IMPATH Announces 29th Consecutive Quarter of Record Revenues

Revenues and Operating Income Increase 38% and 54%, Respectively,

Over First Quarter 2000 Figures



Apr 25, 2001, 01:00 ET from IMPATH Inc.

    NEW YORK, April 25 /PRNewswire/ -- IMPATH Inc. (Nasdaq:   IMPH) today
 announced results for the first quarter ended March 31, 2001, marking the
 Company's twenty-ninth consecutive quarter of record revenues.
     The Company reported revenues of $42,136,000 for the first quarter, a
 38% increase over first quarter 2000 revenues of $30,563,000.  Earnings before
 interest (income and expense), taxes, depreciation and amortization ("EBITDA")
 for the period were $10,830,000, a 51% increase over first quarter EBITDA of
 $7,183,000 in 2000.  Operating income for the first quarter was $7,410,000, an
 increase of 54% over $4,808,000 for the same period a year ago.  Net income of
 $4,032,000 was reported during the first quarter, an increase of 43% compared
 with net income of $2,821,000 in the year ago period.  Earnings per diluted
 share were $.24, a 33% increase over $.18 (split adjusted after taking into
 account the 2-for-1 stock split the Company effected in the form of a 100%
 stock dividend effective August 28, 2000), in the comparable 2000 quarter.
     For the first quarter, the Company had approximately 16,715,000 weighted
 average common and common equivalent shares outstanding on a diluted basis
 compared with 15,808,000 for the first quarter of 2000 (split adjusted).
     Commenting on the results, Dr. Anu D. Saad, Chairman and Chief Executive
 Officer, said, "We are very pleased with the Company's progress during the
 first quarter as we continued to experience increased demand across all of our
 product platforms.  In the Physician Services division we saw expansion of
 case volume and a robust product mix as we further broaden the range of
 services we provide to pathologists and oncologists.  In our Information
 Services and IMPATH Predictive Oncology(TM) divisions we continued to leverage
 our unique set of resources, including tissue specimens, broad range of
 technologies, and access to patients and outcomes data, to provide proprietary
 oncology products and services to our target discovery and drug development
 clients.  During the first quarter of 2001, we also increased our focus on
 pursuing opportunities for long-term strategic partnerships with key companies
 in the pharmacogenomic area to further enhance our position as a leader in
 oncology."
     Richard  P. Adelson, President and Chief Operating Officer, added, "Our
 Physician Services division experienced growth across all of its products,
 with revenue increasing 39% and total case volume expanding 11% over the first
 quarter of 2000.  We continued to see an increasing demand for our
 biopharmaceutical/genomics products and services, now centralized under IMPATH
 Predictive Oncology(TM), yielding a 55% increase in revenue over the
 comparable period a year ago.  Our previously announced agreement with
 Abgenix, Inc. for screening of potential therapeutic targets utilizing our
 GeneBank(TM) tissue archive and proprietary 'OptimArray(TM)' technology, is
 one of a growing list of new relationships with leading companies in the
 pharmacogenomic industry.  It is important to recognize that we have
 accomplished our strong performance while building an efficient,
 technology-driven infrastructure that has enabled us to manage expenses while
 increasing our operating margin to 17.6%, up from 15.7% a year ago."
     In the first quarter of the year, the Company typically focuses its
 collection efforts on the oldest receivables. This emphasis on older
 receivables impacted days sales outstanding, as it has historically in the
 first quarter, which ended the period at 123 days.  Despite the increase in
 DSOs, the Company generated positive operating cash flow of $1.9 million, an
 increase of $4.6 million over the $2.7 million cash flow deficiency from the
 year ago quarter.  The Company continues to focus on improving accounts
 receivable collections and has, earlier this month, successfully implemented
 the first phase of its billing optimization strategy.  The Company believes
 that its current and ongoing system enhancements will provide the requisite
 resources for continued progress in reaching its goals for accounts receivable
 collections.
 
