HOUSTON, Aug. 14, 2001 (PRIMEZONE) -- SurgiCare, Inc. (AMEX:SRG), a Houston-based Ambulatory Surgical Center (ASC) provider, today announced record financial results for its second quarter ended June 30. The company reported revenues of $3,007,445, an increase of 119% over a comparable period last year, and net income of $285,228 or $0.02 per share (basic and diluted). For the six-month period ended June 30, the company had revenues of $6,175,762 vs. $2,599,453 for the same period last year. The Company also had net income for the six-month period of $652,291, or $0.05 per share vs. $506,567 or $0.04 per share last year.
"We achieved many of our goals during the first half of the year," said Dr. David Blumfield, President and Chief Executive Officer of SurgiCare. "We managed to continue our rapid expansion and make significant investments in our business without compromising our earnings for growth. We believe as we continue to make acquisitions that the economies of scale that we generate will enhance our operating results."
"We achieved many important milestones this quarter as we validated our model of Ambulatory Surgical Centers in Houston," said Charles S. Cohen, SurgiCare's Chief Operating Officer. "We have now begun to lay the groundwork for our nationwide expansion by hiring key personnel and signing a definitive agreement with Cirrus Health Services to develop Ambulatory Surgical Centers within many of its medical buildings. We will continue to not only improve the performance of our existing surgery centers, but we will also aggressively develop new centers such as the one we recently announced in the Park Cities area in Dallas."
Dr. Blumfield and Mr. Cohen are currently featured in an interview with CEOcast, Inc., a leading financial portal where they discuss earnings. The interview is available at www.ceocast.com.
Some of the highlights of the year to date include:
-- Increasing the number of Ambulatory Surgery Centers to four from
one during a comparable six-month period last year.
-- Increasing average utilization of its Surgery Centers by 69% as
procedures increased from 1,531 for the first six months of the
year in 2000 to 2,591 during a comparable period this year.
-- Entering into a strategic relationship with Cirrus Health
Services to develop and manage Ambulatory Service Centers.
-- Obtaining a listing on the American Stock Exchange from the OTC
Bulletin Board.
-- Hiring Robert Horn as Chief Financial Officer and Robert Anderson
as Controller.
-- Breaking ground on its fifth and newest Ambulatory Service Center
in the Park Cities area of University Park in Dallas, Texas.
SURGICARE, INC.
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2000 2001
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 21,666 $ 72,514
Accounts receivable
(less allowance for
contractual adjustments
and doubtful accounts
of $2,274,062 and $4,288,380
at December 31, 2000 and
June 30, 2001, respectively) 3,088,916 5,003,916
Shareholder receivables 244,500 --
Inventory 620,150 582,405
Prepaid expenses 120,042 160,217
Other current assets 27,187 127,599
------------ ------------
Total Current Assets 4,122,461 5,946,651
Property and Equipment
Office furniture and equipment 159,891 191,473
Medical and surgical equipment 2,143,490 2,342,881
Leasehold improvements 812,064 817,230
Computer equipment 68,628 66,028
Autos 30,142 30,142
------------ ------------
3,214,215 3,447,754
Less: Accumulated depreciation
and Amortization (712,649) (960,548)
Total Property and Equipment 2,501,566 2,487,206
Other Assets
Goodwill 7,485,918 7,278,223
MV Loan Fee 157,575 149,112
Prepaid Consulting Fee -- 210,000
Investment in Ltd Partnership 331,868 449,401
TOTAL ASSETS $ 14,599,388 16,520,593
============ ============
LIABILITIES
Current Liabilities
Current portion of capital lease $ 79,383 81,474
Line of Credit 353,140 727,301
Notes Payable 1,651,711 1,940,829
Accounts Payable 664,760 1,238,242
Accrued Expenses 367,201 112,231
Federal income tax payable 422,441 506,486
Deferred federal income tax 795,000 962,000
---------- ----------
Total Current Liabilities 4,333,636 5,568,563
Minority Interest in Partnership 202,600 589,042
Long-Term Liabilities
Capital Lease Obligations 38,383 177,185
Notes Payable 4,556,894 4,012,637
---------- ----------
Total Liabilities 9,131,513 10,347,427
SHAREHOLDERS' EQUITY
Preferred Stock, Series A,
par value $.001, 1,650,000
authorized, 1,316,100 issued
and outstanding at June 30, 2001 1,450 1,316
Common Stock, par value $.005,
50,000,000 shares authorized,
14,089,320 issued and outstanding
at June 30, 2001 69,771 70,446
Additional Paid-In Capital 4,710,907 4,991,301
Retained Earnings 693,997 1,123,353
Less: Shareholders receivables (8,250) (13,250)
------------ ------------
Total Shareholders' Equity 5,467,875 6,173,166
------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 14,599,388 $ 16,520,593
============ ============
SURGICARE, INC.
