HIALEAH, Fla., March 31, 2004 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the year ended December 31, 2003. Revenues for 2003 were $32,110,000, up approximately 19% from $26,932,000 in 2002. Revenues for 2003 included a gain of $784,000 from a sale of securities.
Pre-tax income before minority interest and equity in affiliate earnings was $1,538,000 compared to $1,687,000 for 2002.
Net income for the year 2003 was $273,000 or $.04 per share ($.03 diluted), compared to $482,000 or $.07 per share ($.06 diluted) for the prior year.
Thomas K. Langbein, Chief Executive Officer and President commented, "Our majority owned subsidiary, Dialysis Corporation of America ("DCA") had another successful year of steady growth opening two new dialysis centers, one in Maryland and one in Ohio, as well as acquiring a center in Georgia during 2003. DCA has opened three new centers in early 2004, one each in Pennsylvania, South Carolina and Virginia and is planning on opening a new Maryland center in the second quarter of 2004. DCA is planning to develop additional dialysis centers in strategic locations during 2004 as a result of ongoing negotiations for additional outpatient dialysis centers, and is also engaged in negotiations with hospitals for contracts to provide acute dialysis services. As anticipated, initial operating costs at DCA's new centers impacted 2003 earnings, but the centers are expected to enhance our long-term financial prospects as their patient bases mature."
The company is primarily engaged in the operation of kidney dialysis centers through DCA, which owns or manages 19 free-standing kidney hemodialysis centers in Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina and Virginia as well as providing in-hospital services. The company also distributes medical products and holds investments in two affiliated Linux software companies.
This release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results and plans to differ materially from those anticipated. Those factors include but are not limited to, general economic conditions, certain delays beyond the company's control with respect to future business events, the likelihood of realizing the company's investments in the two affiliated Linux software companies, the ability of DCA to timely develop or acquire additional dialysis facilities, whether patient bases of certain of DCA's facilities, particularly its developmental stage facilities, can expand to provide profitability, regulation of dialysis operations, government rate determination for Medicare reimbursement, the highly competitive environment in the operation, development and acquisition of dialysis centers and other risks detailed in the company's filings with the Securities and Exchange Commission, particularly as described in the company's annual report on Form 10-K for the year ended December 31, 2003. The historical results contained in this press release are not necessarily indicative of future performance of the company.
Medicore, Inc.'s most recent annual report on Form 10-K for the year ended December 31, 2003, current reports on Form 8-K, and the company's quarterly reports for fiscal 2003, are available through Medicore's internet home page: http://www.medicore.com.
MEDICORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues 2003 2002 2001
------------ ------------ ------------
Sales:
Product sales $ 810,482 $ 889,904 $ 861,077
Medical service revenues 29,676,388 25,162,380 18,919,752
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Total sales 30,486,870 26,052,284 19,780,829
Gain on sale of
securities (Note 11) 784,005 -- --
Interest income related
parties 30,111 30,714 30,095
Other income 808,920 848,597 880,169
------------ ------------ ------------
32,109,906 26,931,595 20,691,093
Cost and expenses:
Cost of sales:
Cost of product sales 514,354 496,984 775,969
Cost of medical services 18,220,891 15,066,551 12,021,907
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Total cost of sales 18,735,245 15,563,535 12,797,876
Legal fees related
party 342,000 310,000 311,000
Selling,
general and
administrative
expenses 11,002,995 8,423,588 7,558,714
Provision for doubtful
accounts 289,582 705,158 661,158
Interest expense 201,650 242,441 228,312
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30,571,472 25,244,722 21,557,060
Income (loss) from
continuing operations
before income taxes,
minority interest and
equity in affiliate
earnings (loss) 1,538,434 1,686,873 (865,967)
Income tax provision
(benefit) 636,289 646,880 (928,125)
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Income from continuing
operations before
minority interest and
equity in affiliate
earnings (loss) 902,145 1,039,993 62,158
Minority interest in
income of consolidated
subsidiaries 673,145 627,408 385,233
Equity in affiliate
earnings (loss) 44,354 69,533 (16,345)
------------ ------------ ------------
Income (loss) from
continuing operations 273,354 482,118 (339,420)
Discontinued operations:
Loss from operations of
electro-mechanical
manufacturing operations,
net of applicable income
taxes of $25,000 in 2001 -- -- (962,814)
Gain on disposal of
electro-mechanical
manufacturing operation,
net of applicable income
taxes of $1,621,000 -- -- 2,534,656
------------ ------------ ------------
Net income $ 273,354 $ 482,118 $ 1,232,422
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Earnings per share:
Basic $ .04 $ .07 $ .20
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Diluted $ .03 $ .06 $ .20
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