John W. Hlywak, Jr. (investors) Jay Higham (media)
Senior Vice President & CFO Senior Vice President Marketing
IntegraMed America, Inc IntegraMed America, Inc.
(914) 251-4143 (914) 251-4127
Web Address: www.integramed.com
INTEGRAMED REPORTS THIRD QUARTER RESULTS
--COMPANY EXPANDS DIVERSIFICATION STRATEGY--
Purchase, NY, November 1, 2000 -- IntegraMed America, Inc. (Nasdaq: INMD) today
announced financial results for the third quarter and first nine months ended
September 30, 2000. In addition, the Company announced its launch of IntegraMed
PatientDirect, a new Internet powered marketing program offered on a geographic
exclusive basis to fertility centers across the country.
Revenues for the third quarter of 2000 were approximately $14.8 million, a 24.9%
increase from the same period in 1999. The contribution to earnings from
operations in the third quarter of 2000 was approximately $2.43 million compared
to $2.39 million for the same period in 1999. Net income for the third quarter
of 2000 was $440,000 compared to net income of $385,000 for the same period in
1999. Diluted earnings per share for the third quarter of 2000 were $0.10
compared to $0.07 for the same period in 1999. While same period revenues grew
significantly, contribution and net income grew at smaller rates due,
principally, to the decline in higher margin contract revenue from our single
remaining hospital contract and the growth of lower margin pharmaceutical
revenue.
Revenues for the first nine months of 2000 were $41.9 million, a 26.1% increase
from the same period in 1999. The contribution to earnings from operations for
the first nine months of 2000 was approximately $6.5 million compared to $7.2
million for the same period in 1999. Net income for the first nine months of
2000 was $1.1 million compared to net income of $1.4 million for the same period
in 1999. Diluted earnings per share for the first nine months of 2000 were $0.23
compared to $0.27 for the same period in 1999. Revenues grew for the first nine
months compared to the prior year, however, the decline in higher margin revenue
from the hospital contract and its replacement by lower margin pharmaceutical
revenue negatively impacted contribution and net income.
"Demand for fertility services continues to grow at a healthy rate fueling
continued improvement in the Company's financial performance," said Gerardo
Canet, President & CEO of IntegraMed America, Inc. "Same center revenue improved
by $5.4 million during the third quarter of 2000 compared to the same period in
1999 and 32.6% year to date. In addition, the diversification strategy is
beginning to payoff. During the third quarter, revenues from IntegraMed
Pharmaceutical Services grew by $2.1 million compared to the same period in
1999, the first full quarter of operations. IPSI has been profitable from the
first day of operations and now represents 16.2% of the Company's revenues."
"We plan to accelerate our diversification strategy," continued Mr. Canet.
"IntegraMed PatientDirect is the newest product line that we launched at the
annual American Society of Reproductive Medicine meeting in San Diego in
October. PatientDirect provides high quality fertility centers with exclusive
access to new patients through a package of Internet powered marketing programs.
Included in PatientDirect are treatment financing programs, employer contracting
efforts, and a patient refund program called Shared Risk Refund. Under this
innovative program, patients pay IntegraMed one fixed fee for up to three cycles
of IVF. If the patients do not have a baby, under this program they receive a
substantial refund."
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The Shared Risk Refund program has been extensively used at the Company's
affiliated Shady Grove Fertility Reproductive Science Center in Washington, DC.
The product has been refined over several hundred patients and the Company plans
on a national roll-out in early 2001. The entire PatientDirect program,
including Shared Risk Refund, is powered by IntegraMed's web site,
www.integramed.com.
IntegraMed, based in Purchase, NY offers products and services to patients,
providers, payors and manufacturers focused on the $2 billion infertility
industry. Specifically, the Company provides Business Services to a network of
Reproductive Science Centers(R) - the leading providers of conventional
fertility and assisted reproductive technology (ART) services; distributes
pharmaceutical and financing products directly to patients; and, conducts
clinical research through IntegraMed Research Institute.
Statements contained in this press release that are not based on historical
fact, including statements concerning future results, performance, expectations
and expansion of IntegraMed America are forward-looking statements. Actual
results may differ materially from the statements made as a result of various
factors including, but not limited to, the risks associated with the Company's
ability to finance future growth; the loss of significant management
contract(s); profitability at Reproductive Science Centers managed by IntegraMed
America; changes in insurance coverage, government laws and regulations
regarding health care or managed care contracting; and other risks, including
those identified in the Company's most recent Form 10-K and in other documents
filed by the Company with the U.S. Securities and Exchange Commission (SEC).
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INTEGRAMED AMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(all amounts in thousands, except per share amounts)
<CAPTION>
For the For the
three-month period nine-month period
ended September 30, ended September 30,
------------------- -------------------
2000 1999 2000 1999
------ ------ ------ ------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenues, net ................................................ $14,810 $11,862 $41,945 $33,255
Cost of services incurred:
Employee compensation and related expenses................. 5,441 4,620 15,908 12,883
Direct materials........................................... 3,267 1,785 8,428 4,091
Occupancy costs............................................ 827 766 2,487 2,674
Depreciation............................................... 307 402 986 1,011
Other expenses............................................. 2,536 1,899 7,655 5,373
-------- -------- -------- --------
Total cost of services rendered.......................... 12,378 9,472 35,464 26,032
-------- -------- -------- -------
Contribution.................................................. 2,432 2,390 6,481 7,223
General and administrative expenses........................... 1,642 1,611 4,381 4,504
Amortization of intangible assets............................. 216 274 650 779
Interest income............................................... (56) (46) (141) (88)
Interest expense.............................................. 109 121 328 382
-------- -------- -------- -------
Total other expenses....................................... 1,911 1,960 5,218 5,577
Income before income taxes.................................... 521 430 1,263 1,646
Provision for income taxes.................................... 81 45 165 217
-------- -------- -------- -------
Net income.................................................... 440 385 1,098 1,429
Less: Dividends paid and/or accrued on Preferred Stock........ 33 33 99 99
-------- -------- -------- -------
Net income applicable to Common Stock......................... $ 407 $ 352 $ 999 $ 1,330
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Basic earnings per share of Common Stock...................... $ 0.10 $ 0.07 $ 0.24 $ 0.27
======== ======== ======== ========
Diluted earnings per share of Common Stock.................... $ 0.10 $ 0.07 $ 0.23 $ 0.27
======== ======== ======== ========
Weighted average shares - basic............................... 4,059 4,863 4,199 4,910
======== ======== ======== ========
Weighted average shares - diluted............................. 4,119 4,981 4,261 5,002
======== ======== ======== ========
</TABLE>
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INTEGRAMED AMERICA, INC.
CONSOLIDATED BALANCE SHEET
(all amounts in thousands)
<CAPTION>
September 30, 2000 December 31, 1999
------------------ -----------------
(unaudited)
<S> <C> <C>
Total current assets....................................... $16,575 $16,162
Total assets............................................... $39,990 $40,815
Total current liabilities.................................. $11,874 $10,457
Shareholders' equity....................................... $25,397 $26,639
Total liabilities and shareholders' equity................. $39,990 $40,815
</TABLE>
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