HIALEAH, Fla., Aug. 16, 2004 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the period ended June 30, 2004. Operating revenues for the second quarter of 2004 increased 27% to $9,788,000 compared to $7,728,000 for the same period last year. Operating revenues for the first half of 2004 increased 26% to $18,639,000 compared to $14,749,000 for the same period last year.
Pre-tax income for the second quarter of 2004 before minority interest and equity in affiliate earnings was $511,000 compared to $238,000 for the same period last year with a net loss of ($34,000) or $.00 per share ($(.01) diluted) for the second quarter of 2004 compared to a net loss of $(64,000) or $(.01) per share ($(.01) diluted) for the same period last year. Pre-tax income for the first half of 2004 before minority interest and equity in affiliate earnings was $882,000 compared to $405,000 for the same period last year with a net loss of $(34,000) or $.00 per share ($(.01) diluted) for the first half of 2004 compared to a net loss of $(108,000) or $(.02) per share ($(.02) diluted) for the same period last year. The first half of 2004 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") achieved a 28% increase in operating revenues and a 77% increase in net income during the second quarter of 2004 and a 27% increase in operating revenues and 80% increase in net income during the first half of 2004 compared to last year, even with pre-operating and initial operating costs of the four new centers it opened in the first half of 2004. DCA's favorable operating results reflect the success of its controlled expansion program. DCA continues to pursue the development of additional dialysis centers in strategic locations and additional contracts for in-hospital services and continues to consider potential acquisitions."
The company is primarily engaged in the operation of kidney dialysis centers through DCA, which owns or manages 20 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 has a new Virginia dialysis center, under development. 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 and other filings with the Securities and Exchange Commission are available through Medicore's internet home page: http://www.medicore.com.
MEDICORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- -----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Revenues:
Sales:
Product sales $ 198,828 $ 225,024 $ 423,146 $ 434,781
Medical service
revenues 9,496,608 7,423,946 17,906,132 14,161,897
---------- ---------- ---------- ----------
Total sales 9,695,436 7,648,970 18,329,278 14,596,678
Other income 92,610 79,175 309,655 152,235
---------- ---------- ---------- ----------
9,788,046 7,728,145 18,638,933 14,748,913
---------- ---------- ---------- ----------
Cost and expenses:
Cost of sales:
Cost of product
sales 131,623 143,015 249,250 274,106
Cost of medical
services 5,738,179 4,516,757 10,900,401 8,719,370
---------- ---------- ---------- ----------
Total cost of
sales 5,869,802 4,659,772 11,149,651 8,993,476
Legal fees
related party 90,000 80,000 169,000 159,000
Selling, general
and
administrative
expenses 3,196,226 2,659,020 6,794,501 5,083,792
Provision for
doubtful
accounts 200,042 159,165 348,337 255,063
---------- ---------- ---------- ----------
9,356,070 7,557,957 18,461,489 14,491,331
---------- ---------- ---------- ----------
Operating income 431,976 170,188 177,444 257,582
Other income:
Interest income
related parties 960 7,419 4,785 14,992
Gain on sale of
former subsidiary
(Note 13) -- -- 545,995 --
Other income, net 78,325 60,570 153,623 132,210
---------- ---------- ---------- ----------
79,285 67,989 704,403 147,202
---------- ---------- ---------- ----------
Income before
income taxes,
minority
interest and
equity in
affiliate
earnings 511,261 238,177 881,847 404,784
Income tax
provision 277,665 163,086 493,773 274,351
---------- ---------- ---------- ----------
Income before
minority
interest and
equity in
affiliate
earnings 233,596 75,091 388,074 130,433
Minority interest
in income of
consolidated
subsidiaries (298,568) (145,227) (472,491) (259,746)
Equity in
affiliate
earnings 31,362 6,214 50,395 21,633
---------- ---------- ---------- ----------
Net loss $ (33,610) $ (63,922) $ (34,022) $(107,680)
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Loss per share:
Basic $ .-- $ (.01) $ .-- $ (.02)
========== ========== ========== ==========
Diluted $ (.01) $ (.01) $ (.01) $ (.02)
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