CHAMPION HEALTHCARE CORPORATION REPORTS SIGNIFICANT INCREASES INNET REVENUE, EBITDA, AND OPERATING INCOME IN 1995.HOUSTON--(BUSINESS WIRE)--Feb. 27, 1996--Champion Healthcare Corporation (AMEX AMEX See: American Stock Exchange :CHC CHC Chicago Cubs CHC Community Health Center CHC Chestnut Hill College (Philadelphia, Pennsylvania) CHC Congressional Hispanic Caucus CHC Community Health Council (UK National Health Service) ) today announced its financial results for the fourth quarter and year ended December 31, 1995. The Company's 1995 financial results reflect increases of 61% in net revenue, 107% in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , and 48% in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , compared with the year ended December 31, 1994. For the fourth quarter ended December 31, 1995, the Company reported increases of 51% in net revenue, 341% in EBITDA, as well as achieving income from operations versus an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the fourth quarter last year. The increases were attributable to hospital and other health care related acquisitions by the Company in the fourth quarter of 1994 and acquisitions and continued improvement in hospital margins made throughout 1995. For the quarter ended December 31, 1995, net revenue was $49,685,000 compared with net revenue of $32,896,000 in last year's quarter. The Company's EBITDA was $8,818,000 compared with EBITDA of $2,002,000 in the quarter ended December 31, 1994. As a percentage of net revenue, the Company's EBITDA more than doubled to 17.7% for the 1995 fourth quarter compared with 6.1% in the same period in 1994. Operating income was $1,287,000 compared with an operating loss of $1,063,000 in the fourth quarter ended December 31, 1994. Net income before non-cash preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends was $1,635,000 compared with a net loss of $1,015,000 in last year's quarter. The Company provided for non-cash preferred stock dividends of $6,850,000 and $1,238,000 in the quarters ended December 31, 1995 and 1994, respectively, which included a dividend paid in common stock of approximately $5,349,000 to preferred shareholders in the fourth quarter of 1995 as part of the Company's recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. . The loss applicable to common shareholders after provision for non-cash preferred stock dividends was $5,215,000, or $1.22 per share, compared with a loss after provision for non-cash preferred stock dividends of $2,253,000, or $1.03 per share. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, assuming that the recapitalization had occurred on December 31, 1994, the Company's pro forma primary and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.13 and $0.09, respectively, for the quarter ended December 31, 1995. For the year ended December 31, 1995, net revenue was $167,520,000 compared with $104,193,000 in 1994. The Company's EBITDA was $26,522,000 in 1995 compared with $12,828,000 in the year ended December 31, 1994. As a percentage of net revenue, the Company's EBITDA increased to 15.8% for fiscal year 1995 versus 12.3% for fiscal year 1994. Operating income was $3,614,000 compared with operating income of $2,443,000 in the year ended December 31, 1994. Income before non-cash preferred stock dividends and an extraordinary charge was $3,432,000 compared with income of $2,243,000 before non-cash preferred stock dividends in 1994. The Company provided for non-cash preferred stock dividends of $11,331,000 and $4,710,000 in the years ended December 31, 1995 and 1994, respectively, which included a dividend paid in common stock of approximately $5,349,000 to preferred shareholders in 1995, as part of the Company's recapitalization. The loss applicable to common shareholders after provision for non-cash preferred stock dividends and an extraordinary charge was $9,017,000 in 1995, or $2.12 per share, compared with a loss applicable to common shareholders after provision for preferred stock dividends of $2,467,000, or $1.69 per share, in the prior period. On a pro forma basis, assuming that the recapitalization had occurred on December 31, 1994, the Company's pro forma primary and fully diluted earnings per share before extraordinary item were $0.27 and $0.19, respectively, for the year ended December 31, 1995. The Company previously announced that it had completed a Recapitalization Agreement with its preferred shareholders and warrant holders effective December 31, 1995. The purpose of the recapitalization was to enhance common shareholder value through reducing the complexity of Champion's capital structure, eliminating the impact on earnings per share of the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of preferred stock dividends, and thereby providing the opportunity for greater interest from the investing community both now and in the future. As a part of the recapitalization, the Company issued common stock valued at $14,921,000 (based on the closing price of the Company's common stock on the last trading day Last Trading Day The final day that a futures or options contract may trade or be closed out before delivery of the underlying asset must occur. Notes: If the buying and selling parties do not arrange an alternate agreement, the physical commodity must be delivered from prior to the Agreement), in