[GRAPHIC OMITTED][GRAPHIC OMITTED]
John W. Hlywak, Jr. (Investors) Jay Higham (Media/Physicians)
Senior Vice President & CFO President & COO
IntegraMed America, Inc. IntegraMed America, Inc.
(914) 251-4143 (914) 251-4127
email: jhlywak@integramed.com email: jhigham@integramed.com
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Web Address: http://www.integramed.com
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INTEGRAMED AMERICA REPORTS FOURTH QUARTER AND ANNUAL RESULTS
Purchase, NY, February 16, 2005 -- IntegraMed America, Inc. (Nasdaq: INMD) today
announced financial results for the fourth quarter and year ended December 31,
2004.
Reported Results
Revenues for the fourth quarter of 2004 were approximately $28.1 million,
compared to $23.2 million for the same period in 2003. The contribution to
earnings from operations was approximately $3.4 million in the fourth quarter of
2004, compared to $2.5 million for the fourth quarter of 2003. Net income for
the fourth quarter of 2004 was $339,000, or $0.09 per diluted share, compared to
net income of $266,000, or $0.07 per diluted share for the fourth quarter of
2003.
Revenues for the full year of 2004 were approximately $107.7 million, a 14.9%
increase from the $93.7 million in the comparable period in 2003. For the full
year of 2004, the contribution to earnings from operations was approximately
$11.8 million, compared to $10.5 million for the full year of 2003. Net income
for 2004, was $1.2 million, or $0.32 per diluted share, compared to net income
for 2003 of $1.0 million, or $0.29 per diluted share.
Management Discussion
"IntegraMed is the only national provider of comprehensive services to
physicians and patients in the fertility field," said Gerardo Canet, Chairman &
CEO of IntegraMed America, Inc. "We occupy a strong position of being a sole
source provider of support services for both patients and physicians who are
engaged in treating human infertility. For patients, that means help with
gaining access to highly specialized fertility treatment and easing their path
through this emotional experience. For physicians, that means help with gaining
access to the resources required to offer state of the art, sophisticated
fertility care to this population of people in need."
"In the provider segment of our business," continued Mr. Canet, "we provide
turnkey business solutions for a modern fertility center. We believe we employ a
talented staff, own more facilities, have more invested capital and purchase
more supplies than any other single organization in the field. As a result, we
believe we can offer physicians significant efficiencies and the ability to
offer the most sophisticated services to their patients."
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Our service offerings have been embraced by centers nationwide. Currently, our
provider network:
o Is comprised of 142 physicians and scientists in 77 locations in 25 of the
top 50 markets for fertility services in the United States.
o Has market share as high as 60% in some of the markets where we are located.
o Has a consolidated 32% market share in the markets where we are located.
o Accounts for 20% of total US IVF volume.
"During the year, the provider segment of our business continued to grow,
generating same center revenue increases of 11.5% and total growth of 15.7%. We
were also successful in contracting new FertilityPartners with previously
announced deals in Seattle, WA in January 2004 and in Los Angeles, CA in January
of this year," added Mr. Canet.
"In the consumer segment of our business, we continue to educate patients
through a variety of methods including our newsletter, process transactions on
our web site and contract with high quality provider groups," added Mr. Canet.
"As a result, we are able to offer patients access to some of the best providers
in most of the largest markets across the country. We believe this focus has
helped IntegraMed become a national consumer brand in the fertility field
today."
"IntegraMed Pharmaceutical Services contributed $15.7 million in revenues in
2004 and IntegraMed FertilityDirect delivered $5.8 million in revenues. These
two revenue streams, which did not exist a few years ago, now represent 20% of
our business."
Commenting on the Company's strategy for growth, Mr. Canet said, "We have laid
the groundwork for our near-term future. Our goals are to add new centers to the
network, grow our pharmaceutical revenues and sell greater numbers of Shared
Risk Refund packages to patients who do not have insurance."
IntegraMed America, based in Purchase, NY, is focused on the $2.5 billion
infertility industry, and offers products and services to patients and
providers. Specifically, the Company provides Business Services to a network of
Fertility Centers; distributes pharmaceutical products and financing programs
directly to patients and operates www.integramed.com, an award-winning
infertility Web site.
