HIALEAH, Fla., March 31, 2005 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the year ended December 31, 2004. Revenues for 2004 were $41,768,000, up approximately 36% from $30,807,000 in 2003.
Pre-tax income before minority interest and equity in affiliate earnings was $2,124,000 compared to $1,538,000 for 2003.
Net income for the year 2004 was $514,000 or $.07 per share ($.06 diluted), compared to $273,000 or $.04 per share ($.03 diluted) for the prior year, an 88% increase.
Thomas K. Langbein, Chairman of the Board, CEO and President, commented, "2004 proved to be an excellent year for our majority owned subsidiary, Dialysis Corporation of America ("DCA"), which achieved record financial performance for the year. The opening of seven new dialysis facilities last year, coupled with the five facilities currently under development, and ongoing negotiations for additional outpatient centers, have positioned DCA well for 2005, and beyond. We expect initial operating costs at the new dialysis facilities to potentially negatively impact DCA's near term earnings, while providing a favorable financial future as the patient bases mature. We remain enthusiastic about the previously announced intent to merge our company into our DCA. In addition to other favorable aspects, the proposed merger will provide DCA with additional capital resources to pursue its continued and controlled growth."
Medicore is primarily engaged in providing kidney dialysis treatments through DCA, which currently owns or manages 23 free-standing kidney hemodialysis centers in Pennsylvania, New Jersey, Georgia, Ohio, Maryland, Virginia and South Carolina providing patients with a full range of quality in-center, and at-home hemodialysis services. DCA also provides in-hospital services. With the completion of the five centers under development, DCA will have 28 centers in operation. Medicore is also engaged in the distribution of 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 affect the business and prospects of the company and cause actual results 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 value for the company's ownership in the two affiliated Linux software companies, receipt of satisfactory tax and fairness opinions and shareholder approval relating to the merger of our company with DCA, 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 mature 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 ("SEC"), particularly as described in the company's annual report on Form 10-K for the year ended December 31, 2004. 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, 2004, quarterly and current reports, other filings with the SEC, press releases and corporate governance materials are available through Medicore's internet home page: http://www.medicore.com.
MEDICORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Operating
revenues 2004 2003 2002
------------ ------------ ------------
Sales:
Product
sales $ 782,014 $ 810,482 $ 889,904
Medical
service
revenues 40,449,562 29,676,388 25,162,380
------------ ------------ ------------
Total sales 41,231,576 30,486,870 26,052,284
Other income 536,434 320,580 191,213
------------ ------------ ------------
41,768,010 30,807,450 26,243,497
Cost and expenses:
Cost of sales:
Cost of product
sales 492,461 514,354 496,984
Cost of medical
services 23,545,586 18,220,891 15,066,551
------------ ------------ ------------
Total cost of
sales 24,038,047 18,735,245 15,563,535
Legal fees related
party 413,000 342,000 310,000
Selling, general
and administrative
expenses 13,994,659 11,002,995 8,423,588
Provision for
doubtful accounts 1,197,905 289,582 705,158
------------ ------------ ------------
39,643,611 30,369,822 25,002,281
------------ ------------ ------------
Operating income 2,124,399 437,628 1,241,216
------------ ------------ ------------
Other income
(expense):
Interest income
related parties 7,057 30,111 30,714
------------ ------------ ------------
Gain on sale of
former subsidiary 545,995 -- --
------------ ------------ ------------
Gain on sale of
securities 402,493 784,005 --
Other income, net 372,277 286,690 414,943
------------ ------------ ------------
1,327,822 1,100,806 445,657
------------ ------------ ------------
Income before
income taxes,
minority interest
and equity in
affiliate earnings 3,452,221 1,538,434 1,686,873
Income tax provision 1,589,292 636,289 646,880
------------ ------------ ------------
Income before minority
interest and equity
in affiliate earnings 1,862,929 902,145 1,039,993
Minority interest in
income of consolidated
subsidiaries (1,632,138) (673,145) (627,408)
Equity in affiliate
earnings 282,946 44,354 69,533
------------ ------------ ------------
Net income $ 513,737 $ 273,354 $ 482,118
============ ============ ============
Earnings per share:
Basic $ .07 $ .04 $ .07
============ ============ ============
Diluted $ .06 $ .03 $ .06
============ ============ ============