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BioReference Laboratories, Inc. Reports Sustained Growth from All Business Units in the First Quarter
Company Announces Acquisition of Lenetix Medical Screening Lab, Inc.
ELMWOOD PARK, N.J., Mar 04, 2010 (BUSINESS WIRE) -- BioReference Laboratories, Inc. (NASDAQ: BRLI) (Numbers in Thousands Except Per Share Data or where otherwise noted) released its first quarter, fiscal year 2010 earnings today for the three months ending January 31. The Company had net revenues for the quarter of $99,261, an increase of 31% over the $75,735 of net revenues recorded in the first quarter fiscal year 2009. The net revenue increase was based on patient count of 1,242, an increase of 29% over the prior year quarterly patient count of 965. Revenue per patient rose 2% from $77.79 per patient in the same quarter 2009 to $79.21 in the current quarter. Operating income rose to $7,458 in the current fiscal quarter, an increase of 50% over the prior year, same quarter operating income of $4,970. On a fully taxed basis, the Company reported net income of $4,005, resulting in a fully diluted EPS of $.29 per share compared to the same quarter prior year net income on a pro forma operating results basis of $2,663 and $.19 per share, increases of 50% and 53% respectively. The Company reported gross profit for the current quarter of $47,507, resulting in a margin for gross profit on revenues of 48% compared to the prior year based on pro forma operating results of $35,695, which resulted in a margin of 47%. Net income before taxes for the current quarter increased 57% to $7,205 from the prior year quarter net income before taxes based on pro forma operating results of $4,580. (2009 numbers are based on a pro forma computation, which excludes a one-time restitution amount resulting from an agreement with a discharged employee that occurred in Q1FY09).

The Company noted that esoteric testing had climbed to 54% of net revenues compared to 51% of net revenues in the first quarter of the prior year. While the strong patient count numbers clearly indicate the broad success of the Company across all business units, including the regional clinical business as well as the national esoteric operations, the Company observed that the first quarter of the previous year had flat patient count numbers over the prior year and the expansion seen in the current quarter is probably aided by economic improvements in the healthcare market. The Company further observed that the first quarter of 2009 was the last quarter that it had noted any softness due to economic conditions.

On March 2, 2010, the Company completed the purchase of substantially all of the tangible and intangible assets, excluding cash, receivables and certain other assets, of Lenetix Medical Screening Laboratory, Inc. ("Lenetix") from Lenetix and its sole stockholder. These assets were utilized in Lenetix's operation of a clinical testing laboratory located in Mineola, Long Island, New York. The Laboratory performs both clinical laboratory diagnostic testing and genetic testing. The purchase price of $5,490,000 included a down payment of $4,740,000 and a hold-back of $750,000 to insure the accuracy of the Sellers' representations and to protect the Company from any claims based on the operations of the Laboratory prior to the closing. Since Lenetix specializes in prenatal and genetic testing, the acquisition will enhance the Company's Genetic and Women's Health programs. Because of its size, the acquisition will have minimal effect on current financial metrics, but provides the Company with valuable technology and licensing that will broaden and enhance the Company's current test offerings.

Marc D. Grodman M.D., President noted: "Our current quarter continues to extend the trends that we have seen in the past few quarters. We have seen strong growth and success across all business units of the Company. Our New York based clinical operations have continued to gain market share as our service and support model and our outstanding reputation have enabled us to enjoy solid and sustained expansion in the region. Our four national initiatives, GenPath, Women's Health, Corrections and GeneDx have all continued to provide major contributions to our growth. Despite already representing a major stake in the national market share, our correctional healthcare unit has continued to grow and keep pace with the overall growth of the Company. Technology innovations and disruptive platforms have enabled GenPath, GeneDx and our Women's Health initiative to provide the primary growth leadership in the Company. We have continued to increase our sales force to meet the on-going demand for our business and we have substantially expanded our facilities to keep pace with the growth."

Dr. Grodman stated: "We observed a change in the economic impact on our business during our first quarter of last year. Throughout the 2009 calendar year, we saw a return to normalcy of our business growth. We have had an unprecedented sixteen years of twenty per cent compound annual growth that clearly distinguishes us from most of our competitors. While the strong comparisons of the past few quarters are now behind us, we expect to sustain our growth and expansion in accordance with the guidance that we gave at the end of 2009. Our commitment to seeking answers to relevant clinical questions enables us to grow in all aspects of our business.

Dr. Grodman concluded: "Our acquisition of Lenetix will enhance and help marry the core offerings of our Women's Health initiative and the strong technological expertise of GeneDx as well as lay the groundwork for assuming a leadership role in the evolving area of prenatal testing, a specific area of testing that is the natural progression of the capabilities we have developed over the past few years. The numbers have little or no effect on our financials, but the ability to offer broader, more specialized cutting edge testing will be another factor fueling our growth in the future."

The Company's first quarter earnings conference call is scheduled for today at 10:30 a.m. Eastern Standard Time. The live audio Web cast will be available at the Company's corporate Web site, www.bioreference.com as well as 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 third largest full service laboratory in the United States and the largest independent regional laboratory in the Northeastern market, primarily a clinical testing lab servicing physician offices with concentrations in the focused markets of esoteric testing, molecular diagnostics, anatomical pathology and correctional health care. BRLI operates as a national oncology laboratory under its GenPath label. 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

January 31,

2010

Pro Forma 2009

Actual 2009

Net Revenues $99,261 $75,735 $75,735
Cost of Sales 51,754 40,040 40,040
Gross Profit on Revenues $47,507 $35,695 $35,695
General and Administrative 40,049 30,725 30,725
Operating Income 7,458 4,970 4,970
Other Expense, Net 253 390 (1,210 )
Income Before Taxes $7,205 $4,580 $6,180
Taxes 3,200 1,917 2,582
Net Income $4,005 $2,663 $3,598
Income Per Share $.29 $.19 $.26
Number of Shares 13,861,470 13,875,425 13,785,425
Income Per Share (Diluted) $.29 $.19 $.26
Number of Shares (Diluted) 14,011,059 13,910,076 13,910,076

Bio-Reference Laboratories, Inc.

Balance Sheets

(Dollars in Thousands)

(Unaudited)

January 31,

October 31,

2010

2009

Cash & Cash Equivalents $ 15,396 $ 16,995
Accounts Receivable (Net) 110,485 104,995
Plant, Property & Equipment (Net) 29,554 27,760
Intangible Assets (Net) 4,310 4,588
Other Assets

44,502

43,052
$ 204,247 $ 197,390
Accounts Payable $ 27,418 $ 30,570
Note Payable-Bank 22,531 12,452
Long-Term Debt 7,924 8,378
Other Liabilities 17,223 21,467
Shareholder's Equity 129,151 124,523
$ 204,247 $ 197,390

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

SOURCE: BioReference Laboratories, Inc.

BioReference Laboratories, Inc.
Tara Mackay, 201-791-2600
Fax: 201-791-1941
Investor Relations
tmackay@bioreference.com