Chronimed Reports Fiscal 1999 Fourth Quarter And Year End Results
For the fourth quarter, Chronimed reported record revenue of $55.3 million, up 36 percent from $40.5 million last year. Excluding one-time expenses of approximately $800,000 related primarily to the Company's current efforts in seeking strategic alternatives, income from operations was $312,000, compared to $2.6 million last year. Net income per diluted share for the fourth quarter, excluding the one-time expenses, was two cents compared to fifteen cents last year. Including the one-time expenses, Chronimed reported a loss from operations of $488,000 and a net loss per diluted share of two cents. For the full year, revenue grew 41 percent to a record $198.4 million, up from $140.7 million last year. Income from operations was $6.1 million, excluding the one-time expenses, compared to $10.3 million last year. Net income per diluted share, excluding the one-time expenses and the gain on Publishing sale in second quarter, was 35 cents compared to 59 cents last year. Including the one-time expenses and Publishing gain, income from operations was $5.8 million and net income per diluted share was 34 cents.
Commenting on results, Chronimed's chairman and chief executive officer Maurice R. Taylor, II, said, “We had a difficult earnings period the last 6 months of fiscal 1999. However, we have made several significant advances during this period, which provides momentum going into fiscal year 2000. Specifically, we have added new contracted business in Disease Management, Injectables and Transplant, the volume of which should provide the critical mass necessary to become more efficient in our operations. In addition, we have gotten better control of our operating expenses and we are making very good progress with a number of organizations relative to our strategic initiatives. As a result, we look toward the upcoming fiscal year with great optimism.”
Chronimed Inc. is a leading integrated healthcare company specializing in diagnostic products, specialty pharmacy services, and disease management for people with chronic health conditions. The Company develops, manufactures, markets, and distributes pharmaceuticals and medical diagnostic products. It provides specialized patient management services nationwide for people with long-term chronic conditions such as HIV/AIDS, diabetes, organ transplants, and diseases treated with injectable medications. Chronimed works directly with patients, providers, and payors to improve clinical and cost-of- care outcomes. The Company's web site address is www.chronimed.com.
Henry Blissenbach, Pharm.D., Chronimed. s president and COO, commends Prudential HealthCare for implementing the Life Management Program, . By identifying transplant medication adherence as a priority, Prudential HealthCare has set the standard in the managed care industry. We have worked with Prudential HealthCare for more than four years to control costs and improve outcomes for use of injectable medications and are looking forward to working with them and their transplant members..
Chronimed Inc. is a leading integrated healthcare company specializing in specialty pharmacy services, diagnostic products, and disease management for people with chronic health conditions. The company develops, manufactures, markets and distributes pharmaceuticals, medical diagnostic products, and provides specialized patient management services nationwide for people with long-term chronic conditions such as organ transplants, HIV/AIDS, diabetes, and diseases treated with injectable medications. Chronimed works directly with patients, providers, and payors to improve clinical and cost-of-care outcomes. Chronimed. s web site address is www.chronimed.com.
As a cautionary note to investors, certain matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; pressures on gross profit margins; the Company's ability to execute its sales and marketing plans; changes in the status of managed care contracts; changes in ownership; material litigation; and the risks described from time to time in the Company's public reports filed with the SEC.
Chronimed Inc.
(In thousands, except per share data)
| Fourth Quarter Ended | Year Ended | |||||
| 7/2/99 | 7/3/98 | 7/2/99 | 7/3/98 | |||
| Revenue | $55,254 | $40,512 | $198,413 | $140,655 | ||
| Percent increase | 36% | 41% | ||||
Income (loss) from operations |
||||||
| --as reported | $(488) | $2,632 | $5,844 | $10,270 | ||
| --as adjusted* | $312* | $2,632 | $6,644* | $10,270 | ||
Net income (loss) |
||||||
| --as reported | $(288) | $1,861 | $4,127 | $7,151 | ||
| --as adjusted* | $200* | $1,861 | $4,310* | $7,151 | ||
Net income (loss) per share -- diluted |
||||||
| --as reported | $(.02) | $.15 | $.34 | $.59 | ||
| --as adjusted* | $.02* | $.15 | $.35* | $.59 | ||
| Average shares outstanding -- diluted | 12,069 | 12,344 | 12,256 | 12,221 | ||
March 13, 2000
Contacts:
Paul S. Dunn
Investor Relations
or
Maurice R. Taylor, II
Chairman and CEO
Chronimed Inc.
(612) 979-3600