AMERICAN HEALTHCORP EARNS $.10 PER SHARE FOR THE FIRST QUARTER OF FISCAL 1996.NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 20, 1995--Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM:AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced financial results for the first quarter of fiscal 1996. Total revenues for the first quarter, which ended November 30, 1995, were $13,904,000 compared with $13,495,000 for the first quarter of fiscal 1995. Revenues for the quarter were affected by the sale of DTCA's mail order diabetes supply operations at the end of fiscal 1995. This business, which had shown no growth and which had operated at a breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level, posted revenues of $556,000 for the first quarter of fiscal 1995. Revenues for the quarter, excluding the supply business, increased by 7.5%. Net income for the quarter was $0.10 per share, compared with $0.14 per share for the first quarter of fiscal 1995 and $0.11 per share for the fourth quarter of fiscal 1995. Cigarran remarked, "Financial results for DTCA DTCA Direct-To-Consumer Advertising DTCA Dwell-Time Code Acquisition DTCA Defect-Tolerant Computer Architecture for the quarter were affected by discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: contracts and an anticipated 6% decline in same contract revenues compared with the first quarter of fiscal 1995. This decline resulted from the standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. contracting approach for contracts with Columbia/HCA Healthcare Corporation, that had not been fully implemented during the first quarter of fiscal 1995. "We believe DTCA's hospital business is beginning to stabilize stabilize See peg. after almost two years of difficulty in a very turbulent hospital market. In our opinion, contracting with multi-hospital networks will be an important part of DTCA's future business. These contracts expand the potential of a given market for DTCA by increasing the geographic coverage and the number of patients that can be served, broadening physician contacts and increasing potential revenues. During the quarter, one network contract was signed with three hospitals initially included in the network and up to an additional four hospitals to be added in the near future. Implementation of network services and contract revenues will begin in the second quarter of fiscal 1996. "We also continue to be encouraged by the further development of DTCA's efforts to enter large-scale diabetes disease management services contracts. These efforts are directed at creating a new diabetes population management business for a new group of customers: managed care organizations, other at-risk healthcare organizations, and large employers. We remain in substantive discussions with a number of these organizations and believe we are positioned to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. an initial agreement in the near future. "AmSurg achieved a 47% increase in revenues for the latest quarter from the first quarter of the last fiscal year, primarily because of the growth in its centers in operation to 18 from 13 at the end of the respective periods. We also had eight centers under development at the quarter's end versus five at the end of the first quarter of fiscal 1995, plus seven letters of intent compared with five for the comparable period last year. "AmSurg's revenue expansion produced a 57% increase in center operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . This improvement did not produce comparable growth in AmSurg's net income because AmSurg was fully taxed for the latest quarter and incurred no income taxes for the same quarter in fiscal 1995. AmSurg's corporate overhead expanded slightly during the latest quarter, as it added personnel and other costs associated with its planned aggressive start-up center growth strategy. "American Healthcorp completed the first quarter in a strong financial position. Both DTCA and AmSurg produced positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. and contributed to the increase in cash and cash equivalents to $14.0 million at quarter's end." Cigarran concluded, "We entered fiscal 1996 confident that it would be a time when DTCA solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its leadership position in diabetes care and when AmSurg would continue to expand successfully. The progress of each of these businesses for the first quarter, and their continued development to date for the second quarter, has strengthened our expectations." American Healthcorp, Inc., through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Diabetes Treatment Centers of America, Inc., is the nation's leading provider of specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. services for people with diabetes. Through its majority ownership of AmSurg Corp., the Company also develops, acquires and manages physician practice- based ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery in partnership with surgical and other group practices. The Company wholly owns ArthritisCare Centers of America, which operates two comprehensive treatment centers for individuals with arthritis arthritis, painful inflammation of a joint or joints of the body, usually producing heat and redness. There are many kinds of arthritis. In its various forms, arthritis disables more people than any other chronic disorder. . -0-
AMERICAN HEALTHCORP, INC.
Unaudited Financial Highlights
Three Months Ended
November 30,
Revenues: 1995 1994
DTCA and other $ 8,023,000 $ 9,498,000
AmSurg 5,881,000 3,997,000
Total $ 13,904,000 $ 13,495,000
Net income:
DTCA and other $ 651,000 $ 1,034,000
AmSurg 149,000 137,000
Total $ 800,000 $ 1,171,000
Net income per share $ 0.10 $ 0.14
Average shares outstanding 8,090,000 8,381,000
CONTACT: American Healthcorp, Inc., Nashville Henry D. Herr, 615/665-1122 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion