HealthTronics Announces Radiation Therapy Acquisition, Updated 2008 Guidance, and Stock Repurchase Program
15 October 2008 - 11:00PM
Business Wire
HealthTronics, Inc. (NASDAQ: HTRN), a leading provider of urology
services and products, today announced that it has acquired Ocean
Radiation Therapy, Inc. (�Ocean�), an entity that provides services
to Atlantic Urological Associates� IGRT cancer treatment center,
that it has issued updated 2008 guidance, and that its Board of
Directors approved up to $10 million of repurchases of
HealthTronics common stock. Radiation Therapy Acquisition and Other
Strategic Acquisition Opportunities HealthTronics acquired all of
the outstanding capital stock of Ocean from Atlantic Urological
Associates, P.A. (�AUA�). Ocean provides IGRT technical services to
AUA�s IGRT cancer treatment center. Located in Daytona Beach,
Florida, AUA is a nationally recognized urology practice comprised
of 13 physicians. The practice�s IGRT center began operations in
2006 and combines leading edge radiation oncology with patient
centered care. More than 250 prostate cancer patients are treated
at the center annually. James Whittenburg, President and CEO of
HealthTronics, commented, �This transaction strengthens our
position in the IGRT space by aligning HealthTronics with a
prominent group of urologists and a cancer treatment center with
strong historical profits. In addition to being accretive from day
one, we expect to be able to leverage this acquisition to further
fuel the momentum in our de novo IGRT development efforts.� Dr.
Jeffrey Dann, a key AUA physician added, �We are thrilled to have
HealthTronics as a partner in the operation of our cancer center.
As an established ally of the urologist, HealthTronics provides
stability in a complex regulatory and financial environment.�
HealthTronics continues to look at other strategic acquisition
opportunities and believes conditions in the market favor
HealthTronics� strong financial position, national platform of
urologist relationships, and diversification within the urology
services space. Updated 2008 Guidance The continued strength of
HealthTronics� core business and the closing of recent acquisitions
lead to the following guidance for third quarter 2008: earnings per
share for the three months ended September 30, 2008 is expected to
be $.03 per share. HealthTronics reaffirms its previously-announced
guidance for 2008 revenues and adjusted EBITDA. Stock Repurchase
Program HealthTronics� Board of Directors approved a plan to
repurchase up to $10 million of HealthTronics common stock. Under
the repurchase program, HealthTronics anticipates that the stock
will be repurchased through privately negotiated transactions or on
the open market. HealthTronics intends to comply with the SEC�s
Rule 10b-18, and the repurchases will be subject to market
conditions, applicable legal requirements, and other factors.
�HealthTronics� Board of Directors believes that HealthTronics�
stock is a good long-term investment,� said Mr.�Whittenburg. �We
believe this repurchase program adds significant flexibility as
management considers potential uses of capital. While our primary
objective continues to center on de novo development and strategic
acquisitions, we believe instability in the equity markets may
create opportunities to enhance value creation for our shareholders
through disciplined repurchases that will produce long-term
benefits for HealthTronics and its shareholders.� On October 8,
2008, pursuant to the stock repurchase program, in a private
transaction, HealthTronics repurchased 1.7 million shares of
HealthTronics common stock from Prides Capital Partners, L.L.C. for
an aggregate purchase price of $3,740,000. 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.
Forward-Looking Statements 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 outlook or future revenue growth 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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