April 27, 1999
AMERIPATH, INC. ANNOUNCES 1999 FIRST QUARTER RESULTS
Riviera Beach, FL, April 27, 1999 - AmeriPath, Inc.
(Nasdaq: PATH), the largest integrated physician group
practice focused on anatomic pathology services, today
reported its results for the quarter ended March 31,
1999.
Net revenue for the quarter ended March 31, 1999 was
$52.3 million, compared to $38.0 million for the first
quarter of the prior year, an increase of 38%. Same practice
net revenue for the first quarter of 1999 increased by
$1.8 million or 5% over the first quarter of the prior
year. The remaining increase in net revenue of $12.5
million resulted from the operations of practices that
were acquired during the first quarter of 1999 and the
year ended December 31, 1998. Net income for the first
quarter of 1999 was $5.3 million, or $0.24 per share,
compared to $3.8 million, or $0.19 per share, for the
same period of the prior year. Diluted weighted average
number of shares outstanding for the first quarter of
1999 were 21.6 million, compared to 20.5 million for
the same period in 1998. Cash flow from operations for
the first quarter of 1999 was $11.3 million, or 22% of
net revenues, compared to $4.5 million, or 12% of net
revenues, for the same period of the prior year.
James C. New, Chairman, President and Chief Executive
Officer of AmeriPath, commented, "We are pleased, as
in past quarters, to report that our net income growth
outpaced net revenue growth. Our gross margins were on
target and selling, general and administrative expenses
for the first quarter were under budget. Our acquisition
backlog remains solid. We have four signed letters of
intent to acquire practices, which will close during
the second quarter. We believe a minimum of ten additional
acquisitions will close in the remainder of 1999. In
addition, we are planning to open a de novo outpatient
pathology lab in New York City during the third quarter.
This new lab will be a catalyst for the Company's expansion
into the northeast region of the United States. The Center
for Advanced Diagnostics had an excellent first quarter
with revenue and profit ahead of expectations. Our results
for the first quarter continue to demonstrate the Company's
ability to execute its business strategies."
AmeriPath, Inc. is the nation's leading integrated physician
group practice 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 231 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.
