Accredo Health, Inc. Announces Record Third Quarter, YTD Results; Third Quarter Earnings Increase 168%.Business Editors MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--May 1, 2000 Accredo Health, Incorporated (Nasdaq: ACDO ACDO Air Carrier District Office ACDO Assistant Command Duty Officer ) reported record results for the quarter and nine months ended March 31, 2000. For the quarter, net earnings increased 168% to $2,732,000, or $0.18 per 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 $1,020,000, or $0.11 per diluted share, for the same period in fiscal 1999. For the nine months, net earnings increased 144% to $7,048,000, or $0.48 per diluted share, compared to $2,883,000, or $0.31 per diluted share, for the same period in fiscal 1999. Revenues for the quarter increased 37% to $91,392,000, compared to $66,881,000 for the same period in fiscal 1999. For the nine months, revenues increased 36% to $254,618,000 compared to $186,907,000 for the same period in fiscal 1999. "We are very pleased with the growth in the quarter experienced by Accredo Health's two subsidiaries, Hemophilia hemophilia (hē'məfĭl`ēə,–fēl`yə), genetic disease in which the clotting ability of the blood is impaired and excessive bleeding results. Health Services health services Managed care The benefits covered under a health contract , Inc. and Nova Factor, Inc.," stated David Stevens David Stevens may refer to:
Stevens added, "As expected, our margins improved during the quarter due, in part, to annual renegotiations of preferred provider contracts with our manufacturer partners. Income from operations as a percentage of total revenue advanced to 5.7% from 4.4% in the same period last year. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses continued to trend positively, generating $2.5 million in the March quarter. "To a large extent, Accredo's successful results can be attributed to the continued, careful management of our product mix," Stevens said. "We are strategically limiting the products that we provide under managed care contracts to our current seven product lines, which enables us to provide the highest level of service to our manufacturer partners, to their patients, and to the managed care providers. We believe that excellent service is the foundation for good results," Stevens explained. Accredo Health, Incorporated and its two subsidiaries, Hemophilia Health Services, Inc. and Nova Factor, Inc., provide 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. contract pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. and related services pursuant to agreements with biotechnology drug manufacturers relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the treatment of patients with certain costly, chronic diseases. The Company's services include collection of timely drug utilization and patient compliance information, patient education and monitoring through the use of written materials and telephonic consultation, reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. expertise and overnight drug delivery. In addition to historical facts, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Matters subject to forward-looking statements involve risks and uncertainties, that could cause actual outcomes and results and the timing of certain events to differ materially from these statements. Risks and uncertainties include without limitation, the Company's dependence on relationships with a limited number of drug manufacturers, reimbursement and payor payor (payer) n. The one who must make payment on a promissory note. related risks, risks associated with making acquisitions, application of government laws and regulations and general economic, competitive, and technological risks that may affect the Company's business and prospects. These and other risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission.
Accredo Health, Incorporated
Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
(Unaudited) (Unaudited)
Nine Months Ended Three Months Ended
March 31, March 31,
2000 1999 2000 1999
Net revenues $ 254,618 $ 186,907 $ 91,392 $ 66,881
Cost of services 217,450 159,198 77,669 57,289
---------------------- ---------------------
Gross profit 37,168 27,709 13,723 9,592
General & administrative 17,089 12,907 6,011 4,516
Bad debts 4,549 3,420 1,587 1,136
Depreciation and
amortization 2,404 3,003 939 1,018
---------------------- ---------------------
Income from operations 13,126 8,379 5,186 2,922
Interest expense (net) 1,498 2,653 714 922
---------------------- ---------------------
Net income before
income taxes 11,628 5,726 4,472 2,000
Provision for
income taxes 4,580 2,843 1,740 980
---------------------- ---------------------
Net income $ 7,048 $ 2,883 $ 2,732 $ 1,020
====================== =====================
Earnings per share (1):
Basic $ 0.51 $ 0.34 $ 0.20 $ 0.12
Diluted $ 0.48 $ 0.31 $ 0.18 $ 0.11
Weighted average
shares outstanding:
Basic 13,764,744 8,433,618 13,903,097 8,438,430
Diluted 14,741,375 9,322,154 14,851,325 9,325,132
Condensed Balance Sheets
(amounts in thousands)
March 31, June 30,
2000 1999
Cash & cash equivalents $ 8,500 $ 5,542
Accounts receivable, net 62,054 54,816
Other current assets 50,674 29,801
Fixed assets, net 5,270 3,025
Other assets 74,894 53,562
-------------------------
Total assets $ 201,392 $ 146,746
=========================
Current liabilities $ 84,484 $ 61,253
Long-term debt 41,500 20,500
Other liabilities 1,184 866
Stockholders' equity 74,224 64,127
-------------------------
Total liabilities and
stockholders' equity $ 201,392 $ 146,746
=========================
(1) Excludes the effect of cumulative preferred dividends. The
preferred stock was redeemed in connection with the Company's initial
public offering in April 1999. Accordingly, the dividends associated
with the preferred stock will not impact earnings per share in future
periods. Earnings per share including the effect of the preferred
stock dividends is reflected below :
(Unaudited) (Unaudited)
Nine Months Ended Three Months Ended
March 31, March 31,
2000 1999 2000 1999
Net income $ 7,048 $ 2,883 $ 2,732 $ 1,020
Preferred stock
dividends - (1,532) - (511)
-------------------- -------------------
Net income to common
stockholders $ 7,048 $ 1,351 $ 2,732 $ 509
==================== ===================
Basic earnings per
common share (1)
Net income $ 0.51 $ 0.34 $ 0.20 $ 0.12
Preferred stock
dividends - (0.18) - (0.06)
-------------------- -------------------
Net income to common
stockholders $ 0.51 $ 0.16 $ 0.20 $ 0.06
==================== ===================
Diluted earnings per
common share (1)
Net income $ 0.48 $ 0.31 $ 0.18 $ 0.11
Preferred stock
dividends - (0.16) - (0.06)
-------------------- -------------------
Net income to common
stockholders $ 0.48 $ 0.15 $ 0.18 $ 0.05
==================== ===================
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