BioReference Laboratories, Inc. Reports Sustained Growth on Strong Quarterly Results

BioReference Laboratories, Inc. Reports Sustained Growth on Strong Quarterly

Company Maintains Growth Trajectory Through Q3FY13

ELMWOOD PARK, N.J., Aug. 29, 2013 (GLOBE NEWSWIRE) -- BioReference
Laboratories, Inc. (Nasdaq:BRLI) announces record third quarter results for
revenues and earnings. Except for per share data or where otherwise noted,
numbers are in thousands and all comparisons to prior periods are adjusted in
accordance with the Accounting Standards Update 2011-7 under Topic 954 of FASB
codification. The appended table reflects the adjustments for the prior

The Company recorded Q3FY13 revenues of $185,427, the highest recorded
revenues in a quarter in corporate history, representing an increase of 16%
over the $160,532 (previously reported as $172,302) recorded in Q3FY12.
Operating income for Q3FY13 was $25,059, an increase of 11% over the Q3FY12
operating income of $22,674.Net income after taxes in Q3FY13 was $14,701,
resulting in earnings per share of $.53, up from Q3FY12 net income after taxes
of $12,596 and EPS of $.45, increases of 17% and 18%, respectively.Gross
profit on revenues for Q3FY13 was $85,660, resulting in a margin for gross
profit on revenues of approximately 46%, a 15% improvement over the $74,279
(previously reported as $86,049 and 50% respectively) recorded for Q3FY12,
which also resulted in a 46% margin.Revenue per patient for Q3FY13 was
$85.25, an increase of 7% over the $79.75 (reported as $85.65) recorded for
Q3FY12.The number of patients served increased 8% to 2,161 in Q3FY13 from the
Q3FY12 total of 1,997.Esoteric business for the Company was 64% of revenues
for Q3FY13 compared to 61% in Q3FY12.Days Sales Outstanding (DSO) was 95 days
compared to Q3FY12 when the DSO was 84 days (previously reported as 79 days)
and compared to the immediately preceding Q2FY13 when the DSO was 89 days.

Nine-month revenues increased to $523,136 in FY13, an increase of 16% over the
first nine months of FY12 revenues of $450,767 (previously reported as
$485,609).Operating income for the first nine months of FY13 was $61,527, an
increase of 17% over FY12 nine-month operating income of $52,728.Net income
after taxes for the first nine months of FY13 was $34,704, resulting in an EPS
of $1.25, an increase of 19% over first nine-months FY12 net income after
taxes of $29,267, which resulted in an EPS of $1.05.The Company reported
gross profit on revenues for the FY13 nine-month period of $237,258, resulting
in a margin for gross profit on revenues of 45%, up from revenues in the FY12
first nine-month period of $201,930(previously reported as $236,772), which
also resulted in a margin of 45% (previously reported as 49%).The number of
patients served increased 8% to 6,199 in the first nine months of FY13 from
the FY12 same period total of 5,762.Cash flow from operations for the first
nine months of FY13 was $16,975 down from $36,561 in the prior year same

Marc D. Grodman, M.D., CEO, commented: "BioReference continues to grow; we
continue to innovate and we continue to expand.In many ways we are defined by
our history of extraordinary growth and in many ways, we are better defined by
our willingness to defend our determination to compete in the marketplace.
That determination to compete has allowed us to create new and disruptive
testing solutions, new bioinformatics solutions and almost 4000 jobs since our
beginnings over 26 years ago. Our performance in the third quarter was quite
similar to the results we reported in the immediately preceding second
quarter: growth in all elements of our business but especially strong in our
genetics area through GeneDx.The operations and financial results of the
Company met or exceeded our expectations for the quarter while our industry
and healthcare in general were in a state of flux. Despite these extrinsic
pressures, we were able to sustain our growth. We have seen recent changes
that we believe will allow us to maintain our growth and improve some of the
financial metrics that have been under pressure from temporary conditions.We
recently announced two strategic acquisitions.We expanded our facilities in
Florida based on previously announced acquisitions in order to achieve our
goal of having a strong local presence in the South.Our recent acquisition in
California provides us with a similar presence on the West Coast. We also
started accepting specimens at GeneDx for our new inherited cancers panels and
we completed enrollment in major payer programs that significantly expand our
roster of in-network participation.These are the building blocks for
continued growth and expansion."

