October 26, 1999
AMERIPATH, INC. ANNOUNCES 1999 THIRD QUARTER RESULTS
Riviera Beach, FL, October 26, 1999 - AmeriPath, Inc.
(Nasdaq: PATH), the nation's leading integrated physician
group practice and laboratory management company focused
on anatomic pathology services, today reported its results
for the quarter and nine months ended September 30, 1999.
Net revenue for the quarter ended September 30, 1999
was $59.9 million, compared to $47.0 million for the
third quarter of the prior year, an increase of 27%. Same
practice net revenue for the third quarter of 1999 increased
by $1.9 million, or 4% over the third quarter of the
prior year. The remaining increase in net revenue of
$11.0 million resulted from the operations of practices
that were acquired after July 1, 1998. Net income for
the third quarter of 1999 was $5.9 million, or $0.27
per share, compared to $5.0 million, or $0.23 per share,
for the same period of the prior year.
For the nine months ended September 30, 1999, AmeriPath
reported net revenue of $167.6 million, an increase of
33% from the $125.8 million reported for the same period
in 1998. Same practice net revenue for the nine month
period increased by $5.2 million, or 4%. Net income
for the 1999 period was $16.9 million, or $0.78 per share,
compared to $13.3 million, or $0.64 per share, for the
same period in 1998. Cash flows from operations for
the nine months of 1999 was $27.7 million, or 17% of
net revenue and $1.27 per share, compared to $17.2 million,
or 14% of net revenue and $0.83 per share, for the same
period of the prior year. Annualized net revenue per
pathologist full-time equivalents continues at approximately
$1.0 million.
James C. New, Chairman and Chief Executive Officer of
AmeriPath, commented, "The Company's third quarter produced
strong earnings and cash flow. These results once again
met the consensus of analysts' estimates and our internal
budgets for the eighth consecutive quarter. The Company
continues to make significant progress on a number of
strategic initiatives. Our first de novo laboratory
in New York, featuring the Ackerman Academy of Dermatopathology,
is on target. This laboratory had an expected loss of
approximately $500,000 for the quarter as we continue
to invest in the lucrative New York market. During the
third quarter, the Company completed four acquisitions
with estimated annual net revenues of approximately $25
million. These acquisitions included pedestal practices
in Georgia, Wisconsin and Pennsylvania and a significant
addition to the Texas regional network. The list of
acquisition candidates and prospects remains strong." He
added, " The Company continues to successfully implement
its strategy of geographic densification."
AmeriPath, Inc. is the nation's leading integrated physician
group practice and laboratory management company focused
on providing anatomic pathology services to physicians,
hospitals, national clinical laboratories and managed
care organizations. The company presently operates in
twelve states and employs 299 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.
