Bio-Reference Laboratories, Inc., the third largest full service laboratory in the United States, this week reported its best-ever quarter of revenues in corporate history – an increase of 25 percent over the third quarter of fiscal year 2009.
Based in Elmwood Park, N.J., BRLI is primarily a clinical testing lab servicing physician offices with concentrations in esoteric testing, molecular diagnostics, anatomical pathology and correctional healthcare. It's the largest independent regional laboratory in the Northeastern market, and operates as a national oncology laboratory under its GenPath label.
BRLI recorded revenues of $121,719,000 for the third quarter of fiscal year 2010. Net income after taxes in the quarter was $8,013,000, resulting in fully diluted earnings per share of $.29, up 24 percent and 26 percent, respectively, from the prior fiscal year's third quarter net income after taxes of $6,439,000 and EPS of $.23.
BRLI’s gross profit on revenues for the current quarter was $61,630,000, resulting in a margin for gross profit on revenues of 51 percent, versus the $49,261,000 (also 51 percent) reported for the prior fiscal year's third quarter. Revenue per patient for the third quarter of the current fiscal year was reported at $82.70, an increase of 7 percent over the $77.61 reported for the same quarter of the prior fiscal year.
The number of patients served by the lab increased to 1.46 million in the current quarter, 17 percent more than the 1.246 million recorded during last year's third quarter.
"A year ago, we reported that our third quarter was a watershed moment for BioReference,” said Marc Grodman, MD, BRLI’s CEO. “At that time, faced with a very favorable comparison based on the prior year third quarter, our revenues were up 25 percent. Patient count was up 20 percent. This year on very tough comparisons, we are up 25 percent in revenues, 17 percent in patient count. We grew in the right way: based on investments in cancer, women’s health and genetics. We are investing more than we ever have in growth areas where we see opportunities. Even as our investment in professionals, technology, sales and marketing has not lessened, however, neither has our growth."
BRLI saw a nine-month revenue increase to $331,428,000, an increase of 27 percent over revenues of $260,342,000 for the same period in the prior fiscal year. Net income after taxes for the first nine months of the current fiscal year was $17,804,000, resulting in an EPS of $.63, an increase of 29 percent from the prior year same period net income after taxes of $13,758,000, which resulted in an EPS of $.49.
The company reported gross profit on revenues for the current nine-month period of $162,807,000, resulting in a margin for gross profit on revenues of 49 percent, compared to the prior year same period of $127,252,000, which also resulted in a margin of 49 percent. The number of patients served increased to 4.072 million in the first nine months of the current year, 22 percent more than the 3.339 million recoded for the same period last year.
"We are fully aware of the headwinds reported by other publicly traded laboratories,” said Grodman. “We are not an index fund for the laboratory industry. Physician visits will affect us at the margins of our expansion in most cases. We are a company dedicated to growth and we have seen tremendous opportunity to grow in our markets."