PRESS RELEASE UNILAB CORPORATION
18448 Oxnard Street
Tarzana, CA 91356
www.Unilab.com
For Further Information:
Brian D. Urban
Phone: (818) 758-6611
e-mail: [email protected]
IMMEDIATE RELEASE
October 30, 2000
UNILAB CORPORATION ANNOUNCES THIRD QUARTER RESULTS
TARZANA, CA, October 30, 2000 - UNILAB Corporation announced today that net
sales for the quarter ended September 30, 2000 were $87.6 million, an increase
of 14.9% from $76.2 million in the same period last year. The Company reported
operating income of $14.3 million, compared to $9.9 million in the third quarter
of 1999. Net income was $2.8 million compared to $5.9 million in the same period
last year (excluding the benefits from a reduction in the valuation allowance
recorded against the Company's deferred tax assets of $11.9 million in 1999).
The decrease in net income versus the prior period was due to significantly
increased interest expense and the recognition of a tax provision where none had
been previously recorded.
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") were
$17.6 million for the quarter, or 20.1% of sales, compared to $13.0 million, or
17.0% of sales for the same period last year.
For the first nine months of 2000, net sales totaled $251.2 million, an increase
of 17.6% from $213.5 million in the same period of the prior year. Operating
income, EBITDA and net income were $39.1 million, $48.5 million and $6.4
million, respectively for the first nine months of 2000 versus $29.3 million,
$36.4 million and $18.0 million in the same period last year (excluding the
benefit from the reduction in the Company's valuation noted above).
Testing volumes increased 14.4% and 17.4%, respectively, in the third quarter
and first nine months of 2000 compared to the same periods in the prior year.
Excluding the revenue generated from acquired businesses, core testing volumes
grew by 10.2% in the third quarter and 6.8% in the first nine months of 2000
over the same periods last year, while pricing improved by 0.7% and 1.4% over
the same periods.
Days sales outstanding ("DSO") - a measure of billing and collection efficiency
- was 64 days at September 30, 2000, compared to 65 days at the end of 1999.
Capital expenditures were $1.1 million for the third quarter 2000 and $3.9
million for the first nine months of 2000.
"We are once again pleased to report record revenue, EBITDA and EBITDA margin
for Unilab in the third quarter. Our third quarter EBITDA was almost 10% higher
than our previous record EBITDA reported in the second quarter of 2000, which is
particularly gratifying considering our third quarter historically experiences
some seasonal softness due to the summer vacation season," said Bob Whalen,
Unilab's CEO and President. "Our third quarter performance was again driven
mainly by strong volume as we experienced an impressive 10.2% increase in our
core volumes over the third quarter of 1999. We believe our quarter over quarter
core volume growth percentage will remain strong for the final quarter of this
year. In addition, we are pleased to have completed our integration of Pathology
Associates Laboratories, which we acquired in August. This acquisition is
currently meeting our anticipated results and should add additional momentum to
our fourth quarter 2000 and year 2001 results."
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 1999 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. Additional information is available on the
Company's website at www.unilab.com.
<PAGE>
<TABLE>
Unilab Corporation
Statements of Operations
(amounts in thousands)
(Unaudited)
<CAPTION>
Three months ended Sept 30, Nine months ended Sept 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Revenue $87,596 $76,210 $251,156 $213,496
Direct Laboratory and Field Expenses:
Salaries, Wages and Benefits 25,912 22,940 74,015 63,226
Supplies 12,367 11,307 36,133 30,653
Other Operating Expenses 20,410 18,855 59,633 53,254
------ ------ ------- -------
58,689 53,102 169,781 147,133
Legal Charge - - - 600
Amortization and Depreciation 3,302 3,062 9,363 7,189
Selling, General and Administrative Expenses 11,280 10,120 32,890 29,323
------ ------ ------- -------
Total Operating Expenses 73,271 66,284 212,034 184,245
------ ------ ------- -------
Operating Income 14,325 9,926 39,122 29,251
Interest Expense, net 9,441 3,978 28,116 11,244
------ ------ ------- -------
Income Before Income Taxes 4,884 5,948 11,006 18,007
Tax (Provision) / Benefit (2,051) 11,904 (4,622) 11,904
------ ------ ------- -------
Net Income $2,833 $17,852 $6,384 $29,911
====== ======= ====== =======
Preferred Stock Dividends - 33 - 99
Net Income Available to Common Shareholders $2,833 $17,819 $6,384 $29,812
====== ======= ====== =======
EBITDA $17,627 $12,988 $48,485 $36,439
</TABLE>
<PAGE>
<TABLE>
Unilab Corporation
Balance Sheets
(amounts in thousands)
<CAPTION>
September 30, December 31,
2000 1999
(unaudited)
<S> <C> <C>
Cash and Cash Equivalents $12,248 $12,557
Accounts Receivable, net 62,384 50,281
Other Current Assets 5,802 5,925
------- -------
Total Current Assets 80,434 68,763
Fixed Assets, net 13,079 13,125
Deferred Tax Assets 11,936 16,558
Goodwill and Other Intangible Assets 94,003 83,630
Other Assets 10,437 11,454
------- -------
Total Assets $209,889 $193,530
======== ========
Total Current Liabilities 49,597 $35,374
Long-Term Debt, net of current portion 305,525 310,941
Other Liabilities 6,087 5,504
Total Shareholders' Deficit (151,320) (158,289)
========= =========
Total Liabilities and Shareholders' Deficit $209,889 $193,530
======== ========
</TABLE>
