Htetf (MM) (NASDAQ:HTRN)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Htetf (MM) Charts. Click Here for more Htetf (MM) Charts.](/p.php?pid=staticchart&s=N%5EHTRN&p=8&t=15)
HealthTronics, Inc. (NASDAQ:HTRN), a leading provider of Urology
services and products, today announced its financial results for the
second quarter ended June 30, 2008.
Second Quarter 2008
Revenue from continuing operations for the second quarter 2008 totaled
$42.6 million, up from $35.6 million in the second quarter of 2007. The
Company's net income from continuing operations for the second quarter
of 2008, in accordance with generally accepted accounting principles
("GAAP"), totaled $710,000 or $0.02 per diluted share, which compares to
$317,000 or $0.01 per diluted share in the second quarter of 2007. The
Company’s non-GAAP net income for the second
quarter 2008 totaled $0.04 per diluted share, which excludes non-cash
stock-based compensation expense and was up from the $0.02 per diluted
share for the second quarter of 2007.
The Company's adjusted EBITDA from continuing operations for the second
quarter 2008 was $5.8 million, which compares to $4.2 million in the
second quarter of 2007, an increase of 38 percent. The increase was due
primarily to revenue growth from the Urology Services division and cost
reductions implemented during 2007.
Urology Services
Urology Services division revenue for the second quarter of 2008 was
$37.9 million, up 23 percent from the $30.8 million recorded in the
second quarter of 2007. Urology Services division growth was driven by
the acquisition of Advanced Medical Partners, Inc. Same store
partnership revenue in the second quarter 2008 was consistent with the
second quarter 2007. Divisional adjusted EBITDA was $5.4 million
compared to $5.0 million in the second quarter of 2007.
Medical Products
Medical Products division revenue for the second quarter of 2008 was
$4.6 million which was consistent with the second quarter of 2007. The
ClariPath pathology laboratory’s revenue
increased 30 percent and service maintenance gross revenue, before
intercompany eliminations, grew 27 percent from the second quarter of
2007. Manufacturing revenue decreased compared to the second quarter of
2007 due to a lower number of devices sold in the second quarter of
2008. Divisional adjusted EBITDA was $2 million in the second quarter of
2008, which compared to $437,000 in the second quarter of 2007. Medical
Products division earnings growth resulted from revenue increases at
both the ClariPath laboratory, the service and maintenance business, and
cost reductions implemented during 2007.
Business Outlook
James Whittenburg, President and Chief Executive Officer commented, “We
are pleased with our financial results in the second quarter as we
continue to experience growth in all aspects of the business. We strive
to be the premier company in the urology market and as part of that we
have been active on many fronts this year. The past few quarters were
particularly busy as we cultivated our business through internal
initiatives and opportunistic acquisitions. Simultaneous with our
efforts to grow the business through acquisitions, our historical
businesses remain strong and our quarterly results continue to be
sequentially positive.”
Mr. Whittenburg continued, “We have
demonstrated positive quarter over quarter revenue and adjusted EBITDA
growth for six consecutive quarters. This trend should continue with
further enhancement of our services and successful execution our
business development and M&A strategies.”
Conference Call and Webcast:
Management of HealthTronics will host a conference call the afternoon of
Thursday, August 7, 2008 at 5:00 pm EDT. Interested parties may
participate in the call by dialing 1-877-879-6209 (International callers
dial 1-719-325-4842) and ask for the "HealthTronics Q2 2008 Earnings
Call" (confirmation code: 8061433). Please call in 10 minutes before the
call is scheduled to begin. The conference call will also be web cast
live via the Investors section of HealthTronics' web site at www.healthtronics.com.
To listen to the live web cast, go to the web site at least 10 minutes
early to register, download and install any necessary audio software. If
you are unable to listen live, the conference call will be archived on
the HealthTronics web site.
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.
HealthTronics’ use of Non GAAP Financial
Measures:
This press release includes financial measures for net income (loss),
net income (loss) from continuing operations, and related per share
amounts that exclude certain charges and therefore have not been
calculated in accordance with U.S. generally accepted accounting
principles (GAAP). These non-GAAP financial measures may be different
from non-GAAP financial measures used by other companies. Non-GAAP
financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in accordance
with GAAP. By excluding certain charges, these non-GAAP financial
measures facilitate management’s internal
comparisons to the Company’s historical
operating results, to competitors’ operating
results, and to estimates made by securities analysts. Management uses
these non-GAAP financial measures internally to evaluate its
performance. The Company believes these non-GAAP financial measures are
useful to decision-making. In addition, the Company has historically
reported similar non-GAAP financial measures to its investors and
believes that the inclusion of comparative numbers provides consistency
in it financial reporting. Investors are encouraged to review the
reconciliation of the non-GAAP financial measures used in this press
release to their most directly comparable GAAP financial measure as
provided in the financial statements attached to this press release.
