - March 22, 1999 17:51
ELMWOOD PARK, N.J.--(BUSINESS WIRE)--March 22, 1999-- Bio-Reference Laboratories, Inc. (Nasdaq Small Cap-"BRLI") announced a loss of $107,741 for the three months ended January 31, 1999, as compared to net income of $37,993 in the corresponding quarter of the previous year. Revenues for the period were $12,640,489, compared to $8,936,424 for the same period last fiscal year, an increase of 42%. The increase in net revenues is primarily attributable to the April 9, 1998 acquisition of Medilabs, Inc. ("MLI"). Operating income rose to $216,216 for the current period versus $175,402 for the previous comparable period. Gross profits on revenues dropped from 50% in the period ended January 31, 1998 to 43% in the quarter ended January 31, 1999, which is reflected in a decrease in the average accession price per patient of 13%, $45.19 versus $52.04. Interest costs for the quarter rose to $323,957 versus $126,692, which is reflected in the financing of the MLI acquisition and the funding of its operations since its acquisition.
Dr. Marc Grodman, President and Chief Executive Officer, stated "Although the decrease in reimbursement rates and the increase in financing related to the MLI acquisition has not produced accretive results to this point as expected, we still believe the acquisition of MLI will be beneficial to the Company in the long run. Reimbursement levels for laboratory services continue to trend downward and for Bio-Reference to thrive in the coming years, we need to become proficient in handling a larger volume of tests at lower reimbursement rates. The MLI acquisition has added two new business lines in the services to nursing homes and correctional facilities and the Company has started to emphasize pre-employment drug testing for employers and hospital reference testing. Although these areas have historically been associated with lower revenue per patient, they may also represent a more stable reimbursement environment than the physician marketplace. Because of the lower reimbursement rates of these services, we must remain ever vigilant to keep expenses in check. The further consolidation of the MLI acquisition will assist us in this process, but that process is not yet completed.
Statements included in this release that are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, including, without limitation, those relating to the Company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, including economic, competitive, technological, governmental regulation and other risks identified from time to time in the Company's reports filed with the Securities and Exchange Commission.
Bio-Reference Laboratories, Inc. is a highly automated computer-driven laboratory serving specialty markets in the New York/Tri-State metropolitan area. The Company performs highly sophisticated testing procedures in addition to high-volume routine testing in clinical chemistry, special chemistry, endocrinology, serology, diagnostic immunology, microbiology rheumatology, parasitology, cellular immunology, radioimmunoassay, hematology, immunohematology, eytology, anatomic pathology and urinalysis.
The Company's common stock is traded on the Nasdaq Small Cap system under the symbol "BRLI".
BIO-REFERENCE LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended January 31,
1999 1998
Net Revenues $ 12,640,484 $ 8,936,424
Cost of Services 7,206,471 4,499,110
Gross Profit on Revenues $ 5,434,012 $ 4,437,314
General and Administrative 5,217,796 4,261,912
Operating Income $ 216,216 $ 175,402
Other Expenses, net 323,957 126,692
Income (Loss) Before Tax $ (107,741) $ 48,710
Provision for Income Tax -- 10,717
Net Income $ (107,741) $ 37,993
Net Income (Loss) Per Share $ (.01) $ .01
Number of Shares: 7,206,299 6,685,155
Net Income (Loss) Per Share -
Assuming Dilution $ (.01) $ .01
Number of Shares 7,977,004 7,379,913
CONTACT: Bio-Reference Laboratories, Inc., Elmwood Park
Dr. Marc Grodman, or Sam Singer, 201/791-2600
or
Mallory Factor Inc., New York
Bill Roll, 212/350-0000 |
