MICA reports strong year-end earnings

February 14, 1996

Imaging services firm Medical Imaging Centers of America is hopingthat healthy financial results for its 1995 fiscal year (end-December)will help it stave off a shareholder insurgency scheduled to cometo a head this month. The brightest spot in San

Imaging services firm Medical Imaging Centers of America is hopingthat healthy financial results for its 1995 fiscal year (end-December)will help it stave off a shareholder insurgency scheduled to cometo a head this month.

The brightest spot in San Diego-based MICA's financial picturewas in net income. MICA reported net income for the year of $5.7million, much of which came as a one-time gain of $3.5 millionfrom the sale of the company's ultrasound and nuclear medicinedivision to Diagnostic Health Services. In 1994, MICA posted anet loss of $494,000.

MICA's revenue figures were lower, due in part to the lossof the ultrasound and nuclear medicine business. MICA had 1995sales of $43.2 million, compared with $55.4 million in 1994.

For the fourth quarter of 1995, MICA's revenues were $9.5 million,compared with $13.6 million in the same period the previous year.The firm had net income of $560,000, compared with a net lossof $949,000 in the same period the year before.

MICA believes the improved earnings figures are a sign thatthe company's business plan is working, according to chairmanand CEO Robert Muehlberg.

"Not only have we significantly reduced costs, but wehave also increased our volume on a same-center basis in marketsthat continue to be impacted by lower utilizations," he said.

Some of MICA's shareholders are not so sanguine, however. Agroup led by Steel Partners II of New York City claims that MICA'scurrent management has not provided enough shareholder value andthe group is trying to throw out MICA's board (SCAN 1/17/96).Steel Partners, which holds 19.7% of MICA's stock, has scheduleda shareholder meeting Feb. 26 to vote on its proposal.