Exhibit 99.1
LabOne Reports First Quarter Earnings
LENEXA, Kan., May 5, 2004 (BUSINESS WIRE) -- LabOne, Inc. (Nasdaq:LABS) today reported revenues of $112.8 million for its first quarter ended March 31, 2004, an increase of $30.9 million or 38% over the first quarter 2003.
Compared to revenues for the same quarter last year, risk assessment services increased 15% to $63.4 million, healthcare increased 101% to $41.4 million and substance abuse testing increased 34% to $8.0 million. Excluding the impact of the acquisition of Alliance Laboratory Services in January 2004 and Northwest Toxicology in March 2004, healthcare revenues increased 27% and substance abuse testing revenues increased 12% compared to the first quarter last year. The company reported net income of $5.9 million or $0.34 per diluted share compared to $4.6 million or $0.27 per diluted share for the first quarter 2003.
Operating earnings for the first quarter 2004 were $10.7 million compared to $7.9 million for the same period last year, an increase of $2.8 million or 36%. First quarter 2004 operating earnings comprised $12.3 million for risk assessment, $6.8 million for healthcare and $1.3 million for substance abuse testing, offset by $9.7 million for corporate selling, general and administrative expenses. This compares to operating earnings for the same period in 2003 of $11.4 million for risk assessment, $3.9 million for healthcare and $0.7 million for substance abuse testing, offset by $8.1 million for corporate selling, general and administrative expenses. For the first quarter 2004, the acquisition of Alliance Laboratory Services and Northwest Toxicology contributed $0.8 million and $0.2 million of operating earnings to healthcare and substance abuse testing, respectively.
"In addition to the initial phases of integrating our two laboratory acquisitions completed in the first quarter 2004, we continued to realize substantial growth from penetration within our existing markets," said W. Thomas Grant II, chairman, president and CEO of LabOne. "During the first quarter, healthcare volumes increased 78% compared to the same quarter last year. Excluding the impact of Alliance Laboratory Services, healthcare volumes increased 24%. Although insurance applicant testing volumes declined 3% in the first quarter compared to last year, paramedical examination revenues increased 19% to $24.4 million and other insurance services revenues including teleunderwriting increased 44% to $17.2 million. Compared to the same quarter last year, substance abuse volumes increased 28%, reflecting a 12% increase excluding the acquisition of Northwest Toxicology."
LabOne will conduct its quarterly conference call with W. Thomas Grant II, chairman, president and CEO; John W. McCarty, executive vice president and CFO; and Mike Asselta, executive vice president and COO, at 11:00 a.m. Eastern Time, May 5, 2004. To join the conference call, dial 800-818-5264. Participants are encouraged to dial in 5 to 10 minutes prior to the scheduled start time. At approximately 2:30 p.m. Eastern Time, a recording of the call will be available as a voice mail at 888-203-1112, passcode 424841, through June 5, 2004. The audio recording will also be available on the investor info section of the company's web site at www.LabOne.com.
About LabOne
Headquartered in the Greater Kansas City area, LabOne is a diagnostic services provider. The services and information LabOne and its subsidiaries provide include: risk assessment information services for the insurance industry; diagnostic healthcare testing to physicians, hospitals, managed care organizations and employers; and drug testing services and related employee qualification products to employers and the government. The company's web site is located at http://www.LabOne.com.
Forward-Looking Statements
This press release may contain "forward-looking statements." Forward-looking statements often can be identified by the use of forward-looking terminology, such as "could," "should," "will," "will be," "intended," "continue," "believe," "may," "hope," "anticipate," "goal," "forecast," "plan," "estimate" or variations thereof. Forward-looking statements are not guarantees of future performance or results. Forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause actual results to differ materially from those that may be expressed or implied in such forward-looking statements, including, but not limited to, the volume, pricing and mix of services provided by the Company, intense competition, the loss of one or more significant customers, government reimbursement policies, general economic conditions and other factors detailed from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission ("SEC"), including the Company's 2003 Annual Report on Form 10-K.
SELECTED FINANCIAL DATA (in thousands, except per share data) Three months ended March 31, 2004 2003 % change ---------------------------- Sales $112,825 $81,928 38% Net earnings $5,880 $4,551 29% Basic earnings per share $0.35 $0.32 Diluted earnings per share $0.34 $0.27 Total assets $311,231 $221,071 Working capital $53,380 $40,090 CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) March 31, Dec. 31, 2004 2003 ---- ---- Assets Current assets: Cash and cash equivalents $3,189 $4,651 Accounts receivable, net of allowances of $21,748 in 2004 and $8,727 in 2003 78,878 57,928 Inventories 8,067 5,472 Prepaid expenses and other current assets 3,665 5,202 Deferred income taxes 5,602 4,990 --------- --------- Total current assets 99,401 78,243 Property, plant and equipment, net 52,015 47,405 Goodwill 137,047 99,103 Intangible assets, net 21,427 11,345 Other long-term assets 1,341 1,526 --------- --------- Total assets $311,231 $237,622 ========= ========= Liabilities and Stockholders' Equity Current liabilities: Accounts payable $23,373 $13,617 Accrued payroll and benefits 14,739 11,769 Other accrued expenses 5,871 2,787 Current portion of long- term debt 2,038 2,014 --------- --------- Total current liabilities 46,021 30,187 Deferred income taxes 5,717 5,619 Long-term debt 104,734 56,094 Other 29 21 --------- --------- Total liabilities 156,501 91,921 Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value per share. Authorized 40,000,000 shares; issued 18,027,729 shares in 2004 and 2003 180 180 Additional paid-in capital 85,427 84,066 Retained earnings 82,130 76,250 Accumulated other comprehensive loss (344) (245) Treasury stock of 996,415 shares in 2004 and 1,144,840 shares in 2003, at cost (12,663) (14,550) --------- --------- Total stockholders' equity 154,730 145,701 --------- --------- Total liabilities and stockholders' equity $311,231 $237,622 ========= ========= CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three months ended March 31, 2004 2003 --------- --------- Sales $112,825 $81,928 Cost of sales: Cost of sales expense 76,070 55,044 Depreciation and amortization 1,548 1,046 --------- --------- Total cost of sales 77,618 56,090 --------- --------- Gross profit 35,207 25,838 Selling, general and administrative: Selling, general and administrative expenses 22,064 16,150 Depreciation and amortization 2,431 1,813 --------- --------- Total selling, general and administrative 24,495 17,963 --------- --------- Operating earnings 10,712 7,875 Other income (expense): Interest income 6 90 Interest expense (1,218) (716) Other, net (26) 29 --------- --------- Total other expense, net (1,238) (597) --------- --------- Earnings before income taxes 9,474 7,278 Provision for income taxes 3,594 2,727 --------- --------- Net earnings $5,880 $4,551 ========= ========= Preferred stock dividends $- $(767) --------- --------- Net earnings available to common shareholders $5,880 $3,784 ========= ========= Earnings per common share: Basic $0.35 $0.32 Diluted $0.34 $0.27 Weighted average common shares outstanding: Basic 16,944 11,669 Diluted 17,424 16,610
SOURCE: LabOne, Inc.
LabOne, Inc. John McCarty, 913-577-1244 john.mccarty@LabOne.com