[ARTICLE] 5
[CIK] 0000899714
[NAME] UNILAB CORPORATION
[MULTIPLIER] 1,000
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-1998
[PERIOD-END] MAR-31-1999
[CASH] 27,470
[SECURITIES] 0
[RECEIVABLES] 54,514
[ALLOWANCES] (11,043)
[INVENTORY] 3,232
[CURRENT-ASSETS] 75,748
[PP&E] 43,329
[DEPRECIATION] (32,054)
[TOTAL-ASSETS] 151,255
[CURRENT-LIABILITIES] 25,404
[BONDS] 119,367
[PREFERRED-MANDATORY] 0
[PREFERRED] 4
[COMMON] 407
[OTHER-SE] (14,783)
[TOTAL-LIABILITY-AND-EQUITY] 151,255
[SALES] 63,559
[TOTAL-REVENUES] 63,559
[CGS] 0
[TOTAL-COSTS] 38,126
[OTHER-EXPENSES] 11,209
[LOSS-PROVISION] 4,572
[INTEREST-EXPENSE] 3,486
[INCOME-PRETAX] 6,166
[INCOME-TAX] 0
[INCOME-CONTINUING] 6,166
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 6,166
[EPS-PRIMARY] 0.15
[EPS-DILUTED] 0.14
</TABLE>
Exhibit 99.1
PRESS RELEASE UNILAB CORPORATION
(AMEX:ULB)
18448 Oxnard Street
Tarzana, CA 91356
www.Unilab.com
For Further Information:
Melissa Mahoney
Phone: (818) 758-6607
e-mail: [email protected]
IMMEDIATE RELEASE
May 4th, 1999
UNILAB CORPORATION ANNOUNCES FIRST QUARTER RESULTS
TARZANA, CA, May 4, 1999 -- UNILAB Corporation (AMEX: ULB) reported today that
net income for the quarter ended March 31, 1999 was $6.2 million, or $0.14 per
common share, compared to net income of $3.1 million, or $0.07 per common share
in the same period last year, and $0.25 per common share earned during full year
1998. The Company reported net sales of $63.6 million for the quarter, an
increase of 16.6% from $54.5 million in the same period last year.
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") were
$11.5 million for the quarter, or 18.2% of sales, compared to $8.4 million, or
15.5% of sales, for the same period last year.
"Our first quarter results reflect the strength of our underlying base business
plus the integrated benefits of the Meris acquisition made during the fourth
quarter of 1998" said David Weavil, Unilab's Chairman and CEO. "We have
successfully continued with our proven strategies for managing the core
business, while at the same time proceeding with our growth plans."
Test volume increased by almost 12% this quarter compared to the first quarter
of last year, with a significant portion of the increase due to the additional
volumes associated with the Meris acquisition. Overall pricing improved by more
than 4%. Weavil added, "these increases in the fundamental measures of our
business are a direct result of the efforts of a dedicated management team
staying focused on improving operating performance and increasing shareholder
value."
Weavil continued by stating, "We continue to maintain a keen focus on managing
our operating expense base, achieving the consolidation benefits from
acquisitions, seeking profitable organic growth and increasing prices." Staffing
expense decreased by 2% on a percent of sales basis, reflecting volume driven
economies of scale, compared to the same quarter last year.
Unilab's cash position at the end of the first quarter was $27.5 million,
reflecting strong receivables collections that decreased the number of days
sales outstanding ("DSO")--a measure of billing and collection efficiency--to 62
days from 67 days at the end of 1998.
The statements in this press release that are not historical facts or
information may be deemed to be forward-looking statements. Each of the above
forward-looking statements is subject to change based on various risks and
uncertainties, including without limitation, legislative and regulatory
developments and competitive actions in the marketplace that could cause the
outcome to be materially different from stated. Certain of these risks and
uncertainties are listed in the Company's 1998 Form 10-K.
Unilab Corporation is the largest provider of clinical laboratory testing
services in California through its primary testing facilities in Los Angeles,
San Jose and Sacramento and over 300 regional service and testing facilities
located throughout the state.
- tables to follow -
<PAGE>
Unilab Corporation
Statements of Operations
(amounts in thousands, except per share data)
(Unaudited)
Three months ended March 31,
1999 1998
---- ----
1998
Revenue $63,559 $54,530
------- -------
Direct Laboratory and Field Expenses:
Salaries, Wages and Benefits 18,455 16,823
Supplies 8,827 7,613
Other Operating Expenses 15,416 13,129
------ ------
42,698 37,565
Amortization and Depreciation 1,897 1,985
Selling, General and Administrative Expenses 9,312 8,534
----- -----
Total Operating Expenses 53,907 48,084
------ ------
Operating Income 9,652 6,446
Third Party Interest, net (3,486) (3,374)
------- -------
Income Before Income Taxes 6,166 3,072
Tax Provision - -
-------- ---------
Net Income $6,166 $3,072
Preferred Stock Dividends 33 33
-- --
Net Income Available to Common Shareholders $6,133 $3,039
Earnings per Share:
Basic $0.15 $0.07
Diluted $0.14 $0.07
EBITDA $11,549 $8,431
<PAGE>
Unilab Corporation
Balance Sheets
(amounts in thousands)
March 31,
1999 December 31,
(Unaudited) 1998
Cash and Cash Equivalents $27,470 $20,137
Accounts Receivable, net 43,471 41,326
Inventory of Supplies 3,232 3,055
Prepaid Expenses and Other Current Assets 1,575 1,045
-------- -----
Total Current Assets 75,748 65,563
Property and Equipment, net 11,274 11,277
Goodwill, net 56,447 56,949
Other Intangible Assets, net 2,221 2,370
Other Assets 5,565 6,301
----- -----
Total Assets $151,255 $142,460
-------- --------
Total Current Liabilities $25,404 $22,631
Long-Term Debt, net of current portion 136,882 137,170
Other Liabilities 4,163 4,026
Total Shareholders' Deficit (15,194) (21,367)
-------- --------
Total Liabilities and Shareholders' Deficit $151,255 $142,460
-------- --------
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000899714
<NAME> UNILAB CORPORATION
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
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<PERIOD-END> MAR-31-1999
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<SECURITIES> 0
<RECEIVABLES> 54,514
<ALLOWANCES> (11,043)
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<PP&E> 43,329
<DEPRECIATION> (32,054)
<TOTAL-ASSETS> 151,255
<CURRENT-LIABILITIES> 25,404
<BONDS> 119,367
0
4
<COMMON> 407
<OTHER-SE> (14,783)
<TOTAL-LIABILITY-AND-EQUITY> 151,255
<SALES> 63,559
<TOTAL-REVENUES> 63,559
<CGS> 0
<TOTAL-COSTS> 38,126
<OTHER-EXPENSES> 11,209
<LOSS-PROVISION> 4,572
<INTEREST-EXPENSE> 3,486
<INCOME-PRETAX> 6,166
<INCOME-TAX> 0
<INCOME-CONTINUING> 6,166
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,166
<EPS-PRIMARY> 0.15
<EPS-DILUTED> 0.14
</TABLE>
