Printer Friendly

ADVANTAGEHEALTH THIRD QUARTER EPS 24 CENTS VS. 11 CENTS

 ADVANTAGEHEALTH THIRD QUARTER EPS 24 CENTS VS. 11 CENTS
 WOBURN, Mass., June 25 /PRNewswire/ -- AdvantageHEALTH Corporation (NASDAQ: ADHC) reported today that it generated net revenue of $20,646,000 for its third quarter ended May 31, 1992, up 21 percent from $17,054,000 in 1991. Net income was $1,427,000, up 200 percent from $476,000 in 1991. Earnings per share for the quarter were 24 cents, up 118 percent, as compared to 11 cents achieved in 1991.
 "We are especially pleased to announce that the company has successfully closed a $40 million credit facility at an extremely favorable rate of approximately one-half point below the prime rate," said Raymond J. Dunn, chairman and CEO. The terms and conditions of the new financing are geared to allow for rapid growth while the favorable below-prime rate reflects the company's balance sheet strength and dominant New England medical rehabilitation franchise position. This refinancing will allow AdvantageHEALTH to continue to be one of the lowest-cost service providers in its market area. As part of its financing package, the company also established a $15 million revolving line of credit which, coupled with the company's $15 million current cash position, will facilitate the company's strategic growth plan.
 "We are also pleased to report that for the first nine months net revenues rose 18.5 percent above last year and we generated net income of $2,640,000, 92 percent higher than the same period in 1991. Earnings per share, before the extraordinary debt extinguishment charge incurred in the second quarter, increased 106 percent to 68 cents per share."
 Dunn attributed these earnings gains to continued revenue growth at existing inpatient and outpatient facilities, improved payor mix, additional leverage of fixed overhead costs and reduced interest costs. On a year to date basis inpatient days increased 16 percent from 105,200 days in 1991 to 122,000 days and outpatient treatments increased 45 percent from 220,000 treatments in 1991 to 319,000 in 1992. The company has also continued its new outpatient and managed-unit development activities as well as the expansion of its existing inpatient and outpatient facilities.
 AdvantageHEALTH Corporation operates the largest network of comprehensive medical rehabilitation facilities in New England. The company currently employs in excess of 2,500 employees with 36 locations in seven states.
 ADVANTAGEHEALTH CORPORATION AND SUBSIDIARIES
 Consolidated Statements of Operations
 (dollar amounts in thousands, except per share data)
 Quarter Ended Nine Months Ended
 (unaudited) (unaudited)
 May 31, May 31, May 31, May 31,
 1992 1991 1992 1991
 Revenues:
 Net patient
 service revenue $18,095 $14,757 $51,435 $43,583
 Management
 service revenue 1,050 854 2,895 2,011
 Other operating
 revenue 1,501 1,443 4,408 3,969
 Total 20,646 17,054 58,738 49,563
 Expenses:
 Operating and
 administrative 17,225 14,429 49,076 41,446
 Interest expense 427 1,247 2,420 4,060
 Depreciation and
 amortization 573 547 1,701 1,633
 Total 18,225 16,223 53,197 47,139
 Income from
 Operations 2,421 831 5,541 2,424
 Non-operating gains
 (losses):
 Income (loss) on
 investments in
 limited partnerships
 and other affiliates 109 (94) 252 (247)
 Minority interest in
 net income (loss)
 of subsidiary (8) 11 (24) 47
 Total 101 (83) 228 (200)
 Income Before Income
 Taxes and
 Extraordinary Item 2,522 748 5,769 2,224
 Income taxes 1,095 272 2,602 847
 Income Before
 Extraordinary Item 1,427 476 3,167 1,377
 Extraordinary item,
 net of tax benefit
 of $356 N/A N/A 527 N/A
 Net Income $1,427 $476 $2,640 $1,377
 Net income applicable
 to common stock, after
 deduction of preferred
 stock dividends $1,427 $421 $2,561 $1,215
 Income per share
 before extraordinary
 item 24 cents 11 cents 68 cents 33 cents
 Extraordinary item
 per share --- --- (11 cents) ---
 Net income per share 24 cents 11 cents 57 cents 33 cents
 Weighted average
 common shares and
 common share
 equivalents
 outstanding 6,043,192 3,673,147 4,512,169 3,673,147
 Consolidated Balance Sheets
 (in thousands)
 May 31, Aug. 31,
 1992 1991
 (Unaudited)
 Current Assets:
 Cash and cash equivalents $15,451 $9,831
 Accounts receivable, less
 allowances of $1,688 and $1,960
 for uncollectible accounts,
 respectively 11,459 9,945
 Due from third party payors 2,035 1,972
 Supplies inventory 277 242
 Prepaid expenses and other
 current assets 2,358 1,199
 Total current assets 31,580 23,189
 Property, plant & equipment, net 19,735 19,772
 Other Assets:
 Goodwill, less accumulated
 amortization of $2,110 and
 $1,405, respectively 25,551 26,256
 Deferred financing costs, less
 accumulated amortization of $233
 and $155, respectively 592 670
 Investments in limited partnerships
 and other affiliates 853 619
 Other 1,018 719
 Subtotal 28,014 28,264
 Total $79,329 $71,225
 Current Liabilities:
 Accounts payable and
 accrued expenses 3,266 5,549
 Accrued compensation, amounts
 withheld and related payroll taxes 3,108 2,623
 Income taxes payable 1,665 68
 Amounts payable to third party
 payors 6,040 8,501
 Current portion of long-term
 debt 2,840 3,866
 Total current liabilities $16,919 $20,607
 Other liabilities:
 Long-term debt, less current
 portion 21,659 47,274
 Other 611 997
 Total 22,270 48,271
 Redeemable preferred stock --- 2,315
 Stockholders Equity:
 Preferred stock --- ---
 Common stock 57 28
 Class B common stock --- ---
 Additional paid-in capital 40,085 2,567
 Retained earnings (deficit) (2) (2,563)
 Total stockholders' equity 40,140 32
 $79,329 $71,225
 Summary Financial Results
 (Unaudited, in thousands, except per share data)
 Three Months Ended Nine Months Ended
 May 31, May 31, May 31, May 31,
 1992 1991 1992 1991
 Net revenues $20,646 $17,054 $58,738 $49,563
 Net income 1,427 476 3,167(a) 1,377
 Weighted average
 common & common
 equivalent shares
 outstanding 6,043,192 3,673,147 4,512,169 3,673,147
 Earnings per share 24 cents 11 cents 68 cents(a) 33 cents
 (a) Prior to extraordinary debt extinguishment charge.
 -0- 6/25/92
 /CONTACT: Raymond J. Dunn, chairman and CEO of AdvantageHEALTH, 617-935-2500/
 (ADHC) CO: AdvantageHEALTH Corporation ST: Massachusetts IN: HEA SU: ERN


