HIALEAH, Fla., Nov. 15, 2004 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the first nine months of 2004. Operating revenues for the third quarter of 2004 increased 43% to $11,168,000 compared to $7,807,000 for the same period last year. Operating revenues for the first nine months of 2004 increased 32% to $29,807,000 compared to $22,556,000 for the same period last year.
Pre-tax income for the third quarter of 2004 before minority interest and equity in affiliate earnings was $1,718,000 compared to $652,000 for the same period last year with net income of $649,000 or $.09 per share ($.09 diluted) for the third quarter of 2004 compared to net income of $230,000 or $.04 per share ($.03 diluted) for the same period last year. Pre-tax income for the first nine months of 2004 before minority interest and equity in affiliate earnings was $2,600,000 compared to $1,057,000 for the same period last year with net income of $615,000 or $.09 per share ($.08 diluted) for the first nine months of 2004 compared to net income of $123,000 or $.02 per share ($.01 diluted) for the same period last year. The third quarter of 2004 includes a $402,000 gain on a sale of securities with a $546,000 gain resulting from a sale of a former subsidiary having been recorded during the first half of 2004.
Thomas K. Langbein, Chief Executive Officer and President commented, "Our majority owned subsidiary, Dialysis Corporation of America ("DCA") had a record breaking quarter with a 44% increase in operating revenues and a 152% increase in net income during the third quarter of 2004 and a 33% increase in operating revenues and 112% increase in net income during the first nine months of 2004 compared to the same periods of last year. Pre-operating and initial operating costs are DCA's new centers opened during 2004 was more than offset by improved operating results from its existing centers. DCA expects additional future growth in strategic locations under its controlled expansion program."
The company is primarily engaged in the operation of kidney dialysis centers through DCA, which owns or manages 22 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 opened four new centers and acquired two centers during 2004, and has two new centers under development in Virginia and Ohio. 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
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2004 2003 2004 2003
---- ---- ---- ----
Revenues:
Sales:
Product
sales $ 189,694 $ 189,703 $ 612,840 $ 624,484
Medical
service
revenues 10,857,444 7,535,530 28,763,576 21,697,427
---------- ---------- ---------- ----------
Total sales 11,047,138 7,725,233 29,376,416 22,321,911
Other income 121,173 81,581 430,828 233,816
---------- ---------- ---------- ----------
11,168,311 7,806,814 29,807,244 22,555,727
---------- ---------- ---------- ----------
Cost and
expenses:
Cost of sales:
Cost of
product
sales 123,388 115,275 372,638 389,381
Cost of
medical
services 6,051,469 4,706,470 16,951,870 13,425,840
---------- ---------- ---------- ----------
Total cost
of sales 6,174,857 4,821,745 17,324,508 13,815,221
Legal fees
related
party 89,000 79,000 258,000 238,000
Selling,
general and
administra-
tive
expenses 3,407,624 3,128,620 10,202,125 8,212,411
Provision from
doubtful
accounts 303,416 3,424 651,753 258,487
---------- ---------- ---------- ----------
9,974,897 8,032,789 28,436,386 22,524,119
---------- ---------- ---------- ----------
Operating
income(loss) 1,193,414 (225,975) 1,370,858 31,608
Other income:
Interest
income
related
parties 1,074 7,560 5,859 22,552
Gain on sale
of former
subsidiary
(Note) -- -- 545,995 --
Gain on sale
of
securities 402,493 784,005 402,493 784,005
Other income,
net 121,482 86,798 275,105 219,008
---------- ---------- ---------- ----------
525,049 878,363 1,229,452 1,025,565
---------- ---------- ---------- ----------
Income before
income taxes,
minority
interest and
equity in
affiliate
earnings 1,718,463 652,388 2,600,310 1,057,173
---------- ---------- ---------- ----------
Income tax
provision 554,311 252,920 1,048,084 527,271
---------- ---------- ---------- ----------
Income before
minority
interest and
equity in
affiliate
earnings 1,164,152 399,468 1,552,226 529,902
---------- ---------- ---------- ----------
Minority
interest in
income of
consolidated
subsidiaries (637,440) (177,962) (1,109,931) (437,708)
---------- ---------- ---------- ----------
Equity in
affiliate
earnings 122,375 8,687 172,770 30,320
---------- ---------- ---------- ----------
Net income $ 649,087 $ 230,193 $ 615,065 $ 122,514
========== ========== ========== ==========
Earnings per
share:
Basic $.09 $.04 $.09 $.02
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Diluted $.09 $.03 $.08 $.01
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(note) See notes to consolidated financial statements.