Bio-Reference Laboratories second-quarter revenues up 27% to $110,447,000

Bio-Reference Laboratories, Inc. (NASDAQ: BRLI) (Numbers in Thousands Except Per Share Data or where otherwise noted) released its second quarter, fiscal year 2010 earnings today for the three months ending April 30. The Company recorded current quarter revenues of $110,447, the best ever quarter in corporate history and an increase of 27% over the $87,183 recorded in the second quarter, fiscal year 2009. Operating income for Q2FY10 was $10,852, an increase of 30% over the Q2FY08 operating income of $8,358. Net income after taxes in Q2FY10 came in at $5,787 resulting in earnings per share (EPS) of $.21, up from the prior fiscal year second quarter net income after taxes of $4,630 and EPS of $.17 (adjusted for the 4/19/2010 stock split). Gross profit on revenues for the current quarter were $53,668 resulting in a margin for gross profit on revenues of about 49%, a 27% improvement over the $42,297 reported for the prior fiscal year second quarter which also resulted in a 49% margin. Revenue per patient for the second quarter of the current fiscal year was $80.00, an increase of 4% over the $76.74 reported for the same quarter of the prior fiscal year. The number of patients served increased 22% to 1,370 in the current quarter from the prior year second quarter total of 1,127. Esoteric business for the Company was 56% of revenues for the second quarter of the current fiscal year compared to 52% in the same quarter of the prior fiscal year. The Company further noted that Days Sales Outstanding (DSO) of 95 days compared to Q1FY10 of 101 days and the prior fiscal year second quarter when the DSO were 104 days.

Six-month revenues increased to $209,709, an increase of 29% over the same period revenues of $162,918 in the prior fiscal year (all six month numbers exclusive of a one-time restitution amount recorded in the first quarter of the prior year). Operating income for the first six months of FY10 was $18,311, an increase of 37% over the prior fiscal year six month Operating income of $13,327. Net income after taxes for the first six months of the current year was $9,792 resulting in an EPS of $.35, an increase of 34% from the prior year same period net income after taxes of $7,299 (on a Proforma basis) which resulted in an EPS of $.26. The Company reported gross profit on revenues for the current six month period of $101,176, resulting in a margin for gross profit on revenues of 48%, the same as the prior year same period of $77,992 which also resulted in a margin of 48%. The number of patients served increased 25% to 2,612 in the first half of the current year from the prior year same period total of 2,092, despite having shown minimal improvement in the first quarter of the current year.

During the current quarter, the Company executed a two for one stock split which took effect for record holders of common stock as of the close of the market on April 19, 2010. For reference purposes only, the Company has added a table showing prior year comparisons as if no split had taken place.

Marc D. Grodman, MD, CEO, commented "We are pleased to report the continued growth of our business. Once again, we have been able to report our best quarter ever with regard to revenues based on substantially greater patient count than we have ever before recorded. We saw continued growth across all of our business lines. While there were some issues with weather early in the quarter, especially in the Northeast and Mid-Atlantic markets, we saw little or no headwind to our continued and sustained growth."

Dr. Grodman continued: "Our second quarter can be somewhat enigmatic. It is a transitional quarter from the compression we usually see in the first quarter to the expansion that we usually see in the second half of the fiscal year. Over the past few years we have been able to assert a technology and performance excellence that has fueled our growth. By addressing clinical need with superior technology and outstanding service and support we have been able to grow our business throughout the country. Over the past several years, we have truly emerged as a national laboratory providing innovative diagnostic solutions to critical clinical needs. Our Women's Health program, based on a multiplex PCR methodology, is still unrivalled around the country and stands as only one of the many unique initiatives that we have made available to our physician clients that differentiate us and ensure our ongoing growth. Our superior service and support model has enabled us to gain and retain market share in the region and across the country."

Dr. Grodman finally noted: "As we enter the second half of the year, we will be facing much stiffer year over year comparables, nonetheless, we re-affirm our guidance of top-line revenue growth of at least 15% on a year over year basis, along with our guidance of at least a 20% increase in our net income. We had a national sales conference earlier this month with over 200 sales and service representatives attending from around the country. It was heartening to see this throng of professionals so dedicated to continuing the expansion of our clinical services across the country since they represent the means by which we will achieve the vision we have and will continue to pursue. Thanks to their efforts along with the dedicated management team and laboratory professionals and technicians we employ, we expect to continue delivering value to our shareholders well into the future."

SOURCE BioReference Laboratories, Inc.

www.bioreference.com