BioReference Laboratories, Inc. Reports Record Quarterly Revenues and Patient Volumes for Third Quarter FY2014

BioReference Laboratories, Inc. Reports Record Quarterly Revenues and Patient
Volumes for Third Quarter FY2014

Revenues Increase 20% on a YoY Basis and Patient Count Increases 16%

ELMWOOD PARK, N.J., Aug. 27, 2014 (GLOBE NEWSWIRE) -- BioReference
Laboratories, Inc. (Nasdaq:BRLI) announces record third quarter results for
revenues and patient volumes. Except for per share data or where otherwise
noted, numbers are in thousands.

The Company recorded Q3FY14 revenues of $222,053, the highest recorded
revenues in a quarter in corporate history, representing an increase of 20%
over the $185,427 recorded in Q3FY13. Operating income for Q3FY14 was $27,871,
up 11% from the Q3FY13 operating income of $25,059. Net income after taxes in
Q3FY14 came in at $15,250, resulting in earnings per share of $.55, up from
Q3FY13 net income after taxes of $14,701 and EPS of $.53, increases of 4% and
4%, respectively. Gross profit on revenues for Q3FY14 was $102,443, resulting
in a margin for gross profit on revenues of approximately 46% and a 20%
improvement over the gross profit on revenues of $85,660 recorded for Q3FY13,
which also resulted in a 46% margin. Revenue per patient for Q3FY14 was
$87.54, an increase of 3% from the $85.25 recorded for Q3FY13. The number of
patients served increased 16% to 2,511 in Q3FY14 up from the Q3FY13 total of
2,161. Esoteric business for the Company was 68% of revenues for Q3FY14
compared to 64% in Q3FY13. Days Sales Outstanding (DSO) was 105 days in Q3FY14
compared to Q3FY13 when the DSO was 95 days.

Revenues for the first nine-months of FY14 increased to $604,688, an increase
of 16% over the revenues for the first nine months of FY13 of $523,136, even
though the first nine months of FY14 included the effects of adverse weather
which the Company estimates reduced revenues by $10,000. Operating income for
the first nine months of FY14 was $52,630, a decrease of 14% from operating
income of $61,527 for the first nine months of FY13. Net income after taxes
for the first nine months of FY14 was $28,477, resulting in an EPS of $1.02, a
decrease of 18% from the first nine-months FY13 net income after taxes of
$34,704, which resulted in an EPS of $1.25. The Company estimates that the
adverse effects of weather during the first nine months of FY14 resulted in
approximately a $.10 reduction in EPS. The Company reported gross profit on
revenues for the FY14 first nine-month period of $263,146, resulting in a
margin for gross profit on revenues of 44%, up from gross profit on revenues
in the FY13 first nine-month period of $237,258, which resulted in a margin of
45%. The number of patients served increased 14% to 7,082 in the first nine
months of FY14 from the FY13 same period total of 6,199. Cash flow from
operations for the first nine months of FY14 was a positive $7,505, compared
to a positive $16,975 in the prior year same period.

Marc D. Grodman, MD, CEO, commented: "BioReference grew 20% in net revenues,
with over 16% increase in patient count. This was achieved despite the
decrease in revenue per patient for our non-genetic testing services. The net
result during our current third quarter was a year over year increase of
revenue per patient from $85.25 to $87.54. On those tests that carry a GeneDx
brand, whether performed in Maryland or New Jersey, net revenues per patient
virtually doubled those of the same quarter last fiscal year. While we did not
offer inherited cancers testing in the first nine months of FY13, their
introduction contributed to, but have not accounted for all, the increase in
GeneDx revenues in FY14, which has continued to show strong growth along all
testing lines. Importantly, inherited cancer testing services were not offered
to existing GenPath physician clients in oncology and women's health until the
current fourth quarter. In addition, our new tumor sequencing services will be
introduced by the end of the fourth quarter. We believe these new services
will combine those elements that are critical today, truly cost effective,
justifiable and clinically actionable appropriate. Moreover, we believe they
will simultaneously provide more information for the money and enable both the
enrollment and stratification of individuals for clinical trials. This
initiative has been well conceived, based on long standing experience and
built with the consultation of outstanding scientists and clinicians. We are
very excited about this new opportunity."