Dr. Grodman continued: "There are macro conditions in the laboratory industry
that need some discussion.In July, CMS proposed some major changes to the way
they want to reimburse laboratories.On the one hand, their proposal regarding
the Physician Fee Schedule (PFS) appears misguided. In all my years in this
industry I have never seen such unity among all the groups – laboratories,
pathologists, hospitals, academic medical centers, suppliers, device
manufacturers – to rally against the proposal.There has been great pressure
directed at CMS from every possible angle to demonstrate the impact of this
proposal as well as to highlight its inappropriateness.We are quite hopeful
that CMS will recognize that this proposal should not be put into effect.CMS
also proposed some adjustments to the Clinical Fee Schedule.These are part of
the laboratory landscape and the industry will deal with this issue in a
measured way."

Dr. Grodman further noted: "This past year has been tumultuous with regards to
collections given the changes that have been implemented. We believe that we
have been quite successful over the past few years in showing improvement in
this area.The current quarter is an exception to that trend, but we believe
that the exception is coming under control and we can expect to get back on
track in the near term future.Since last year, we have had to deal with
molecular coding changes from both Medicare and Medicaid, delays in payment
related to site of service between physician office and hospital due to the
end of the "grandfather" provision, as well as changes emanating from the
elimination of the Blue Card program. Over the last quarter alone, there have
been some delays in billing under new payer contracts while waiting for all
their systems to be operational. That being said, we currently have national
or subnational contracts with the five largest commercial insurers and an
impressive list of participating Blue plans. We believe that the total number
of lives that we cover may well rival any laboratory in the country."

Dr. Grodman continued: "Over the past quarter, the greatest increase in our
DSO, almost 3 days, was by our own choice and is attributable to an issue with
Horizon Blue Cross Blue Shield of New Jersey (Horizon) pursuant to which we
have elected temporarily to suspend billing.Over the past several months, we
have come tobelievethat we should have been paid for certain services
rendered to Horizon under our agreement to servicetheirPPO subscribers. We
believe Horizon has mischaracterized these services as managed care and
therefore not payable under our PPOagreement. Based on
Horizon'scharacterizationofthese services, we had notpreviously billed
orrecognizedrevenues for these services. After BioReference began to bill
and wasinitiallypaidby Horizon for a fraction of these
previouslyunbilledclaims, Horizon ceased paying for these disputed services
and sought to recoup those payments from monies due to us for unrelated and
undisputed services rendered. As a result, we suspended billing Horizon for
most services while this disputeis ongoing. Directly and through counsel we
areattemptingto settle these issues; however, we are uncertain as to whether
this matter will be resolved amicably or must be litigated."

Dr. Grodman finally noted: "GeneDx, our clinical diagnostic genetic sequencing
laboratory, has been a leader in genetic sequencing for more than a
decade.Over the past two weeks, we have agreed to acquire EdgeBio, which will
merge with GeneDx and provide valuable increased capacity and excellent
expansion of our R&D capability to introduce new tests and new platforms.We
believe that one of the keys to our premier status in genetic sequencing lies
in our bioinformatics.We have been pioneers in this area and have had to find
our own way through the maze of bioinformatics.EdgeBio will add to our
strength in this area.GeneDx also announced earlier this week that we are now
accepting samples for OncoGeneDx, a series of panels for inherited cancers,
including BRCA1 and BRCA2 genes.Our infrastructure as a genetic laboratory,
our service, our reputation, our marketing, sales and even managed care
pricing are something of which we are proud. As a company, we have a different
perspective on sharing data, on the ability to use sequencing data in a more
open manner than others, but we believe, strongly in fact, as a fundamental
guiding principal of BioReference, that competition brings out the best in all
of us to the benefit of the patient and the collective good.We will protect
that right as we have throughout our history with passion and determination."

The Company's third quarter earnings conference call is scheduled for today at
10:30 a.m. Eastern Daylight Time.The live audio Web cast will be available at
the Company's corporate Web site, and through listen to the call, please go to either Web site ten
minutes before the conference call is scheduled to begin. You will need to
register as well as download and install any necessary audio software. The Web
cast will be archived, on both Web sites, for 30 days following the call.

About BioReference Laboratories, Inc.

