American HomePatient Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 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)--Nov. 7, 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 market (OTC). :AHOM) today reported its financial results for the three months and nine months ended September September: see month. 30, 2001. Excluding a one-time one-time
1. or one·time
a. Occurring or undertaken only once: a one-time winner in 1995.
b. 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 Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
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 February: see month. 28, 2002. The rehab centers provided custom-built cus·tom-built
Built according to the specifications of the buyer.
custom-built or -made
made according to the specifications of an individual customer
Noun seating and positioning systems and custom-built wheelchairs to patients with impaired mobility. At the time of the sale, the rehab centers generated annualized annualized
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. 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 January: see month. , the sale of two unprofitable infusion centers in April, the sale of an unprofitable respiratory and home medical equipment center in July July: see month. , 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 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 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 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. 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 Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. 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 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.
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 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 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 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 ======== ========