[GRAPHIC OMITTED][GRAPHIC OMITTED]
John W. Hlywak, Jr. (Investors) Scott Soifer (Media)
Executive Vice President & CFO Vice President of Marketing and Development
IntegraMed America, Inc. IntegraMed America, Inc.
(914) 251-4143 (914) 251-4186
email: jhlywak@integramed.com email: ssoifer@integramed.com
---------------------- ----------------------
Web Address: http://www.integramed.com
-------------------------
INTEGRAMED REPORTS FIRST QUARTER RESULTS
Net Income Increases 52%
Purchase, NY, May 2, 2006 -- IntegraMed America, Inc. (Nasdaq: INMD) today
announced financial results for the first quarter ended March 31, 2006.
Reported Results
Net income for the first quarter of 2006 was $476,000, a 52% increase from the
$314,000 net income reported for the first quarter of 2005. Diluted earnings per
share for the first quarter of 2006 were $0.09 compared to $0.06 for the same
period in 2005.
Total revenues for the first quarter of 2006 were $30.5 million, an 11% increase
from comparable pro forma revenues for the same period in 2005.
The contribution to earnings from operations in the first quarter of 2006 was
approximately $3.8 million, a 13% increase from the $3.4 million reported for
the same period in 2005. Contribution to earnings from operations now represents
12.8% of revenue compared to 10.5% from the year ago period.
Change in Reporting Format
Effective October 1, 2005, the Company entered into an amended service agreement
with ivpcare, inc, its strategic partner in the pharmaceutical services business
(part of the consumer services segment), whereby the Company no longer records
sales of pharmaceutical products as revenue and costs of pharmaceutical products
as a cost of service, but rather net marketing fees associated with those sales.
As a result of these changes, revenues for the first quarter of 2006 of $30.5
million are not directly comparable to reported revenue for the first quarter of
2005 of $32 million. Revenues on a reported basis and after giving effect to the
contract amendment are presented below (in thousands):
- more -
First Quarter
of 2005
-------------
Total revenues, as reported............................. $31,983
Less pharmaceutical revenue related to basis
of accounting change.................................... 4,550
-------
Total revenues, adjusted pro forma...................... $27,433
Management Discussion
"In comparing the first quarter of 2006 with the first quarter of 2005, the
Provider Services segment of our business had 8% revenue growth; and the Shared
Risk Refund Program and Patient Financing portion of the Consumer Services
segment had revenue growth of 66%," said Jay Higham, President and CEO of
IntegraMed. In addition, the change in reporting format as well as the continued
rapid growth in our higher margin Consumer Services segment have combined to
produce a 22% improvement in contribution margins.
"Further, since the beginning of 2006 we added to our network through new
contracts in Boston and Seattle and new affiliates in Baton Rouge and
Cincinnati. The impact from these new contracts did not contribute to our
success in the first quarter and we expect revenue increases from these
transactions to begin in the second half of the year. With the strong start in
the first quarter we are on plan to build revenue and bottom-line results for
all of 2006," said Mr. Higham.
About IntegraMed America, Inc.
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.
Investors' Conference Call
Jay Higham, Chief Executive Officer and President and John Hlywak, Senior Vice
President and Chief Financial Officer, will host an investment-community
conference call beginning Wednesday, May 3, 2006 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, May 10, 2006 by dialing (800)
642.1687 (domestic) or (706) 645.9291 (international) and entering reservation
number 8582171.
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
- more -
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 May 2, 2006 and IntegraMed undertakes no duty to update this
information.
- more -
INTEGRAMED AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(all amounts in thousands, except per share amounts)
For the three-months
ended March 31,
---------------------
2006 2005
--------- --------
(unaudited)
Revenues, net
Provider Services ................................. $ 27,796 $ 25,734
Consumer Services ................................. 2,658 6,249
-------- --------
Total revenues .................................... 30,454 31,983
-------- --------
Costs of services
Provider Services ................................. 25,032 23,019
Consumer Services ................................. 1,640 5,611
-------- --------
Total costs of services ........................... 26,672 28,630
-------- --------
Contribution
Provider Services ................................. 2,764 2,715
Consumer Services ................................. 1,018 638
-------- --------
Total contribution ................................ 3,782 3,353
-------- --------
General and administrative expenses .................... 3,052 2,834
Interest income ........................................ (221) (100)
Interest expense ....................................... 159 97
-------- --------
Total other expenses .............................. 2,990 2,831
-------- --------
Income before income taxes ............................. 792 522
Income tax provision ................................... 316 208
-------- --------
Net income ............................................. $ 476 $ 314
======== ========
Basic and diluted earnings per share of Common Stock:
Basic earnings per share .......................... $ 0.09 $ 0.07
Diluted earnings per share ........................ $ 0.09 $ 0.06
Weighted average shares - basic ........................ 5,201 4,740
Weighted average shares - diluted ...................... 5,303 5,010
- more -
INTEGRAMED AMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands)
March 31, December31,
2006 2005
--------- -----------
ASSETS
Current assets:
Cash and cash equivalents ...................................... $ 19,917 $ 22,521
Pharmaceutical and other accounts receivable, net .............. 875 490
Deferred taxes ................................................. 976 1,080
Prepaids and other current assets .............................. 4,289 2,768
-------- --------
Total current assets ....................................... 26,057 26,859
Fixed assets, net ................................................. 14,513 14,877
Intangible Assets, net ............................................ 22,080 22,434
Deferred taxes .................................................... 703 815
Other assets ...................................................... 651 590
-------- --------
Total assets ............................................... $ 64,004 $ 65,575
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................... $ 623 $ 917
Accrued liabilities ............................................ 7,049 8,023
Current portion of long-term notes payable and other obligations 1,501 1,500
Due to Medical Practices, net .................................. 3,984 4,949
Shared Risk Patient deposits ................................... 5,009 4,739
-------- --------
Total current liabilities .................................. 18,166 20,128
-------- --------
Long-term notes payable and other obligations ..................... 8,271 8,647
-------- --------
Commitments and Contingencies
Shareholders' equity:
Common Stock ................................................... 51 51
Capital in excess of par ....................................... 49,405 49,747
Deferred compensation .......................................... (658) (354)
Treasury Stock ................................................. -- (937)
Accumulated deficit ............................................ (11,231) (11,707)
-------- --------
Total shareholders' equity ................................. 37,567 36,800
-------- --------
Total liabilities and shareholders' equity ................. $ 64,004 $ 65,575
======== ========
# # # #