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CEOCFO Monthly Analyst |
"You may print this Page". Company Contact:
HEARx Reports Higher FY 2000 and
Fourth Quarter Revenue WEST
PALM BEACH, Fla., March 20, 2001–HEARx Ltd., (Amex: EAR) announced today that revenues for the fiscal year
ended December 29, 2000, increased 18.3 percent compared to the 1999
fiscal year. Paul A. Brown
M.D., Chairman of the Board of HEARx, said same store sales increases of
17.2 percent over the prior year accounted for most of the increased
revenue. Revenues for fiscal
year 2000 were $56.4 million, compared to $47.7 million for the 1999
fiscal year. Revenues for the fourth quarter ended December 29, 2000,
increased 23.4 percent to $14.8 million compared to $12 million for the
same period last year, with same store sales increases of 21 percent over
the prior year period also accounting for most of the increase.
The
company also reported center operating earnings (excluding corporate
general and administrative expenses and depreciation and amortization) in
2000 of $8.1million versus $6.7 million in 1999, or a 21 percent increase.
Year 2000 revenues from the three geographic markets serviced by HEARx
were Florida - $24.2 million, Northeast - $14.2 million, and Southern
California - $18 million. All three geographic regions were profitable at
the center level. The
company’s net loss before minority interest and dividends on preferred
stock decreased by 24 percent to $3.3 million for the 2000 fiscal year
from $4.4 million in 1999. For the 2000 fourth quarter, net loss before
minority interest and dividends on preferred stock decreased by 46 percent
to $1.2 million in the 2000 fourth quarter from $2.3 million in the year
ago period. Investing
For Growth
“We
have been investing for the future in management, information technology
and facilities to position us for significant growth in future periods,”
said Dr. Brown. “Once we reach breakeven at annual revenues of
approximately $70 million with existing facilities, we are in position to
begin realizing profits of around 40 percent on incremental revenues above
that level. Additionally, we are now equipped to produce, in the current
center network, approximately $150 million in annual revenue without
substantial increases in infrastructure or professional staff.” Dr.
Brown also noted that expanded marketing activities, including the newly
implemented national call center, has contributed to revenue increases and
should continue to benefit the Company’s revenue
stream in the current fiscal year and beyond. Dr. Brown further stated,
“Current marketing efforts are geared primarily toward increasing retail
traffic. With our 170 contracts with healthcare organizations, revenues
are now split 40 percent from these contracts and 60 percent from retail
private pay patients.” HEARx Ltd. provides hearing care to
patients whose health insurance and managed care organizations have
contracted with HEARx for such care and to retail “self-pay” patients.
Approximately eighty HEARx centers are currently located in California,
Florida, New York and New Jersey. HEARx is the largest hearing care
organization accredited by the Joint Commission on Accreditation of
Healthcare Organizations (JCAHO) in the $2.5 billion field of hearing
services. This
press release contains forward looking statements concerning the ability
of the company to generate profits and the level of such profits, the
expected breakeven run rate, the expectations for the level of revenues
possible from the Company's existing centers and the effect of expanded
marketing activities on revenue increases in year 2001 and beyond. These
statements involve risks and uncertainties which could cause actual
results to differ materially from these statements, including risks and
uncertainties as to the company's ability to maintain sales levels from
the self-pay patient population as well as the managed care and insurance
beneficiary populations now serviced by HEARx, the continued success of
the company's various marketing programs, the ability of the nationwide
call center to sustain the initial successful referral results, the
ability of the company to maintain its cost of goods and control variable
expenses and the continued success of the HEARx West joint venture in
California with Kaiser Permanente.
more HEARx
Ltd. Consolidated
Balance Sheets ASSETS
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