John W. Hlywak, Jr. (Investors) Jay Higham(Physician and Media)
Senior Vice President & CFO President & COO
IntegraMed America, Inc. IntegraMed America, Inc.
(914) 251-4143 (914) 251-4127
email: jhlywak@integramed.com email: jayhigham@integramed.com
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Web Address: http://www.integramed.com
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INTEGRAMED REPORTS SECOND QUARTER RESULTS
Purchase, NY, August 3, 2004 -- IntegraMed America, Inc. (Nasdaq: INMD) today
announced financial results for the second quarter ended June 30, 2004.
Reported Results
Total revenues for the second quarter of 2004 were $26.9 million, a 9.8%
increase from $24.5 million for the same period in 2003. The contribution to
earnings from operations in the second quarter of 2004 was approximately $2.8
million compared to $3.0 million reported for the same period in 2003.
Net income for the second quarter of 2004 was $320,000, compared with the
$377,000 net income reported for the second quarter of 2003. Diluted earnings
per share for the second quarter of 2004 were $0.08 compared to $0.11 for the
same period in 2003.
Total revenues for the first six months of 2004 were $52.3 million, an 8.5%
increase from total revenues of $48.2 million for the comparable period in 2003.
The contribution to earnings from operations for the first six months of 2004
was approximately $5.2 million, compared with $5.3 million for the first six
months of 2003. Net income for the first six months of 2004 was $507,000 or
$0.13 per diluted share, compared with $517,000, or $0.15 per diluted share, for
the comparable period in 2003.
Management Discussion
"The FertilityPartners segment of our business had a 11% revenue growth, however
as a result of infrastructure and marketing investments, primarily in one of our
major market areas, cost of services for this segment increased 15%," said
Gerardo Canet, Chairman and CEO of IntegraMed. "Revenues associated with these
investments have developed more slowly than anticipated," continued Mr. Canet.
"Our Pharmaceutical Services segment revenue is continuing its upward trend
increasing 4% over the first quarter of 2004. Our Shared Risk Refund Program and
Patient Financing revenues, two accelerating segments of our product mix had
almost 50% growth in revenues over the first quarter of 2004 and are more than
double 2003 levels," added Mr. Canet.
"We are building on the success of 2003 and first half of 2004 in practice
growth", continued Mr. Canet. "In the last year, we added two
FertilityPartners(TM) and four FertilityAffiliate(TM) members to the network. We
have now contracted with 7 of the top fertility centers to provide a full range
of our services and another 18 of the leading fertility centers to provide
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treatment financing services and the Shared Risk(TM) Refund Program, an
innovative IVF payment option. Based on the progress in our consumer product
lines and the accelerated pace of business development in our core business, we
expect to continue investing in infrastructure geared towards accelerating
growth and development," added Mr. Canet.
Financial Guidance
Our current guidance for fiscal 2004 is for total revenues to range from $100
million to $105 million and for net income to range from $1.0 million to $1.1
million, or $0.26 to $0.29 per diluted share.
About IntegraMed America, Inc.
IntegraMed, based in Purchase, NY offers products and services to patients,
providers and payors focused on the $2 billion fertility industry. IntegraMed
provides business services to a national network of fertility centers;
distributes pharmaceutical products and treatment financing programs directly to
consumers; and operates http://www.integramed.com, a leading fertility portal.
Investors' Conference Call
Gerardo Canet, Chairman and Chief Executive Officer, Jay Higham, President and
Chief Operating Officer and John Hlywak, Senior Vice-President and Chief
Financial Officer, will host an investment-community conference call beginning
August 4, 2004 at 10:00 a.m. Eastern Time to discuss the above-mentioned results
and to answer questions.
To participate in the live call via telephone, please call (800) 374-0146
(domestic) or (706) 634-1307 (international). A telephone replay will be
available through August 11, 2004 by dialing (800) 642-1687 (domestic) or (706)
645-9291 (international) and entering reservation number 9047443.
Individuals interested in listening to the conference call via the Internet may
do so by visiting the Company's web site at www.integramed.com. A replay will be
available on the web site for 14 days. For further information regarding
IntegraMed, this press release or the conference call, please go to IntegraMed's
homepage at www.integramed.com and to IntegraMed's Investor Relations website
page at www.corporate-ir.net/ireye/ir_site.zhtml?ticker=INMD&script=400.