settlement of all accrued dividends on its preferred stock as of December 31, 1995. Consequently, common shares outstanding increased from 4,262,386 to 11,868,230 and preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. outstanding decreased from 10,452,369 to 2,605,714. Other than for fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. , no cash consideration was paid under the terms of the Recapitalization. Charles R. Miller Charles Robert Miller (September 30 1857 – September 18 1927) was an American lawyer and politician from Wilmington, in New Castle County, Delaware. He was a member of the Republican Party, who served in the Delaware General Assembly and as Governor of Delaware. , chairman, president and chief executive officer of Champion, said, "1995 was a pivotal year for our company, representing a significant period of growth and transition which we believe will contribute to our goal of enhancing shareholder value. We are especially pleased with the steady and continued improvement in the Company's EBITDA during 1995, representing focused management effort to successfully assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism. the six new hospitals which we added to our system over the past 15 months. Further, the recapitalization should generate greater following of the Company by the investing community." In closing, Mr. Miller said, "We expect continued growth in revenues, EBITDA and margins during 1996. The nine hospitals we now operate all share the common characteristics of demonstrating improving financial performance while continuing their focus on measurably improving quality and customer service. Moreover, there are an increasing number of attractive acquisitions which we are actively pursuing as an avenue for further expansion. We are confident that Champion has established a solid platform from which to achieve continued profitable growth based upon a sound business strategy, a focused program of operational improvement, and targeted acquisition opportunities." Previously, the Company announced that it had entered into a definitive agreement with Columbia/HCA to acquire Jordan Valley Jordan Valley may refer to:
n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. , both in Prattville, Alabama Prattville is a city located in Autauga County, in the U.S. state of Alabama. As of 2006 Census Bureau estimates, the population of the city is 31,119.[1] The city is the county seat of Autauga County, Alabama. , plus additional cash consideration. The transaction was recently approved by the Federal Trade Commission and is expected to close by the end of February 1996. Champion recently announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , CareServices of America, has acquired Select Health Systems of Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. . Select owns and operates home health agencies that provide a full range of services in Salt Lake City, Ogden and Provo. During 1995, Select had over 90,000 home health visits and generated revenue of approximately $5.3 million. Champion Healthcare Corporation, a public company listed on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , was founded in 1990 and is headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the . Including hospital partnerships, Champion presently owns or operates nine hospitals and one skilled nursing facility in seven states, with a total of 1,389 licensed beds. -0-
CHAMPION HEALTHCARE CORPORATION
Unaudited Selected Operating Data
(Dollars in thousands, except per share data)
Quarter Ended Year Ended
December 31, December 31,
Percent Percent
1995 1994 Change 1995 1994 Change
Net Revenue $ 49,685 $ 32,896 51.0% $167,520 $104,193 60.8% Operating Expenses $ 40,867 $ 30,894 32.3% $140,998 $ 91,365 54.3% EBITDA(1) $ 8,818 $ 2,002 340.5% $ 26,522 $ 12,828 106.8% EBITDA Percentage 17.7% 6.1% 15.8% 12.3% Capital Costs(2) $ 7,531 $ 3,065 145.7% $ 22,908 $ 10,385 120.6% Operating Income (Loss) $ 1,287 $ (1,063) $ 3,614 $ 2,443 47.9% Minority Interests $ (45) $ - $ 32 $ - Income (Loss) Before Income Taxes & Extraordinary Item $ 1,332 $ (1,063) $ 3,582 $ 2,443 46.6% Income (Loss) Before Extraordinary Item $ 1,635 $ (1,015) $ 3,432 $ 2,243 53.0% Extraordinary Item $ - $ - $ 1,118 $ - Net Income (Loss) $ 1,635 $ (1,015) $ 2,314 $ 2,243 3.2% Loss Applicable to Common Shareholder(3) $ (5,215) $ (2,253) $ (9,017) $ (2,467) Loss Per Common Share Before Extraordinary Item $ (1.22) $ (1.03) $ (1.86) $ (1.69) Loss Per Common Share $ (1.22) $ (1.03) $ (2.12) $ (1.69) Weighted Average Shares Outstanding 4,283 2,192 4,255 1,457
(1) Earnings before interest, taxes, depreciation, amortization
and minority interest.
(2) Capital costs include depreciation, amortization and
interest.
(3) Net income less preferred stock dividend requirements of
$6,850,000 and $1,238,000 for the quarters ended December 31, 1995
and 1994, respectively, and $11,331,000 and $4,710,000 for the years
ended December 31, 1995 and 1994, respectively. The deduction to net
income for the quarter and year ended December 31, 1995, included a
dividend paid in common stock of approximately $5,349,000 to
preferred shareholders as part of the recapitalization.
CONTACT: Champion Healthcare Corporation, Houston James G. VanDevender or Deborah H. Frankovich 713/583-5491 |
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