CONSOLIDATED INCOME STATEMENT
(unaudited)
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
June 30 June 30
2000 2001 2000 2001
Revenues, net $ 1,370,750 $ 3,007,445 $ 2,599,453 $ 6,175,762
Expenses
Direct Surgical
Expenses
Surgical Costs 197,123 575,670 390,331 1,159,836
Salaries, wages
and benefits 105,918 259,404 214,532 597,948
Contract services 65,693 143,786 96,722 269,875
---------- ---------- ---------- ----------
Total Direct
Surgical
Expenses 368,734 978,860 701,585 2,027,659
Gen. and Admin.
Expenses
Salaries, Wages
and benefits 71,493 227,555 118,196 443,808
Professional fees 56,967 252,333 63,758 522,924
Rent 44,682 142,833 85,365 254.975
Management fees 16,794 21,140 38,011 39,797
Depreciation and
amortization 42,713 259,135 84,930 511,153
Consulting fees -- 35,000 -- 70,000
Repairs and
maintenance 18,147 -- 30,445 --
Other operating
expenses 42,297 130,523 88,367 279,980
Taxes 33,900 36,144 69,682 68,516
---------- ---------- ---------- ----------
Total G&A
Expenses 326,993 1,104,663 578,754 2,191,153
---------- ---------- ---------- ----------
Total Expenses 695,727 2,083,603 1,280,339 4,218,812
Other Income (Expense)
Gain on sale
of equipment 0 0 0 0
Miscellaneous
income 0 80 0 137
Equity in
Earnings of Ltd
Partnership 0 68,146 0 106,799
Interest Expense (14,319) (248,259) (29,321) (415,562)
---------- ---------- ---------- ----------
Total Other
(Income) Expense (14,319) (180,113) (29,321) (308,763)
Minority Interest
In Partnership -- (267,701) -- (570,020)
---------- ---------- ---------- ----------
Earnings
Before
Income Tax
Expense 660,704 476,108 1,289,793 1,078,167
Federal Income Tax
Expense (Benefit)
Deferred 176,841 244,189 206,931 167,000
Current 52,016 (53,309) 232,295 258,876
---------- ---------- ---------- ----------
Net Earnings $ 431,847 $ 285,228 $ 850,567 $ 652,291
Less: Preferred
dividends 174,000 -- 344,000 --
---------- ---------- ---------- ----------
Net earnings
available for
common
Shareholders $ 257,847 $ 285,228 $ 506,567 $ 652,291
========== ========== ========= ==========
Weighted average
shares
outstanding 12,596,657 14,089,320 12,596,657 13,971,820
=========== =========== =========== ===========
Net earnings per
share - basic
and diluted $ .02 $ .02 $ .04 $ .05
=========== =========== =========== ===========
About SurgiCare, Inc.
SurgiCare, Inc. offers licensed, freestanding Ambulatory Surgery Centers for use by physicians and its physician partners and their patients. Freestanding refers to the fact that the facilities are physically and organizationally independent from a hospital. Ambulatory Surgery means surgical procedures that do not require hospitalization after the surgery. The ASCs are run under the guidance of a committee of physician partners. SurgiCare's goal is to grow through mergers, acquisitions and turnkey management contracts in conjunction with physician-involved supervision and potential equity participation within a public company model. SurgiCare has assembled a team of highly qualified industry professionals that are equipped to effectively manage multiple ASCs, essentially cutting operational costs and increasing profit margins. For more information on SurgiCare, please visit the company's Website at www.surgicareinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words `believes,' `expects,' `anticipates' or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of SurgiCare, Inc. (the Company) to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the Company's Annual Reports and other filings with the Securities and Exchange Commission. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof.