John W. Hlywak, Jr. (Investors) Scott Soifer (Media)
Senior Vice President & CFO Vice President Marketing & Development
IntegraMed America, Inc. IntegraMed America, Inc.
(914) 251-4143 (914) 251-4186
email: john.hlywak@integramed.com email: ssoifer@integramed.com
----------------------
Web Address: http://www.integramed.com
-------------------------
INTEGRAMED REPORTS THIRD QUARTER RESULTS
Purchase, NY, October 31, 2005 -- IntegraMed America, Inc. (Nasdaq: INMD) today
announced financial results for the third quarter and the nine months ended
September 30, 2005.
Reported Results
Total revenues for the third quarter of 2005 were $34.0 million, a 25% increase
from $27.2 million for the same period in 2004. The contribution margin in the
third quarter of 2005 was approximately $3.9 million, a 25% increase from $3.1
million reported for the same period in 2004. Net income for the third quarter
of 2005 was $478,000, a 41% increase from the $340,000 net income reported for
the third quarter of 2004. Diluted earnings per share for the third quarter of
2005 were $0.10 compared to $0.07 for the same period in 2004. All earnings per
share and weighted average share numbers reflect the 30% stock split effected in
the form of a dividend and paid on June 22, 2005.
Total revenues for the first nine months of 2005 were $98.2 million, a 23%
increase from $80.0 million for the same period in 2004. The contribution margin
in the first nine months of 2005 was approximately $10.9 million, a 30% increase
from $8.4 million reported for the same period in 2004. Net income for the first
nine months of 2005 was $1,259,000, a 49% increase from the $847,000 net income
reported for the first nine months of 2004. Diluted earnings per share for the
first nine months of 2005 were $0.25 compared to $0.17 for the same period in
2004.
Management Discussion
"We continue to execute our plan and it is resulting in strong revenue growth
across all segments of our business," said Gerardo Canet, Chairman and CEO of
IntegraMed. "In comparing the third quarter of 2005 with the third quarter of
2004, the FertilityPartners segment of our business had 23% revenue growth while
the Pharmaceutical segment had revenue growth of 19%. The FertilityDirect
segment, containing the Shared Risk Refund Program, had revenue growth of 62%,"
added Mr. Canet. "When looking at contribution to earnings from operations for
the third quarter of 2005 and the same period in 2004, the FertilityPartners
segment of our business grew 17% , the Pharmaceutical segment grew 39% and the
FertilityDirect segment grew 56%," continued Mr. Canet.
"The newer, higher margined segments of our business, particularly the Shared
Risk Refund and Affiliate Programs, are producing contribution to earnings from
- more -
operations at levels that have improved overall contribution rates to 11.1% for
the first nine months of 2005, a 6% increase over the 10.5% reported for the
same period in 2004," added Mr. Canet.
About IntegraMed America, Inc.
IntegraMed, based in Purchase, NY offers products and services to patients,
providers and payers 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
November 1, 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 November 8, 2005 by dialing (800) 642-1687 (domestic) or (706)
645-9291 (international) and entering reservation number 1604113.
Individuals interested in listening to the conference call via the Internet may
do so by visiting the Company's website at www.integramed.com. A replay will be
available on the website 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 October 31, 2005 and IntegraMed undertakes no duty to update
this information.
- more -
INTEGRAMED AMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(all amounts in thousands, except per share amounts)
For the For the
three-month period nine-month period
ended September 30, ended September 30,
------------------- -------------------
2005 2004 2005 2004
------- ------- ------- -------
(unaudited) (unaudited)
Revenues, net
FertilityPartners , net of Service Rights amortization
of $354 and $1,061 in 2005, respectively, and $261
and $903 in 2004, respectively ...................... $ 26,540 $ 21,535 $ 77,596 $ 63,608
Pharmaceutical ........................................ 4,871 4,102 14,054 11,771
FertilityDirect ....................................... 2,565 1,579 6,526 4,124
-------- -------- -------- --------
Total revenues ........................................ 33,976 27,216 98,176 79,503
-------- -------- -------- --------
Costs of services and sales
FertilityPartners , including depreciation of $889 and
$2,633 in 2005, respectively, and $632 and $1,926 in
2004, respectively ................................. 23,739 19,136 69,743 56,983
Pharmaceutical ........................................ 4,671 3,958 13,481 11,331
FertilityDirect ....................................... 1,646 989 4,084 2,810
-------- -------- -------- --------
Total Costs of services and sales ..................... 30,056 24,083 87,308 71,124
-------- -------- -------- --------
Contribution
FertilityPartners ..................................... 2,801 2,399 7,853 6,625
Pharmaceutical ........................................ 200 144 573 440
FertilityDirect ....................................... 919 590 2,442 1,314
-------- -------- -------- --------
Total contribution .................................... 3,920 3,133 10,868 8,379
-------- -------- -------- --------
General and administrative expenses, including depreciation
of $85 and $286 in 2005, respectively, and $87 and
$253 in 2004, respectively .......................... 3,204 2,556 8,903 6,928
Interest income ............................................ (137) (65) (352) (185)
Interest expense ........................................... 121 77 288 229
-------- -------- -------- --------
Total other expenses .................................. 3,188 2,568 8,839 6,972
-------- -------- -------- --------
Income before income taxes ................................. 732 565 2,029 1,407
Income tax provision ....................................... 254 225 770 560
-------- -------- -------- --------
Net income applicable to Common Stock ...................... $ 478 $ 340 $ 1,259 $ 847
======== ======== ======== ========
Basic and diluted earnings per share of Common Stock:
Basic earnings per share .............................. $ 0.10 $ 0.07 $ 0.26 $ 0.18
======== ======== ======== ========
Diluted earnings per share ............................ $ 0.10 $ 0.07 $ 0.25 $ 0.17
======== ======== ======== ========
Weighted average shares - basic ............................ 4,884 4,616 4,790 4,667
======== ======== ======== ========
Weighted average shares - diluted .......................... 5,057 4,807 4,946 4,919
======== ======== ======== ========
- more -
INTEGRAMED AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share amounts)
September 30, December 31,
2005 2004
------------ -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents ............................................... $ 13,245 $ 11,300
Due from Medical Practices, net ......................................... 9,889 8,130
Pharmaceutical sales accounts receivable, net ........................... 1,571 1,259
Deferred taxes .......................................................... 1,005 1,950
Prepaids and other current assets ....................................... 3,074 2,043
-------- --------
Total current assets ................................................ 28,784 24,682
Fixed assets, net .......................................................... 15,617 14,868
Exclusive Service Rights, net .............................................. 22,788 20,519
Deferred taxes ............................................................. 1,717 1,366
Other assets ............................................................... 604 410
-------- --------
Total assets ........................................................ $ 69,510 $ 61,845
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ........................................................ $ 825 $ 519
Accrued liabilities ..................................................... 7,107 7,451
Current portion of long-term notes payable and other obligations ........ 5,233 2,218
Patient deposits ........................................................ 20,083 14,193
-------- --------
Total current liabilities ........................................... 33,248 24,381
-------- --------
Long-term notes payable and other obligations .............................. 93 3,021
-------- --------
Shareholders' equity:
Common Stock ............................................................ 51 47
Capital in excess of par ................................................ 49,757 48,467
Treasury Stock .......................................................... (937) (337)
Deferred Compensation ................................................... (520) (293)
Accumulated deficit ..................................................... (12,182) (13,441)
-------- --------
Total shareholders' equity .......................................... 36,169 34,443
-------- --------
Total liabilities and shareholders' equity .......................... $ 69,510 $ 61,845
======== ========
# # # #