Esoteric Testing Pays Off Again For Bio-Reference

Higher revenue from the company's Esoteric Testing Divisions drove earnings up 63% in the first quarter of fiscal 2009.
Publish date:

Once these most recent quarterly results are finalized, they will be run through Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit Ratings Screener.

On March 5, 2009,

Bio-Reference Laboratories


reported that its Q1 FY09 earnings surged 63.0% on higher revenue from its Esoteric Testing Divisions. Net income for the latest first quarter increased to $3.60 million or $0.26 per share from $2.21 million or $0.16 per share in Q1 FY08. On a pro-forma basis, net income surged 20.6% to $2.66 million or $0.19 per share, which topped the most recent consensus estimate of $0.18 per share.

For the quarter ended January 31, 2009, revenue rose 15.6% to $77.34 million from $66.88 million a year ago, driven by higher revenue per patient and increased revenue from the Esoteric Testing Divisions. On a pro-forma basis, net revenue grew 13.2% to $75.74 million. The number of patients served inched up marginally to 965,000 from 962,000, negatively impacted by recession and the company's emphasis on expansion of its esoteric programs. However, revenue per patient rose 13.0% to $77.79 from $68.83. Esoteric business constituted 51.0% of the total net revenues, compared to 46.0% of the total net revenue in the prior year's quarter.

Bio-Reference's gross profit margin improved 90 basis points to 48.23% from 47.33% a year ago, as higher revenue offset a 13.7% increase in the company's cost of sales to $40.04 million from $35.23 million. Moreover, general and administrative expenses grew 12.2% to $30.73 million from $27.39 million. Conversely, operating margin widened 212 basis points to 8.50% from 6.37% in Q1 FY09. On a pro-forma basis, gross profit margin was 47.13% and operating margin was 6.56%.

Bio-Reference entered a restitution agreement with a former employee that led to an increase in net income to an extent of $1.60 million.