Capstone Pharmacy reports loss for 3rd quarter after acquisition

November 08, 1996|By M. William Salganik | M. William Salganik,SUN STAFF

Capstone Pharmacy Services of Baltimore reported a loss for the third quarter of $3.3 million, or 17 cents a share, after one-time charges associated with the acquisition of Symphony Pharmacy Services, the pharmacy division of Integrated Health Services of Owings Mills.

Without the one-time charge of $2.8 million and financing charges of $4.6 million, net income would have been 6 cents a share. That exceeded a consensus estimate of 3 cents based on a survey of five analysts by Zacks Investment Research.

In the third quarter last year, Capstone lost $284,000, or three cents a share.

Revenue for the quarter zoomed 173 percent, to $44 million from $16.1 million last year. The growth reflected the acquisitions of Symphony Pharmacy and MediDyne, which supplies nursing homes with such products as feeding tubes and catheters, as well as "very nice internal growth," said R. Dirk Allison, president and CEO. Allison said a breakdown between acquisition and internal growth was not available.

Since the beginning of the year, Capstone has acquired five institutional pharmacy companies, adding 45,000 beds and $150 million in annual revenue. From 35 institutional pharmacies in 13 states, it now serves 86,500 long-term care beds and 110,000 prison inmates.

"This was a really strong quarter," said Ann C. Logue, an analyst for Volpe, Welty & Co. in San Francisco. "They showed really good expense controls. The newer management has made a lot of progress in turning this company around."

Capstone stock closed yesterday at $12 a share, up 12.5 cents for the day.

Pub Date: 11/08/96

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