American HomePatient reports record revenues and net income for third quarter of 1996.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. 6, 1996--American HomePatient Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AHOM), one of the nation's largest diversified diversified (di·verˑ·s providers of home health care services, today announced record revenues and net income for the third quarter ended Sept. 30, 1996. 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 57 percent to a record high $72.0 million in the third quarter compared to $45.8 million in 1995. 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 rose 53 percent to $8.9 million from $5.8 million. Net income increased 65 percent to $4.3 million from $2.6 million last year. The company also recorded a 26 percent increase in earnings per share to $0.29 on 15.0 million average shares outstanding (a 28 percent increase in shares over 1995) compared with $0.23 on 11.7 million average shares outstanding in the third quarter of 1995. Revenues for American HomePatient during the first nine months of 1996 increased 67 percent to $189.5 million compared with $113.5 million recorded in the prior-year period. Earnings before interest and taxes increased 63 percent to $23.5 million from $14.4 million. Net income for the first nine months rose 61 percent to $10.8 million from $6.7 million. The earnings per share for the nine months rose 25 percent to $0.80 on 13.4 million average shares outstanding compared to $0.64 on 10.6 million average shares outstanding in 1995. Financial results reflect American HomePatient's three-for-two stock split effective June June: see month. 28 and distributed to stockholders on July July: see month. 12. Prior-year earnings per share have been adjusted for comparability. American HomePatient's same store business grew 10 percent for the quarter and 11 percent for the nine months, excluding the ConPharma acquisition made in 1995. Including ConPharma, the company recorded six percent same store revenue growth for the quarter and nine percent for the nine months which was in line with the company's expectations. "Our core same store business continues to exhibit strong revenue growth and the ConPharma centers are performing as expected," said Edward K. Wissing, president and chief executive officer of American HomePatient. "Last year, when we acquired ConPharma, we knew our first challenge was to improve the bad debt and days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). for this business which were seven percent and 145 days respectively. Consequently, we established immediate and challenging goals for improvement. As of Sept. 30, 1996, we are on target to attain our goals and have improved their working capital considerably by decreasing the bad debt to five percent and DSO See CSO. to 111. Next, our priority for the ConPharma centers will be building revenues and we fully expect them to be in accord with our other same store operations by the end of 1997. "American HomePatient, as a company overall, has had a very active and successful 1996 to date. This has been a year of milestones for us. We have acquired more home health care companies than in any other year. We also had a very successful secondary offering, expanded our bank credit facility and provided our stockholders a 3-for-2 stock split. Moreover, our growth necessitated the need for us to move our corporate headquarters into a larger facility." Following are highlights for the nine months: Significant acquisition activity. Since the beginning of 1996, American HomePatient has been one of the most active consolidating companies in the home health care industry. It has acquired 33 home health care companies with 88 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 $91 million. The largest acquisition made this year was Miller Medical with 16 centers in four states and annualized revenues of $19 million. Today, American HomePatient has 292 home health care centers in 32 states, having grown ten-fold in size the past four years. This includes the most recent acquisitions announced by the company yesterday -- Parkview Homecare Pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , with one center in Buffalo, N.Y. and annualized revenues of $4.5 million and the infusion business of Happy Harry's Happy Harry's, a Walgreens Pharmacy, is a division of the Walgreens Company which operates 76 locations in Delaware, Pennsylvania, Maryland and New Jersey. It was founded in 1962 by entrepreneur Harry Levin. Institutional Pharmacy in Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). with approximately $0.3 million in revenues. Development of joint ventures and strategic alliances with hospitals and integrated delivery systems integrated delivery system Integrated provider Medical practice A coordinated health care system formed by physician groups and hospitals which ↑ efficiency and ↓ redundancy in providing health care; IDSs coordinate delivery of a broad range of health . Earlier in 1996, American HomePatient established a new, dedicated team of experienced, senior operations executives to spearhead the company's efforts to expand these relationships. So far this year, the company has developed three new hospital equity joint venture partnerships and signed contractual alliance agreements with 14 hospitals in Florida List of hospitals in Florida (U.S. state), sorted by hospital name. A-F
According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Wissing, American HomePatient is very enthused about the prospects for further growth and expansion in the home health care market. "Home health care is still in the early stages of consolidation. We believe our strategies provide us a solid platform for continued growth by acquisitions, strategic alliances and joint venture partnerships and same store revenues." American HomePatient is one of the largest diversified providers of home health care services in the country with 292 centers in 32 states. Its primary product and service offerings include home respiratory services, home infusion therapy home infusion therapy The IV administration of therapeutics–analgesics, antibiotics, chemotherapy, parenteral nutrition–outside of a formal healthcare environment. See Hyperalimentation, Patient-controlled analgesics, TPN. , and home medical equipment and supplies. 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, changes in government reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , government regulation and health care reforms, ability to execute on the company's acquisition and strategic alliances programs, both in finding suitable acquisitions and alliance candidates and financing therefore, changing economic and market conditions and other risk factors detailed in the company's Securities and Exchange filings. -0-
AMERICAN HOMEPATIENT INC.
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1995 1996 1995 1996
Revenues $ 45,795 $ 71,979 $113,534 $189,451
Cost of sales and
related services 10,003 15,449 24,001 40,463
Operating expenses 22,901 36,570 57,032 96,376
General and
administrative
expense 3,009 4,475 8,442 12,044
Depreciation and
amortization 4,110 6,543 9,673 17,093
Earnings before
interest and taxes 5,772 8,942 14,386 23,475
Pre-tax income 4,398 7,010 11,226 17,549
Net Income 2,640 4,304 6,739 10,775
Earnings per share $0.23 $0.29 $0.64 $0.80
Weighted average shares
outstanding 11,723 15,010 10,551 13,414
Dec. 31, Sept. 30,
1995 1996
Cash & Equivalents $ 4,599 $ 2,743
Accounts Receivable, Net 47,251 67,960
Other Current Assets 20,063 31,463
Total Current Assets 71,913 102,166
Property and Equipment, Net 40,661 53,681
Goodwill 107,234 183,352
Other Assets 12,708 17,898
Total Assets $232,516 $357,097
Accounts Payable 4,815 6,972
Current Portion of Long
Term Debt 8,999 9,908
Other Current Liabilities 11,827 11,550
Total Current Liabilities 25,641 28,430
Long Term Debt, less
Current Portion 84,607 114,425
Other Liabilities 2,837 3,292
Total Liabilities 113,085 146,147
Total Stockholders' Equity 119,431 210,950
Total Liabilities and
Equity $232,516 $357,097
CONTACT: American HomePatient Inc., Brentwood Ed Wissing, Kathey Palmer or Mary Ellen Rodgers 615/221-8884 |
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