Nov 5 2009
IntegraMed America, Inc. (NASDAQ: INMD), the nation’s leading manager of specialty outpatient healthcare facilities in the emerging, technology-focused medical niches of fertility and vein care, today reported improved overall operating results for the third quarter and nine months ended September 30, 2009. Please note that results for the 2008 periods have been restated to reflect a change in revenue recognition methodology for a portion of the deferred revenue within the Company’s Consumer Services Division. The change did not impact 2009 results.
IntegraMed CEO Jay Higham, commented, ”On a company-wide basis, we were able to achieve a modest improvement in total revenue during the third quarter, and our operating discipline enabled the Company to deliver an even greater percentage improvement in net income and EPS. Challenges that began to emerge in the second quarter in the fertility marketplace were offset by a strong performance in our Vein Clinics business, validating our strategy to diversify into this specialty health care niche in 2007.
“New patient visits at our Fertility Centers increased by 7%, and by 37% at our Vein Clinics, as compared to last year’s third quarter. Applications for our Attain IVF programs also increased, by 2%, as compared to last year, and by 6% versus Q2 2009.
“The effects of the lingering recession and a tight consumer credit market played a more significant role during Q3 2009. We first saw this issue arise toward the end of the second quarter when Attain IVF Program enrollments trailed those of the prior year’s period, and those lower enrollments translated into lower Q3 2009 revenues. The tight credit environment also impacted the revenue generating capabilities at our Fertility Centers, as patients were increasingly challenged in meeting the high costs of IVF treatment. For patients without insurance coverage, financing represents an important source of funds for fertility treatments. The limited availability of financing at reasonable rates caused some patients to defer IVF treatment as was reflected in a modest decline in the number of completed IVF cycles, despite a rise in new patient visits.
“Although we expect the consumer to face continuing economic uncertainties into 2010, we believe IntegraMed has the right leadership team and staff, the right strategies in place and a value proposition that resonates particularly well within the healthcare field at this time. Our performance continues to outstrip that of our competitors, a dynamic we believe offers a unique opportunity to expand our Fertility Centers business via new or expanded contracts with leading fertility practices across the country.”
John Hlywak, CFO of IntegraMed, added, “Our financial and operational focus enabled IntegraMed to once again deliver solid operational performance despite the top-line impact of lingering consumer economic headwinds. Managing operating expenses in this environment remains a central focus of everyone at IntegraMed. As we work to drive margins at the operating divisions, a similar focus is occurring at the corporate level where we reduced Q3 2009 G&A to just 55% of total contribution, compared to 57% in the third quarter of 2008.“
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