Htetf (MM) (NASDAQ:HTRN)
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HealthTronics, Inc. (NASDAQ: HTRN), a leading provider of urology
services and products, today announced that it has completed its
acquisition of Advanced Medical Partners, Inc. (“AMPI”).
AMPI Acquisition
Founded in 2003, AMPI is the leading provider of urological cryosurgery
services in the U.S. In partnership with a network of over 500
physicians, AMPI owns an interest in 30 entities that performed over
7,000 procedures and generated over $24 million of revenue in 2007. AMPI
is the largest provider of cryosurgery services both in terms of annual
procedures and in terms of its geographic footprint, with operations in
46 states.
James S.B. Whittenburg, CEO of HealthTronics, commented, “The
acquisition of AMPI is strategically meaningful for several reasons.
First, AMPI adds greater scope to our channel, enhancing our physician
network and diversifying our revenues within urology services.
HealthTronics is now the largest provider nationally of both shock wave
lithotripsy services and cryosurgery services.
Second, the acquisition is financially attractive and will yield both
top and bottom line synergies. AMPI’s
operating infrastructure closely parallels that of HealthTronics, paving
the way for meaningful cost savings. At the same time, we expect to
complete the deployment of more than 20 RevoLix lasers for the treatment
of BPH through AMPI’s partnerships before the
end of the second quarter. Because the scheduling of cryosurgery cases
is more flexible than that of lithotripsy, we are able to utilize AMPI’s
existing vehicles and clinical personnel to provide RevoLix service with
minimal incremental costs. Furthermore, even in the absence of these
synergies, the acquisition is expected to be accretive immediately.
Third, the acquisition will enhance both our management and development
capabilities. The AMPI management team collectively possesses over 60
years of experience in partnering with physicians to improve patient
care and the physicians’ practice economics.
Much of that expertise centers on de novo partnership development
with urologists throughout the U.S. The AMPI team will improve our
ability to grow within the urology services sector, both through
ground-up development and by adding additional capacity to evaluate and
pursue acquisitions.”
Mr. Whittenburg added, “AMPI’s
senior management team is committed to HealthTronics' strategy of
leveraging our size, scope and unique physician relationships within the
urology community to:
(1) Aggressively expand our share of the market for laser treatment of
BPH with our exclusive offering of the Revolix laser;
(2) Broaden our TotalRad initiative to deploy urology focused,
state-of-the art cancer treatment centers using image guided radiation
therapy (“IGRT”);
(3) Maintain high double digit annual revenue growth at our urology
focused anatomical pathology lab, Claripath Laboratories; and
(4) Continually scan the marketplace for additional urological
technologies and other opportunities that enhance patient care and
improve the physicians’ practice economics.
We welcome the AMPI team to HealthTronics and our new physician partners
to the HealthTronics network.”
Bob Yonke, an AMPI co-founder and CEO, commented, “The
combination of AMPI and HealthTronics will benefit our physician
partners by providing access to exclusive technologies and new
opportunities. Our mission and philosophy aligns well with those of
HealthTronics. We are strongly committed to our business model and
believe we can drive future growth with our talented development staff.”
The consideration for the acquisition of AMPI included both cash and
stock that was paid at closing, as well as a potential earn out. The
earn out is related to the performance of one of AMPI’s
newly acquired entities and to certain circumstances that create the
potential to acquire additional partnership interest from the AMPI
physician partners.
Updated Outlook
In light of the closing of the AMPI acquisition and the continued
strength in the Company’s core business, the
Company has issued the following updated guidance for 2008:
Annual revenue is expected to be between $160 million and $162 million.
Annual adjusted EBITDA is expected to be between $20 million and $21
million, which includes approximately $2 million of IGRT expense.
About HealthTronics, Inc.
HealthTronics is a premier urology company providing an exclusive suite
of healthcare services and technology including urologist partnership
opportunities, surgical and capital equipment, maintenance services
offerings, and anatomical pathology services. For more information,
visit www.healthtronics.com.
Statements by the Company’s management in
this press release that are not strictly historical, including
statements regarding plans, objectives and future financial performance,
are “forward-looking”
statements that are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. In particular,
statements in this press release regarding future cost savings, future
deployment of RevoLix lasers, future partnership development and
acquisitions, future laser procedures, future revenue growth, future
development of IGRT centers and 2008 guidance are forward-looking
statements. Although HealthTronics believes that the expectations
reflected in the forward-looking statements in this press release are
reasonable, no assurance can be given that the expectations will prove
to be correct. Factors that could cause actual results to differ
materially from HealthTronics’ expectations
include, among other things, the existence of demand for and acceptance
of HealthTronics’ products and services,
maintaining relationships with physicians and hospitals, governmental
regulations and changes thereto, regulatory approvals, economic
conditions, the impact of competition and pricing, successful
integration of acquired businesses, financing efforts and other factors
described from time to time in HealthTronics’
periodic filings with the Securities and Exchange Commission.
The statements in this press release are made as of the date of this
press release, even if the press release is subsequently made available
by the Company on its web site or otherwise. The Company does not assume
any obligation to update the forward-looking statements provided herein
to reflect events that occur or circumstances that exist after the date
hereof.