Medicore, Inc. Reports Second Quarter 2004 Results


HIALEAH, Fla., Aug. 16, 2004 (PRIMEZONE) -- Medicore, Inc. (Nasdaq:MDKI) announced financial results for the period ended June 30, 2004. Operating revenues for the second quarter of 2004 increased 27% to $9,788,000 compared to $7,728,000 for the same period last year. Operating revenues for the first half of 2004 increased 26% to $18,639,000 compared to $14,749,000 for the same period last year.

Pre-tax income for the second quarter of 2004 before minority interest and equity in affiliate earnings was $511,000 compared to $238,000 for the same period last year with a net loss of ($34,000) or $.00 per share ($(.01) diluted) for the second quarter of 2004 compared to a net loss of $(64,000) or $(.01) per share ($(.01) diluted) for the same period last year. Pre-tax income for the first half of 2004 before minority interest and equity in affiliate earnings was $882,000 compared to $405,000 for the same period last year with a net loss of $(34,000) or $.00 per share ($(.01) diluted) for the first half of 2004 compared to a net loss of $(108,000) or $(.02) per share ($(.02) diluted) for the same period last year. The first half of 2004 included a gain of $546,000 resulting from a sale of a former subsidiary.

Thomas K. Langbein, Chief Executive Officer and President commented, "Our majority owned subsidiary, Dialysis Corporation of America ("DCA") achieved a 28% increase in operating revenues and a 77% increase in net income during the second quarter of 2004 and a 27% increase in operating revenues and 80% increase in net income during the first half of 2004 compared to last year, even with pre-operating and initial operating costs of the four new centers it opened in the first half of 2004. DCA's favorable operating results reflect the success of its controlled expansion program. DCA continues to pursue the development of additional dialysis centers in strategic locations and additional contracts for in-hospital services and continues to consider potential acquisitions."

The company is primarily engaged in the operation of kidney dialysis centers through DCA, which owns or manages 20 free-standing kidney hemodialysis centers in Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina and Virginia providing patients with a full range of quality in-center, and at-home dialysis services, as well as providing in-hospital services in many of its markets. DCA has a new Virginia dialysis center, under development. The company also distributes medical products and has investments in two affiliated Linux software companies.

This release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results and plans to differ materially from those anticipated. Those factors include, but are not limited to, general economic conditions, certain delays beyond the company's control with respect to future business events, the likelihood of realizing the company's investments in the two affiliated Linux software companies, the ability of DCA to timely develop or acquire additional dialysis facilities, whether patient bases of certain of DCA's facilities, particularly its developmental stage facilities, can expand to provide profitability, regulation of dialysis operations, government rate determination for Medicare reimbursement, the highly competitive environment in the operation, development and acquisition of dialysis centers and other risks detailed in the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K for the year ended December 31, 2003. The historical results contained in this press release are not necessarily indicative of future performance of the company.

Medicore, Inc.'s most recent annual report on Form 10-K for the year ended December 31, 2003 and other filings with the Securities and Exchange Commission are available through Medicore's internet home page: http://www.medicore.com.



                  MEDICORE, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS

                        Three Months Ended        Six Months Ended
                             June 30,                 June 30,
                     ----------------------   -----------------------
                         2004        2003         2004         2003
                     ----------  ----------   ----------   ----------

 Revenues:
  Sales:
   Product sales     $  198,828  $  225,024   $  423,146  $   434,781
   Medical service
    revenues          9,496,608   7,423,946   17,906,132   14,161,897
                     ----------  ----------   ----------   ----------
       Total sales    9,695,436   7,648,970   18,329,278   14,596,678
     Other income        92,610      79,175      309,655      152,235
                     ----------  ----------   ----------   ----------
                      9,788,046   7,728,145   18,638,933   14,748,913
                     ----------  ----------   ----------   ----------
 Cost and expenses:
  Cost of sales:
   Cost of product
    sales               131,623     143,015      249,250      274,106
   Cost of medical
    services          5,738,179   4,516,757   10,900,401    8,719,370
                     ----------  ----------   ----------   ----------
   Total cost of
    sales             5,869,802   4,659,772   11,149,651    8,993,476
 Legal fees
  related party          90,000      80,000      169,000      159,000
 Selling, general
  and
  administrative
  expenses            3,196,226   2,659,020    6,794,501    5,083,792
   Provision for
    doubtful
    accounts            200,042     159,165      348,337      255,063
                     ----------  ----------   ----------   ----------
                      9,356,070   7,557,957   18,461,489   14,491,331
                     ----------  ----------   ----------   ----------

 Operating income       431,976     170,188      177,444      257,582

 Other income:
  Interest income
   related parties          960       7,419        4,785       14,992
 Gain on sale of
  former subsidiary
   (Note 13)                --          --       545,995         --
 Other income, net       78,325      60,570      153,623      132,210
                     ----------  ----------   ----------   ----------

                         79,285      67,989      704,403      147,202
                     ----------  ----------   ----------   ----------

 Income before
  income taxes,
  minority
  interest and
  equity in
  affiliate
  earnings              511,261     238,177      881,847      404,784

 Income tax
  provision             277,665     163,086      493,773      274,351
                     ----------  ----------   ----------   ----------

 Income before
  minority
  interest and
  equity in
  affiliate
  earnings              233,596      75,091      388,074      130,433

 Minority interest
  in income of
  consolidated
  subsidiaries         (298,568)   (145,227)    (472,491)    (259,746)

 Equity in
  affiliate
  earnings               31,362       6,214       50,395       21,633
                     ----------  ----------   ----------   ----------
 Net loss            $  (33,610) $  (63,922)  $  (34,022)   $(107,680)
                     ==========  ==========   ==========   ==========
 Loss per share:
    Basic            $    .--    $     (.01)  $    .--     $     (.02)
                     ==========  ==========   ==========   ==========
    Diluted          $     (.01) $     (.01)  $     (.01)  $     (.02)
                     ==========  ==========   ==========   ==========


            

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