American HomePatient Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2003.Business Editors/Health/Medical Writers 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)--Aug. 13, 2003 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 net income of $4.5 million and revenues of $82.9 million for the second quarter ended June June: see month. 30, 2003. For the six months ended June 30, 2003, the Company reported net income of $8.9 million and revenues of $165.4 million. The Company's net income of $4.5 million for the second quarter of 2003 compares to a net loss of $(0.1) million for the second quarter of 2002. Net income for the current quarter includes approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 million of 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 related to the bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most reorganization and excludes approximately $5.0 million in non-default interest expense and related fees that would have been paid during the period had the Company not sought bankruptcy protection. The Company's net income of $8.9 million for the first six months of 2003 compares to a net loss of $(66.9) million for the first six months of 2002. Net income for the first six months of 2003 includes approximately $2.9 million of reorganization items and excludes approximately $10.0 million of non-default interest expense and related fees that would have been paid during the period had the Company not sought bankruptcy protection. The Company's net loss of $(66.9) million for the six months ended June 30, 2002 includes a $68.5 million charge for the cumulative effect of a change in accounting principle associated with the Company's adoption of Statement of Financial Accounting Standards No. 142 ("Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. "), an income tax benefit of $1.9 million, and a gain on the sale of the assets of an 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. center of $0.7 million. Excluding these items in 2002 and excluding the reorganization items in 2003 and including non-default interest expense and related fees in 2003 that the Company would have paid in 2003 had the Company not sought bankruptcy protection, American HomePatient's net income increased in the first six months of 2003 compared to the first six months of 2002 by approximately $2.7 million, primarily due to increased same-location revenues and lower bad debt expense. The Company's revenues of $82.9 million for the second quarter of 2003 represent an increase of $3.8 million, or 4.8%, over the second quarter of 2002. The Company's revenues for the first six months of 2003 of $165.4 million represent an increase of $6.5 million over the first six months of 2002. In March of 2002, the Company sold substantially all of the assets of an infusion center, which contributed $1.9 million in revenues during the first six months of 2002. Excluding the revenues of the sold center in the first six months of 2002, same-location revenues in the first six months of 2003 increased $8.4 million, or 5.4%, compared to the same period of last year. 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 financial measurement that is calculated as revenues less expenses other than interest, taxes, depreciation and amortization. EBITDA for the second quarter of 2003 and for the second quarter of 2002 was $10.6 million and $11.7 million, respectively. For the second quarter of 2003, EBITDA, excluding reorganization items of $2.0 million, was $12.6 million or 15.2% of revenues. For the second quarter of 2002, EBITDA, excluding Chapter 11 financial advisory expenses incurred prior to filing bankruptcy of $0.3 million and other income of $0.1 million, was $11.9 million or 15.1% of revenues. For the first six months of 2003, EBITDA, excluding reorganization items of $2.9 million and other expense of $0.1 million, was $23.6 million or 14.2% of revenues. For the first six months of 2002, EBITDA, excluding the cumulative effect of change in accounting principle of $68.5 million, Chapter 11 financial advisory expenses incurred prior to filing bankruptcy of $0.3 million, a gain on sale of assets of a center of $0.7 million, and other income of $0.2 million, was $22.4 million or 14.1% of revenues. 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. increased in the second quarter and first six months of 2003 compared to the second quarter and first six months of 2002 by approximately $1.2 million and $2.1 million, respectively, primarily due to personnel-related expenses associated with the hiring of additional account executives to improve the Company's sales and marketing efforts and increased insurance expenses. These expenses were partially offset by lower bad debt expense. As a percent of revenues, bad debt expense declined from 3.4% in the second quarter of 2002 to 2.7% in the second quarter of 2003 and declined from 4.3% in the first six months of 2002 to 3.2% in the first six months of 2003. The reduction in bad debt expense primarily is the result of continued operational improvements and processing efficiencies at the Company's billing centers. Bankruptcy Proceeding Update As announced previously, American HomePatient, Inc. and 24 of its subsidiaries filed voluntary petitions for relief to reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
As previously announced, the hearing before the Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. on confirmation of the plan of reorganization had been held on April 23-25 and 28-29, 2003, and on May 15, 2003, the Bankruptcy Court entered a memorandum opinion A memorandum opinion or memorandum decision is a judicial opinion which does not create precedent, persuasive or mandatory. A memorandum is often brief and written only for the purpose for announcing judgment in a particular case. overruling o·ver·rule tr.v. o·ver·ruled, o·ver·rul·ing, o·ver·rules 1. a. To disallow the action or arguments of, especially by virtue of higher authority: the secured lenders' objections to the plan. On May 27, 2003, the Bankruptcy Court entered an order confirming the plan and on June 30, 2003, the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. in the Middle District of Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. rejected re·ject tr.v. re·ject·ed, re·ject·ing, re·jects 1. To refuse to accept, submit to, believe, or make use of. 2. To refuse to consider or grant; deny. 3. the secured