July 28, 1998
AMERIPATH REPORTS 75 PERCENT NET REVENUE GROWTH FOR THE SECOND QUARTER
Riviera Beach, FL, July 28, 1998 AmeriPath, Inc. (Nasdaq:
PATH), a physician practice management company focused
on anatomic pathology services today reported net revenue
growth of 75 percent for the second quarter ended June
30, 1998, compared to the second quarter of the prior
year.
Net revenue for the second quarter of 1998 was $40.8
million, compared to the second quarter of the prior
year of $23.3 million, an increase of 75 percent. Same
practice net revenue for the second quarter ended June
30, 1998 increased by $3.2 million or 13.8 percent over
the second quarter of the prior year. The remaining increase
of $14.3 million resulted from acquisitions completed
subsequent to the quarter ended June 30, 1997. Income
from operations for the quarter was $9.8 million, up
92 percent over the $5.1 million reported in the comparable
period in 1997. Net income was $4.5 million compared
to $1.7 million, before a nonrecurring charge of $1.3
million, for the same period last year. For the second
quarter of 1998, net income increased to $0.22 per share,
based on 20.7 million weighted average shares outstanding,
compared to $0.08 per share based on 12.1 million weighted
average shares outstanding for the same period of 1997.
For the first six months of 1998, AmeriPath reported
net revenues of $78.8 million, an increase of 74 percent
from the $45.3 million reported for the same period in
1997. Same practice net revenues for the six month period
increased by $6.3 million, or 14.1 percent. Approximately
6.5 percent of the increase was attributable to the expansion
of a contract with a national laboratory in Florida and
2.5 percent to the increase in Medicare reimbursement
which was effective January 1, 1998. Net income for the
period was $8.3 million, or $0.40 per share for the six
month period, compared to $2.3 million, or $0.19 per
share, for the same period in 1997. Annualized net revenue
per pathologist of $1.0 million is still running slightly
higher than the previous year. The weighted average number
of shares outstanding for the six months ended June 30,
1998 was 20.6 million, compared to 12.0 million in the
prior year.
During the first six months of 1998, AmeriPath acquired
eight pathology practices expanding its market presence
in Florida, Indiana, Texas, Mississippi and Wisconsin.
These acquisitions, including the recently announced
acquisition in San Antonio, Texas, added approximately
$28 million to the Company's annual net revenue run rate.
James C. New, president and chief executive officer
of AmeriPath, said "We are extremely pleased with our
second quarter results and our accomplishments through
the first half of 1998. AmeriPath is confident that this
momentum will allow us to successfully execute our business
strategy over the second half of 1998."
AmeriPath, Inc. is the nation's leading physician practice
management company focused on providing anatomic pathology
services to physicians, hospitals, national clinical
laboratories and managed care organizations. The company
presently operates in nine states and provides medical
services through outpatient pathology laboratories, hospital
inpatient laboratories and outpatient surgery centers.
.......................................................................................................
This release contains certain forward-looking statements
regarding AmeriPath, including its operations and prospects.
Past performance is not necessarily indicative of future
results. In addition, AmeriPath's actual results could
differ materially from the results anticipated in these
forward-looking statements as a result of uncertainties,
including risks relating to demand, pricing, government
regulation, payments and reimbursements, dependence upon
contracts and pathologists, acquisitions, integration
of acquired practices, the market for pathology services,
competition, and other factors identified in AmeriPath's
filings with the Securities and Exchange Commission.
