EXHIBIT 99.1 |
HEALTHTRONICS, INC. ANNOUNCES SECOND QUARTER 2007 RESULTS Achieves 21% sequential EBITDA growth over First Quarter 2007 |
AUSTIN, TX, — (BUSINESS WIRE) — August 2, 2007 — HealthTronics, Inc. (NASDAQ: HTRN), a leading provider of Urology services and products, today announced its financial results for the second quarter ended June 30, 2007. |
Medical Products |
EBITDA and Adjusted EBITDA: HealthTronics has presented EBITDA and Adjusted EBITDA amounts, which are non-GAAP financial measures. In the SEC filings, HealthTronics has reconciled such amounts to their most directly comparable financial measure calculated in accordance with GAAP, which is HealthTronics’ net income. HealthTronics believes that its presentations of EBITDA and Adjusted EBITDA are important supplemental measures of operating performance to its investors. |
HEALTHTRONICS, INC. AND SUBSIDIARIES |
($ in thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2007 | 2006 | 2007 | 2006 | |||||||||||
Revenue: | ||||||||||||||
Urology Services | $ | 30,836 | $ | 31,113 | $ | 59,221 | $ | 61,867 | ||||||
Medical Products | 4,586 | 5,210 | 8,825 | 11,410 | ||||||||||
Other | 141 | 151 | 268 | 303 | ||||||||||
Total revenue | 35,563 | 36,474 | 68,314 | 73,580 | ||||||||||
Cost of services and general and administrative expenses: | ||||||||||||||
Salaries, wages and benefits | 11,323 | 10,292 | 22,254 | 21,099 | ||||||||||
Other costs of services | 4,936 | 3,590 | 9,550 | 8,489 | ||||||||||
General and administrative | 1,791 | 2,080 | 3,800 | 4,189 | ||||||||||
Legal and professional | 486 | 1,432 | 1,093 | 1,937 | ||||||||||
Manufacturing costs | 1,785 | 2,749 | 3,848 | 6,444 | ||||||||||
Advertising | 381 | 581 | 556 | 807 | ||||||||||
Other | 11 | 5 | 15 | 220 | ||||||||||
Depreciation and amortization | 2,776 | 2,755 | 5,592 | 5,444 | ||||||||||
23,489 | 23,484 | 46,708 | 48,629 | |||||||||||
Operating income | 12,074 | 12,990 | 21,606 | 24,951 | ||||||||||
Other income (expenses): | ||||||||||||||
Interest and dividends | 311 | 111 | 588 | 243 | ||||||||||
Interest expense | (212 | ) | (322 | ) | (448 | ) | (646 | ) | ||||||
99 | (211 | ) | 140 | (403 | ) | |||||||||
Income from continuing operations before provision | ||||||||||||||
for income taxes and minority interest | 12,173 | 12,779 | 21,746 | 24,548 | ||||||||||
Minority interest in consolidated income | 11,275 | 11,293 | 20,784 | 21,649 | ||||||||||
Provision for income taxes | 581 | 667 | 566 | 1,272 | ||||||||||
Income from continuing operations | 317 | 819 | 396 | 1,627 | ||||||||||
Income (loss) from discontinued operations, net of tax | (138 | ) | 549 | (247 | ) | 1,014 | ||||||||
Net income | $ | 179 | $ | 1,368 | $ | 149 | $ | 2,641 | ||||||
Basic earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | 0.05 | ||||||
Income (loss) from discontinued operations | $ | -- | $ | 0.02 | $ | (0.01 | ) | $ | 0.03 | |||||
Net income | $ | 0.01 | $ | 0.04 | $ | -- | $ | 0.08 | ||||||
Weighted average shares outstanding | 35,425 | 35,056 | 35,416 | 34,981 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | 0.04 | ||||||
Income (loss) from discontinued operations | $ | -- | $ | 0.02 | $ | (0.01 | ) | $ | 0.03 | |||||
Net income | $ | 0.01 | $ | 0.04 | $ | -- | $ | 0.07 | ||||||
Weighted average shares outstanding | 35,426 | 35,361 | 35,422 | 35,306 | ||||||||||
HealthTronics, Inc. and Subsidiaries |
($ in thousands) | June 30, 2007 | December 31, 2006 | ||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Total current assets | $ | 63,776 | $ | 71,825 | ||||
Property and equipment, net | 32,351 | 34,270 | ||||||
Assets held for sale | 701 | 1,258 | ||||||
Goodwill | 233,700 | 229,261 | ||||||
Other assets | 12,318 | 10,119 | ||||||
$ | 342,846 | $ | 346,733 | |||||
LIABILITIES | ||||||||
Total current liabilities | $ | 18,342 | $ | 30,123 | ||||
