Priority Healthcare b (NASDAQ:PHCC)
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Priority Healthcare Announces First Quarter Results - Record
Sales Performance
LAKE MARY, Fla., April 22 /PRNewswire-FirstCall/ -- Priority Healthcare
Corporation reported record sales for the first quarter ended April 3, 2004.
For the quarter, sales increased to $401 million, operating earnings were $19.5
million, and net earnings were $12.2 million. Diluted earnings per share were
$.28.
"We are pleased that we exceeded our sales forecast and met our earnings
guidance for the first quarter even with continued sluggish national growth in
our key pharmacy markets and a very challenging environment in oncology
distribution," stated Steve Cosler, President and Chief Executive Officer. "We
are hopeful that the recent approval of generic ribavirin will incrementally
stimulate some unit demand in the national hepatitis market and potentially
provide some improvement in gross margins, as generics have traditionally done
for pharmacies and distributors.
"Looking to the future, we continue to be enthusiastic about the biotech
pipeline and related new product opportunities which create new growth
platforms for the company. I am pleased to announce that Priority Healthcare
has been selected by Roche and Trimeris as a specialty provider for Fuzeon(TM),
effective later this month. Fuzeon marks the addition of HIV to our disease
portfolio.
"We are also optimistic about industry consolidation opportunities, such as our
recent acquisition of Partners-In-Care, a Midwestern infertility specialty
pharmacy. Partners-in-Care strengthens our industry leading position in
infertility and allows us to reach even more patients and physicians with our
services. With similar acquisition opportunities available, our $150 million
credit facility can be utilized to facilitate strategic investments in our
growth," said Mr. Cosler.
In commenting on certain financial aspects of the quarter, Steve Saft, Chief
Financial Officer, stated, "Our 14% sales increase for the quarter was
virtually all organic growth. This increase was primarily led by our
ophthalmology, pulmonology and oncology disease states."
Mr. Saft continued, "Our balance sheet remains strong with $66 million in cash
and marketable securities and no debt. Cash flow from operations was $13
million for the first quarter, which exceeded our net earnings. Our trade
DSO's are at 39 days, a decrease of one day, sequentially, from the fourth
quarter. Our inventory turns are at 13, an increase of one turn, sequentially,
from the fourth quarter. Our return on committed capital and invested capital
for the quarter was 49% and 30%, respectively, which we believe is among the
highest in the industry."
Mr. Cosler concluded, "As in 2003, Priority Healthcare continues to gain share
in virtually every market we serve. The second half of the year will be shaped
by additional new markets, improved leverage of our infrastructure under the
leadership of our new Chief Operating Officer, Tracy Nolan, and increased
momentum in several of the new contracts and projects we have developed.
Furthermore, several of our existing key markets will likely rebound from their
current negative trends and stabilize, improving our performance in those
areas."
As previously announced, a web cast of the company's conference call to review
the financial results is available on Priority Healthcare's website,
http://www.priorityhealthcare.com/, live at 9:00 AM Eastern today. A replay of
this conference call will be available on the company's website approximately
two hours after the event for a two week period.
About Priority Healthcare Corporation
Priority Healthcare Corporation is a national specialty pharmacy and
distributor that provides biopharmaceuticals, complex therapies, and related
disease treatment services. Priority Healthcare provides comprehensive
programs for patients, payors, physicians, and pharmaceutical manufacturers for
a growing number of disease states including cancer, hepatitis C, respiratory
and pulmonary conditions, infertility, rheumatoid arthritis, hemophilia,
multiple sclerosis, and macular degeneration.
Certain statements included in this press release, which are not historical
facts, are forward-looking statements. Such forward-looking statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements represent our
expectations or beliefs and involve certain risks and uncertainties, including
those described in our public filings with the United States Securities and
Exchange Commission; also including, but not limited to, changes in interest
rates, competitive pressures, changes in customer mix, changes in third party
reimbursement rates, financial stability of major customers, changes in
government regulations or the interpretation of these regulations, changes in
supplier relationships, growth opportunities, cost savings, revenue
enhancements, synergies and other benefits anticipated from acquisition
transactions, difficulties relative to integrating acquired businesses, the
accounting and tax treatment of acquisitions, and asserted and unasserted
claims, which could cause actual results to differ from those in the
forward-looking statements. The forward-looking statements by their nature
involve substantial risks and uncertainties, certain of which are beyond our
control, and actual results may differ materially depending on a variety of
important factors. You are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date herein.
PRIORITY HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(000's omitted, except share data)
(unaudited)
Three-month Three-month
period ended period ended
April 3, March 29,
2004 2003
Net sales $401,243 $351,529
Cost of products sold 358,230 311,244
Gross profit 43,013 40,285
Selling, general and administrative expense 22,158 18,725
Depreciation and amortization 1,369 927
Earnings from operations 19,486 20,633
Interest income, net 174 461
Minority interest (78) --
Earnings before income taxes 19,582 21,094
Provision for income taxes 7,343 7,910
Net earnings $12,239 $13,184
Earnings per share:
Basic $.28 $.30
Diluted $.28 $.30
Weighted average shares outstanding:
Basic 43,322,604 43,521,657
Diluted 44,056,295 44,010,503
PRIORITY HEALTHCARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's omitted)
(unaudited)
April 3, January 3,
2004 2004
Cash and cash equivalents $55,945 $47,719
Marketable securities 10,006 15,317
Receivables, net 192,177 172,206
Finished goods inventory 103,558 117,218
Other current assets 21,630 20,642
Fixed assets, net 31,890 29,780
Other assets 117,453 111,127
Total assets $532,659 $514,009
Current liabilities $171,216 $164,663
Long-term debt -- --
Other liabilities 6,515 6,437
Shareholders' equity 354,928 342,909
Total liabilities and shareholders' equity $532,659 $514,009
http://www.newscom.com/cgi-bin/prnh/20030417/PHCLOGO
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DATASOURCE: Priority Healthcare Corporation
CONTACT: Financial - Stephen Saft, Chief Financial Officer,
+1-407-804-6700, or Media - Kirsten Ayars, Public Relations Manager,
+1-407-804-5826, both of Priority Healthcare Corporation
Web site: http://www.priorityhealthcare.com/