APRIA HEALTHCARE ANNOUNCES EARNINGS EXPECTATIONS.COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , CALIF.--(BUSINESS WIRE)--September 24, 1996--Apria Healthcare Group Inc. (NYSE NYSE See: New York Stock Exchange :AHG AHG antihemophilic globulin (coagulation factor VIII). AHG abbr. antihemophilic globulin AHG antihemophilic globulin (clotting factor VIII). ) announced today that it expects to report net income for the third quarter ended September 30, 1996, of between $0.38 and $0.42 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $0.37 per fully diluted share for the same quarter of 1995. The nation's largest integrated home healthcare provider also announced that it expects to report net income for the year of between $1.62 and $1.66 per fully diluted share, excluding the impact of the Vitas merger. For 1995, Apria reported income (before unusual, non-recurring charges) of $1.40 per fully diluted share. "While the company's projection for 1996 is below the First Call(r) consensus estimates, it represents earnings growth of approximately 17 percent, compared to earnings for the prior year," said Jeremy M. Jones, Apria chairman and chief executive officer. Based on a review of its July and August performance, Apria expects net revenue for the third quarter to be up approximately 10 percent, compared to $277.6 million in the same quarter last year, and essentially unchanged from the immediately preceding quarter. For 1996, net revenue is targeted to rise approximately 8 percent, compared to $1.1 billion in 1995. Jones noted that the company's financial position continues to strengthen. Debt levels, excluding the impact of the Vitas acquisition, are expected to remain stable in the third quarter and decline slightly through the balance of 1996, after rising $120 million during the first half of this year. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying are also expected to trend downward toward the end of 1996, he added. Apria plans to release complete, final results for the third quarter in late October. In addition to industry-wide trends, the company attributed the reduced revenue and earnings expectations to the residual effects of its nationwide information systems conversion, which disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. normal business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and service levels, and contributed to certain revenue adjustments during the third quarter. Following the 1995 merger of Homedco Group, Inc. and Abbey Healthcare Group Incorporated, the company embarked on a consolidation plan that included the conversion of approximately 450 computer systems to a single operating platform. The greatest concentration of conversions occurred in the second and third quarters of this year. "We implemented the information systems conversions, along with the other major components of our merger consolidation plan, on a very ambitious, 15-month schedule," said Jones. "With all conversions now complete, we believe that this aggressive approach will add long-term value for Apria and will allow us to more swiftly and effectively leverage our superior, national home healthcare franchise. In the short-term, however, it has contributed to a slower 1996 growth rate than we had originally anticipated." During the quarter, the company has continued to pursue its planned merger of Vitas Healthcare Corp., the nation's largest hospice hospice, program of humane and supportive care for the terminally ill and their families; the term also applies to a professional facility that provides care to dying patients who can no longer be cared for at home. provider. The pooling-of-interests transaction is scheduled to close in the fourth quarter. The merger, which was announced last June, will broaden the scope of Apria's product offering, provide an important clinical component to its service continuum and diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its revenue mix. "As part of the Vitas merger plan, Vitas has already begun to implement certain expense reduction measures and other tactics designed to improve its operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and integrate the hospice business into Apria's menu of home healthcare services," Jones said. Apria Healthcare provides and/or manages comprehensive integrated homecare services which include home infusion, respiratory therapy respiratory therapy Medical profession concerned with assisting the respiratory function of individuals who have severe lung disorders. Practices include suctioning to clear secretions from the airway, use of aerosol mists (sometimes medicated) or gases to ease breathing, , home medical equipment, nursing and coordinated care through 350 locations serving patients in 49 states. Information contained in this release, other than historical information, should be considered forward-looking and may be subject to various risk factors and uncertainties. For instance, the company's strategies and operations involve risks of intense competition, changing market conditions, development of new technology, changes in regulations impacting the home healthcare industry and numerous other factors discussed in the company's filings with the Securities and Exchange Commission. Accordingly, these forward-looking comments may differ in a material way from actual events. CONTACT: Apria Healthcare Group Inc., Costa Mesa Lawrence H. Smallen, Chief Financial Officer 714/427-4935 or Sheree L. Aronson, Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. 714/427-4919 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion