EXHIBIT 99.1 |
HealthTronics, Inc. Announces Fourth Quarter Results with 23% Year over Year Growth in Revenue |
AUSTIN, Texas, March 6, 2009 -- HealthTronics, Inc. (NASDAQ:HTRN), a leading provider of Urology services and products, today announced its financial results for the quarter and year ended December 31, 2008. |
The Company had cash flows from operations totaling $70.8 million, which compares to cash flow from operations of $61.9 million for fiscal year 2007. In addition, net working capital was approximately $45 million and $41 million was drawn on HealthTronics' $60 million revolving line of credit. |
Conference Call and Webcast: |
EBITDA and Adjusted EBITDA are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA and Adjusted EBITDA should not be considered as an alternative to net income, operating income, a liquidity measure, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA and Adjusted EBITDA reflect additional ways of viewing HealthTronics' operations that HealthTronics believes, when viewed with its GAAP results and the reconciliations to the corresponding GAAP financial measures provide a more complete understanding of factors and trends affecting HealthTronics' business than could be obtained absent this disclosure. |
HEALTHTRONICS, INC. AND SUBSIDIARIES |
($ in thousands, except per share data) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2008 | 2007 | 2008 | 2007 | |||||||||||
Revenue: | ||||||||||||||
Urology Services | $ | 38,715 | $ | 31,890 | $ | 145,265 | $ | 122,736 | ||||||
Medical Products | 5,922 | 4,100 | 20,389 | 17,101 | ||||||||||
Other | -- | 159 | 288 | 581 | ||||||||||
Total revenue | 44,637 | 36,149 | 165,942 | 140,418 | ||||||||||
Cost of services and general and administrative expenses: | ||||||||||||||
Urology Services | 17,896 | 13,364 | 65,185 | 53,490 | ||||||||||
Medical Products | 3,526 | 3,148 | 10,494 | 11,225 | ||||||||||
Selling, general and administrative | 5,820 | 2,925 | 20,006 | 15,884 | ||||||||||
Impairment charges | 144,000 | 20,800 | 144,000 | 20,800 | ||||||||||
Depreciation and amortization | 3,593 | 2,768 | 12,363 | 11,107 | ||||||||||
174,835 | 43,005 | 252,048 | 112,506 | |||||||||||
Operating income | (130,198 | ) | (6,856 | ) | (86,106 | ) | 27,912 | |||||||
Other income (expenses): | ||||||||||||||
Interest and dividends | 135 | 312 | 1,233 | 1,146 | ||||||||||
Interest expense | (486 | ) | (185 | ) | (1,077 | ) | (829 | ) | ||||||
(351 | ) | 127 | 156 | 317 | ||||||||||
Income from continuing operations before provision | ||||||||||||||
for income taxes and minority interest | (130,549 | ) | (6,729 | ) | (85,950 | ) | 28,229 | |||||||
Minority interest in consolidated income | 13,879 | 12,570 | 54,259 | 45,568 | ||||||||||
Provision (benefit) for income taxes | (13,246 | ) | (3,809 | ) | (11,516 | ) | (2,854 | ) | ||||||
Income (loss) from continuing operations | (131,182 | ) | (15,490 | ) | (128,693 | ) | (14,485 | ) | ||||||
Income (loss) from discontinued operations, net of tax | -- | (36 | ) | -- | (147 | ) | ||||||||
Net income | $ | (131,182 | ) | $ | (15,526 | ) | $ | (128,693 | ) | $ | (14,632 | ) | ||
Basic earnings per share: | ||||||||||||||
Income (loss) from continuing operations | $ | (3.64 | ) | $ | (0.44 | ) | $ | (3.53 | ) | $ | (0.41 | ) | ||
Income (loss) from discontinued operations | $ | -- | $ | -- | $ | -- | $ | -- | ||||||
Net income | $ | (3.64 | ) | $ | (0.44 | ) | $ | (3.53 | ) | $ | (0.41 | ) | ||
Weighted average shares outstanding | 36,004 | 35,425 | 36,499 | 35,421 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Income (loss) from continuing operations | $ | (3.64 | ) | $ | (0.44 | ) | $ | (3.53 | ) | $ | (0.41 | ) | ||
Income (loss) from discontinued operations | $ | -- | $ | -- | $ | -- | $ | -- | ||||||
Net income | $ | (3.64 | ) | $ | (0.44 | ) | $ | (3.53 | ) | $ | (0.41 | ) | ||
Weighted average shares outstanding | 36,004 | 35,425 | 36,499 | 35,421 |
HealthTronics, Inc. and Subsidiaries |
($ in thousands) | December 31, 2008 | December 31, 2007 | ||||||
---|---|---|---|---|---|---|---|---|
ASSETS | ||||||||
Total current assets | $ | 63,689 | $ | 74,214 | ||||
Property and equipment, net | 32,769 | 33,019 | ||||||
