American HomePatient Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2001.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)--Feb. 20, 2002 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 and year ended December December: see month. 31, 2001. Excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain of $2.6 million recorded in the fourth quarter associated with the sale of assets of one of the Company's 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. businesses and the sale of the assets of a 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. and home medical equipment center, 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.
When a person begins a civil lawsuit, the person enters into a process called litigation. settlement. For the year ended December 31, 2001, the one-time gain of $2.6 million recorded in the fourth quarter was offset by a $2.6 million loss recorded in the third quarter associated with the sale of the assets of the Company's rehab centers. The Company's EBITDA for the year ended December 31, 2001 was $50.2 million, representing an increase of $2.2 million over EBITDA for the prior year. Excluding the one-time gain, the Company reported $0.4 million of net income for the fourth quarter of 2001 compared to a net loss of $(4.4) million (excluding the one-time charge for litigation settlement) for the same quarter of 2000. The Company's net loss for the year ended December 31, 2001, was $(11.5) million, compared to a net loss of $(24.2) million (excluding the one-time charge for litigation settlement) for the prior year. The improvement in net income (loss) for the fourth quarter and year ended December 31, 2001 compared to the fourth quarter and year ended December 31, 2000 primarily is the result of lower bad debt expense, lower depreciation expense, and lower interest expense in the current quarter and year. Revenues for the three months ended December 31, 2001 were $84.1 million, down from $92.8 million reported for the same three-month period of 2000. For the year ended December 31, 2001, the Company reported revenues of $352.6 million, down from $363.4 million for the same period of 2000. During 2001, the Company terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: a services contract, sold the assets of three infusion centers, sold the assets of two respiratory and home medical equipment centers, and sold the assets of its rehab centers. As a result of these changes, revenues were negatively impacted by approximately $9.5 million in the current quarter and by approximately $18.9 million in the current year. Revenues in the current year were positively impacted as compared to the prior year by approximately $3.8 million as a result of the consolidation of several of the Company's hospital joint ventures during the second, third and fourth quarters of 2000. Excluding the one-time gain recorded in the fourth quarter of 2001 associated with the sale of assets and excluding the one-time charge in the fourth quarter of 2000 associated with litigation settlement, EBITDA margin for the fourth quarter of 2001 was 16.3% of revenues compared to 15.5% for the fourth quarter of 2000. For the year ended December 31, 2001, EBITDA margin was 14.2%, compared to 13.2% for the same period in 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 year compared to the prior year, due primarily to improvements in bad debt expense. As a percentage of revenues, bad debt expense for the year ended December 31, 2001 was 4.5%, compared to 6.5% for the same period of 2000. This improvement in bad debt expense largely related to 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 is currently in compliance with all of its debt covenants. Proceeds from the sale of certain non-core business assets in 2001 were applied to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. the scheduled loan principal payment due in March 2002. The Company has also made other scheduled and non-scheduled payments on the term loan in 2001. Payments made on the term loan in 2001 totaled $15.6 million. The Company's credit facility has a maturity date of December 31, 2002 and, accordingly, the Company has classified all debt associated with the credit facility as a current liability as of December 31, 2001. The Company and its lenders are currently in discussions regarding amending the credit agreement and extending the maturity date. The ultimate outcome of these discussions is not known at this time. If an extension of the maturity date is not received by the filing date of the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001, the Company expects that its auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together will issue a qualified opinion on the Company's 2001 financial statements, as the Company does not have the liquidity to repay the indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. on or before the current maturity date. The Company expects to file its annual report on Form 10-K on or before April 1, 2002. American HomePatient is one of the nation's largest home health care providers with 288 centers in 36 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 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 strategies and operations including changes in its cost structure related to respiratory medications, the effect of healthcare legislation and regulation, the ability to obtain business, the ability to remain in compliance with debt covenants, the ability to amend the current credit agreement or to extend its maturity date, and the outcome of pending or future governmental investigations. 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 Internet Publicly 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
Summary Financial Data
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
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2001 2000 2001 2000
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Revenues $84,073 $92,843 $352,584 $363,372
Cost of sales and related services 16,873 21,366 79,078 85,473
Operating expenses 49,579 52,421 207,706 214,075
General and administrative expenses 3,889 4,682 15,571 15,823
Depreciation and amortization 7,834 8,464 33,880 39,638
(Gain)/Loss on sale of assets (2,574) -- 55 --
Provision for litigation settlement -- 7,500 -- 7,500
Earnings/(Loss) before interest
and taxes 8,472 (1,590) 16,294 863
Pre-tax Income/(Loss) 3,018 (11,703) (11,094) (31,066)
Net Income/(Loss) $3,018 $(11,853) $(11,544) $(31,666)
Basic income/(loss) per share $0.18 $(0.74) $(0.68) $(2.01)
Diluted income/(loss) per share $0.17 $(0.74) $(0.68) $(2.01)
Weighted average shares outstanding
- Basic 17,050 16,126 16,933 15,783
Weighted average shares outstanding
- Diluted 17,583 16,126 16,933 15,783
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Dec. 31, Dec. 31,
2001 2000
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Cash & Equivalents $9,159 $12,081
Restricted Cash 265 179
Net Patient Receivables 60,117 74,498
Other Receivables 1,544 967
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Total Receivables 61,661 75,465
Other Current Assets 14,840 17,011
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Total Current Assets 85,925 104,736
Property and Equipment, Net 46,223 52,998
Goodwill 189,699 197,491
Other Assets 22,817 23,289
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Total Assets $344,664 $378,514
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Accounts Payable $19,360 $16,449
Current Portion of Long Term Debt 282,087 2,679
Other Current Liabilities 22,814 30,937
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Total Current Liabilities 324,261 50,065
Long Term Debt, less current portion 723 296,473
Other Liabilities 4,783 5,737
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Total Liabilities 329,767 352,275
Total Stockholders' Equity 14,897 26,239
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Total Liabilities and Equity $344,664 $378,514
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