October 27, 1998
AMERIPATH, INC. ANNOUNCES THIRD QUARTER RESULTS
Riviera Beach, FL, October 27, 1998 - AmeriPath, Inc.
(Nasdaq: PATH), a physician practice management company
focused on anatomic pathology services, today reported
its results for the quarter and nine months ended September
30, 1998.
Net revenue for the quarter ended September 30, 1998
was $47.0 million, compared to $27.8 million for the
third quarter of the prior year, an increase of 69%.
Same practice net revenue for the third quarter of 1998
increased by $1.2 million or 5% over the third quarter
of the prior year. The majority of the increase in same
practice net revenue was from the outpatient side of
the business. The remaining increase in net revenue of
$18.0 million resulted from the operations of practices
which were acquired during 1997 and 1998. Net income
for the third quarter of 1998 was $5.0 million, compared
to $1.7 million for the same period of the prior year.
For the third quarter of 1998, net income per share increased
to $0.23, based on 21.4 million diluted weighted average
shares outstanding, compared to $0.13, based on 12.7
million diluted weighted average shares outstanding,
for the same period in 1997.
For the nine months ended September 30, 1998, AmeriPath
reported net revenue of $125.8 million, an increase of
72% over the $73.1 million reported for the same period
in 1997. Same practice net revenue for the 1998 nine
month period increased by $7.6 million, or 11%. Same
practice hospital net revenue was flat, while the outpatient
net revenue increased approximately 9%. In addition,
the Medicare reimbursement increase which was effective
January 1, 1998 resulted in a 2% increase in same practice
net revenue. Net income for the nine month period ended
September 30, 1998 was $13.3 million, or $0.64 per share,
compared to $4.0 million, or $0.33 per share, for the
same period in 1997. The diluted weighted average number
of shares outstanding for the nine months ended September
30, 1998 was 20.8 million as compared to 12.1 million
in 1997. Cash flow from operations for the nine months
was approximately $17.2 million, compared to $7.6 million
for the same period in 1997.
This year, AmeriPath has acquired 14 pathology practices,
expanded its market presence in Alabama, Florida, Indiana,
Mississippi, Ohio and Texas and entered new markets in
North Carolina and Wisconsin.
"The company has demonstrated its ability to increase
revenue and, more importantly, profitability. As a percent
of net revenue, income from operations for the quarter
ended September 30, 1998 jumped 3 percentage points,
from 20% to 23%, compared to the third quarter of 1997," said
James C. New, President and Chief Executive Officer of
AmeriPath. "Each of our acquisitions is strategically
and geographically important for the company's growth.
With the acquisitions already completed in 1998, we have
added approximately $40 million to the company's annual
net revenue run rate and have exceeded AmeriPath's acquisition
plan for the full year."
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 ten states and employs 222 physicians
that provide medical services through outpatient pathology
laboratories, hospital inpatient laboratories and outpatient
surgery centers.
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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.
