PMCO - NEWS ALERT
riday November 14, 8:32 am Eastern Time
Company Press Release
Promedco Announces Quarterly Eps Of $0.11
Completion Of Major Transaction Increases Providers By 25% And Annual Revenue Run Rate
To Over $200 Million
INDUSTRY MERGER ACTIVITY SPURS INCREASED PHYSICIAN INTEREST IN COMPANY
FORT WORTH, Texas--(BUSINESS WIRE)--Nov. 14, 1997-- ProMedCo Management Company (Nasdaq/NM:PMCO -
news) today announced financial results for the third quarter and nine months ended September 30, 1997.
For the quarter ended September 30, 1997, net physician groups revenue was $29.3 million, up 131% from $12.7 million a
year ago. Third quarter results for the period ended September 30, 1997, do not reflect revenues related to certain transactions
announced in the third quarter which closed in the fourth quarter. Net income for the quarter totaled $1.6 million, or $0.11 per
share, on 15.1 million shares, versus a loss of $339,000, or $0.04 per share, on 8.2 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.
For the nine months ended September 30, 1997, net physician groups revenue was $75.8 million, up 154% from $29.8 million
a year ago. Net income for the nine months totaled $3.2 million, or $0.23 per share, on 13.9 million shares, versus a loss of
$1.3 million, or $0.15 per share, on 8.2 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.
ProMedCo also announced today the completion of its previously announced transaction with Christie Clinic Association
whereby Christie entered into a long-term management agreement with ProMedCo. The affiliation with Christie, which is
ProMedCo's largest transaction to date, adds 144 providers, including 87 physicians, 39 physician extenders, and an
18-physician IPA, to ProMedCo's network.
H. Wayne Posey, ProMedCo's president and chief executive officer, said, ''Our strong third quarter performance
demonstrates our ability to add value to existing operations, and it also highlights the remarkable success we have achieved in
affiliating with additional physicians. When we completed our initial public offering in March 1997, we were affiliated with a
total of 194 providers and had an annual revenue run rate of $70 million. Including today's affiliation with Christie Clinic, we are
now affiliated with a total of 664 providers, including 311 physicians in groups, 258 in IPAs, and 95 physician extenders and
have an annual revenue run rate of over $200 million. This 242% increase in the number of providers since March of this year
validates our growth strategy and is an indication of the increasing recognition we are receiving in the physician community.''
During the third quarter, ProMedCo also completed affiliations and entered into long-term services agreements with
Intercoastal Medical Group in Sarasota, Florida, and Beacon Medical Group in Harrisburg, Pennsylvania. In addition, the
Company recently increased its credit facility with NationsCredit Commercial Corporation and AmSouth Bank from $25
million to $50 million to meet ProMedCo's ongoing working capital and acquisition needs.
''Adding to our very positive affiliation momentum,'' Mr. Posey said, ''is the recent upsurge in physician interest in ProMedCo
which is being generated by the merger of the two largest physician practice management companies. The creation of this
industry giant with all the advantages and disadvantages of increased size, is causing physicians to evaluate alternatives.
ProMedCo is already benefitting from the increased interest of physicians who wish to affiliate with companies such as
ProMedCo who are not distracted by merger activities and can be responsive and attentive to physician needs.''
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, some of which are described in the Company's S-1 Registration
Statement and Prospectus filed with the Securities and Exchange Commission on March 12, 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. 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 data)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Physician groups revenue, net $ 29,303 $ 12,673 $ 75,760 $ 29,805
Net income (loss) $ 1,602 $ (339) $ 3,164 $ (1,257)
Net income (loss) per share $ 0.11 $ (0.04) $ 0.23 $ (0.15)
Weighted average
shares outstanding 15,060 8,190 13,939 8,199
(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. |