Long-term debt, net of current portion | 4,743 | 5,673 | ||||||
Liabilities held for sale | 92 | 258 | ||||||
Other long-term liabilities | 28,600 | 25,058 | ||||||
Total liabilities | 51,777 | 61,112 | ||||||
Minority interest | 34,228 | 30,104 | ||||||
Total stockholders' equity | 256,841 | 255,517 | ||||||
$ | 342,846 | $ | 346,733 | |||||
HealthTronics, Inc. and Subsidiaries |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2007 | 2006 | 2007 | 2006 | |||||||||||
Summary of Results from Operations | ||||||||||||||
Revenues | $ | 35,563 | $ | 36,474 | $ | 68,314 | $ | 73,580 | ||||||
EBITDA(a) | $ | 15,524 | $ | 16,793 | $ | 28,537 | $ | 32,069 | ||||||
Adjusted EBITDA(a) | $ | 4,249 | $ | 5,500 | $ | 7,753 | $ | 10,420 | ||||||
Net Income from Continuing Operations | $ | 317 | $ | 819 | $ | 396 | $ | 1,627 | ||||||
Net Income | $ | 179 | $ | 1,368 | $ | 149 | $ | 2,641 | ||||||
EPS from Continuing Operations | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | 0.04 | ||||||
EPS | $ | 0.01 | $ | 0.04 | $ | -- | $ | 0.07 | ||||||
Number of Shares | 35,426 | 35,361 | 35,422 | 35,306 | ||||||||||
Segment Information | ||||||||||||||
Revenues: | ||||||||||||||
Urology Services | $ | 30,836 | $ | 31,113 | $ | 59,221 | $ | 61,867 | ||||||
Medical Products | $ | 4,586 | $ | 5,210 | $ | 8,825 | $ | 11,410 | ||||||
Adjusted EBITDA(a): | ||||||||||||||
Urology Services | $ | 5,030 | $ | 7,131 | $ | 8,965 | $ | 13,063 | ||||||
Medical Products | $ | 437 | $ | (225 | ) | $ | 1,136 | $ | 62 | |||||
Other Information: | ||||||||||||||
Cashflow from Operations | $ | 15,716 | $ | 12,680 | $ | 27,098 | $ | 24,926 | ||||||
Net Draws (Payments) on Senior Credit Facility | $ | -- | $ | (312 | ) | $ | -- | $ | (625 | ) | ||||
Net Debt | $ | (8,969 | ) | $ | 125,669 | $ | (8,969 | ) | $ | 125,669 |
(a) See accompanying reconciliation of EBITDA and Adjusted EBITDA |
Non-GAAP Financial Measures |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Consolidated | 2007 | 2006 | 2007 | 2006 | ||||||||||
Income from Continuing Operations | $ | 317 | $ | 819 | $ | 396 | $ | 1,627 | ||||||
Add Back(deduct): | ||||||||||||||
Provision for income taxes | 581 | 667 | 566 | 1,272 | ||||||||||
Interest expense | 212 | 322 | 448 | 646 | ||||||||||
Depreciation and amortization | 2,776 | 2,755 | 5,592 | 5,444 | ||||||||||
Restructuring costs | -- | 650 | -- | 1,050 | ||||||||||
Stockbased compensation costs | 363 | 287 | 751 | 381 | ||||||||||
Adjusted EBITDA | 4,249 | 5,500 | 7,753 | 10,420 | ||||||||||
Add Back: | ||||||||||||||
Minority interest expense | 11,275 | 11,293 | 20,784 | 21,649 | ||||||||||
EBITDA | $ | 15,524 | $ | 16,793 | $ | 28,537 | $ | 32,069 | ||||||
Urology Services Segment | ||||||||||||||
Revenues | $ | 30,836 | $ | 31,113 | $ | 59,221 | $ | 61,867 | ||||||
Expenses: | ||||||||||||||
Cost of Services | (14,661 | ) | (12,728 | ) | (29,677 | ) | (27,665 | ) | ||||||
Other Income (Expenses) | 136 | 52 | 234 | 128 | ||||||||||
EBITDA | 16,311 | 18,437 | 29,778 | 34,330 | ||||||||||
Minority interest expense | (11,281 | ) | (11,306 | ) | (20,813 | ) | (21,667 | ) | ||||||
Adjusted EBITDA before add backs: | $ | 5,030 | $ | 7,131 | $ | 8,965 | $ | 12,663 | ||||||
Add Backs: | ||||||||||||||
Restructuring costs | -- | -- | -- | 400 | ||||||||||
Adjusted EBITDA | $ | 5,030 | $ | 7,131 | $ | 8,965 | $ | 13,063 | ||||||
Medical Products Segment | ||||||||||||||
Revenues | $ | 4,586 | $ | 5,210 | $ | 8,825 | $ | 11,410 | ||||||
Expenses: | ||||||||||||||
Cost of Services | (4,167 | ) | (5,462 | ) | (7,738 | ) | (11,396 | ) | ||||||
Other Income (Expenses) | 12 | 13 | 21 | 29 | ||||||||||
EBITDA | 431 | (239 | ) | 1,108 | 43 | |||||||||
Minority interest expense | 6 | 14 | 28 | 19 | ||||||||||
Adjusted EBITDA | $ | 437 | $ | (225 | ) | $ | 1,136 | $ | 62 | |||||