Statements contained in this press release that are not based on historical
fact, including statements concerning future results, performance, expectations
and expansion of IntegraMed America are forward-looking statements that may
involve a number of risks and uncertainties. Actual results may differ
materially from the statements made as a result of various factors, including,
but not limited to, the risks associated with the Company's ability to finance
future growth; the loss of significant business service contract(s);
profitability at Reproductive Science Centers serviced by IntegraMed America;
changes in insurance coverage, government laws and regulations regarding health
care or managed care contracting; and other risks, including those identified in
the Company's most recent Form 10-K and in other documents filed by the Company
with the U.S. Securities and Exchange Commission. All information in this press
release is as of August 3, 2004 and IntegraMed undertakes no duty to update this
information.
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INTEGRAMED AMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(all amounts in thousands, except per share amounts)
For the For the
three-month period six-month period
ended June 30, ended June 30,
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2004 2003 2004 2003
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(unaudited) (unaudited)
Revenues, net
Fertility Partners ............................. $ 21,475 $ 19,397 $ 42,073 $ 37,771
Pharmaceutical sales ........................... 3,903 4,431 7,669 9,293
Fertility Direct ............................... 1,515 673 2,545 1,147
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Total revenues ................................. 26,893 24,501 52,287 48,211
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Costs of services and sales
Fertility Partners ............................. 19,298 16,759 37,847 33,124
Pharmaceutical costs ........................... 3,749 4,318 7,373 9,060
Fertility Direct ............................... 1,075 466 1,821 756
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Total costs of services and sales .............. 24,122 21,543 47,041 42,940
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Contribution
Fertility Partners ............................. 2,177 2,638 4,226 4,647
Pharmaceutical ................................. 154 113 296 233
Fertility Direct ............................... 440 207 724 391
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Total contribution ............................. 2,771 2,958 5,246 5,271
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General and administrative expenses ................. 2,230 2,350 4,372 4,435
Interest income ..................................... (62) (22) (120) (44)
Interest expense .................................... 72 13 152 32
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Total other expenses ........................... 2,240 2,341 4,404 4,423
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Income before income taxes .......................... 531 617 842 848
Income tax provision ................................ 211 240 335 331
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Net income .......................................... 320 377 507 517
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Basic and diluted earnings per share of Common Stock:
Basic earnings per share ....................... $ 0.09 $ 0.11 $ 0.14 $ 0.15
Diluted earnings per share ..................... $ 0.08 $ 0.11 $ 0.13 $ 0.15
Weighted average shares - basic ..................... 3,655 3,392 3,610 3,374
Weighted average shares - diluted ................... 3,863 3,535 3,821 3,530
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INTEGRAMED AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share amounts)
June 30, December 31,
2004 2003
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ASSETS
Current assets:
Cash and cash equivalents ...................................... $ 8,783 $ 6,885
Due from Medical Practices, net ................................ 10,019 8,918
Pharmaceutical sales accounts receivable, net .................. 1,532 1,484
Deferred taxes ................................................. 948 948
Prepaids and other current assets .............................. 2,649 3,264
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Total current assets ....................................... 23,931 21,499
Fixed assets, net ................................................. 11,708 10,218
Exclusive Service Rights, net ..................................... 21,066 20,504
Deferred taxes .................................................... 2,483 2,795
Other assets ...................................................... 316 278
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Total assets ............................................... $ 59,504 $ 55,294
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................... $ 318 $ 167
Accrued liabilities ............................................ 6,184 5,274
Current portion of long-term notes payable and other obligations 3,216 3,272
Patient deposits ............................................... 2,644 9,492
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Total current liabilities .................................. 22,362 18,205
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Long-term notes payable and other obligations ..................... 3,630 4,239
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Commitments and Contingencies
Shareholders' equity:
Common Stock ................................................... 37 35
Capital in excess of par ....................................... 48,042 48,172
Treasury Stock ................................................. (47) (426)
Deferred Compensation .......................................... (411) (315)
Accumulated deficit ............................................ (14,109) (14,616)
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Total shareholders' equity ................................. 33,512 32,850
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Total liabilities and shareholders' equity ................. $ 59,504 $ 55,294
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