February 23, 1999
AMERIPATH, INC. ANNOUNCES 1998 FOURTH QUARTER AND YEAR END RESULTS
Riviera Beach, FL, February 23, 1999 - AmeriPath, Inc.
(Nasdaq: PATH), a physician practice management company
focused on anatomic pathology services, today reported
its results for the quarter and year ended December 31,
1998.
Net revenue for the quarter ended December 31, 1998
was $51.5 million, compared to $35.3 million for the
fourth quarter of the prior year, an increase of 46%.
Same practice net revenue for the fourth quarter of 1998
increased by $3.1 million or 9% over the fourth quarter
of the prior year. The remaining increase in net revenue
of $13.1 million resulted from the operations of practices
that were acquired during the fourth quarter of 1997
and the year ended December 31, 1998. Net income for
the fourth quarter of 1998 was $5.3 million, or $0.25
per share, compared to $3.3 million, or $0.18 per share,
for the same period of the prior year. Diluted weighted
average number of shares outstanding for the fourth quarter
of 1998 were 21.6 million, compared to 18.8 million for
the same period in 1997.
For the year ended December 31, 1998, AmeriPath reported
net revenue of $177.3 million, an increase of 64% over
the $108.4 million reported for the year ended December
31, 1997. Same practice net revenue for 1998 increased
by $9.5 million, or 10%. Same practice hospital net revenue
was relatively flat, while the same practice outpatient
net revenue increased approximately 8%. 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 year ended December 31,
1998 was $18.6 million, or $0.89 per share, compared
to $7.3 million, or $0.53 per share, for the year ended
December 31, 1997. The diluted weighted average number
of shares outstanding for the year ended December 31,
1998 were 21.0 million as compared to 13.9 million for
1997. Cash flow from operations for 1998 was approximately
$21.7 million, compared to $12.7 million for 1997.
James C. New, President and Chief Executive Officer
of AmeriPath, commented, "AmeriPath's first full year
as a public company was outstanding in numerous ways.
We consistently met or exceeded both Wall Street's financial
expectations and our internal budgets. Our annual net
revenue run rate now exceeds $200 million. During 1998,
we completed a total of 15 acquisitions and entered two
new states, while adding to our market penetration and
presence in Texas, Florida, Indiana and Ohio. Our solid
profitability and cash flow, coupled with our existing
credit facility, provided the necessary capital to invest
in technology, property and equipment, and finance strategic
acquisitions. For 1999, we expect that the acquisition
and operational strategies that have worked for us in
the past will continue to be the foundation for future
growth. These strategies include quality acquisitions,
market densification, high quality service, same practice
revenue growth and the integration of acquired practices
into AmeriPath's operating structure."
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 228 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.
