AUSTIN, Texas, May 7, 2009 (GLOBE NEWSWIRE) -- HealthTronics, Inc. (Nasdaq:HTRN), a leading provider of Urology services and products, today announced its financial results for the quarter ended March 31, 2009.
First Quarter 2009
Revenue from continuing operations for the first quarter of 2009 totaled $43.6 million, up from $34.0 million in the first quarter of 2008. The Company's income from continuing operations for the first quarter of 2009, in accordance with generally accepted accounting principles ("GAAP"), totaled $390,000 or $0.01 per diluted share, which compares to $0.01 per diluted share in the first quarter of 2008. The Company's non-GAAP net income for the first quarter of 2009 totaled $0.03 per share, which excludes non-cash stock-based compensation expense.
The Company's adjusted EBITDA from continuing operations for the first quarter of 2009 was $5.5 million, which compares to $4.1 million in the first quarter of 2008, an increase of 34%. This adjusted EBITDA growth resulted from increased sales from existing partnerships, our laboratories, and acquisitions made during 2008.
Executive Commentary
James Whittenburg, President and Chief Executive Officer, commented, "The broad spectrum of products and services HealthTronics offers urologists continues to be our strength -- contributing to our financial results as well as the leadership position we enjoy within the urology field. Furthermore, the scope and size of our channel in urology equips us with extensive knowledge concerning emerging trends, new treatment alternatives, and evolving applications for existing technology. With this knowledge, we can continue to play a critical role in expanding treatment alternatives for patients and physicians alike, bringing leading-edge equipment and support services for the screening, diagnosis and treatment of diseases."
Mr. Whittenburg continued, "During the second and third quarter, we intend to continue our revenue growth as well as reduce operating expenses by approximately $1.0 million, principally in the form of workforce reductions and relocations from acquisitions made during 2008. This expense reduction, combined with ongoing investments in our core businesses, will help improve HealthTronics' financial performance."
Conference Call and Webcast:
Management of HealthTronics will host a conference call the afternoon of Thursday, May 7, 2009 at 5:00 pm EDT. Interested parties may participate in the call by dialing 1-877-874-1571 (International callers dial 1-719-325-4832) and ask for the "HealthTronics Q1 2009 Earnings Call" (confirmation code: 9749396). Please call in 10 minutes before the call is scheduled to begin. The conference call will also be webcast live via the Investors section of HealthTronics' website at www.healthtronics.com. To listen to the live webcast, go to the website 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 website.
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
The HealthTronics, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5894
Special note regarding the combination of our Urology and Medical Products divisions:
In the fourth quarter of 2008, our Medical Products division relocated from Kennesaw, Georgia to our corporate headquarters in Austin, Texas. Concurrent with this relocation, we made certain changes within our Medical Products management team so that these operations now report to the President of our Urology Services operations. After making these changes, we redesigned our internal financial reporting materials provided to our chief operating decision maker, as well as our executive management team. As of the first quarter of 2009, we do not have any operating segments, except our Urology Services operations that meet the quantitative requirements of SFAS 131, "Disclosures about Segments of an Enterprise and Related Information."
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 its 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
March 31,
-------------------
2009 2008
-------- --------
Revenues $ 43,612 $ 33,954
Cost of revenues 21,307 15,168
-------- --------
Gross profit 22,305 18,786
Operating expenses
Selling, general and administrative 4,556 4,317
Depreciation and amortization 3,478 2,628
-------- --------
Total operating expenses 8,034 6,945
-------- --------
Operating income 14,271 11,841
Other income (expenses):
Interest and dividends 50 191
Interest expense (290) (163)
-------- --------
(240) 28
-------- --------
Income from continuing operations before
provision for income taxes 14,031 11,869
Provision for income taxes 313 370
-------- --------
Consolidated net income 13,718 11,499
Less: Net income attributable to noncontrolling
interest (13,328) (11,047)
-------- --------
Net income attributable to HealthTronics, Inc. $ 390 $ 452
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Basic earnings per share attributable
to HealthTronics, Inc.:
Net income attributable to HealthTronics, Inc. $ 0.01 $ 0.01
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Weighted average shares outstanding 35,892 35,425
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Diluted earnings per share attributable
to HealthTronics, Inc.:
Net income attributable to HealthTronics, Inc. $ 0.01 $ 0.01
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Weighted average shares outstanding 35,966 35,425
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HealthTronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, Dec. 31,
($ in thousands) 2009 2008
-------- --------
ASSETS
Total current assets $ 56,767 $ 63,689
Property and equipment, net 32,036 32,769
Goodwill 93,703 93,620
Other assets 44,254 44,308
-------- --------
$226,760 $234,386
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LIABILITIES
Total current liabilities $ 54,863* $ 18,274
Long-term debt, net of current portion 2,479 43,897
Other long-term liabilities 5,975 5,120
-------- --------
Total liabilities 63,317 67,291
Total HealthTronics, Inc. shareholders' equity 120,359 119,372
Noncontrolling interest 43,084 47,723
-------- --------
$226,760 $234,386
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* Includes $37 million outstanding on our credit facility due in
March 2010.
HealthTronics, Inc. and Subsidiaries
Supplemental Financial Information
Continuing Operations
For the Periods Ended March 31, 2009 and 2008
Unaudited
In thousands, except per share data
1st Quarter
-------------------
2009 2008
-------- --------
Summary of Results from Operations
Revenues $ 43,612 $ 33,954
EBITDA(a) $ 18,808 $ 15,189
Adjusted EBITDA(a) $ 5,480 $ 4,142
Net income from Continuing Operations $ 390 $ 452
Net income $ 390 $ 452
EPS from Continuing Operations $ 0.01 $ 0.01
EPS $ 0.01 $ 0.01
Number of Shares 35,966 35,425
Other Information:
Cashflow from Operations $ 15,775 $ 16,074
Net Draws (Payments) on Senior Credit Facility $ (4,000) $ --
Net Debt $ 28,152 $(13,873)
(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 March 31, 2009 and 2008
Unaudited
In thousands
1st Quarter
-------------------
Consolidated 2009 2008
------------ -------- --------
Income from Continuing Operations $ 390 $ 452
Add Back(deduct):
Provision for income taxes 313 370
Interest expense 290 163
Depreciation and amortization 3,478 2,628
Restructuring costs 233 106
Stockbased compensation costs 776 423
-------- --------
Adjusted EBITDA 5,480 4,142
Add Back:
Noncontrolling interest expense 13,328 11,047
-------- --------
EBITDA $ 18,808 $ 15,189
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