Gerardo Canet, chairman and chief executive officer, Jay Higham, president and
chief operating officer and John Hlywak, Jr., senior vice president and chief
financial officer, will host an investment-community conference call beginning
Thursday, February 17, 2005 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 12:00 p.m. Eastern Time, February 24 by dialing (800) 642.1687
(domestic) or (706) 645.9291 (international) and entering reservation number
3992461.
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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 February 16, 2005 and IntegraMed undertakes no duty to update
this information.
-table follows-
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INTEGRAMED AMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(all amounts in thousands, except per share amounts)
For the three-months For the year ended
ended December 31, ended December 31,
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2004 2003 2004 2003
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(unaudited) (unaudited)
Revenues, net
Fertility Partners ............................. $ 22,471 $ 18,875 $ 86,079 $ 74,408
Pharmaceutical sales ........................... 3,967 3,455 15,738 16,301
Fertility Direct ............................... 1,712 892 5,836 2,981
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Total revenues ................................. 28,150 23,222 107,653 93,690
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Costs of services and sales
Fertility Partners ............................. 19,722 16,764 76,705 65,479
Pharmaceutical costs ........................... 3,857 3,330 15,188 15,830
Fertility Direct ............................... 1,142 591 3,952 1,924
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Total costs of services and sales .............. 24,721 20,685 95,845 83,233
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Contribution
Fertility Partners ............................. 2,749 2,111 9,374 8,929
Pharmaceutical ................................. 110 125 550 471
Fertility Direct ............................... 570 301 1,884 1,057
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Total contribution ............................. 3,429 2,537 11,808 10,457
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General and administrative expenses ................. 2,861 2,093 9,789 8,761
Interest income ..................................... (74) (48) (259) (125)
Interest expense .................................... 66 55 295 109
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Total other expenses ........................... 2,853 2,100 9,825 8,745
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Income before income taxes .......................... 576 437 1,983 1,712
Income tax provision ................................ 237 171 797 668
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Net income .......................................... $ 339 $ 266 $ 1,186 $ 1,044
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Basic and diluted earnings per share of Common Stock:
Basic earnings per share ....................... $ 0.10 $ 0.08 $ 0.33 $ 0.31
Diluted earnings per share ..................... $ 0.09 $ 0.07 $ 0.32 $ 0.29
Weighted average shares - basic ..................... 3,547 3,455 3,554 3,413
Weighted average shares - diluted ................... 3,717 3,672 3,716 3,586
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INTEGRAMED AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share amounts)
December
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2004 2003
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ASSETS
Current assets:
Cash and cash equivalents ...................................... $ 11,300 $ 6,885
Due from Medical Practices, net ................................ 8,130 8,918
Pharmaceutical sales accounts receivable, net .................. 1,259 1,484
Deferred taxes ................................................. 1,950 948
Prepaids and other current assets .............................. 2,043 3,264
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Total current assets ....................................... 24,682 21,499
Fixed assets, net ................................................. 14,868 10,218
Exclusive Service Rights, net ..................................... 20,519 20,504
Deferred taxes .................................................... 1,366 2,795
Other assets ...................................................... 410 278
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Total assets ............................................... $ 61,845 $ 55,294
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................... $ 519 $ 167
Accrued liabilities ............................................ 7,450 5,274
Current portion of long-term notes payable and other obligations 2,218 3,272
Patient deposits ............................................... 14,193 9,492
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Total current liabilities .................................. 24,380 18,205
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Long-term notes payable and other obligations ..................... 3,022 4,239
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Commitments and Contingencies
Shareholders' equity:
Common Stock ................................................... 36 35
Capital in excess of par ....................................... 48,467 48,172
Deferred compensation .......................................... (293) (315)
Treasury Stock ................................................. (337) (426)
Accumulated deficit ............................................ (13,430) (14,616)
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Total shareholders' equity ................................. 34,443 32,850
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Total liabilities and shareholders' equity ................. $ 61,845 $ 55,294
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