HealthTronics Completes Acquisition of Advanced Medical Partners, Inc., Provides Updated 2008 Guidance
April 22 2008 - 3:18PM
Business Wire
HealthTronics, Inc. (NASDAQ: HTRN), a leading provider of urology
services and products, today announced that it has completed its
acquisition of Advanced Medical Partners, Inc. (�AMPI�). AMPI
Acquisition Founded in 2003, AMPI is the leading provider of
urological cryosurgery services in the U.S. In partnership with a
network of over 500 physicians, AMPI owns an interest in 30
entities that performed over 7,000 procedures and generated over
$24 million of revenue in 2007. AMPI is the largest provider of
cryosurgery services both in terms of annual procedures and in
terms of its geographic footprint, with operations in 46 states.
James S.B. Whittenburg, CEO of HealthTronics, commented, �The
acquisition of AMPI is strategically meaningful for several
reasons. First, AMPI adds greater scope to our channel, enhancing
our physician network and diversifying our revenues within urology
services. HealthTronics is now the largest provider nationally of
both shock wave lithotripsy services and cryosurgery services.
Second, the acquisition is financially attractive and will yield
both top and bottom line synergies. AMPI�s operating infrastructure
closely parallels that of HealthTronics, paving the way for
meaningful cost savings. At the same time, we expect to complete
the deployment of more than 20 RevoLix lasers for the treatment of
BPH through AMPI�s partnerships before the end of the second
quarter. Because the scheduling of cryosurgery cases is more
flexible than that of lithotripsy, we are able to utilize AMPI�s
existing vehicles and clinical personnel to provide RevoLix service
with minimal incremental costs. Furthermore, even in the absence of
these synergies, the acquisition is expected to be accretive
immediately. Third, the acquisition will enhance both our
management and development capabilities. The AMPI management team
collectively possesses over 60 years of experience in partnering
with physicians to improve patient care and the physicians�
practice economics. Much of that expertise centers on de novo
partnership development with urologists throughout the U.S. The
AMPI team will improve our ability to grow within the urology
services sector, both through ground-up development and by adding
additional capacity to evaluate and pursue acquisitions.� Mr.
Whittenburg added, �AMPI�s senior management team is committed to
HealthTronics' strategy of leveraging our size, scope and unique
physician relationships within the urology community to: (1)
Aggressively expand our share of the market for laser treatment of
BPH with our exclusive offering of the Revolix laser; (2) Broaden
our TotalRad initiative to deploy urology focused, state-of-the art
cancer treatment centers using image guided radiation therapy
(�IGRT�); (3) Maintain high double digit annual revenue growth at
our urology focused anatomical pathology lab, Claripath
Laboratories; and (4) Continually scan the marketplace for
additional urological technologies and other opportunities that
enhance patient care and improve the physicians� practice
economics. We welcome the AMPI team to HealthTronics and our new
physician partners to the HealthTronics network.� Bob Yonke, an
AMPI co-founder and CEO, commented, �The combination of AMPI and
HealthTronics will benefit our physician partners by providing
access to exclusive technologies and new opportunities. Our mission
and philosophy aligns well with those of HealthTronics. We are
strongly committed to our business model and believe we can drive
future growth with our talented development staff.� The
consideration for the acquisition of AMPI included both cash and
stock that was paid at closing, as well as a potential earn out.
The earn out is related to the performance of one of AMPI�s newly
acquired entities and to certain circumstances that create the
potential to acquire additional partnership interest from the AMPI
physician partners. Updated Outlook In light of the closing of the
AMPI acquisition and the continued strength in the Company�s core
business, the Company has issued the following updated guidance for
2008: Annual revenue is expected to be between $160 million and
$162 million. Annual adjusted EBITDA is expected to be between $20
million and $21 million, which includes approximately $2 million of
IGRT expense. About HealthTronics, Inc. HealthTronics is a premier
urology company providing an exclusive suite of healthcare services
and technology including urologist partnership opportunities,
surgical and capital equipment, maintenance services offerings, and
anatomical pathology services. For more information, visit
www.healthtronics.com. Statements by the Company�s management in
this press release that are not strictly historical, including
statements regarding plans, objectives and future financial
performance, are �forward-looking� statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. In particular, statements in this
press release regarding future cost savings, future deployment of
RevoLix lasers, future partnership development and acquisitions,
future laser procedures, future revenue growth, future development
of IGRT centers and 2008 guidance are forward-looking statements.
Although HealthTronics believes that the expectations reflected in
the forward-looking statements in this press release are
reasonable, no assurance can be given that the expectations will
prove to be correct. Factors that could cause actual results to
differ materially from HealthTronics� expectations include, among
other things, the existence of demand for and acceptance of
HealthTronics� products and services, maintaining relationships
with physicians and hospitals, governmental regulations and changes
thereto, regulatory approvals, economic conditions, the impact of
competition and pricing, successful integration of acquired
businesses, financing efforts and other factors described from time
to time in HealthTronics� periodic filings with the Securities and
Exchange Commission. The statements in this press release are made
as of the date of this press release, even if the press release is
subsequently made available by the Company on its web site or
otherwise. The Company does not assume any obligation to update the
forward-looking statements provided herein to reflect events that
occur or circumstances that exist after the date hereof.
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