Bio-Reference Laboratories released its second quarter earnings yesterday. The report suggests the clinical testing laboratory’s success in the last quarter at an additional 14% in its patient volumes and quarterly revenues.
The company’s second quarter earnings only included the records of its returns for patient volumes and revenues, exempting the per share data. The 2.364 million patients increase is recorded to be better than the estimated 1% to 2% industry patient volume raise. If bad weather is to be excluded from the data, there should have been 17% additional volume for the company’s patients size.
The company recorded the highest revenue in the corporate history ($201,366). It is higher compared to the second quarter record in 2013 ($176,452) regardless of the weather detrimental effects to the company’s revenues.
The second quarter earnings are motivated by the esoteric undertaking of the company (e.g. GeneDx). Growth of company revenue may also be due to low single digit acquisitions. This promotes the conclusion that esoteric testing (part driven by GeneDx) is the largest contributor in the quarterly increase in returns ($25 million revenue from 23% increase). It was earlier assumed that the esoteric results will only be roughly $38 million, but the impressive results showed a raise of 50% in volume growth.
GeneDx, which is attributed to the second quarter’s success, is focused on prenatal testing, exome sequencing, and inherited cancer testing procedures being done by the company. The recognized esoteric ASP decline and days’ sales outstanding (DSO)’s inflated sales are driven by the probable unplanned reimbursement structure for the mentioned tests.
The downfalls for the quarter started with the 9% decrease in operating income ($18,879) from last year’s second quarter record ($20,709). The earnings per share of $0.37 have also declined from net income after taxes of prior year’s net income (EPS of $0.41). The decreases were 9% and 10% respectively. In overall EPS, the company estimated that $0.05 reduction came in as a result of bad weather.
Marc D. Grodman, MD, CEO of Bio-Reference Laboratories, concluded that the growth of over 14% in patient volumes and revenues gave them the conclusion that most of the pricing pressures will be behind the organization. The second quarter earnings do not give the management outlook troubles as exhibited by 5% decrease earlier the quarter. Dr. Grodman punctuated that the increase in quarterly earnings is due to team’s commitment to specialty testing and acquisitions of developments in Genetics, Cancer, and Women’s Health.