lenders' request to stay the effective date of the plan. The secured lenders have appealed the order to confirm the plan. The Company will contest the appeal and seek to have the Bankruptcy Court's confirmed order affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. on appeal. American HomePatient, Inc. is one of the nation's largest home health care providers with 289 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 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. American HomePatient, Inc. provides information related to non-GAAP financial measurements such as 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial statements, the Company clearly defines EBITDA and quantifies all other adjustments to GAAP measurements (see Schedule B). The Company provides EBITDA information, a widely used non-GAAP financial measurement, to assist in analyzing the Company's operating profitability and in comparing the Company to its competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . The Company provides other non-GAAP financial measurements 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. These statements involve risks and uncertainties, including, without limitation, risks and uncertainties regarding the appeal of the confirmed plan from the Company's Chapter 11 proceedings Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. , as well as the operation of the Company following such proceedings. These risks and uncertainties are in addition to other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. Such factors may include the effect of healthcare regulation and reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , government investigations, the ability to retain management, leverage and liquidity, and the effect of competition. The Company cautions investors that any forward-looking statements made by the Company are not necessarily indicative indicative: see mood. 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, Inc. Schedule A
Summary Financial Data
(In thousands, except per share data)
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- ------------------
2003 2002 2003 2002
-------- ------- --------- --------
Revenues $82,864 $79,079 $165,371 $158,891
Cost of sales and related
services 17,449 15,561 34,742 32,065
Cost of rentals and other
revenues, including rental
equipment depreciation 8,970 8,580 17,396 16,766
Operating expenses, including
bad debt expense 46,018 44,853 93,254 91,189
General and administrative
expenses 4,126 4,055 8,672 8,317
Earnings from joint ventures (1,191) (1,119) (2,421) (2,392)
Depreciation, excluding rental
equipment, and amortization 846 1,069 1,771 2,102
Amortization of deferred
financing costs - 719 - 1,543
Interest expense (income), net 22 5,076 (50) 10,191
Other (income) expense, net - (65) 94 (169)
Chapter 11 financial advisory
expenses incurred prior to
filing bankruptcy - 314 - 314
Gain on sale of assets of center - - - (667)
------- ------- -------- --------
Income (loss) from operations
before reorganization items,
income taxes and cumulative
effect of change in accounting
principle 6,624 36 11,913 (368)
Reorganization items 2,004 - 2,856 -
------- ------- -------- --------
Income (loss) from operations
before income taxes and
cumulative effect of change in
accounting principle 4,620 36 9,057 (368)
Provision for (benefit from)
income taxes 100 100 200 (1,912)
------- ------- -------- --------
Income (loss) before cumulative
effect of change in accounting
principle 4,520 (64) 8,857 1,544
Cumulative effect of change in
accounting principle - - - (68,485)
------- ------- -------- --------
Net income (loss) $ 4,520 $ (64) $ 8,857 $(66,941)
======= ======= ======== ========
Basic income per common share
before cumulative effect of
change in accounting principle $ 0.28 $ - $ 0.54 $ 0.09
Diluted income per common share
before cumulative effect of
change in accounting principle $ 0.24 $ - $ 0.47 $ 0.08
Basic income (loss) per common
share $ 0.28 $ - $ 0.54 $ (4.10)
Diluted income (loss) per common
share $ 0.24 $ - $ 0.47 $ (3.58)
----------------------------------------------------------------------
June 30, Dec. 31,
2003 2002
-------- --------
Cash & Cash Equivalents $ 21,531 $ 22,827
Restricted Cash 467 67
Net Patient Receivables 54,796 54,183
Other Receivables 1,188 1,254
-------- --------
Total Receivables 55,984 55,437
Other Current Assets 17,743 18,841
-------- --------
Total Current Assets 95,725 97,172
Property and Equipment, net 52,616 50,427
Goodwill, net 121,214 121,214
Other Assets 21,611 22,130
-------- --------
Total Assets $291,166 $290,943
======== ========
Accounts Payable $ 13,701 $ 13,267
Other Current Liabilities 16,813 16,850
-------- --------
Total Current Liabilities 30,514 30,117
Liabilities Subject to Compromise 298,797 307,829
Other Liabilities 592 591
-------- --------
Total Liabilities 329,903 338,537
Total Shareholders' Deficit (38,737) (47,594)
-------- --------
Total Liabilities and Shareholders' (Deficit) $291,166 $290,943
======== ========
Schedule B
American HomePatient, Inc.
Reconciliation of Non-GAAP Financial Measurements to GAAP Financial
Statements
(In thousands)
Three Three Six Six
Months Months Months Months
ended ended ended ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Net income (loss) $ 4,520 $ (64) $ 8,857 $(66,941)
Add:
Provision for (benefit from)
income taxes 100 100 200 (1,912)
Interest expense (income),
net 22 5,076 (50) 10,191
Amortization of deferred
financing costs - 719 - 1,543
Depreciation, excluding
rental equipment, and
amortization 846 1,069 1,771 2,102
Rental equipment
depreciation 5,088 4,767 9,829 9,406
-------- -------- -------- --------
Earnings (loss) before
interest, taxes,
depreciation, and
amortization (EBITDA) $ 10,576 $ 11,667 $ 20,607 $(45,611)
Add:
Cumulative effect of change
in accounting principle
with no related tax effect - - - 68,485
Reorganization items 2,004 - 2,856 -
Chapter 11 financial
advisory expenses incurred
prior to filing bankruptcy - 314 - 314
Gain on sale of assets of
center - - - (667)
Other (income) expense, net - (65) 94 (169)
-------- -------- -------- --------
EBITDA, excluding cumulative
effect of change in
accounting principle,
reorganization items, chapter
11 financial advisory
expenses incurred prior to
filing bankruptcy, gain on
sale of assets of center, and
other (income) expense, net $ 12,580 $ 11,916 $ 23,557 $ 22,352
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