CN -- NE001 -- 3645 06/25/92 09:28 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 25, 1992
Words:1039
Previous Article:IBM LAUNCHES PREMIER BUSINESS PARTNER PROGRAM
Next Article:CAMBREX REPORTS IMPROVED SECOND QUARTER 1992 EARNINGS
Topics:


Related Articles
ADVANTAGEHEALTH 1992 OPERATING INCOME INCREASES 39 PERCENT OVER 1991
ADVANTAGEHEALTH FIRST QUARTER EPS INCREASES 35 PERCENT OVER 1992
ADHC ANNOUNCES PRELIMINARY FOURTH QUARTER RESULTS
ADVANTAGEHEALTH 1993 OPERATING INCOME INCREASES 31 PERCENT OVER 1992
ADVANTAGE HEALTH FIRST QUARTER EPS OF 28 CENTS EXCEEDS ANALYSTS' ESTIMATES
ADVANTAGE HEALTH FOURTH QUARTER 1994 EPS INCREASES 61% OVER 1993
ADVANTAGEHEALTH FIRST QUARTER EPS INCREASES 32% OVER 1994
ADVANTAGEHEALTH SECOND QUARTER MEETS EXPECTATIONS AND EPS INCREASES 31% OVER 1994
AdvantageHEALTH FOURTH QUARTER 1995 EPS INCREASES 24% OVER 1994
AdvantageHEALTH FIRST QUARTER EPS INCREASES 24% OVER 1995

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters