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
August 1, 2000
UNILAB CORPORATION ANNOUNCES SECOND QUARTER RESULTS
TARZANA, CA, August 1, 2000 - UNILAB Corporation announced today that net sales
for the quarter ended June 30, 2000 were $84.3 million, an increase of 14.3%
from $73.7 million in the same period last year. The Company reported operating
income of $13.0 million, compared to $9.7 million in the second quarter of 1999.
Net income was $2.0 million compared to $5.9 million in the same period last
year. 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
$16.1 million for the quarter, or 19.0% of sales, compared to $11.9 million, or
16.1% of sales for the same period last year.
For the first six months of 2000, net sales totaled $163.6 million, an increase
of 19.1% from $137.3 million in the same period of the prior year. Operating
income, EBITDA and net income were $24.8 million, $30.9 million and $3.6
million, respectively for the first six months of 2000 versus $19.3 million,
$23.5 million and $12.0 million in the same period last year.
Testing volumes increased 14.8% and 19.1%, respectively, in the second quarter
and first six months of 2000 compared to the same periods in the prior year.
Excluding the revenue generated from acquired businesses, core business volumes
grew by 5.0% in both the second quarter and the first six months of 2000 over
the same periods last year, while pricing improved by 1.0% and 1.9% over the
same periods.
Days sales outstanding ("DSO") - a measure of billing and collection efficiency
- was 63 days, compared to 65 days at the end of 1999. The Company's cash
position was $9.8 million at June 30, 2000, with no borrowings having taken
place on the Company's revolving credit facility. Capital expenditures were $1.4
million for the second quarter and $2.8 million for the first six months of
2000.
"We are once again pleased to report record revenue, EBITDA and EBITDA margin
for Unilab in the second quarter," said Bob Whalen, Unilab's CEO and President.
"We are particularly pleased with our 5% increase in core volumes. With much of
the volume increase occurring throughout the second quarter and other business
already started in July, we are confident that we can continue to increase our
quarter over quarter core volume growth percentage for the remainder of the
year."
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.
- tables to follow -
<PAGE>
Unilab Corporation
Statements of Operations
(amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended June 30,Six months ended June 30,
<S> <C> <C> <C> <C>
2000 1999 2000 1999
----------------------------------------------
Revenue $84,284 $73,727 $163,560 $137,286
Direct Laboratory and Field Expenses:
Salaries, Wages and Benefits 25,235 21,831 48,103 40,286
Supplies 12,471 10,519 23,766 19,346
Other Operating Expenses 19,513 18,983 39,223 34,399
----------------------------------------------
57,219 51,333 111,092 94,031
Legal Charge - 600 - 600
Amortization and Depreciation 3,080 2,230 6,061 4,127
Selling, General and Administrative 11,010 9,891 21,610 19,203
Expenses
----------------------------------------------
Total Operating Expenses 71,309 64,054 138,763 117,961
----------------------------------------------
Operating Income 12,975 9,673 24,797 19,325
Interest Expense, net 9,446 3,780 18,675 7,266
----------------------------------------------
Income Before Income Taxes 3,529 5,893 6,122 12,059
Tax Provision 1,482 - 2,571 -
----------------------------------------------
Net Income $2,047 $5,893 $3,551 $12,059
==============================================
Preferred Stock Dividends - 33 - 66
Net Income Available to Common $2,047 $5,860 $3,551 $11,993
Shareholders
==============================================
EBITDA $16,055 $11,903 $30,858 $23,452
</TABLE>
<PAGE>
Unilab Corporation
Balance Sheets
(amounts in thousands)
June 30, December 31,
2000 1999
(unaudited)
-----------------------------
Cash and Cash Equivalents $9,770 $12,557
Accounts Receivable, net 57,642 50,281
Other Current Assets 5,888 5,925
-----------------------------
Total Current Assets 73,300 68,763
Fixed Assets, net 13,220 13,125
Deferred Tax Assets 13,986 16,558
Goodwill and Other Intangible Assets 84,643 83,630
Other Assets 10,753 11,454
-----------------------------
Total Assets $195,902 $193,530
-----------------------------
Total Current Liabilities $36,361 $35,374
Long-Term Debt, net of current portion 307,667 310,941
Other Liabilities 6,612 5,504
Total Shareholders' Deficit (154,738) (158,289)
-----------------------------
Total Liabilities and Shareholders' Deficit $195,902 $193,530
-----------------------------
