Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) (Except for Per Share Data or where otherwise noted, numbers are in thousands) announced that the Company recorded current quarter revenues of $148,029, the best ever quarter in terms of revenues in corporate history and an increase of 22% over the $121,719 recorded in the third quarter, fiscal year 2010. Net income after taxes in Q3FY11 was $10,081 resulting in fully diluted earnings per share (EPS) of $.36, up 26% and 24% respectively from the prior fiscal year third quarter net income after taxes of $8,013 and EPS of $.29. Gross profit on revenues for the current quarter was $73,432 resulting in a margin for gross profit on revenues of 50%, versus the $61,630, and 51%, reported for the prior fiscal year third quarter. Revenue per patient for the third quarter of the current fiscal year was $84.20, an increase of 2% over the $82.70 reported for the same quarter of the prior fiscal year. The number of patients served increased 20% to 1,745 in the current quarter from the prior year third quarter total of 1,460. Esoteric business for the Company was 60% of revenues for the third quarter of the current fiscal year. The Company further noted that Days Sales Outstanding (DSO) were 92 days compared to the prior fiscal year same period when the DSO were 94 days.

Nine-month revenues increased to $407,345 (all nine month numbers are based on pro forma numbers which exclude non-operating gains and a loss), an increase of 23% over the same period revenues of $331,428 in the prior fiscal year. Net income after taxes for the first nine months of the current year was $22,137 resulting in an EPS of $.79; this was an increase of 24% from the prior year same period net income after taxes of $17,804 which resulted in an EPS of $.63. The Company reported gross profit on revenues for the current nine month period of $195,876, resulting in a margin for gross profit on revenues of 48% compared to the prior year same period of $162,807 which resulted in a margin of 49%. The number of patients served increased 21% to 4,917 in the first nine months of the current year from the prior year same period total of 4,072.

Marc D. Grodman, MD, CEO, commented: "Once again, we have been able to report a record quarter based upon the continued success of all parts of our business operations. On a national basis, these have been difficult economic times. We have spent a great deal of time, energy and resources developing our next areas of growth. We have invested heavily in our pre-natal program and our plans to introduce a solid tumor genotyping program in conjunction with Massachusetts General Hospital; we will begin offering these clinical programs by the end of the current year and they should be valuable contributors to our continued growth and expansion next year and beyond. These programs represent how and why we are able to grow in tough economic times. They will provide valuable clinical information that will move the boundaries of clinical diagnostics based on innovative technology. Our Women’s Health Program, our Cardiac Genetics Program, our Cancer Microarray Program are all key drivers of our current growth and in conjunction with our strong sales and support infrastructure, serve as models for these new programs we will be introducing in the coming months."

Dr. Grodman further noted: "We do not grow through acquisition like so many others in our industry. We grow by leveraging our existing assets; we make acquisitions to enhance our core assets. Our new clinical programs are designed to build on our existing presence in Women’s Health and oncology. Physicians already use our services in those markets because we offer better service and better technology; we will expand those existing accounts with more comprehensive clinical tools while continuing to provide superior service and innovative technology. The development of these programs has been somewhat of a drag on our margins and we look forward to having these cost centers become revenue centers as they are rolled out across the country over the next year."

Dr. Grodman continued: "We see opportunity for our Women’s Health Program in the State of New York. As we have reported on several occasions, it is a long and tedious process to get approval for laboratory developed tests in the State of New York. Our Women’s Health Program has many moving parts and we are now beginning to see approval for some of those parts by the New York Department of Health. It will still take some time before we can offer the same comprehensive program we offer throughout the rest of the country, but over the next few months, we will begin to start offering New York physicians and patients some of the valuable diagnostic tools that have been available for some time to physicians and patients around the rest of the country. Fortunately, based on the approvals for testing that we have received by New York State, we will certainly be able to fulfill some of the key testing needs required to fully appreciate and understand the role of certain pathogens in the diagnosis of sexually transmitted diseases.

The challenge of sustaining growth as you get bigger and bigger becomes significant; however, we believe that the parts are lining up to enable us to continue to sustain our growth as we look forward to our upcoming fiscal year."

