HIALEAH, Fla., May 16, 2005 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the first quarter ended March 31, 2005. Operating revenues for the quarter reflected a 22% increase to $10,809,000 compared to $8,851,000 for the same period in 2004. Operating income for the first quarter of 2005 was $222,000 compared to an operating loss of $255,000 for the same period in 2004. There was a net loss of $(66,000) or $(.01) per share ($(.01) diluted), for the first quarter of 2005 compared to a net loss of under ($1,000) or $.00 per share ($.00 diluted) for the same period in 2004. The first quarter 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") continued its controlled growth, achieving a 23% increase in operating revenues for the first quarter of 2005 compared to the first quarter of 2004 with a 13% increase in net income. Positive operating results from existing centers offset the initial operating costs of five new dialysis centers DCA opened during 2004 and five other centers currently under development. DCA is pursuing negotiations for the development of additional dialysis centers in strategic locations according to guidelines of its controlled expansion program which we anticipate will result in additional growth opportunities."
The company is primarily engaged in the operation of kidney dialysis centers through DCA, which owns or manages 23 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 opened five new dialysis centers and acquired two other centers during 2004 and is developing five new centers in South Carolina, Maryland and Ohio. The company also distributes medical products and has investments in two affiliated Linux software companies.
The company and DCA previously announced an agreement whereby DCA will acquire the company through a merger transaction intended to simplify the corporate structure, enable the ownership of the control interest in DCA to be held by public shareholders, and provide DCA with additional resources for its growth.
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, DCA's ability to maintain continued growth, receipt of satisfactory tax and fairness opinions and shareholder approval relating to the merger with DCA, 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 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, 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.
Other Medicore, Inc. press releases, corporate governance material, quarterly and current reports, and the most recent annual report on Form 10-K for the year ended December 31, 2004, 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
March 31,
2005 2004
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Revenues:
Sales:
Product sales $ 196,695 $ 224,318
Medical services revenues 10,484,101 8,409,524
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Total sales 10,680,796 8,633,842
Other income 128,395 217,045
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10,809,191 8,850,887
Cost and expenses:
Cost of sales:
Cost of product sales 106,293 117,627
Cost of medical services 6,542,601 5,162,222
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Total cost of sales 6,648,894 5,279,849
Legal fees related party 89,000 79,000
Selling, general and administrative
expenses 3,601,711 3,598,275
Provision for doubtful accounts 247,994 148,295
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10,587,599 9,105,419
Operating income (loss) 221,592 (254,532)
Other income (expense):
Interest income related parties 1,292 3,825
Gain on sale of former subsidiary
(Note 13) -- 545,995
Other income, net 106,367 75,298
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107,659 625,118
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Income before income taxes,
minority interest and equity
in affiliate earnings 329,251 370,586
Income tax provision 308,803 216,108
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Income before minority interest
and equity in affiliate earnings 20,448 154,478
Minority interest in income of
consolidated subsidiaries (206,137) (173,923)
Equity in affiliate earnings 120,109 19,033
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Net loss $ (65,580) $ (412)
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Loss per share:
Basic $ (.01) $.---
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Diluted $ (.01) $.---
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