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American HomePatient Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2001.

Business Editors

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Nov. 7, 2001

American HomePatient, Inc. (OTC:AHOM) today reported its financial results for the three months and nine months ended September 30, 2001. Excluding a one-time charge of $2.6 million associated with a loss on the sale of the assets of the Company's rehab centers, earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2001 was $12.0 million, compared to $12.6 million for the same period in 2000. The Company's EBITDA for the first nine months of 2001, excluding the one-time charge, was $36.5 million, representing an increase of $2.9 million over EBITDA for the first nine months of 2000. Excluding the one-time charge, the Company's net loss for the third quarter of 2001 was $3.2 million compared to $5.4 million for the same quarter of 2000. The Company's net loss for the first nine months of 2001, excluding the one-time charge, was $11.9 million, compared to a net loss of $19.8 million for the same nine month period of 2000. Including the one-time charge of $2.6 million, the Company reported a net loss of $5.9 million for the third quarter of 2001 and $14.6 million for the nine-month period ended September 30, 2001.

Effective September 1, 2001, the Company sold the assets of its rehab centers to United Seating and Mobility, L.L.C. for approximately $7.7 million, of which $7.2 million was received in cash at closing with the remainder to be paid on February 28, 2002. The rehab centers provided custom-built seating and positioning systems and custom-built wheelchairs to patients with impaired mobility. At the time of the sale, the rehab centers generated annualized revenues of approximately $22.0 million with minimal EBITDA. The cash proceeds of the sale have been used to pay down debt under the Company's bank credit facility.

Revenues for the three months ended September 30, 2001 were $87.6 million, down from $91.5 million reported for the same three-month period of 2000. For the first nine months of 2001, the Company reported revenues of $268.5 million, down from $270.5 million for the same period of 2000. The termination of a services contract in January, the sale of two unprofitable infusion centers in April, the sale of an unprofitable respiratory and home medical equipment center in July, and the sale of the rehab centers in September have negatively impacted revenues by approximately $4.8 million in the third quarter of 2001 and by $9.5 million during the first nine months of 2001. A portion of this lost revenue was offset by the consolidation of several of the Company's hospital joint ventures during the second and third quarters of 2000.

Excluding the one-time charge associated with the loss on the sale of the assets of the rehab centers, EBITDA margin for the third quarter of 2001 was 13.7% of revenues compared to 13.8% for the third quarter of 2000. For the first nine months of 2001, EBITDA margin was 13.6%, compared to 12.4% for the same period in 2000. Overall, operating expenses decreased in the current nine-month period compared to last year, due primarily to improvements in bad debt expense. As a percentage of revenues, bad debt expense for the first nine months of 2001 was 4.7%, compared to 7.0% for the same period of 2000. This improvement in bad debt expense is largely the result of improved cash collections resulting from the redesign and standardization of reimbursement processes and the consolidation of certain billing locations into larger regional billing centers. For the third quarter of 2001, bad debt expense was 6.1% of revenues, compared to 5.7% for the third quarter of 2000. Bad debt expense in the current quarter reflects a temporary reduction in cash collections in September, resulting primarily from payment processing problems experienced by Texas Medicaid during the month and a general delay in payments received by the Company during the first few weeks following the September 11th terrorists attack.

American HomePatient is one of the nation's largest home health care providers with 293 centers in 36 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, 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 within the meaning of the Private Securities Litigation Reform Act 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 ability to remain in compliance with debt covenants, 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 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 services.

American HomePatient
Summary Financial Data
(In thousands, except per share data)

 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 ------------------- -------------------
 2001 2000 2001 2000
 -------- -------- -------- --------

Revenues $ 87,615 $ 91,504 $268,511 $270,528

Cost of sales and
 related services 18,611 21,102 62,205 64,107

Operating expenses 53,183 53,699 158,127 161,654

General and administrative
 expenses 3,792 4,110 11,682 11,141

Depreciation and
 amortization 8,771 10,122 26,046 30,216

Loss on sale of
 rehab assets 2,629 -- 2,629 --

Earnings before interest
 and taxes 629 2,471 7,822 3,410

Pre-tax loss (5,705) (5,259) (14,112) (19,364)

Net loss $ (5,855) $ (5,409) $(14,562) $(19,814)

Basic loss per share $ (0.34) $ (0.35) $ (0.87) $ (1.27)
Diluted loss per share $ (0.34) $ (0.35) $ (0.87) $ (1.27)

Weighted average shares
 outstanding - Basic 17,020 15,661 16,704 15,620
Weighted average shares
 outstanding - Diluted 17,020 15,661 16,704 15,620


 Sept. 30, Dec. 31,
 2001 2000
 -------- --------
Cash & Equivalents $ 13,857 $ 12,081
Restricted Cash 166 179
Net Patient Receivables 62,190 74,498
Other Receivables 1,281 967
 -------- --------
 Total Receivables 63,471 75,465
Other Current Assets 13,991 17,011
 -------- --------
 Total Current Assets 91,485 104,736
Property and Equipment, Net 47,915 52,998
Goodwill 191,088 197,491
Other Assets 22,172 23,289
 -------- --------
 Total Assets $352,660 $378,514
 ======== ========

Accounts Payable $ 17,388 $ 16,449
Current Portion of Long Term Debt 7,435 2,679
Other Current Liabilities 28,501 30,937
 -------- --------
 Total Current Liabilities 53,324 50,065

Long Term Debt, less current portion 282,734 296,473
Other Liabilities 4,723 5,737
 -------- --------
 Total Liabilities 340,781 352,275
 Total Stockholders' Equity 11,879 26,239
 -------- --------
 Total Liabilities and Equity $352,660 $378,514
 ======== ========
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Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 7, 2001
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