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Bio-Reference Laboratories' Q4 Revenues Climb 18 Percent

NEW YORK (GenomeWeb News) – Bio-Reference Laboratories today said that revenues for its fiscal fourth quarter climbed 18 percent year over year, in spite of a reduction in reimbursements.

For the three months ended Oct. 31, Bio-Reference posted $192.2 million in revenues, compared to $163.5 million a year ago, and edging out the consensus Wall Street estimate of $192.0 million.

The clinical laboratory said that revenue per patient inched up to $80.80 from $79.66, while the number of patients served increased to 2,350 from 2,039.

In a statement, Bio-Reference CEO Marc Grodman said that revenues, excluding genetic testing revenues, were down 4 percent sequentially from its fiscal third quarter as the company saw a "significant reduction" in reimbursement from payors during Fiscal Year 2013, and specifically during the fourth quarter, from commercial payors.

"We need to adjust to the changing reimbursement landscape by intelligently and efficiently identifying areas where we can reduce expenses without affecting customer service and support or innovation," Grodman said. "We have already identified several such areas and have begun implementing such expense reductions. These steps will take some time to produce improved results, but we anticipate gains progressively throughout 2014 as a result of these changes."

During Q4 Bio-Reference saw "significant expenses relating to the integration of our acquisitions in Florida and California as well as the initial rollout of our Inherited Cancers program at GeneDx," Grodman said.

The firm's SG&A expenses rose 26 percent to $64.8 million from $51.3 million a year ago, and while the increased expenses negatively impacted the firm's fourth quarter operations, "we believe they will also be the foundations for our growth in 2014 and beyond," he said.

Bio-Reference's net income for the quarter was trimmed to $11.1 million, or $.40 per share, matching the average analyst estimate, but was down from a profit of $12.9 million, or $.46 per share, a year ago.

For full-year FY 2013, Bio-Reference's revenues increased 16 percent to $715.4 million from $614.3 million, just beating the average analyst estimate of $715.2 million.

The clinical laboratory posted a profit of $45.8 million, or $1.65 per share, compared to a profit of $42.2 million, or $1.51 per share, in FY 2012. Analysts had also estimated EPS at $1.65.

Its SG&A costs for the year rose 20 percent to $240.6 million from $200.5 million a year ago.

Bio-Reference ended the year with $18.0 million in cash and cash equivalents.

The company affirmed previously stated expectations that for FY 2014, net revenues, patient volume, and net income would each increase 10 percent year over year.