     IMPATH Inc. is in the business of improving outcomes for cancer patients.
 The Company is the leading source of cancer information and analyses with a
 database of over 730,000 analyzed cases to date.  IMPATH uses sophisticated
 technologies to provide patient-specific cancer diagnostic and prognostic
 information to pathologists, oncologists and transplant centers.  IMPATH
 currently serves more than 7,850 physicians specializing in the treatment of
 cancer patients, in over 1,975 hospitals and 446 oncology practices.
 Utilizing its comprehensive resources, the IMPATH Predictive Oncology division
 serves genomics, biotechnology and pharmaceutical companies involved in
 developing new therapeutics targeted to specific, biological characteristics
 of cancer.
 
     This press release may contain statements that the Company believes are,
 or may be considered to be, "forward-looking statements" within the meaning of
 various provisions of the Securities Act of 1933 and the Securities Exchange
 Act of 1934.  These forward-looking statements generally can be identified by
 use of statements that include phrases such as the Company "believes,"
 "expects," "anticipates," "intends," "plans," "foresees" or other similar
 words or phrases.  Similarly, statements that describe the Company's projected
 growth and goals and its plans for expansion also are forward-looking
 statements.  All of these forward-looking statements are subject to certain
 risks and uncertainties, many of which are outside of management's control,
 and which could cause the Company's actual results to differ materially from
 those contemplated by the relevant forward-looking statement.  Some of the
 most significant factors that could cause the actual results to differ
 materially from the forward-looking statement, alone or in combination, would
 be the failure to continue to successfully integrate the businesses acquired
 by the Company, unanticipated disagreements with the Company's joint venture
 or other partners, unanticipated changes in the healthcare industry (as a
 result of cost containment measures, changes in governmental regulation,
 including reimbursement programs and patient confidentiality issues, or other
 factors), an inability to procure consented, well-characterized tissue
 specimens, the adverse effect of any legal proceedings involving the Company,
 an unanticipated failure in the commercialization of the Company's
 biopharmaceutical products, or an unanticipated loss of business.  Readers are
 urged to consider these factors carefully in evaluating the forward-looking
 statements.  The forward-looking statements included in this press release are
 made only as of the date of this press release and the Company undertakes no
 obligation to publicly update these forward-looking statements to reflect
 subsequent events or circumstances.
 
                          IMPATH Inc. and Subsidiaries
                Condensed Consolidated Statements of Operations
                                  (Unaudited)
 
                                                  Three Months Ended March 31,
                                                     2001            2000
     Revenues:
 
      Net Physician Services                      $38,004,353    $27,435,875
      IMPATH Predictive Oncology                    3,011,846      1,945,009
      Information Services                          1,119,807      1,181,948
        Total revenues                             42,136,006     30,562,832
 
     Operating expenses:
 
      Salaries and related costs                   14,954,642     12,112,396
      Selling, general and administrative          16,351,599     11,267,211
      Depreciation and amortization                 3,419,868      2,375,078
        Total operating expenses                   34,726,109     25,754,685
 
     Income from operations                         7,409,897      4,808,147
 
     Other (expense) income, net                    (335,620)         92,922
 
     Income before income tax expense               7,074,277      4,901,069
 
     Income tax expense                           (3,041,939)    (2,080,237)
 
     Net income                                    $4,032,338     $2,820,832
 
     Net income per share
       Basic                                            $0.25          $0.18
       Diluted                                          $0.24          $0.18
     Weighted average common and common
      equivalent shares outstanding
       Basic                                       15,892,000     15,378,000
       Diluted                                     16,715,000     15,808,000
 
                          IMPATH Inc. and Subsidiaries
                     Condensed Consolidated Balance Sheets
                                  (Unaudited)
 
                                                   March 31,     December 31,
                                                     2001           2000
     Assets
 
      Total current assets                        $97,277,298    $96,396,776
 
      Fixed assets, less accumulated
       depreciation and amortization               68,197,776     61,062,211
 
      Other assets                                 40,040,273     39,314,429
 
        Total assets                             $205,515,347   $196,773,416
 
     Liabilities and Stockholders' Equity
 
      Total current liabilities                   $31,321,799    $30,112,164
 
      Capital lease obligations, net of
       current portion                             27,238,161     24,788,612
      Notes payable, net of current portion                 0              0
      Deferred tax payable                          2,803,271      2,803,271
 