Goodwill | 93,620 | 217,505 | ||||||
Other assets | 44,308 | 11,318 | ||||||
$ | 234,386 | $ | 336,056 | |||||
LIABILITIES | ||||||||
Total current liabilities | $ | 18,274 | $ | 17,692 | ||||
Long-term debt, net of current portion | 43,897 | 4,194 | ||||||
Other long-term liabilities | 5,120 | 30,099 | ||||||
Total liabilities | 67,291 | 51,985 | ||||||
Minority interest | 47,723 | 41,653 | ||||||
Total stockholders' equity | 119,372 | 242,418 | ||||||
$ | 234,386 | $ | 336,056 |
HealthTronics, Inc. and Subsidiaries |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2008 | 2007 | 2008 | 2007 | |||||||||||
Summary of Results from Operations | ||||||||||||||
Revenues | $ | 44,637 | $ | 36,149 | $ | 165,942 | $ | 140,418 | ||||||
EBITDA(a) | $ | 19,671 | $ | 17,757 | $ | 76,263 | $ | 62,878 | ||||||
Adjusted EBITDA(a) | $ | 5,792 | $ | 5,187 | $ | 22,004 | $ | 17,310 | ||||||
Net loss from Continuing Operations | $ | (131,182 | ) | $ | (15,490 | ) | $ | (128,693 | ) | $ | (14,485 | ) | ||
Net loss | $ | (131,182 | ) | $ | (15,526 | ) | $ | (128,693 | ) | $ | (14,632 | ) | ||
EPS from Continuing Operations | $ | (3.64 | ) | $ | (0.44 | ) | $ | (3.53 | ) | $ | (0.41 | ) | ||
EPS | $ | (3.64 | ) | $ | (0.44 | ) | $ | (3.53 | ) | $ | (0.41 | ) | ||
Number of Shares | 36,004 | 35,425 | 36,499 | 35,421 | ||||||||||
Segment Information | ||||||||||||||
Revenues: | ||||||||||||||
Urology Services | $ | 38,715 | $ | 31,890 | $ | 145,265 | $ | 122,736 | ||||||
Medical Products | $ | 5,922 | $ | 4,100 | $ | 20,389 | $ | 17,101 | ||||||
Adjusted EBITDA(a): | ||||||||||||||
Urology Services | $ | 5,749 | $ | 4,746 | $ | 20,787 | $ | 18,691 | ||||||
Medical Products | $ | 1,650 | $ | 1,336 | $ | 6,738 | $ | 3,057 | ||||||
Other Information: | ||||||||||||||
Cashflow from Operations | $ | 19,540 | $ | 16,313 | $ | 70,845 | $ | 61,877 | ||||||
Net Draws (Payments) on Senior Credit Facility | $ | 35,000 | $ | -- | $ | 41,000 | $ | -- | ||||||
Net Debt | $ | 23,533 | $ | (16,672 | ) | $ | 23,533 | $ | (16,672 | ) |
(a) See accompanying reconciliation of EBITDA and Adjusted EBITDA |
HealthTronics, Inc. and Subsidiaries |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Consolidated | 2008 | 2007 | 2008 | 2007 | ||||||||||
Income from Continuing Operations | $ | (131,182 | ) | $ | (15,490 | ) | $ | (128,693 | ) | $ | (14,485 | ) | ||
Add Back(deduct): | ||||||||||||||
Provision for income taxes | (13,246 | ) | (3,809 | ) | (11,516 | ) | (2,854 | ) | ||||||
Interest expense | 486 | 185 | 1,077 | 829 | ||||||||||
Depreciation and amortization | 3,593 | 2,768 | 12,363 | 11,107 | ||||||||||
Restructuring costs | 1,730 | 403 | 1,892 | 803 | ||||||||||
Impairment of goodwill | 144,000 | 20,800 | 144,000 | 20,800 | ||||||||||
Stockbased compensation costs | 411 | 330 | 2,881 | 1,110 | ||||||||||
Adjusted EBITDA | 5,792 | 5,187 | 22,004 | 17,310 | ||||||||||
Add Back: | ||||||||||||||
Minority interest expense | 13,879 | 12,570 | 54,259 | 45,568 | ||||||||||
EBITDA | $ | 19,671 | $ | 17,757 | $ | 76,263 | $ | 62,878 | ||||||
Urology Services Segment | ||||||||||||||
Revenues | $ | 38,715 | $ | 31,890 | $ | 145,265 | $ | 122,736 | ||||||
Expenses: | ||||||||||||||
Cost of Services | (19,143 | ) | (14,728 | ) | (70,466 | ) | (58,941 | ) | ||||||
Other Income (Expenses) | 58 | 171 | 297 | 523 | ||||||||||
EBITDA | 19,630 | 17,333 | 75,096 | 64,318 | ||||||||||
Minority interest expense | (13,881 | ) | (12,587 | ) | (54,309 | ) | (45,627 | ) | ||||||
Adjusted EBITDA | $ | 5,749 | $ | 4,746 | $ | 20,787 | $ | 18,691 | ||||||
Medical Products Segment | ||||||||||||||
Revenues | $ | 5,922 | $ | 4,100 | $ | 20,389 | $ | 17,101 | ||||||
Expenses: | ||||||||||||||
Cost of Services | (5,966 | ) | (2,791 | ) | (15,010 | ) | (14,140 | ) | ||||||
Other Income (Expenses) | 16 | 11 | 49 | 38 | ||||||||||
EBITDA | (28 | ) | 1,320 | 5,428 | 2,999 | |||||||||
Minority interest expense | 3 | 16 | 50 | 58 | ||||||||||
Adjusted EBITDA | $ | (25 | ) | $ | 1,336 | $ | 5,478 | $ | 3,057 | |||||
Add Backs: | ||||||||||||||
Restructuring costs | 1,675 | -- | 1,260 | -- | ||||||||||
Adjusted EBITDA | $ | 1,650 | $ | 1,336 | $ | 6,738 | $ | 3,057 |