U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
April 27, 2000
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Date of Report (Date of earliest event reported)
MIM CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-28740 05-0489664
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(State of Organization)(Commission File Number)(IRS Employer Identification No.)
100 Clearbrook Road
Elmsford, New York 10523
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(Address of Registrant's Principal Executive Office) (Zip Code)
(914) 460-1640
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(Registrant's telephone number, including area code)
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Item 5. Other Matters.
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On April 27, 2000, MIM Corporation issued a press release, a copy
of which is attached hereto as Exhibit 99.1, and incorporated herein by
reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) The following exhibit is filed as part of this report on Form 8-K:
Exhibit 99.1 Press release, dated April 27, 2000, by MIM Corporation
Exhibits.
99.1 Press release dated April 27, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
MIM CORPORATION
By: /s/ Barry A. Posner
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Barry A. Posner
Vice President and General Counsel
Date: May 1, 2000
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EXHIBIT INDEX
Exhibit No. Exhibit
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99.1 Press Release, dated April 27, 2000.
Exhibit 99.1
MIM News
For further information please contact: Edward J. Sitar
Chief Financial Officer
MIM Corporation
914-460-1641
MIM Corporation Announces First Quarter Results
ELMSFORD, N.Y.--April 27, 2000--MIM Corporation (NASDAQ: MIMS), an independent
pharmacy benefit management, specialty pharmaceutical and private label
e-commerce and fulfillment organization, today reported financial results for
the quarter ended March 31, 2000.
For the three months ended March 31, 2000, the Company reported net income of
$0.7 million, or $0.04 per diluted share, on revenues of $89.1 million. This
compares to net income of $0.6 million or $0.03 per diluted share, on revenues
of $74.9 million for the same period last year
The Company's e-commerce and fulfillment business, MIMRx.com, reported revenues
of approximately $10 million, gross profit of 20% and earnings before
depreciation and amortization of 5% for the three months ended March 31, 2000.
"Our activities in the first quarter are consistent with our plan" stated
Richard H. Friedman, MIM Corporation's Chairman and Chief Executive Officer. "We
have made significant investments in our e-commerce/fulfillment business during
the quarter, investments that will support the growth we expect from our
activities with our affinity partners. Marketing activities with our affinity
partners have commenced and we expect tangible results from those activities in
the near term. We are continuing with the development of the specialty business
and have assigned specific dedicated resources to that portion of the business".
"On March 31, 2000, we named online pharmacy industry pioneer, James J. (J.J.)
Jones, Jr., President of MIMRx.com. Mr. Jones was one of the founding executives
of Soma.com, the first online pharmacy. His record of success makes us confident
that we can achieve MIMRx.com's full potential. Our specialty pharmaceutical and
e-commerce fulfillment business will leverage the more than 3.5 million members
of our pharmacy benefit management operation. This leverage gives us a solid
revenue and earnings base to build upon".
"We are pleased with the progress of our core business. Since January we have
contracted for an additional 500,000 new lives to our PBM business. Also, the
State of Tennessee withdrew their RFP, which contemplated the State assuming
control of the pharmacy program. We will continue to provide services to five of
the managed care organizations representing 1.1 million TennCare lives without
interruption".
MIM Corporation is an independent pharmacy benefit management, specialty
pharmaceutical and private label e-commerce pharmacy and fulfillment
organization that partners with organizations and healthcare providers to
control prescription drug costs. MIM's innovative pharmacy benefit products and
services use clinically sound guidelines to ensure cost control and quality
care. MIM's e-commerce and fulfillment pharmacy specializes in serving
individuals affected with diseases, which require long-term maintenance
medications. MIM's online pharmacy service, www.MIMRx.com, develops private
label pharmacy websites to offer affinity groups innovative, customized, health
information services and products on the Internet for their members.
MIMRx.com designs and administers custom, private-label, e-commerce pharmacy
websites for its partners and handles all aspects of the fulfillment and
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distribution of products purchased through these websites. Because these
customized websites are designed to be integrated and linked with the partnering
organization's existing website, pharmacy customers are brought in through the
efforts the partnering organization to attract visitors to that website.
MIMRx.com's expedient administration and efficient distribution allow its
partners to offer their members convenient access to competitively priced online
pharmacy services, enhancing the sense of ownership and belonging that comes
with group membership.
(See attached financial tables)
This press release may contain statements which constitute forward looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding the intent, belief or current expectations
of the Company, its directors, or its officers with respect to the future
operating performance of the Company. Investors are cautioned that any such
forward looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those in the forward looking statements as a result of various factors.
Important factors that could cause such differences are described in the
Company's periodic filings with the Securities and Exchange Commission,
including the Company's Form 10-K for the year ended December 31, 1999.
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MIM Corporation and Subsidiaries
Consolidated Statements of Operations
Three months ended March 31,
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
2000 1999
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<S> <C> <C>
Revenue $ 89,104 $ 74,915
Cost of revenue 82,293 66,733
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Gross profit 6,811 8,182
General & Administrative expenses 6,219 7,512
Amortization of intangibles 258 250
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Income (loss) from operations 334 420
Interest income 391 196
Other - (12)
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Net income $ 725 $ 604
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Weighted average number of shared outstanding:
Basic 18,753 18,422
Diluted 19,425 18,910
Earnings per share (basic) $ 0.04 $ 0.03
Earnings per share (diluted) $ 0.04 $ 0.03
</TABLE>
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MIM Corporation and Subsidiaries
Consolidated Balance Sheets
(000's)
<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
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ASSETS
<S> <C> <C>
Current assets $ 86,412 $ 85,382
Other assets & investments 3,116 2,549
Property and equipment, net 6,374 5,942
Due from affiliates, net 1,993 1,849
Intangible assets, net 19,704 19,961
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Total assets $ 117,599 $ 115,683
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 78,591 $ 76,387
Capital lease obligations, net of current portion 564 718
Long-term debt, less current portion 1,191 2,279
Minority interest 1,112 1,112
Stockholders' equity 36,141 35,187
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Total liabilities and shareholders' equity $ 117,599 $ 115,683
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</TABLE>
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