Dr. Grodman continued: "Our response to the reimbursement changes of the past
year has not been to simply slash expenses. We recognize the opportunities and
the special circumstances we are afforded to achieve significant continued
growth. We believe we have and will continue to cut wisely and invest smartly
for the future. DSO's remain at 105 days. We did see cash collections improve
in the quarter but as more of our revenue has been in genetic testing, the
collection cycle for these testing services is simply longer. It is important
to note that our cash flow of $7.7M is almost three times that of the previous
quarter, almost double the cash flow of the same quarter last year and our
best since the fourth quarter of 2012. We are constantly working on these

Dr. Grodman finally noted: "This year we believe that we will have our 21st
year of 20% CAGR. The fact that we may achieve this goal despite the
reimbursement challenges of the past year is a testament to the passion and
vision that has been infectious among the incredible people who have built
this Company through years of loyalty, commitment and just plain hard work.
Within a few years we expect that over a quarter of our revenues will be based
on sequencing technologies and we will continue to develop our systems and
abilities to analyze and extract maximum clinical value along the way. Our
aspiration is to be a Clinical Knowledge Company, a vision that clearly
remains in our sights. I call attention to this today because our current
results are a direct product of this underlying vision. Given the unusual
circumstances around this year, we have been more explicit than usual in
guidance with regard to quarterly performance. We believe our fourth quarter
will be in the range of $.62-.64/share. One of the outstanding unknowns is the
uncertainty of our legal fees, especially those associated with the IPR
petitions we recently filed with the USPTO seeking to invalidate certain
patents related to Inherited Cancer genes including BRCA. It should be noted
however that if we can reach the mid-point target of our guidance, the
increase in EPS between the third and fourth quarter will be 15%, the highest
percent increase between those quarters in the past 6 years."

The Company's third quarter 2014 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 To 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

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 third largest full-service
laboratory in the United States. BRLI offers a comprehensive list of
laboratory testing services used 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,
                            2014         2013
Net Revenues                 $222,053     $185,427
Cost of Sales                119,610      99,767
Gross Profit on Revenues     102,443      85,660
General and Administrative   74,572       60,601
Operating Income             27,871       25,059
Other Expense, Net           513          (696)
Income Before Taxes          27,358       25,755
Taxes                        12,108       11,054
Net Income                   15,250       14,701
Income Per Share             $0.55        $0.53
Number of Shares             27,721,977   27,671,880
Income Per Share (Diluted)   $0.55        $0.53
Number of Shares (Diluted)   27,854,489   27,841,998
                            Nine Months Ended
                            July 31,
                            2014         2013
Net Revenues                 $604,688     $523,136
Cost of Sales                341,542      285,878
Gross Profit on Revenues     263,146      237,258
General and Administrative   210,516      175,731
Operating Income             52,630       61,527
Other Expense, Net           1,778        203
Income Before Taxes          50,852       61,324
Taxes                        22,375       26,620
Net Income                   28,477       34,704
Income Per Share             $1.03        $1.25
Number of Shares             27,716,608   27,695,387
Income Per Share (Diluted)   $1.02        $1.25
Number of Shares (Diluted)   27,854,489   27,861,372

BioReference Laboratories, Inc.
Balance Sheets
(Dollars in Thousands)
                                 July 31, October 31,
                                 2014     2013
Cash & Cash Equivalents           $20,007  $17,952
Accounts Receivable (Net)         251,851  206,261
Plant, Property & Equipment (Net) 65,840   65,649
Intangible Assets (Net)           50,067   51,505
Other Assets                      78,357   80,161
Total                             $466,122 $421,528
Accounts Payable                  $69,292  $61,614
Revolving Note                    38,731   26,139
Long-Term Debt                    21,677   20,060
Other Liabilities                 35,801   42,120
Shareholder's Equity              300,621  271,595
Total                             $466,122 $421,528

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, lawsuits or private actions, the competitive environment,
changes in government regulations, changing relationships with customers,
payers, suppliers and strategic partners, the ability to increase net revenues
and/or patient volume, the success of our inherited cancer and other new
testing we introduced, the ability to reduce expenses, the ability to achieve
our guidance of fourth quarter earnings per share 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)

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