HIALEAH, Fla., Aug. 15, 2005 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the first half of 2005. Operating revenues for the second quarter of 2005 increased 16% to $11,339,000 compared to $9,788,000 for the same period last year. Operating revenues for the first half of 2005 increased 19% to $22,148,000 compared to $18,639,000 for the same period last year.
Net income was $4,000 or $.00 per share ($.00 diluted) for the second quarter of 2005 compared to a net loss of $(34,000) or $(.00) per share ($(.01) diluted) for the same period last year. There was a net loss of $(62,000) or ($.01) per share ($(.01) diluted) for the first half of 2005 compared to a net loss of $(34,000) or $(.00) per share ($(.01) diluted for the same period last year. First half 2005 results include $242,000 of costs associated with our pending merger with DCA. The first half of 2004 included a $339,000 net of tax gain resulting from a sale of a former subsidiary.
Thomas K. Langbein, Chief Executive Officer and President, commented, "While our majority-owned subsidiary, Dialysis Corporation of America ("DCA"), has experienced reimbursement pressure from its payors and the costs associated with the opening of new centers, the growth and financial performance of DCA continues to be healthy. DCA's operating revenues increased 16% and net income increased 14% for the quarter compared to the same period last year. DCA achieved a 19% increase in operating revenues during the first half of 2005 compared to the same period last year and experienced a $93,000 increase in net income during the first half of 2005 compared to the same period last year in spite of incurring $100,000 in costs associated with the pending merger of our company with DCA, and pre-operating costs of six new dialysis centers under development. We expect additional growth to result from DCA's ongoing negotiations regarding new development opportunities."
The company is primarily engaged in the operation of kidney dialysis centers through DCA, which owns or manages 23 operating 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 six new dialysis centers under development in Maryland, Ohio, Pennsylvania and South Carolina. 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 affect the business and prospects of the company and 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 shareholder approval relating to the merger of our company 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/A1 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/A1 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
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues:
Sales:
Product sales $ 197,301 $ 198,828 $ 393,996 $ 423,146
Medical
service
revenues 11,021,524 9,496,608 21,505,625 17,906,132
---------- ------------ ------------ ------------
Total sales 11,218,825 9,695,436 21,899,621 18,329,278
Other income 119,902 92,610 248,297 309,655
----------- ------------ ------------ ------------
11,338,727 9,788,046 22,147,918 18,638,933
----------- ------------ ------------ ------------
Cost and expenses
Cost of sales:
Cost of product
sales 124,037 131,623 230,330 249,250
Cost of
medical
services 6,724,869 5,738,179 13,267,470 10,900,401
---------- ------------ ------------ ------------
Total cost of
sales 6,848,906 5,869,802 13,497,800 11,149,651
Legal fees
related party 90,000 90,000 179,000 169,000
Selling,
general
and
administrative
expenses 3,861,744 3,196,226 7,463,455 6,794,501
Provision for
doubtful
accounts 204,649 200,042 452,643 348,337
---------- ------------ ------------ ------------
11,005,299 9,356,070 21,592,898 18,461,489
---------- ------------ ------------ ------------
Operating income 333,428 431,976 555,020 177,444
Other income:
Interest
income
related
parties 1,421 960 2,713 4,785
Other income,
net 170,409 78,325 276,776 153,623
---------- ----------- ------------ ------------
171,830 79,285 279,489 158,408
----------- ------------ ------------ ------------
Income from
continuing
operations
before income
taxes,
minority
interest and
equity in
affiliate
earnings 505,258 511,261 834,509 335,852
Income tax
provision 310,105 277,665 618,908 286,773
----------- ------------ ------------ ------------
Income from
continuing
operations
before
minority
interest
and equity in
affiliate
earnings 195,153 233,596 215,601 49,079
Minority interest
in income of
consolidated
subsidiaries (285,908) (298,568) (492,045) (472,491)
Equity in
affiliate
earnings 94,689 31,362 214,798 50,395
---------- ------------ ------------ ------------
Income (loss)
from continuing
operations 3,934 $ (33,610) (61,646) $ (373,017)
Discontinued
operations:
Gain on disposal
of electro-
mechanical
manufacturing
operation, net
of applicable
income taxes of
$207,000 -- -- -- 338,995
---------- ------------ ------------ ------------
Net income
(loss) 3,934 (33,610) (61,646) $ (34,022)
========== ============ ============ ============
Income (loss) per
share:
Basic $ -- $ -- (.01) $ --
========== ============ ============ ============
Diluted $ -- $ (.01) (.01) $ (.01)
========== ============ ============ ============