American HomePatient Reports Third Quarter 1997 Earnings.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. 11, 1997--American HomePatient, Inc. (Nasdaq: AHOM), one of the nation's largest home health care providers, today announced its earnings for the quarter ended September September: see month. 30, 1997. 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's net revenues increased 43 percent to a record high $102.7 million compared to $72.0 million in 1996. Same store revenues grew as expected at nine percent in the third quarter compared to the prior year quarter. The company recorded a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $67.0 million in the third quarter related to its previously announced restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, goodwill write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. and related charges which totaled $65.0 million as well as other non-recurring pre-tax charges of $2.0 million. Due to these pre-tax charges, the company reported a net loss for the quarter ended September 30, 1997 of ($40.2) million compared to $4.3 million net income for the third quarter of 1996. The company also recorded a loss per share for the quarter of ($2.68) on 15.0 million average shares outstanding compared to earnings per share of $0.29 on 15.0 million average shares outstanding in the third quarter of 1996. Excluding the total non-recurring pre-tax charges of $67.0 million, earnings per share were $0.35 for the third quarter. Revenues for American HomePatient during the first nine months of 1997 increased 49 percent to $282.0 million compared to $189.5 million recorded in the prior-year period. Same store revenues grew a solid 10 percent for the nine months compared to the same period in 1996. Net income for the first nine months declined to a net loss of ($30.7) million compared to net income of $10.8 million last year. The earnings per share for the nine months decreased to a loss of ($2.04) on 15.0 million average shares outstanding compared to earnings of $0.80 on 13.4 million average shares outstanding in 1996. Excluding the total non-recurring pre-tax charges of $67 million, earnings per share for the nine months were $0.99. On September 25, 1997, American HomePatient announced its plans to aggressively respond to the 30 percent reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rate cuts for Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. home oxygen services included in the 1997 Balanced Budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. Act. The specific actions resulting from this activity include redefining the company's strategic imperatives; taking pre-tax accounting charges in the third quarter of 1997 of $65 million; closing, consolidating or scaling back approximately 20 percent of the company's total operating centers; closing or scaling back nine billing centers; and eliminating marginal products In economics, the marginal product or marginal physical product is the extra output produced by one more unit of an input (for instance, the difference in output when a firm's labour is increased from five to six units). and services at numerous locations. American HomePatient has chosen to take decisive steps to fundamentally reshape the company and redefine Verb 1. redefine - give a new or different definition to; "She redefined his duties" define, delimit, delimitate, delineate, specify - determine the essential quality of 2. its `strategic imperatives' to better position the company for continued growth in a dynamic home health care environment. These imperatives include: -- Continuing role as an active consolidator in the home health care market to take advantage of the increased acquisition opportunities presented by current market conditions. -- Maximizing operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. by (i) achieving cost-efficiencies, (ii) initiating process and structure improvements at all levels of the company's operations, and (iii) optimizing regional density. These initiatives are intended to produce and sustain double-digit EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). (earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income ) margins in 1998. -- Accelerating the development of joint ventures and strategic alliances with prestigious hospitals and integrated health care integrated health care, n healthcare services combining the best of conventional and complementary health care. delivery systems. -- Increasing local market share by focusing on the company's core product categories of respiratory and infusion services. -- Continuing the company's commitment to provide Personal Caring Service, which keeps quality patient care at the forefront of all activities. Following are American HomePatient's highlights for the nine months ended September 30, 1997: Strong same store revenue growth. The company recorded a nine percent increase in same store revenue growth for the third quarter and a solid 10 percent for the nine months which is at the high end of the company's stated goal for the year. Continued expansion into the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . Since the company's announcement of its westward expansion strategy, it has acquired five home health care companies in the region including two in Nevada, two in Washington, and one in Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. . It has also signed strategic alliances agreements with two hospitals in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nev., and developed an equity joint venture which included a start-up Start-up The earliest stage of a new business venture. home health care operation with five hospitals in Denver, Colo. Development of joint ventures and strategic alliances with hospitals and integrated health care delivery systems. To date in 1997, American HomePatient has signed six new hospital agreements including five multi-year contractual alliance agreements with 22 hospitals in six states and one equity joint venture with the Centura Health System in the Denver metropolitan area. The company also recently announced the expansion of its dedicated strategic alliances development team to take advantage of opportunities to further its efforts in this area. Continued active acquisition program. Since January 1997, American HomePatient has announced the acquisition of 26 home health care companies with 60 centers and 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 $72.3 million. "American HomePatient has a proven track record over the past six years as a rapid industry consolidator and a solid financial performer," stated Edward K. Wissing, president and chief executive officer of American HomePatient. "We have chosen to take decisive steps to aggressively respond to planned Medicare reimbursement cuts and changing market conditions to fundamentally reshape the company for sustainable growth. "Home care is, and will continue to be, a very vibrant and exciting industry. American HomePatient has the financial stability, the management talent, and more importantly, the resolve to make changes and be flexible in an opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. environment. We are excited about moving the company into its next phase of growth and success," concluded Wissing. American HomePatient, with over 300 home health care centers in 35 states, is recognized as one of the leading home health care companies in the country. Its current 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 the home. American HomePatient's common stock is traded in the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (National Market) under the symbol AHOM. Forward looking statements made in this release involve a number of risks and uncertainties, including, but not limited to, the company's ability to achieve significant expected cost savings or synergies from the closing or consolidation of centers and other reshaping efforts described in this release, the impact of further changes in government reimbursement, government regulation and health care reforms, the ability to execute on the company's strategic imperatives, therefore, changing the economic and market conditions and other risk factors detailed in the company's Securities and Exchange Commission filings. -0-
American HomePatient
Summary Financial Data
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30,
----------------- -----------------
1997 1996 1997 1996
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Revenues 102,651 71,980 282,026 189,451
Cost of sales and related
services 31,085 15,449 72,442 40,463
Operating expenses 70,163 36,570 162,345 96,376
General and administrative
expenses 4,130 4,475 11,761 12,044
Depreciation and amortization 9,013 6,544 24,526 17,093
Restructuring charge 33,829 0 33,829 0
Goodwill impairment 8,165 0 8,165 0
Earnings (loss) before interest
and taxes (53,734) 8,942 (31,042) 23,475
Pre-tax income (loss) (58,287) 7,010 (42,492) 17,549
Net income (loss) (40,196) 4,304 (30,656) 10,775
Earnings (loss) per share ($2.68) $0.29 ($2.04) $0.80
Weighted average shares
outstanding 15,022 15,010 15,030 13,414
Dec. 31 Sept. 30
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1996 1997
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Cash & Equivalents 7,724 6,594
Accounts Receivable, Net 79,460 96,969
Other Current Assets 31,616 48,507
--------- ---------
Total Current Assets 118,800 152,070
Property and Equipment, Net 56,870 66,590
Goodwill 198,193 238,762
Other Assets 21,748 37,065
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Total Assets 395,611 494,487
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Accounts Payable 8,698 11,023
Current Portion of Long Term
Debt 10,245 8,956
Other Current Liabilities 15,845 32,665
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Total Current Liabilities 34,788 52,644
Long Term Debt, less current
portion 139,458 247,822
Other Liabilities 5,723 5,826
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Total Liabilities 179,969 306,292
Total Stockholders' Equity 215,642 188,195
--------- ---------
Total Liabilities and Equity 395,611 494,487
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CONTACT: American HomePatient Inc., Brentwood Edward K. Wissing, Mary Ellen Rodgers or Kathey S. Palmer, 615/221-8884 |
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