NovaMed Reports Fourth Quarter and 2004 Results

CHICAGO -- NovaMed, Inc. reported results for the fourth quarter and twelve months ended December 31, 2004. Net income from continuing operations in the fourth quarter of 2004 was $1,183,000, or $0.05 per diluted share, as compared to $1,336,000, or $0.06 per diluted share, in the prior year fourth quarter. The fourth quarter 2003 results included a pre-tax net gain on the sale of minority interests of $966,000 which contributed $0.03 per diluted share.

For the fourth quarter ended December 31, 2004, 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. This revenue increase was primarily due to a 50 percent increase in total surgical procedures performed in the fourth quarter of 2004 as compared to the same period in the prior year. On a same-facility basis, surgical facilities net revenue increased 10 percent over the prior year fourth quarter. Product sales and other revenue was $4,228,000 in the fourth quarter of 2004, down 4 percent from 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. Minority interest in the fourth quarter of 2004 was $1,512,000, up 116 percent over the prior year fourth quarter. This increase is due to the sale of minority interests in existing surgical facilities in 2003 and 2004, as well as surgical facilities acquired in 2004.

For 2004, net income from continuing operations was $3,830,000, or $0.17 per diluted share, as compared to $3,484,000, or $0.16 per diluted share, for 2003. The 2004 results included a pre-tax net gain on the sale of minority interests of $99,000, which contributed $0.01 per share, and the 2003 results included a pre-tax net gain on the sale of minority interests of $892,000 which contributed $0.03 per share.

For 2004, total net revenue increased 16 percent to $64,575,000 from $55,506,000 for 2003. 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. Minority interest in 2004 was $4,927,000, up 86 percent from 2003.

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, Ill.

NovaMed held a conference call to discuss this release at 10:00 a.m. Central Time on Wednesday, February 16, 2005. For those who could not listen to the live broadcast, a replay will be available at www.fulldisclosure.com or www.novamed.com through March 15, 2005.

Source: Business Wire

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