American HomePatient Reports Financial Results for the First Quarter of 2001 and Announces an Agreement in Principal With Its Lender Group.Business Editors 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.--(BUSINESS WIRE)--May 16, 2001 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. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AHOM) today reported its financial results for the three months ended March 31, 2001. 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.
Revenue for the three months ended March 31, 2001 was $91.1 million, up from $87.9 million reported for the same three-month period of 2000, representing an increase of $3.2 million. The revenue increase over the prior-year quarter is the result of internal growth of approximately 3% along with the consolidation of several of the Company's joint ventures beginning in the second quarter of 2000, offset by lost revenue associated with the termination of a contract effective January January: see month. 2001. EBITDA margin for the first three months of 2001 was 13.2% of net revenue compared to 10.5% for the first three months of 2000. Overall, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased in the current three-month period compared to last year. This decrease is due primarily to a significant improvement in bad debt expense. As a percentage of revenue, bad debt expense in the first quarter of 2001 was 4.3% compared to 7.8% in the first quarter of 2000. This improvement in bad debt expense is largely the result of improved cash collections resulting from the redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re and standardization standardization In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting of reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. processes and the consolidation of certain billing locations into larger regional billing centers. The Company and its lender group also announced today that they have reached an agreement in principal to amend the Company's current credit agreement. As previously reported, the Company is in default under its credit facility as a result of breaching several financial covenants and failing to make a principal payment due March 15, 2001. The amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. credit agreement is expected to cure the current defaults, amend the principal amortization schedule, and extend the term of the agreement to December December: see month. 31, 2002. The Company expects to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the amendment on or about May 18, 2001. 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 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's common stock is currently traded over-the-counter under the symbol AHOM. 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 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, uncertainties and other factors detailed from time to time in the company's filings 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, the outcome of ongoing governmental investigations, and the success in or timing of finalizing an amended credit agreement with its lenders. The company cautions investors that any forward-looking statements made by the company are not necessarily indicative of future performance.
American HomePatient
Summary Financial Data
(In thousands, except per share data)
Three Months Ended
Mar. 31,
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2001 2000
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Revenues $ 91,121 $ 87,890
Cost of sales and related services 22,170 21,826
Operating expenses 52,966 53,464
General and administrative expenses 3,938 3,350
Depreciation and amortization 8,515 10,211
Earnings (loss) before interest and taxes 3,532 (961)
Pre-tax loss (6,447) (8,424)
Net loss $ (6,597) $ (8,574)
Basic loss per share $ (0.40) $ (0.55)
Diluted loss per share $ (0.40) $ (0.55)
Weighted average shares outstanding - Basic 16,352 15,480
Weighted average shares outstanding - Diluted 16,352 15,480
Mar. 31, Dec. 31,
2001 2000
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Cash & Equivalents $ 15,107 $ 12,081
Restricted Cash 6 179
Net Patient Receivables 72,381 74,498
Other Receivables 854 967
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Total Receivables 73,235 75,465
Other Current Assets 15,574 17,011
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Total Current Assets 103,922 104,736
Property and Equipment, Net 51,230 52,998
Goodwill 196,072 197,491
Other Assets 23,339 23,289
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Total Assets $374,563 $378,514
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Accounts Payable $ 15,691 $ 16,449
Current Portion of Long Term Debt 297,775 297,787
Other Current Liabilities 34,196 30,937
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Total Current Liabilities 347,662 345,173
Long Term Debt, less current portion 1,294 1,365
Other Liabilities 5,763 5,737
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Total Liabilities 354,719 352,275
Total Stockholders' Equity 19,844 26,239
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Total Liabilities and Equity $374,563 $378,514
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