EBITDA and Adjusted EBITDA: HealthTronics has presented EBITDA and
Adjusted EBITDA amounts, which are non-GAAP financial measures. In the
SEC filings, HealthTronics has reconciled such amounts to their most
directly comparable financial measure calculated in accordance with
GAAP, which is HealthTronics’ net income.
HealthTronics believes that its presentations of EBITDA and Adjusted
EBITDA are important supplemental measures of operating performance to
its investors.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”)
is a commonly used measure of performance which HealthTronics believes,
when considered with measures calculated in accordance with GAAP, gives
investors a more complete understanding of HealthTronics’
operating results before the impact of investing and financing
transactions and income taxes. HealthTronics does not subtract minority
interest expense when calculating EBITDA; however, HealthTronics does
adjust for minority interest expense and refers to this measure as “Adjusted
EBITDA”. Minority interest is a GAAP measure
intended to reflect our partner’s share of
our consolidated net income and not our partner’s
share of our consolidated EBITDA. For example, calculation of minority
interest expense does not include adjustments for depreciation,
amortization, taxes or interest. As a result, our partners’
share of consolidated EBITDA may not, in a given reporting period, equal
the deduction for minority interest expense used in arriving at Adjusted
EBITDA. HealthTronics has historically reported Adjusted EBITDA to its
investors and believes that the continued inclusion of Adjusted EBITDA
provides consistency in its financial reporting. Adjusted EBITDA is
among the more significant factors in management’s
internal evaluation of total company performance. Adjusted EBITDA is
also widely used by HealthTronics management in the annual budgeting
process. HealthTronics believes these measures continue to be used by
investors and creditors in their assessment of HealthTronics’
operational performance and the valuation of the company.
EBITDA and Adjusted EBITDA are used in addition to and in conjunction
with results presented in accordance with GAAP. EBITDA and Adjusted
EBITDA should not be considered as an alternative to net income,
operating income, a liquidity measure, or any other operating
performance measure prescribed by GAAP, nor should these measures be
relied upon to the exclusion of GAAP financial measures. EBITDA and
Adjusted EBITDA reflect additional ways of viewing HealthTronics’
operations that HealthTronics believes, when viewed with its GAAP
results and the reconciliations to the corresponding GAAP financial
measures provide a more complete understanding of factors and trends
affecting HealthTronics’ business than could
be obtained absent this disclosure.
Cautionary Language: Statements by the Company’s
management made in this press release that are not strictly historical,
including statements regarding plans, objective 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. Although HealthTronics
believes that the expectations reflected in such forward-looking
statements 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 others, the existence of demand for and
acceptance of HealthTronics’ services,
regulatory approvals, economic conditions, the impact of competition and
pricing, financing efforts and other factors described from time to time
in HealthTronics’ periodic filings with the
Securities and Exchange Commission.
HEALTHTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
($ in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2008
2007
2008
2007
Revenue:
Urology Services
$
37,865
$
30,836
$
67,415
$
59,221
Medical Products
4,584
4,586
8,831
8,825
Other
131
141
288
268
Total revenue
42,580
35,563
76,534
68,314
Cost of services and general and administrative expenses:
Urology Services
17,399
13,281
30,390
26,966
Medical Products
1,736
2,839
3,913
5,243
Selling, general & administrative
5,269
4,593
9,586
8,907
Depreciation and amortization
3,069
2,776
5,697
5,592
27,473
23,489
