CHICAGO--NovaMed (Nasdaq: NOVA)
reported results for the fourth quarter and 12 months ended Dec.
31, 2004. Net income from continuing operations in the fourth
quarter of 2004 was $1,183,000, as compared to $1,336,000, in the
prior year fourth quarter.
For the fourth quarter, total net revenue increased 28 percent to
$17,477,000 from $13,611,000 for the prior year fourth quarter. Net
revenue from surgical facilities was $13,249,000, up 44 percent
from $9,208,000 in the prior year fourth quarter. On a
same-facility basis, surgical facilities net revenue increased 10
percent over the prior year fourth quarter. Operating income in the
fourth quarter of 2004 increased 91 percent to $3,487,000, or 20
percent of net revenue, from $1,828,000, or 13 percent of net
revenue, in the same period last year.
For 2004, net income from continuing operations was $3,830,000, as
compared to $3,484,000. Total net revenue increased 16 percent to
$64,575,000 from $55,506,000. Net revenue from surgical facilities
was $46,631,000, up 28 percent from $36,410,000 in 2003. This
revenue increase was primarily due to a 32 percent increase in
total surgical procedures performed in 2004 as compared to 2003. On
a same-facility basis, surgical facilities net revenue increased 8
percent over the prior year. Product sales and other revenue was
$17,944,000 in 2004, down 6 percent from the prior year. Operating
income in 2004 increased 52 percent to $11,221,000, or 17 percent
of net revenue, from $7,377,000, or 13 percent of net revenue, in
2003.
Commented Stephen J. Winjum, NovaMed chairman, president and chief
executive officer, “In 2004, we invested over $26 million in
seven surgery center acquisitions and ended the year with net debt
of less than $5 million, leaving us with plenty of available
capacity under our $50 million credit facility. We entered 2005
with a continued focus on producing growth within our existing
portfolio of 25 surgery centers as well pursuing attractive
acquisition and development opportunities to continue our growth
momentum.”
NovaMed acquires, develops and operates ambulatory surgery centers
in partnership with physicians. NovaMed has ownership interests in
25 surgery centers located in 13 states. NovaMed’s executive
offices are located in Chicago.
February 2005
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