The Company's third quarter earnings conference call has been scheduled to take place this morning, August 25, 2011 at 10:30 a.m. Eastern Daylight Time. The live audio Web cast will be available at the Company's corporate Web site, www.bioreference.com and through www.streetevents.com. To listen to the call please go to either Web site ten minutes before the conference call is scheduled to begin. You will need to register as well as download and install any necessary audio software. The Web cast will be archived, on both Web sites, for 30 days following the call.

About BioReference Laboratories, Inc.

BRLI is the fourth largest full service laboratory in the United States and the largest independent regional laboratory in the Northeastern market, primarily a clinical testing laboratory servicing physician offices with concentrations in the focused markets of esoteric testing, molecular diagnostics, anatomical pathology, women’s health and correctional health care. BRLI operates as a national oncology laboratory as GenPath. Better science, superior technology and better service have enabled GenPath to earn a reputation as one of the premier hematopathology laboratories in the country. BRLI’s innovative technology platform for sexually transmitted infections has enabled it to expand as a national laboratory in the area of Women’s Health. GeneDx, a wholly owned subsidiary, is the BRLI genetics laboratory and is typically recognized as the leading laboratory for testing of rare genetic diseases; GeneDx has now become a technology leader with GenomeDx, based on a CGH array platform and its NextGen sequence offerings that are currently offered in cardiology and will be offered in the future in other disease specific areas.
Bio-Reference Laboratories, Inc.
Statements of Operations
(Dollars in Thousands Except Per Share Data)
(Unaudited)

 
 
Three Months Ended

July 31,
2011     2010
Net Revenues $ 148,029     $ 121,719
Cost of Sales 74,597 60,089
Gross Profit on Revenues 73,432 61,630
General and Administrative 55,023 46,689
Operating Income 18,409 14,941
Other Expense, Net 416 363
Income Before Taxes 17,993 14,578
Taxes 7,912 6,565
Net Income 10,081 $ 8,013
Income Per Share $ 0.36 $ 0.29
Number of Shares 27,941,233 27,815,204
Income Per Share (Diluted) $ 0.36 $ 0.29
Number of Shares (Diluted) 28,147,179 28,098,319
 

 

Nine Month Ended July 31,
 

Pro Forma
 
  2011     2011***   Actual 2010
Net Revenues $ 407,345 $ 407,345 $ 331,428
Cost of Sales 211,469 211,469 168,621
Gross Profit on Revenues 195,876 195,876 162,807
General and Administrative Expenses 155,437 155,437 129,554
Operating Income 40,439 40,439 33,253
Other Expense, Net (5,553 ) 1,103 1,007
Income Before Taxes 45,992 39,336 32,246
Taxes 20,109 17,199 14,442
Net Income 25,883 22,137 17,804
Income per Share $ 0.93 $ 0.79 $ 0.64
Number of Shares 27,915,189 27,915,189 27,767,264
Income per Share (Diluted) $ 0.92 $ 0.79 $ 0.63
Number of Shares (Diluted) 28,123,558 28,123,558 28,098,319
 

***Pro Forma excludes gain from NJ Tax Refund, loss from sale of aircraft and NY State Tax refund.
 
Bio-Reference Laboratories, Inc.
Balance Sheets
(Dollars in Thousands)
(Unaudited)
   

 
July 31, October 31,
2011   2010
Cash & Cash Equivalents $ 19,154 $ 17,779
Accounts Receivable (Net) 148,709 129,122
Plant, Property & Equipment (Net) 43,726 36,830
Intangible Assets (Net) 7,224 8,226
Other Assets 60,099 52,174
Total $ 278,912 $ 244,131

 
Accounts Payable $ 37,607 $ 36,972
Revolving Note 30,978 26,154
Long-Term Debt 15,023 11,413
Other Liabilities 16,031 17,204
Shareholder’s Equity 179,273 152,388
Total $ 278,912 $ 244,131
 

 

Statements included in this release that are not historical in nature, are intended to be, and are hereby identified as “forward-looking statements”. Statements looking forward in time are included in this release pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from any future performance suggested herein.

www.bioreference.com

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