        Total stockholders' equity                144,152,116    139,069,369
        Total liabilities and
         stockholders' equity                    $205,515,347   $196,773,416
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16942437
 
 

SOURCE IMPATH Inc.
    NEW YORK, April 25 /PRNewswire/ -- IMPATH Inc. (Nasdaq:   IMPH) today
 announced results for the first quarter ended March 31, 2001, marking the
 Company's twenty-ninth consecutive quarter of record revenues.
     The Company reported revenues of $42,136,000 for the first quarter, a
 38% increase over first quarter 2000 revenues of $30,563,000.  Earnings before
 interest (income and expense), taxes, depreciation and amortization ("EBITDA")
 for the period were $10,830,000, a 51% increase over first quarter EBITDA of
 $7,183,000 in 2000.  Operating income for the first quarter was $7,410,000, an
 increase of 54% over $4,808,000 for the same period a year ago.  Net income of
 $4,032,000 was reported during the first quarter, an increase of 43% compared
 with net income of $2,821,000 in the year ago period.  Earnings per diluted
 share were $.24, a 33% increase over $.18 (split adjusted after taking into
 account the 2-for-1 stock split the Company effected in the form of a 100%
 stock dividend effective August 28, 2000), in the comparable 2000 quarter.
     For the first quarter, the Company had approximately 16,715,000 weighted
 average common and common equivalent shares outstanding on a diluted basis
 compared with 15,808,000 for the first quarter of 2000 (split adjusted).
     Commenting on the results, Dr. Anu D. Saad, Chairman and Chief Executive
 Officer, said, "We are very pleased with the Company's progress during the
 first quarter as we continued to experience increased demand across all of our
 product platforms.  In the Physician Services division we saw expansion of
 case volume and a robust product mix as we further broaden the range of
 services we provide to pathologists and oncologists.  In our Information
 Services and IMPATH Predictive Oncology(TM) divisions we continued to leverage
 our unique set of resources, including tissue specimens, broad range of
 technologies, and access to patients and outcomes data, to provide proprietary
 oncology products and services to our target discovery and drug development
 clients.  During the first quarter of 2001, we also increased our focus on
 pursuing opportunities for long-term strategic partnerships with key companies
 in the pharmacogenomic area to further enhance our position as a leader in
 oncology."
     Richard  P. Adelson, President and Chief Operating Officer, added, "Our
 Physician Services division experienced growth across all of its products,
 with revenue increasing 39% and total case volume expanding 11% over the first
 quarter of 2000.  We continued to see an increasing demand for our
 biopharmaceutical/genomics products and services, now centralized under IMPATH
 Predictive Oncology(TM), yielding a 55% increase in revenue over the
 comparable period a year ago.  Our previously announced agreement with
 Abgenix, Inc. for screening of potential therapeutic targets utilizing our
 GeneBank(TM) tissue archive and proprietary 'OptimArray(TM)' technology, is
 one of a growing list of new relationships with leading companies in the
 pharmacogenomic industry.  It is important to recognize that we have
 accomplished our strong performance while building an efficient,
 technology-driven infrastructure that has enabled us to manage expenses while
 increasing our operating margin to 17.6%, up from 15.7% a year ago."
     In the first quarter of the year, the Company typically focuses its
 collection efforts on the oldest receivables. This emphasis on older
 receivables impacted days sales outstanding, as it has historically in the
 first quarter, which ended the period at 123 days.  Despite the increase in
 DSOs, the Company generated positive operating cash flow of $1.9 million, an
 increase of $4.6 million over the $2.7 million cash flow deficiency from the
 year ago quarter.  The Company continues to focus on improving accounts
 receivable collections and has, earlier this month, successfully implemented
 the first phase of its billing optimization strategy.  The Company believes
 that its current and ongoing system enhancements will provide the requisite
 resources for continued progress in reaching its goals for accounts receivable
 collections.
 
     IMPATH Inc. is in the business of improving outcomes for cancer patients.
 The Company is the leading source of cancer information and analyses with a
 database of over 730,000 analyzed cases to date.  IMPATH uses sophisticated
 technologies to provide patient-specific cancer diagnostic and prognostic
 information to pathologists, oncologists and transplant centers.  IMPATH
 currently serves more than 7,850 physicians specializing in the treatment of
 cancer patients, in over 1,975 hospitals and 446 oncology practices.
 Utilizing its comprehensive resources, the IMPATH Predictive Oncology division
 serves genomics, biotechnology and pharmaceutical companies involved in
 developing new therapeutics targeted to specific, biological characteristics
 of cancer.
 
