Exhibit 99.1
IntegraMed Reports Second Quarter Results YTD Net Income Increases 29%
PURCHASE, N.Y.--(BUSINESS WIRE)--July 31, 2006--IntegraMed
America, Inc. (Nasdaq: INMD) today announced financial results for the
second quarter and the six months ended June 30, 2006.
Net income for the second quarter of 2006 was $533,000, a 14%
increase from the $467,000 net income reported for the second quarter
of 2005. Diluted earnings per share for the second quarter of 2006
were $0.08 compared to $0.07 for the same period in 2005. Net income
for the first six months of 2006 was $1,009,000, a 29% increase from
the $781,000 net income reported for the first six months of 2005.
Diluted earnings per share for the first six months of 2006 were $0.15
compared to $0.12 for the same period in 2005. 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 and the
25% stock split effected in the form of a dividend and paid on June
21, 2006.
Total revenues for the second quarter of 2006 were $31.8 million,
a 13.8% increase from comparable pro forma revenues for the same
period in 2005. Total revenues for the first six months were $62.3
million a 12.4% increase compared to pro forma revenues of $55.4
million for the same period in 2005.
The contribution to earnings from operations in the second quarter
of 2006 was approximately $3.8 million, a 5% increase from $3.6
million reported for the same period in 2005. The contribution to
earnings from operations in the first six months of 2006 was
approximately $7.6 million compared to $6.9 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 second quarter of 2006 of $31.8 million and revenues for the
first six months of 2006 of $62.3 million are not directly comparable
to reported revenue for the second quarter of 2005 of $32.2 million
and the first six months of 2005 of $64.2 million. Revenues on a
reported basis and after giving effect to the contract amendment are
presented below (in thousands):
Second Quarter First Six Months
of 2005 of 2005
--------------- ---------------
Total revenues, as reported $ 32,217 $ 64,200
Less pharmaceutical revenue related to
basis of accounting change 4,259 8,810
-------------- ---------------
Total revenues, adjusted pro forma $ 27,958 $ 55,390
Management Discussion
"In comparing the second quarter of 2006 with the second quarter
of 2005, the Provider Services segment of our business had 12% revenue
growth; and the Shared Risk(R) Refund Program and Patient Financing
portion of the Consumer Services segment had revenue growth of 42%,"
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
12% improvement in contribution margins for the year to date period.
"Since the beginning of 2006 we added to our network with four new
contracts and we now have eight Partner Practices and twenty-two
Affiliates. We will continue to penetrate these new contracts and we
expect revenue increases from our thirty operating units in the second
half of the year as we offer more services and products to our Partner
and Affiliate practices," said Mr. Higham.
"While we have focused on expanding our network of member clinics
and our product offerings, we have continued to control costs and have
reduced G&A expenses as a percentage of contribution by approximately
3% in the first six months of 2006 compared to the same period in
2005. We have had a good start in the first six months in building
revenue and bottom-line results for 2006," said 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 August 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 August 8, 2006 by dialing (800)
642-1687 (domestic) or (706) 645-9291 (international) and entering
reservation number 3177554.
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
July 31, 2006 and IntegraMed undertakes no duty to update this
information.
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,
--------------- ----------------
2006 2005 2006 2005
------- ------- ------- --------
(unaudited) (unaudited)
Revenues, net of Service Rights
amortization of $353 and $353 in the
three-month periods of 2006 and 2005
and $707 and $707 in the six-month
periods of 2006 and 2005, respectively
Provider Services $28,977 $25,851 $56,773 $51,585
Consumer Services 2,853 6,366 5,511 12,615
------- ------- ------- --------
Total Revenues 31,830 32,217 62,284 64,200
------- ------- ------- --------
Costs of services and sales,
including depreciation of $917, $891,
$1,825, and $1,744
Provider Services 26,249 23,046 51,281 46,065
Consumer Services 1,804 5,576 3,444 11,187
------- ------- ------- --------
Total Cost of Services and Sales 28,053 28,622 54,725 57,252
------- ------- ------- --------
Contribution
Provider Services 2,728 2,805 5,492 5,520
Consumer Services 1,049 790 2,067 1,428
------- ------- ------- --------
Total Contribution 3,777 3,595 7,559 6,948
------- ------- ------- --------
General and administrative expenses,
including depreciation of $149, $109,
$288 and $201 2,952 2,865 6,004 5,699
Interest income (260) (115) (481) (215)
Interest expense 199 70 358 167
------- ------- ------- --------
Total other expenses 2,891 2,820 5,881 5,651
------- ------- ------- --------
Income before income taxes 886 775 1,678 1,297
Income tax provision 353 308 669 516
------- ------- ------- --------
Net income applicable to Common Stock $ 533 $ 467 $ 1,009 $ 781
======= ======= ======= ========
Basic and diluted earnings per share
of Common Stock:
Basic earnings per share $0.08 $ 0.08 $ 0.16 $ 0.13
======= ======= ======= ========
Diluted earnings per share $0.08 $ 0.07 $ 0.15 $ 0.12
======= ======= ======= ========
Weighted average shares - basic 6,443 6,000 6,469 5,975
======= ======= ======= ========
Weighted average shares - diluted 6,555 6,336 6,581 6,310
======= ======= ======= ========
INTEGRAMED AMERICA, INC.
CONSOLIDATED BALANCE SHEETS
(all amounts in thousands, except share amounts)
June December
30, 31,
--------- ---------
2006 2005
--------- ---------
Current assets:
Cash and cash equivalents $ 25,948 $ 22,521
Pharmaceutical and other receivables 468 490
Deferred taxes 1,060 1,080
Other current assets 3,551 2,768
--------- ---------
Total current assets 31,027 26,859
Fixed assets, net 14,213 14,877
Intangible assets, net 21,727 22,434
Deferred taxes 335 815
Other assets 674 590
--------- ---------
Total assets $ 67,976 $ 65,575
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 765 $ 917
Accrued liabilities 9,224 8,023
Current portion of long-term notes payable and
other obligations 1,509 1,500
Due to Medical Practices, net 4,576 4,949
Shared Risk Revenue Patient deposits 5,719 4,739
--------- ---------
Total current liabilities 21,793 20,128
Long-term notes payable and other obligations 7,932 8,647
--------- ---------
Commitments and Contingencies
Shareholders' equity:
Common stock 65 51
Capital in excess of par 49,930 49,747
Other comprehensive income (44) --
Treasury stock (44) (937)
Deferred Compensation (958) (354)
Accumulated deficit (10,698) (11,707)
--------- ---------
Total shareholders' equity 38,251 36,800
--------- ---------
Total liabilities and shareholders' equity $ 67,976 $ 65,575
========= =========
CONTACT: IntegraMed America, Inc.
Investors:
John W. Hlywak, Jr., 914-251-4143
john.hlywak@integramed.com
http://www.integramed.com
or
Media:
Scott Soifer, 914-251-4186
scott.soifer@integramed.com