49,586
46,708
Operating income
15,107
12,074
26,948
21,606
Other income (expenses):
Interest and dividends
101
311
292
588
Interest expense
(246
)
(212
)
(409
)
(448
)
(145
)
99
(117
)
140
Income from continuing operations before provision for income
taxes and minority interest
14,962
12,173
26,831
21,746
Minority interest in consolidated income
13,781
11,275
24,828
20,784
Provision for income taxes
471
581
841
566
Income from continuing operations
710
317
1,162
396
Loss from discontinued operations, net of tax
-
(138
)
-
(247
)
Net income
$
710
$
179
$
1,162
$
149
Basic earnings per share:
Income from continuing operations
$
0.02
$
0.01
$
0.03
$
0.01
Loss from discontinued operations
-
-
-
(0.01
)
Net income
$
0.02
$
0.01
$
0.03
$
-
Weighted average shares outstanding
37,059
35,425
36,242
35,416
Diluted earnings per share:
Income from continuing operations
$
0.02
$
0.01
$
0.03
$
0.01
Loss from discontinued operations
-
-
-
(0.01
)
Net income
$
0.02
$
0.01
$
0.03
$
-
Weighted average shares outstanding
37,165
35,426
36,295
35,422
HealthTronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,
December 31,
($ in thousands)
2008
2007
ASSETS
Total current assets
$
68,717
$
74,214
Property and equipment, net
31,151
33,019
Goodwill
233,244
217,505
Other assets
12,251
11,318
$
345,363
$
336,056
LIABILITIES
Total current liabilities
$
17,779
$
17,692
Long-term debt, net of current portion
3,206
4,194
Other long-term liabilities
31,423
30,099
Total liabilities
52,408
51,985
Minority interest
40,831
41,653
Total stockholders' equity
252,124
242,418
$
345,363
$
336,056
HealthTronics, Inc. and Subsidiaries
Supplemental Financial Information
Continuing Operations
For the Periods Ended June 30, 2008 and 2007
Unaudited
In thousands, except per share data
Three Months Ended June 30,
Six Months Ended June 30,
2008
2007
2008
2007
Summary of Results from Operations
Revenues
$
42,580
$
35,563
$
76,534
$
68,314
EBITDA(a)
$
19,622
$
15,524
$
34,810
$
28,537
Adjusted EBITDA(a)
$
5,841
$
4,249
$
9,982
$
7,753
Net Income from Continuing Operations
$
710
$
317
$
1,162
$
396
Net Income
$
710
$
179
$
1,162
$
149
EPS from Continuing Operations
$
0.02
$
0.01
$
0.03
$
0.01
EPS
$
0.02
$
0.01
$
0.03
$
-
Number of Shares
37,165
35,426
36,295
35,422
Segment Information
Revenues:
Urology Services
$
37,865
$
30,836
$
67,415
$
59,221
Medical Products
$
4,584
$
4,586
$
8,831
$
8,825
Adjusted EBITDA(a):
Urology Services
$
5,419
$
5,030
$
9,610
$
8,965
Medical Products
$
2,021
$
437
$
3,498
$
1,136
Other Information:
Cashflow from Operations
$
18,040
$
15,716
$
34,114
$
27,098
Net Draws (Payments) on Senior Credit Facility
$
-
$
-
$
-
$
-
Net Debt
$
(11,115
)
$
(8,969
)
$
(11,115
)
$
(8,969
)
(a) See accompanying reconciliation of
EBITDA and Adjusted EBITDA
HealthTronics, Inc. and Subsidiaries
Non-GAAP Financial Measures
Reconciliation of EBITDA and Adjusted EBITDA
Continuing Operations
For the Periods Ended June 30, 2008 and 2007
Unaudited
In thousands
Three Months Ended June 30,
Six Months Ended June 30,
Consolidated
2008
2007
2008
2007
Income from Continuing Operations
$
710
$
317
$
1,162
$
396
Add Back(deduct):
Provision for income taxes
471
581
841
566
Interest expense
246
212
409
448
Depreciation and amortization
3,069
2,776
5,697
5,592
Restructuring costs
(142
)
(36
)
Stockbased compensation costs
1,487
363
1,909
751
Adjusted EBITDA
5,841
4,249
9,982
7,753
Add Back:
Minority interest expense
13,781
11,275
24,828
20,784
EBITDA
$
19,622
$
15,524
$
34,810
$
28,537
Urology Services Segment
Revenues
$
37,865
$
30,836
$
67,415
$
59,221
Expenses:
Cost of Services
(18,716
)
(14,661
)
(33,132
)
(29,677
)
Other Income (Expenses)
70
136
184
234
EBITDA
19,219
16,311
34,467
29,778
Minority interest expense
(13,800
)
(11,281
)
(24,857
)
(20,813
)
Adjusted EBITDA
$
5,419
$
5,030
$
9,610
$
8,965
Medical Products Segment
Revenues
$
4,584
$
4,586
$
8,831
$
8,825
Expenses:
Cost of Services
(2,593
)
(4,167
)
(5,384
)
(7,738
)
Other Income (Expenses)
12
12
23
21
EBITDA
2,003
431
3,470
1,108
Minority interest expense
18
6
28
28
Adjusted EBITDA
$
2,021
$
437
$
3,498
$
1,136