[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: john.hlywak@integramed.com email: scott.soifer@integramed.com
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Web Address: http://www.integramed.com
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INTEGRAMED REPORTS THIRD QUARTER RESULTS
YTD NET INCOME INCREASES 26%
Purchase, NY, October 31, 2006 -- IntegraMed America, Inc. (Nasdaq: INMD) today
announced financial results for the third quarter and the nine months ended
September 30, 2006.
Net income for the third quarter of 2006 was $582,000, a 22% increase from the
$478,000 net income reported for the third quarter of 2005. Diluted earnings per
share for the third quarter of 2006 were $0.09 compared to $0.08 for the same
period in 2005. Net income for the first nine months of 2006 was $1,591,000, a
26% increase from the $1,259,000 net income reported for the first nine months
of 2005. Diluted earnings per share for the first nine months of 2006 were $0.24
compared to $0.20 for the same period in 2005. All earnings per share and
weighted average share numbers reflect the 25% stock split effected in the form
of a dividend and paid on June 21, 2006.
Total revenues for the third quarter of 2006 were $31.9 million, a 9% increase
from comparable pro forma revenues of $29.3 million for the same period in 2005.
Total revenues for the first nine months were $94.1 million an 11% increase
compared to pro forma revenues of $84.6 million for the same period in 2005.
The contribution to earnings from operations in the third quarter of 2006 was
approximately $4.1 million, a 4% increase from $3.9 million reported for the
same period in 2005. The contribution to earnings from operations in the first
nine months of 2006 was approximately $11.6 million, a 7% increase compared to
$10.8 million in the same period in 2005.
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 third quarter of
2006 of $31.9 million and revenues for the first nine months of 2006 of $94.1
million are not directly comparable to reported revenue for the third quarter of
2005 of $34.0 million and the first nine months of 2005 of $98.1 million.
Revenues on a reported basis and after giving effect to the contract amendment
are presented below (in thousands):
Third Quarter First Nine Months
of 2005 of 2005
------------- -----------------
Total revenues, as reported...................... $33,956 $98,116
Less pharmaceutical revenue related to basis
of accounting change........................... 4,671 13,481
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Total revenues, adjusted pro forma............... $29,285 $84,635
Management Discussion
"In comparing the third quarter of 2006 with the third quarter of 2005, the
Provider Services segment of our business had 7% revenue growth; and the Shared
Risk(R) Refund Program and Patient Financing portion of the Consumer Services
segment had revenue growth of 38%," said Jay Higham, President and CEO of
IntegraMed.
"The Consumer Segment of our business is anchored by the Shared Risk Refund
program, which continues its outstanding growth trajectory while providing a 33%
margin on a year to date basis in 2006. The contribution from this program now
represents 26% of our total operating margin. This business benefits all of our
stakeholders. Patients obtain a fixed price payment plan and a refund if
treatment is unsuccessful. Providers obtain a powerful marketing program and the
opportunity to be the exclusive provider in their market. And IntegraMed obtains
strong cash flow and margins. We see this segment as one of our key factors in
operating income growth in the future," said Mr. Higham.
"While we have focused on expanding our network of member clinics and growing
our Shared Risk Refund offerings, we have continued to control costs and have
reduced G&A expenses as a percentage of contribution by approximately 3% in the
first nine months of 2006 compared to the same period in 2005," continued Mr.
Higham.
About IntegraMed America, Inc.
IntegraMed, based in Purchase, NY offers products and services to patients,
providers and payers focused on the $3 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
Jay Higham, President and Chief Executive Officer and John Hlywak, Executive
Vice President and Chief Financial Officer, will host an investment-community
conference call on November 1, 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 November 8, 2006 by dialing (800) 642-1687 (domestic) or (706)
645-9291 (international) and entering reservation number 8989988.
