American HomePatient Reports Financial Results for Second Quarter 1999.BRENTWOOD, Tenn.--(BUSINESS WIRE)--Aug. 5, 1999-- American HomePatient, Inc. (Nasdaq: AHOM) today reported the financial results for the second quarter ended June 30, 1999. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Net revenue for the three months ended June 30, 1999 was $90.4 million, compared to $91.2 million in the first quarter of 1999. The company's earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) increased 33 percent quarter to quarter to $2.4 million in the second quarter compared to $1.8 million in the first quarter. The pre-tax loss for the second quarter decreased 13 percent to $(4.7) million versus $(5.4) million in the first quarter. Net patient 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 decreased to $91.6 million at June 30, 1999 compared to $95.6 million at March 31, 1999. Net days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) also improved to 96 days at second quarter-end compared to 99 days at March 31, 1999. 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 for the second quarter was $12.5 million, representing a 47 percent increase over the first quarter's cash flow from operations of $8.5 million. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Joseph F. Furlong furlong: see English units of measurement. , president and chief executive officer of American HomePatient, the company's performance for the first six months is moving along on schedule. "We set out at the beginning of the year with realistic expectations for restoring American HomePatient to its former level of historical success. So far, we are pleased with the progress we have made in reducing and controlling expenses and in reducing our net patient accounts receivable and DSO. As a result, our EBITDA for the first six months of the year was $24.2 million, representing 13 percent of net revenue. "Our challenge, yet also our biggest opportunity, for the balance of the year is in achieving more revenue growth. Throughout the first six months of 1999, our revenues were adversely affected by businesses exited in 1998. We are actively pursuing two objectives to spur growth: re-establishing the company as a diversified provider and renewing the company's efforts in managed care. Management goals and incentive plans have been developed to support these objectives." American HomePatient is one of the nation's largest home health care providers with over 300 centers in 38 states. Its product and service offerings include respiratory services, infusion therapy, parenteral parenteral /pa·ren·ter·al/ (pah-ren´ter-al) not through the alimentary canal, but rather by injection through some other route, as subcutaneous, intramuscular, etc. par·en·ter·al adj. 1. and enteral nutrition Enteral nutrition Nourishment given through a tube or stoma directly into the small intestine, thus bypassing the upper digestive tract. Mentioned in: Electrolyte Supplements, Enterostomy, Necrotizing Enterocolitis , and medical equipment for patients in their home. American HomePatient's common stock is currently traded on the Nasdaq stock market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol AHOM, but will soon be listed either on the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. or the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. ("AMEX AMEX See: American Stock Exchange "). Certain statements made in the press release may constitute 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. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the company's unable to predict or control, that may cause the company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statement. These statements involve risks, uncertainties and other factors detailed from time to time in the company's filing with the Securities and Exchange Commission. Such factors may include the increased cost of borrowing under the company's credit agreement, changes to the company's business strategy and operation, the effect of healthcare legislation and regulation, the ability to obtain business, and the outcome of ongoing governmental investigations. The company cautions investors that any forward-looking statements made by the company are not necessarily indicative of the future performance. -0-
American HomePatient
Summary Financial Data
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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1999 1998 1999 1998
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Net Revenues $ 90,423 $ 103,600 $ 181,661 $ 206,393
Cost of sales and
related services 22,557 24,545 45,276 49,070
Operating expenses 51,724 53,983 104,751 108,331
General and administrative
expenses 3,536 3,547 7,423 7,050
Depreciation and amortization 10,165 9,410 19,984 19,448
Earnings before interest and
taxes 2,441 12,115 4,227 22,494
Pre-tax (loss) income (4,729) 6,549 (10,155) 11,530
Net (loss) income $ (4,877) $ 3,929 $(10,453) $ 6,918
Basic (loss) income
per share $ (0.32) $ 0.26 $ (0.69) $ 0.46
Diluted (loss) income
per share $ (0.32) $ 0.26 $ (0.69) $ 0.46
Weighted average shares
outstanding - Basic 15,216 14,974 15,194 14,965
Weighted average shares
outstanding - Diluted 15,216 15,059 15,194 15,123
June 30, Dec. 31,
1999 1998
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Cash & Equivalents $ 22,732 $ 4,327
Net Patient Receivables 91,599 94,162
Other Receivables 3,165 5,412
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Total Receivables 94,764 99,574
Other Current Assets 38,019 44,175
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Total Current Assets 155,515 148,076
Property and Equipment, Net 69,563 77,778
Goodwill 245,629 249,173
Other Assets 50,389 56,865
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Total Assets $521,096 $ 531,892
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Accounts Payable $ 14,844 $ 10,629
Current Portion of Long Term Debt 9,456 7,024
Other Current Liabilities 26,443 31,308
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Total Current Liabilities 50,743 48,961
Long Term Debt, less current portion 317,146 316,918
Other Liabilities 6,823 9,514
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Total Liabilities 374,712 375,393
Total Stockholders' Equity 146,384 156,499
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Total Liabilities and Equity $521,096 $ 531,892
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