Chronimed Announces Record First Quarter Fiscal 1999 Results
Chronimed reported record revenue for the first quarter ended October 2, 1998 of $42.8 million, up 35 percent from $31.7 million in last year's first quarter. Income from operations increased to $2.5 million for the quarter compared to $2.3 million last year. Net income per diluted share improved to $.14 against $.13 a year ago.
First quarter net income was impacted downward by two cents per diluted share from the June 1998 acquisition of Clinical Partners, Inc. This effect is expected to continue through the second and third quarters and then turn positive going into fiscal year 2000.
Commenting on the results, Chronimed's chairman and chief executive officer Maurice R. Taylor, II, said, "Our first quarter results were very gratifying, most importantly our revenue growth rates. We have made great progress in our key markets. The Specialty Pharmacy Services business grew 26 percent over last year's first quarter on the strength of our Injectables program, with excellent patient acquisition rates in the quarter. Our emerging Disease Management business, with its focus on HIV/AIDS, grew a remarkable 67 percent as the integration of Clinical Partners and StatScript Pharmacy takes shape. In Diagnostic Products, we delivered 26 percent revenue growth, driven by recent product introductions and a highly energized sales force. I am very optimistic about our growth prospects for the rest of the year as well."
As discussed in the recently-published Annual Report for 1998, Chronimed is comprised of three operating segments--Specialty Pharmacy Services, Disease Management, and Diagnostic Products. This three-way view more clearly describes the business and reflects how it is managed and resourced. The Specialty Pharmacy Services business includes the Injectables program, Organ Transplant Pharmacy, and Home Service Medical. The Disease Management business, focusing on HIV/AIDS patients, includes StatScript Pharmacy and Clinical Partners. The Diagnostic Products business provides proprietary diagnostic products and accessories that use blood and urine measurement technologies.
Chronimed Inc. is a leading integrated healthcare company specializing in diagnostic products, specialty pharmacy services, and disease management for people with chronic health conditions. The Company develops, manufactures, markets, and distributes pharmaceuticals, medical diagnostic products, and provides specialized patient management services nationwide for people with long-term chronic conditions such as HIV/AIDS, diabetes, organ transplants, and diseases treated with injectable medications. Chronimed works directly with patients, providers, and payors to improve clinical and cost-of-care outcomes. Chronimed's web site address is www.chronimed.com.
As a cautionary note to investors, certain matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company's ability to execute its sales plans; changes in the status of managed care contracts; and the risks described from time to time in the Company's public reports filed with the SEC.
(In thousands, except per share data)
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Revenue
Percent Increase
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35% |
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Income from operations
Percent Change
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%5.8 |
%7.2 |
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Net Income
Percent Change
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4.0% |
5.0% |
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Net income per share - basic |
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Net income per share - diluted |
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Average shares outstanding - basic |
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| Average shares outstanding - diluted |