American HomePatient reports record revenue and income growth for the third quarter; revenues up 89% and net income increased 84%.

FRANKLIN, Tenn.--(BUSINESS WIRE)--Nov. 6, 1995--Edward K. Wissing, president and chief executive officer for American HomePatient (NASDAQ:AHOM) today announced an 89% increase in revenues and an 84% increase in net income for the quarter ended Sept. 30, 1995.

American HomePatient's net revenues increased 89% to an all-time high $45.8 million in the third quarter up from $24.2 million the previous year. Earnings before interest and taxes rose 109% to $5.8 million compared to $2.8 million, and net income rose 84% to $2.6 million up from $1.4 million last year.

The earnings per share increased 31% to $0.34 on 7.8 million average shares outstanding compared to $0.26 per share on 5.5 million average shares outstanding last year.

Revenues for the first nine months of 1995 increased 80% to $113.5 million compared with $63.1 million recorded in the prior-year period. Earnings before interest and taxes increased 88% to $14.4 million from $7.7 million.

Net income for the nine months rose 72% to $6.7 million from $3.9 million the year before. The earnings per share for the first nine months were $0.96 on 7 million average shares outstanding compared to $0.72 per share on 5.5 million average shares outstanding the prior year.

The company also reported same-store revenue growth of 14% for the quarter and 12% for the nine months.

"Our excellent financial results for the quarter and the nine months reflect our continued focus on regional expansion through acquisitions, the development of joint venture partnerships with prestigious hospitals and integrated delivery systems, and strong same-store revenue growth," stated Wissing.

This year alone American HomePatient has acquired 60 new centers with annualized revenues of over $66 million, marking the largest growth year to date in the company's history.

Additionally, it also developed two new joint venture partnerships with Columbia/HCA in Central Virginia (including Richmond) and Jackson, Tenn. It also expanded the number of hospitals involved in the existing joint venture with Columbia/HCA in Nashville, Tenn. from three to 10 hospitals.

Last week, American HomePatient announced an increase in its committed acquisition line of credit from $90 million to $150 million. "The changes occurring in today's home health-care environment have created greater consolidation opportunities," said Wissing. "The additional funding provided by this increase enables us to continue to implement our strategic acquisition expansion program well into 1996."

American HomePatient is the third largest diversified provider of home health-care services in the country with 204 centers in 27 states. The company's primary product and service offerings include home respiratory services, home infusion, parenteral and enteral nutrition, and home medical equipment.

American HomePatient's common stock is traded in the Nasdaq Stock Market (National Market) under the symbol AHOM.

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                          AMERICAN HOMEPATIENT
            (In thousands, except per share and percent data)

                       Unaudited Results for     Unaudited Results for
                        Three Months Ended         Nine Months Ended
                             Sept. 30,                 Sept. 30,
                          1995      1994            1995      1994
Revenues                $ 45,795  $ 24,244        $113,534  $ 63,087
Cost of sales and
 related services         10,003     4,973          24,001    12,159
Operating expenses        22,901    12,761          57,032    33,190
General and
 administrative
 expenses                  3,009     2,047           8,442     5,507
Depreciation and
 amortization              4,110     1,696           9,673     4,575
Earnings before
 interest and taxes        5,772     2,767          14,386     7,656
Pre-tax income             4,398     2,311          11,226     6,305
Income from continuing
 operations                2,640     1,433           6,739     3,908
Income from continuing
 operations per share   $   0.34  $   0.26        $   0.96  $   0.72
Weighted average shares
 outstanding               7,815     5,545           7,034     5,457

                                Dec. 31   Sept. 30
                                 1994       1995
Cash & Equivalents             $  4,079  $  2,426
Accounts Receivable,
 Net                             24,039    45,013
Other Current Assets             10,278    15,993
 Total Currents Assets           38,396    63,432
Property and Equipment, Net      24,655    39,924
Goodwill                         40,015    91,654
Other Assets                      7,899    10,770
 Total Assets                  $110,965  $205,780

Trade Accounts Payable            3,185     5,190
Current Portion of Long
 Term Debt                        2,042     6,790
Other Current Liabilities        12,321     6,991
 Total Current Liabilities       17,548    18,971
LT Debt and Leases, less
 Current Portion                 33,866    68,094
Other Liabilities                 1,455     1,679
 Total Liabilities               52,869    88,744
 Total Stockholders' Equity      58,096   117,036
 Total Liabilities and
  Equity                       $110,965  $205,780

CONTACT: American HomePatient, Franklin

Ed Wissing or Kathey Palmer, 615/794-3313