BIO-REFERENCE 2ND QTR HAS INCREASE OF 16% FOR FISCAL 2009.(Financial report)

Laboratories, Inc. (NASDAQ: BRLI), Elmwood Park,N.J., has released its second quarter, fiscal year 2009 earnings for the three months ending April 30. The company recorded current quarter revenues of $87,183, the best ever quarter in corporate history and an increase of 16% over the $75,180 recorded in the second quarter, fiscal year 2008. Operating income for Q2FY09 was $8,358, an increase of 34% over the Q2FY08 operating income of $6,215. Net income after taxes in Q2FY09 came in at $4,630 resulting in earnings per share (EPS) of $.33, up from the prior fiscal year second quarter net income after taxes of $3,427 and EPS of $.25. Gross profits on revenues for the current quarter were $42,297 resulting in a margin for gross profit on revenues of about 49%, a 17% improvement over the $36,182 reported for the prior fiscal year second quarter which resulted in a 48% margin. Revenue per patient for the second quarter of the current fiscal year was $76.74, an increase of 8% over the $70.95 reported for the same quarter of the prior fiscal year. The number of patients served increased more than 7% to 1,127 in the current quarter from the prior year second quarter total of 1,050. Esoteric business for the company was 52% of revenues for the second quarter of the current fiscal year compared to 47% in the same quarter of the prior fiscal year. Cash flow from operations for the quarter was just under $3.4 million positive. The company further noted that Days Sales Outstanding (DSO) of 104 days compared to Q1FY09 of 115 days and the prior fiscal year same quarter when the DSO were 109 days.

Six-month revenues increased to $162,918 (all six month numbers exclusive of a one-time restitution amount recorded in the first quarter of the current year), an increase of 15% over the same period revenues of $142,059 in the prior fiscal year. Operating income for the first six months of FY09 was $13,328, an increase of 27% over the prior fiscal year six month Operating income of $10,479. Net income after taxes for the first six months of the current year was $7,299 resulting in an EPS of $.53, an increase of 29% from the prior year same period net income after taxes of $5,635 which resulted in an EPS of $.41. The company reported gross profit on revenues for the current six month period of $77,992, resulting in a margin for gross profit on revenues of about 48%, the same as the prior year same period of $67,833 which also resulted in a margin of 48%. The number of patients served increased 4% to 2,092 in the first half of the current year from the prior year same period total of 2,013, despite having shown minimal improvement in the first quarter of the current year.

Marc D. Grodman, MD, CEO, commented "By all standards, our financial metrics have shown significant improvement and our achievements have been exceptional. We have posted better net revenues and better gross profits than we have ever reported in the company's history. Our second quarter numbers are far better than any we have ever posted in any second quarter of any fiscal year. We have seen the return of our historical trend of patient count growth as the economy, at least as it pertains to physician office visits, seems to have stabilized in our marketplace."

Dr. Grodman continued: "BioReference has truly asserted itself in the clinical ...