Exhibit 99.1
LabOne Reports Second Quarter Earnings
LENEXA, Kan., Aug 08, 2005 (BUSINESS WIRE) -- LabOne, Inc. (Nasdaq:LABS) today reported revenues of $127.6 million for its second quarter ended June 30, 2005, an increase of $10.1 million or 9% over the second quarter 2004. Compared to revenues for the same quarter last year, risk assessment services increased 2% to $67.3 million, healthcare increased 17% to $47.5 million and substance abuse testing increased 19% to $12.8 million. The company reported net earnings of $7.8 million or $0.44 per diluted share compared to $6.3 million or $0.36 per diluted share for the second quarter 2004.
For the second quarter 2005, operating earnings were $13.8 million compared to $11.2 million the same period last year, an increase of $2.6 million or 23%. Second quarter 2005 operating earnings comprised $11.3 million for risk assessment, $11.0 million for healthcare and $2.4 million for substance abuse testing, offset by $10.9 million for corporate selling, general and administrative expenses. This compares to operating earnings of $13.7 million for risk assessment, $5.5 million for healthcare and $1.8 million for substance abuse testing, offset by $9.7 million for corporate selling, general and administrative expenses for the same period in 2004.
For the six months ended June 30, 2005, the company reported revenues of $252.0 million compared to $230.3 million the same period last year. For the six months ended June 30, 2005, revenues attributable to risk assessment services increased 4% to $134.4 million, healthcare increased 14% to $93.5 million and substance abuse testing increased 28% to $24.0 million. Net earnings for the six months was $14.7 million or $0.83 per diluted share compared to $12.2 million or $0.70 per diluted share for the same period in 2004.
For the six months ended June 30, 2005, operating earnings were $26.5 million compared to $22.0 million for the same period last year. For the six months ended June 30, 2005, operating earnings comprised $24.1 million for risk assessment, $20.7 million for healthcare and $3.7 million for substance abuse testing, offset by $22.0 million for corporate selling, general and administrative expenses. This compares to operating earnings of $26.0 million for risk assessment, $12.3 for healthcare and $3.1 million for substance abuse testing, offset by $19.4 million for corporate selling, general and administrative expenses for the same period in 2003.
"We are pleased to announce another quarter of improved revenues and earnings," said W. Thomas Grant II, chairman, president and CEO of LabOne. "Healthcare testing revenues increased 17% and substance abuse testing increased 19% compared to the second quarter of 2004. We continue to be impacted by decreases in life insurance underwriting activity reflected by a 9% decline in life insurance laboratory testing revenues. However, we realized a 10% increase in paramedical examination revenues and a 4% increase in other insurance services revenues."
About LabOne, Inc.
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 substance abuse testing services and related employee qualification products to employers and the government.
Forward-Looking Statements
This press release may contain "forward-looking statements." 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 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 2004 Annual Report on Form 10-K.
SELECTED FINANCIAL DATA (in thousands, except per share data) Three months ended Six months ended June 30, June 30, 2005 2004 % change 2005 2004 % change ----------------------------- -------------------------- Sales $127,648 $117,483 9% $251,959 $230,308 9% Net earnings $ 7,822 $ 6,287 24% $ 14,690 $ 12,167 21% Basic earnings per share $ 0.45 $ 0.37 $ 0.84 $ 0.72 Diluted earnings per share $ 0.44 $ 0.36 $ 0.83 $ 0.70 Total assets $370,601 $312,106 Working capital $ 78,440 $ 52,133 CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) June 30, December 31, 2005 2004 --------- ------------ Assets Current assets: Cash and cash equivalents $ 24,322 $ 24,070 Accounts receivable, net of allowance for doubtful accounts of $5,567 in 2005 and $4,594 in 2004 80,659 73,027 Inventories 7,800 7,473 Prepaid expenses and other current assets 5,429 6,506 Deferred income taxes 8,644 5,556 --------- ------------ Total current assets 126,854 116,632 Property, plant and equipment, net 82,011 62,860 Goodwill 138,559 138,163 Intangible assets, net 18,833 20,860 Other long-term assets 4,344 4,707 --------- ------------ Total assets $370,601 $343,222 ========= ============ Liabilities and Stockholders' Equity Current liabilities: Accounts payable $27,872 $20,467 Accrued payroll and benefits 14,740 17,131 Other accrued expenses 3,952 3,381 Current portion of long-term debt 1,850 1,925 --------- ------------ Total current liabilities 48,414 42,904 Deferred income taxes 9,859 8,694 Long-term debt 111,494 111,549 Other 211 108 --------- ------------ Total liabilities 169,978 163,255 Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value per share. Authorized 40,000,000 shares; issued 18,027,729 shares 180 180 Additional paid-in capital 89,826 87,027 Retained earnings 117,664 102,974 Accumulated other comprehensive loss (187) (94) Treasury stock of 539,785 shares in 2005 and 796,260 shares in 2004, at cost (6,860) (10,120) --------- ------------ Total stockholders' equity 200,623 179,967 --------- ------------ Total liabilities and stockholders' equity $370,601 $343,222 ========= ============ CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three months ended Six months ended June 30, June 30, 2005 2004 2005 2004 --------- --------- --------- --------- Sales $127,648 $117,483 $251,959 $230,308 Cost of sales: Cost of sales expenses 84,462 78,932 166,302 155,002 Depreciation and amortization 1,744 1,675 3,300 3,223 --------- --------- --------- --------- Total cost of sales 86,206 80,607 169,602 158,225 --------- --------- --------- --------- Gross profit 41,442 36,876 82,357 72,083 Selling, general and administrative: Selling, general and administrative expenses 24,608 23,226 50,084 45,290 Depreciation and amortization 3,000 2,401 5,780 4,832 --------- --------- --------- --------- Total selling, general and administrative 27,608 25,627 55,864 50,122 --------- --------- --------- --------- Operating earnings 13,834 11,249 26,493 21,961 Other income (expense): Interest income 188 61 337 67 Interest expense (1,275) (1,256) (2,552) (2,474) Other, net (89) 21 (80) (5) --------- --------- --------- --------- Total other expense, net (1,176) (1,174) (2,295) (2,412) --------- --------- --------- --------- Earnings before income taxes 12,658 10,075 24,198 19,549 Provision for income taxes 4,836 3,788 9,508 7,382 --------- --------- --------- --------- Net earnings $ 7,822 $ 6,287 $ 14,690 $ 12,167 ========= ========= ========= ========= Earnings per common share: Basic $ 0.45 $ 0.37 $ 0.84 $ 0.72 Diluted $ 0.44 $ 0.36 $ 0.83 $ 0.70 Weighted average common shares outstanding: Basic 17,470 17,060 17,386 17,002 Diluted 17,874 17,473 17,790 17,448
SOURCE: LabOne, Inc.
LabOne, Inc. John McCarty, EVP and CFO, 913-577-1244 john.mccarty@LabOne.com