BRLI is a clinical testing laboratory offering testing, information and
related services to physician offices, clinics, hospitals, employers and
governmental units.We believe that we are the fourth largest full-service
laboratory in the United States and the largest independent regional
laboratory in the Northeastern market.BRLI offers a comprehensive list of
laboratory testing services utilized by healthcare providers in the detection,
diagnosis, evaluation, monitoring and treatment of diseases.BRLI primarily
focuses on esoteric testing, molecular diagnostics, anatomical pathology,
women's health and correctional health care.

BioReference Laboratories, Inc.
Statements of Operations
(Dollars in Thousands Except Share and Per Share Data)
                          Three Months Ended
                          July 31,
                                    (As Adjusted for (As Previously
                                    Topic 954)       Reported)
                          2013       2012             2012
Net Revenues               $185,427   $160,532         $172,302
Cost of Sales              99,767     86,253           86,253
Gross Profit on Revenues   85,660     74,279           86,049
General and Administrative 60,601     51,605           63,375
Operating Income           25,059     22,674           22,674
Other Expense, Net         (696)      492              492
Income Before Taxes        25,755     22,182           22,182
Taxes                      11,054     9,586            9,586
Net Income                 14,701     12,596           12,596
Income Per Share           $0.53      $0.45            $0.45
Number of Shares           27,671,880 27,695,215       27,695,215
Income Per Share (Diluted) $0.53      $0.45            $0.45
Number of Shares (Diluted) 27,841,998 27,887,765       27,887,765

                          Nine Months Ended
                          July 31,
                                    (As Adjusted for (As Previously
                                    Topic 954)       Reported)
                          2013       2012             2012
Net Revenues               $523,136   $450,767         $485,609
Cost of Sales              285,878    248,837          248,837
Gross Profit on Revenues   237,258    201,930          236,772
General and Administrative 175,731    149,202          184,044
Operating Income           61,527     52,728           52,728
Other Expense, Net         203        1,179            1,179
Income Before Taxes        61,324     51,549           51,549
Taxes                      26,620     22,282           22,282
Net Income                 34,704     29,267           29,267
Income Per Share           $1.25      $1.05            $1.05
Number of Shares           27,695,387 27,754,771       27,754,771
Income Per Share (Diluted) $1.25      $1.05            $1.05
Number of Shares (Diluted) 27,861,372 27,930,202       27,930,202

BioReference Laboratories, Inc.
Balance Sheets
(Dollars in Thousands)
                                 July 31, October 31,
                                 2013     2012
Cash & Cash Equivalents           $28,567  $25,143
Accounts Receivable (Net)         191,798  153,247
Plant, Property & Equipment (Net) 57,843   50,440
Intangible Assets (Net)           36,667   29,731
Other Assets                      63,598   54,264
Total                             $378,473 $312,825
Accounts Payable                  $55,770  $41,288
Revolving Note                    16,576   --
Long-Term Debt                    18,027   18,047
Other Liabilities                 27,703   26,243
Shareholder's Equity              260,397  227,247
Total                             $378,473 $312,825

Statements included in this release that are not historical in nature, are
intended to be, and are hereby identified as "forward-looking statements".
Forward-looking statements may be identified by words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or
words of similar meaning and include, but are not limited to, statements about
the expected future business and financial performance of Bio-Reference
Laboratories,Inc. and its subsidiaries. Statements looking forward in time
are included in this release pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. Readers are cautioned not to
place undue reliance on forward-looking statements, which speak only as of the
date they are made and which reflect management's current estimates,
projections, expectations or beliefs and which involve risks and uncertainties
that could cause actual results and outcomes to be materially different.Risks
and uncertainties that may affect the future results of the company include,
but are not limited to, adverse results from pending or future government
investigations, our ability to sustain continued growth, lawsuits or private
actions, including any potential action involving Horizon as described herein,
the competitive environment, changes in government regulations, changing
relationships with customers, payers, suppliers and strategic partners,
including recent proposals by CMS described herein, and other and other risks
and uncertainties detailed from time to time in our filings with the
Securities and Exchange Commission. We undertake no obligation to publicly
update or review any forward-looking information, whether as a result of new
information, future developments or otherwise.


CONTACT: Tara Mackay
         Investor Relations Coordinator
         (201) 791-2600
         (201) 791-1941 (fax)
Press spacebar to pause and continue. Press esc to stop.