HIALEAH, Fla., May 17, 2004 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the first quarter ended March 31, 2004. Operating revenues for the quarter reflected a 26% increase to $8,851,000 compared to $7,021,000 for the same period in 2003.
Pre-tax income for the first quarter of 2004 before minority interest and equity in affiliate earnings was $371,000 compared to $167,000 for the same period in 2003. The first quarter of 2004 was basically break-even with a net loss of under $1,000 or $.00 per share ($.00 diluted), compared to $(44,000) or $(.01) per share ($(.01) diluted) for the same period in 2003. The first quarter of 2003 included a gain of $546,000 resulting from a sale of a former subsidiary.
Thomas K. Langbein, Chief Executive Officer and President commented, "Our majority-owned subsidiary, Dialysis Corporation of America ("DCA"), continued its steady growth, achieving a 27% increase in operating revenues compared to last year with increased profitability, despite initial operating costs of three new dialysis centers which DCA opened in the first part of 2004 with another center under development. DCA's first quarter results reflect the success of its stringent development process. We anticipate the development of additional dialysis centers in strategic locations and additional contracts for in-hospital services during 2004, positioning DCA for future growth and profitability beyond 2004."
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 providing patients with a full range of quality in-center, and at-home dialysis services, as well as providing in-hospital services in many of its markets. DCA expects to open a new Maryland center, presently under development, during the second quarter of 2004. The company also distributes medical products and has 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, including 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
Three Months Ended
March 31,
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Revenues: 2004 2003
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Sales:
Product sales $ 224,318 $ 209,757
Medical services revenues 8,409,524 6,737,951
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Total sales 8,633,842 6,947,708
Other income 217,045 73,060
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8,850,887 7,020,768
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Cost and expenses:
Cost of sales:
Cost of product sales 117,627 131,091
Cost of medical services 5,162,222 4,202,613
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Total cost of sales 5,279,849 4,333,704
Legal fees related party 79,000 79,000
Selling, general and administrative
expenses 3,598,275 2,424,771
Provision for doubtful accounts 148,295 95,898
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9,105,419 6,933,373
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Operating (loss) income (254,532) 87,395
Other income (expense):
Interest income related parties 3,825 7,573
Gain on sale of former subsidiary
(Note 13) 545,995 --
Other income, net 75,298 71,640
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Income before income taxes, minority
interest and equity in affiliate
earnings 370,586 166,608
Income tax provision 216,108 111,265
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Income before minority interest and
equity in affiliate earnings 154,478 55,343
Minority interest in income of
consolidated subsidiaries (173,923) (114,519)
Equity in affiliate earnings 19,033 15,419
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Net loss $ (412) $ (43,757)
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Loss per share:
Basic $ .--- $ (.01)
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Diluted $ .--- $ (.01)
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