AMERICAN HEALTHCORP EARNS $0.11 PER SHARE FOR THE FOURTH QUARTER OF FISCAL 1995.NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--Oct. 4, 1995--Thomas G. Cigarran, Chairman and Chief Executive Officer of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Healthcorp, Inc. (Nasdaq/NM: AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced financial results for the fourth quarter and fiscal 1995. For the fourth quarter, which ended August 31, 1995, total revenues were $14,591,000, an increase of 11.8% from $13,051,000 for the fourth quarter of fiscal 1994. Net income was $894,000, or $0.11 per share, for the latest quarter compared with $1,168,000, or $0.14 per share, for the fourth quarter of fiscal 1994. Total revenues for fiscal 1995 rose 8.8% to $56,609,000 from $52,044,000 for fiscal 1994. Net income for fiscal 1995 was $3,916,000, or $0.48 per share, compared with $5,327,000, or $0.63 per share, for the prior fiscal year. Mr. Cigarran commented, "American Healthcorp's financial results for the fourth quarter reflected the continued influence of factors which have affected the Company's results throughout fiscal 1995. For DTCA DTCA Direct-To-Consumer Advertising DTCA Dwell-Time Code Acquisition DTCA Defect-Tolerant Computer Architecture , these factors included (i) a reduction in center profitability for the quarter, primarily as a result of 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 agreement with Columbia/HCA, which went into effect in the first quarter of fiscal 1995; (ii) continued substantial investment in new product development, support and sales, which totaled $0.05 per share more for the fourth quarter than for the fourth quarter of fiscal 1994 and $0.21 per share more for the full 1995 fiscal year than for fiscal 1994; and (iii) legal expenses of $0.01 per share for the quarter and $0.05 for the fiscal year resulting from a civil lawsuit lawsuit: see procedure; tort. brought against the Company in June 1994 by a former employee and a related government investigation. This "whistle blower Whistle Blower An employee who has inside knowledge of illegal activities occurring within his or her organization and reports these to the public. Notes: Although whistle blowers are protected under federal law from employer retaliation, there have been cases where " suit was dismissed by the Federal District Court in Nashville after the end of the quarter. "During the quarter, DTCA renewed nine hospital center contracts, 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: one contract and signed no new center contracts. We believe the absence of new contract signings in the quarter resulted from unusual delays in the timing of signings and not from a lack of interest on the part of prospective hospital customers. Our activity in this area since the end of the fiscal year supports this belief. "Also during the fourth quarter, DTCA made progress on new product development, support and sales initiatives, including large-scale diabetes disease management efforts. No contracts have yet been signed for these programs, but we remain confident about their prospects. "AmSurg Corp. continued to produce substantial revenue and profit gains. Fourth quarter revenues increased 75.2% to $5,931,000, and net income to American Healthcorp, after minority interest of 37%, rose to $236,000 for the quarter from $48,000 for the comparable prior year quarter. At the end of fiscal 1995, we had 18 centers in operation and an additional 11 centers in development or acquisition negotiations. We expect to continue to aggressively grow AmSurg's network of practice-based ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery during fiscal 1996. "American Healthcorp completed fiscal 1995 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 $13.7 million at year end compared with $11.8 million at the end of fiscal 1994. This increase in cash was after expenditures of $2.2 million for the Company's stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. , $3.2 million for net AmSurg investment in center acquisition and development projects, and $4.3 million for DTCA new product development support and sales activities. This substantial cash flow is indicative of American Healthcorp's capacity to finance its growth strategies, and we are confident that we will continue to build the market leadership of both DTCA and AmSurg in the coming year." 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 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. .
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AMERICAN HEALTHCORP, INC.
Unaudited Financial Highlights
Three Months Ended Twelve Months Ended
August 31, August 31,
Revenues: 1995 1994 1995 1994
DTCA and other $ 8,660,000 $ 9,666,000 $36,583,000 $41,144,000
AmSurg 5,931,000 3,385,000 20,026,000 10,900,000
Total $14,591,000 $13,051,000 $56,609,000 $52,044,000
Net income:
DTCA and other $ 658,000 $ 1,120,000 $ 3,242,000 $ 5,289,000
AmSurg 236,000 48,000 674,000 38,000
Total $ 894,000 $ 1,168,000 $ 3,916,000 $ 5,327,000
Net income per
share $ 0.11 $ 0.14 $ 0.48 $ 0.63
Average shares
outstanding 8,066,000 8,359,000 8,211,000 8,460,000
CONTACT: American Healthcorp, Inc., Nashville Henry D. Herr, 615/665-1122 |
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