     This press release may contain statements that the Company believes are,
 or may be considered to be, "forward-looking statements" within the meaning of
 various provisions of the Securities Act of 1933 and the Securities Exchange
 Act of 1934.  These forward-looking statements generally can be identified by
 use of statements that include phrases such as the Company "believes,"
 "expects," "anticipates," "intends," "plans," "foresees" or other similar
 words or phrases.  Similarly, statements that describe the Company's projected
 growth and goals and its plans for expansion also are forward-looking
 statements.  All of these forward-looking statements are subject to certain
 risks and uncertainties, many of which are outside of management's control,
 and which could cause the Company's actual results to differ materially from
 those contemplated by the relevant forward-looking statement.  Some of the
 most significant factors that could cause the actual results to differ
 materially from the forward-looking statement, alone or in combination, would
 be the failure to continue to successfully integrate the businesses acquired
 by the Company, unanticipated disagreements with the Company's joint venture
 or other partners, unanticipated changes in the healthcare industry (as a
 result of cost containment measures, changes in governmental regulation,
 including reimbursement programs and patient confidentiality issues, or other
 factors), an inability to procure consented, well-characterized tissue
 specimens, the adverse effect of any legal proceedings involving the Company,
 an unanticipated failure in the commercialization of the Company's
 biopharmaceutical products, or an unanticipated loss of business.  Readers are
 urged to consider these factors carefully in evaluating the forward-looking
 statements.  The forward-looking statements included in this press release are
 made only as of the date of this press release and the Company undertakes no
 obligation to publicly update these forward-looking statements to reflect
 subsequent events or circumstances.
 
                          IMPATH Inc. and Subsidiaries
                Condensed Consolidated Statements of Operations
                                  (Unaudited)
 
                                                  Three Months Ended March 31,
                                                     2001            2000
     Revenues:
 
      Net Physician Services                      $38,004,353    $27,435,875
      IMPATH Predictive Oncology                    3,011,846      1,945,009
      Information Services                          1,119,807      1,181,948
        Total revenues                             42,136,006     30,562,832
 
     Operating expenses:
 
      Salaries and related costs                   14,954,642     12,112,396
      Selling, general and administrative          16,351,599     11,267,211
      Depreciation and amortization                 3,419,868      2,375,078
        Total operating expenses                   34,726,109     25,754,685
 
     Income from operations                         7,409,897      4,808,147
 
     Other (expense) income, net                    (335,620)         92,922
 
     Income before income tax expense               7,074,277      4,901,069
 
     Income tax expense                           (3,041,939)    (2,080,237)
 
     Net income                                    $4,032,338     $2,820,832
 
     Net income per share
       Basic                                            $0.25          $0.18
       Diluted                                          $0.24          $0.18
     Weighted average common and common
      equivalent shares outstanding
       Basic                                       15,892,000     15,378,000
       Diluted                                     16,715,000     15,808,000
 
                          IMPATH Inc. and Subsidiaries
                     Condensed Consolidated Balance Sheets
                                  (Unaudited)
 
                                                   March 31,     December 31,
                                                     2001           2000
     Assets
 
      Total current assets                        $97,277,298    $96,396,776
 
      Fixed assets, less accumulated
       depreciation and amortization               68,197,776     61,062,211
 
      Other assets                                 40,040,273     39,314,429
 
        Total assets                             $205,515,347   $196,773,416
 
     Liabilities and Stockholders' Equity
 
      Total current liabilities                   $31,321,799    $30,112,164
 
      Capital lease obligations, net of
       current portion                             27,238,161     24,788,612
      Notes payable, net of current portion                 0              0
      Deferred tax payable                          2,803,271      2,803,271
 
        Total stockholders' equity                144,152,116    139,069,369
        Total liabilities and
         stockholders' equity                    $205,515,347   $196,773,416
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16942437
 
 SOURCE  IMPATH Inc.