American HomePatient Reports Financial Results for the First Quarter Ended March 31, 2005.BRENTWOOD Brentwood, city and district, England Brentwood, city (1991 pop. 51,212) and district, Essex, SE England. Brentwood is mainly residential but produces some agricultural equipment, film, and prefabricated concrete. , Tenn. -- 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 HomePatient, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : AHOM), one of the nation's largest home health care providers, today announced its financial results for the first quarter ended March 31, 2005. Revenues for the first quarter of 2005 were $81.5 million compared to $84.7 million for the first quarter of 2004, representing a decrease of $3.2 million, or 3.8%. Net income for the first quarter of 2005 was $1.2 million compared to $1.0 million for the first quarter of 2004, representing an increase of $0.2 million, or 20%. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the current quarter were $0.07 compared to $0.06 for the same quarter last year. The reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. changes associated with the Medicare Prescription Drug, Improvement, and Modernization Act The Medicare Prescription Drug, Improvement, and Modernization Act (Pub.L. 108-173, 117 Stat. 2066, also called Medicare Modernization Act or MMA) is a law of the United States which was enacted in 2003. of 2003 reduced net income in the first quarter of 2005 by approximately $4.1 million. This amount is comprised of $3.3 million in reductions in revenues and $0.8 million in increased cost of sales. The reductions in revenues include reductions in inhalation inhalation /in·ha·la·tion/ (in?hah-la´shun) 1. the drawing of air or other substances into the lungs.inhala´tional 2. the drawing of an aerosolized drug into the lungs with the breath. 3. drugs of $2.4 million, reductions in certain items of durable medical equipment Durable medical equipment is a term of art used to describe certain Medicare benefits, that is, whether Medicare may pay for the item. The item is defined by Title XVIII the Social Security Act: The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. compared to the first quarter of 2004. The reduction in operating expenses is a direct result of the Company's initiatives to improve productivity and reduce costs in its operating centers and billing centers. Earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) is a non GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measurement that is calculated as net income excluding interest, taxes, depreciation and amortization. EBITDA for the first quarter of 2005 and for the first quarter of 2004 was $12.1 million for both periods. For the first quarter of 2005, adjusted EBITDA (calculated as EBITDA excluding reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. items) was $12.3 million or 15.0% of revenues. For the first quarter of 2004, adjusted EBITDA was $12.1 million or 14.2% of revenues. On March 30, 2005, the 2005 fee schedule for home oxygen was released by the Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and . The revised fee schedule amounts were implemented by the Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. contractors on or about April 2, 2005. Claims received on or after the implementation date will be paid at the 2005 rates, and claims received prior to the implementation date that were paid using the higher 2004 rates will not be adjusted retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin . The Company estimates that the revised fee schedule will reduce the Company's Medicare oxygen revenues by approximately 8.9% beginning in the second quarter of 2005. This represents a quarterly decrease in revenues and net income of approximately $1.9 million. The Company's revenues and net income for the first quarter of 2005 were reduced by approximately $0.3 million to reflect first quarter oxygen claims that had not been received by the Medicare contractors prior to the implementation date of the 2005 fee schedule. American HomePatient, Inc. is one of the nation's largest home health care providers with 274 centers in 35 states. Its product and service offerings include respiratory respiratory /res·pi·ra·to·ry/ (res´pi-rah-tor?e) pertaining to respiration. res·pi·ra·to·ry adj. Of, relating to, used in, or affecting respiration. services, infusion INFUSION, med. jur. A pharmaceutical operation, which consists in pouring a hot or cold fluid upon a substance, whose medical properties it is desired to extract. Infusion is also used for the product of this operation. Although infusion differs from decoction, (q.v. 