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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 Partner practices 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, 2006 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 nine-month period
ended September 30, ended September 30,
-------------------- -------------------
2006 2005 2006 2005
-------- ------- ------- -------
(unaudited) (unaudited)
Revenues, net of Service Rights amortization of $374 and
$374 in the three-month periods of 2006 and 2005 and
$1,121 and $1,121 in the nine-month periods of 2006
and 2005, respectively
Provider Services .................................... $ 28,563 $ 26,779 $ 85,295 $ 78,324
Consumer Services .................................... 3,291 7,177 8,802 19,792
-------- -------- -------- --------
Total Revenues ....................................... 31,854 33,956 94,097 98,116
-------- -------- -------- --------
Costs of services and sales, including depreciation of
$883, $889, $2,708, and $2,633
Provider Services .................................... 25,669 23,780 76,950 69,845
Consumer Services .................................... 2,114 6,276 5,558 17,463
-------- -------- -------- --------
Total Cost of Services and Sales ..................... 27,783 30,056 82,508 87,308
-------- -------- -------- --------
Contribution
Provider Services .................................... 2,894 2,999 8,345 8,479
Consumer Services .................................... 1,177 901 3,244 2,329
-------- -------- -------- --------
Total Contribution ................................... 4,071 3,900 11,589 10,808
-------- -------- -------- --------
General and administrative expenses, including depreciation
of $159, $85, $447 and $286 .......................... 3,217 3,204 9,221 8,903
Interest income ........................................... (269) (137) (750) (352)
Interest expense .......................................... 174 121 532 288
-------- -------- -------- --------
Total other expenses ................................. 3,122 3,188 9,003 8,839
-------- -------- -------- --------
Income before income taxes ................................ 949 712 2,586 1,969
Income tax provision ...................................... 367 234 995 710
-------- -------- -------- --------
Net income applicable to Common Stock ..................... $ 582 $ 478 $ 1,591 $ 1,259
======== ======== ======== ========
Basic and diluted earnings per share of Common Stock:
Basic earnings per share ............................. $ 0.09 $ 0.08 $ 0.25 $ 0.21
======== ======== ======== ========
Diluted earnings per share ........................... $ 0.09 $ 0.08 $ 0.24 $ 0.20
======== ======== ======== ========
Weighted average shares - basic ........................... 6,459 6,105 6,460 5,988
======== ======== ======== ========
Weighted average shares - diluted ......................... 6,569 6,321 6,570 6,183
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INTEGRAMED AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share amounts)
September 30, December 31,
2006 2005
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(unaudited)
ASSETS
Current assets:
Cash and cash equivalents ...................................... $ 27,799 $ 22,521
Pharmaceutical and other receivables ........................... 355 490
Deferred taxes ................................................. 1,293 999
Other current assets ........................................... 2,933 2,768
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Total current assets ......................................... 32,380 26,778
Fixed assets, net .............................................. 13,459 14,877
Intangible assets, net ......................................... 23,265 24,388
Other assets ................................................... 674 590
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Total assets ................................................. $ 69,778 $ 66,633
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................... $ 765 $ 917
Accrued liabilities ............................................ 9,421 8,023
Current portion of long-term notes payable and other obligations 1,504 1,500
Due to Medical Practices, net .................................. 3,848 4,949
Shared Risk Refund Program Patient deposits .................... 6,483 4,739
-------- --------
Total current liabilities .................................. 22,021 20,128
Deferred tax liabilities .......................................... 1,255 1,058
Long-term notes payable and other obligations ..................... 7,528 8,647
-------- --------
Total liabilities .......................................... 30,804 29,833
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Commitments and Contingencies
Shareholders' equity:
Common stock ................................................... 65 51
Capital in excess of par ....................................... 49,939 49,747
Other comprehensive income ..................................... (11) --
Treasury stock ................................................. (44) (937)
Deferred Compensation .......................................... (859) (354)
Accumulated deficit ............................................ (10,116) (11,707)
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Total shareholders' equity ................................. 38,974 36,800
-------- --------
Total liabilities and shareholders' equity ................. $ 69,778 $ 66,663
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