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, Inc.'s common stock is currently traded in 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, on application by broker-dealers, in the NASD's Electronic Bulletin Board under the symbol AHOM or AHOM.OB. American HomePatient, Inc. prepares its financial statements in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP). American HomePatient, Inc. also provides information related to non GAAP financial measurements such as, EBITDA, adjusted EBITDA and, from time to time, other non GAAP financial measurements that adjust for certain items outside of the ordinary course of its business. To enable interested parties to reconcile non GAAP measures to the Company's GAAP financial statements, the Company clearly defines EBITDA and adjusted EBITDA, and quantifies all other adjustments to GAAP measurements (see Schedule B). The Company provides EBITDA information, a widely used non GAAP financial measurement, as a performance measure to assist in analyzing the Company's operations and in comparing the Company to its competitors. The Company provides other non GAAP financial measurements, such as adjusted EBITDA, that adjust for certain items outside of the ordinary course of business in order to assist in comparing the Company's current operating performance to its historical performance. These adjustments typically reflect non-recurring items but sometimes reflect items, such as dispositions of assets and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. that are not technically non-recurring but are outside of the ordinary course of operations. Investors should note that such measures may not be comparable to similarly titled measures used by other companies, and investors are encouraged to use this information only in connection with the information contained in the Company's GAAP financial statements. Certain statements made in this 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 is 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 statements. These statements involve risks and uncertainties, including, without limitation, risks and uncertainties regarding current and future reimbursement rates, as well as reimbursement reductions and the Company's ability to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the impact of the reductions. These
risks and uncertainties are in addition to risks, uncertainties, and
other factors detailed from time to time in the Company's filings
with the Securities and Exchange Commission. The Company cautions
investors that any forward-looking statements made by the Company are
not necessarily indicative of future performance. The Company is not
responsible for updating the information contained in this press release
beyond the published date, or for changes made to this document by wire
services or Internet InternetPublicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the services.
American HomePatient, Inc. Schedule A
Summary Financial Data
(In thousands, except per share data)
Three Months Ended March 31,
-----------------------------
2005 2004
-----------------------------
(unaudited)
Revenues, net $81,488 $84,720
Cost of sales and related services 19,776 18,617
Cost of rentals and other revenues,
including rental equipment depreciation 9,549 9,343
Operating expenses 39,989 44,240
Bad debt expense 2,689 2,819
General and administrative expenses 4,199 4,289
Depreciation, excluding rental equipment,
and amortization 813 833
Interest expense, net 4,290 4,650
Other income, net (55) (78)
Earnings from unconsolidated joint
ventures (1,207) (1,052)
-------------- --------------
Income from operations before
reorganization items and income taxes 1,445 1,059
Reorganization items 106 -
-------------- --------------
Income from operations before income
taxes 1,339 1,059
Provision for income taxes 96 100
-------------- --------------
Net income $1,243 $959
============== ==============
Basic income per common share $0.07 $0.06
Diluted income per common share $0.07 $0.06
----------------------------------------------------------------------
March 31, December 31,
2005 2004
-------------- --------------
(unaudited)
Cash and cash equivalents $9,261 $5,772
Restricted cash 650 650
Net patient receivables 53,358 50,851
Other receivables 1,192 1,666
-------------- --------------
Total receivables 54,550 52,517
Other current assets 19,853 22,308
-------------- --------------
Total current assets 84,314 81,247
Property and equipment, net 57,919 58,005
Goodwill 121,834 121,834
Other assets 22,078 21,978
-------------- --------------
Total Assets $286,145 $283,064
============== ==============
Accounts payable $20,525 $17,842
Current portion of long-term debt and
capital leases 880 885
Other current liabilities 31,937 30,951
-------------- --------------
Total current liabilities 53,342 49,678
Long-term debt and capital leases, less
current portion 251,033 251,033
Other noncurrent liabilities 540 2,548
-------------- --------------
Total liabilities 304,915 303,259
Minority interest 560 534
Total shareholders' deficit (19,330) (20,729)
-------------- --------------
Total Liabilities and
Shareholders' Deficit $286,145 $283,064
============== ==============
American HomePatient, Inc. Schedule B
Reconciliation of Non-GAAP Financial
Measurements to GAAP Financial Statements
(In thousands)
Three Months Ended
March 31,
-----------------------
2005 2004
-----------------------
(unaudited)
Net income $1,243 $959
Add:
Provision for income taxes 96 100
Interest expense, net 4,290 4,650
Rental equipment depreciation 5,705 5,511
Other depreciation and amortization 813 833
----------- -----------
Earnings before interest, taxes,
depreciation, and amortization (EBITDA) 12,147 12,053
Add:
Reorganization items 106 -
----------- -----------
Adjusted EBITDA (EBITDA excluding
reorganization items) $12,253 $12,053
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