Concentra Operating Corporation Increases Fourth Quarter Earnings Expectations.Business Editors/Health/Medical Writers ADDISON, Texas--(BUSINESS WIRE)--Jan. 30, 2004 Concentra Operating Corporation ("Concentra" or the "Company") today announced that it anticipates reporting revenue of approximately $269 million and consolidated Adjusted Earnings Before Interest Taxes Depreciation and Amortization Noun 1. Earnings Before Interest Taxes Depreciation and Amortization - income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts) ("Adjusted 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 ") of $36 million for the quarter ended December 31, 2003. This would represent an approximate increase of 8% in revenue and 30% in Adjusted EBITDA as compared to the year-earlier period, and would bring Concentra's Adjusted EBITDA for the full year to approximately $153 million. Concentra computes Adjusted EBITDA in the manner prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by its bond indentures Bond indenture Contract that sets forth the promises of a bond issuer and the rights of investors. bond indenture See indenture. . A reconciliation of Adjusted EBITDA to net income is provided within this press release. Concentra stated that fourth quarter results were aided by a 4.8% increase in same-center visits to its Health Centers and the continued benefit of new customer growth in its Network Services segment. The Company also indicated that revenue trends in its Care Management business continue to show declines from the year-earlier period. The Company currently intends to issue its formal press release regarding fourth quarter earnings on February 11th and to hold its conference call concerning its financial results at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on February 12th. However, to enable executives from the Company to present updated information at the JP Morgan Annual High Yield Conference in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded on Tuesday, February 3rd, the Company has elected to make its preliminary expectations of financial results available to the public. The presentation being provided to investors at the conference and the Company's conference call will be made available on the Company's website at www.concentra.com. Due in part to its strong operating results, an improvement of its 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). to a historic low of 58 days and its seasonally strong fourth quarter operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , Concentra estimates that it produced roughly $113 million in operating cash flows during 2003. The Company also stated that it expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. approximately $30 million for capital expenditures during 2003 and that it had approximately $43 million in cash and investments at the close of the year. Concentra stated that the preliminary results contained in this press release are all individually subject to material change pending the completion of the Company's annual review and external audit of financial results. Concentra Operating Corporation, the successor to and a 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. of Concentra Inc., is the comprehensive outsource solution for containing healthcare and disability costs. Serving the occupational, auto and group healthcare markets, Concentra provides employers, insurers and payors with a series of integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. which include employment-related injury and occupational health care, in-network and out-of-network medical claims review and re-pricing, access to specialized preferred provider organizations pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. , first notice of loss services, case management and other cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. services. This press release and its incorporated schedules contain certain 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. , which the Company is making in reliance on the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and that the Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the completion of the Company's review and audit of its financial results, potential adverse impact of governmental regulation on the Company's operations, changes in nationwide employment and injury rate trends, interruption in data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a capabilities, operational, financing and strategic risks related to the Company's capital structure and growth strategy, possible fluctuations in quarterly and annual operations, possible legal liability for adverse medical consequences, competitive pressures, adverse changes in market conditions for the Company's services, and dependence on key management personnel. Additional factors include those described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
CONCENTRA OPERATING CORPORATION
a wholly owned subsidiary of
CONCENTRA INC.
Preliminary and Unaudited Reconciliation of
Net Income to Adjusted EBITDA
(in millions)
Three Months Twelve Months
Ended Ended
December 31, December 31,
--------------- ---------------
2003 2002 2003 2002
------ ------ ------ ------
Net income (loss) $ (5) $ 0 $ 29 $ (4)
Provision (benefit) for
income taxes 15 3 21 4
Interest expense, net 13 15 56 64
Depreciation expense 12 11 46 43
Amortization of intangibles 1 1 4 4
----- ----- ----- -----
EBITDA 36 30 156 111
(Gain) loss on fair value of
hedging arrangements 0 (1) (10) 7
Loss on early retirement
of debt 0 1 8 8
Unusual charges 0 (1) 0 (1)
Minority share of depreciation,
amortization and interest 0 (1) (1) (2)
----- ----- ----- -----
Adjusted EBITDA $ 36 $ 28 $ 153 $ 123
===== ===== ===== =====
Computations of Adjusted Earnings Before Interest Taxes Depreciation and Amortization ("Adjusted EBITDA") have been provided in this press release due to the use of this measure by the holders of the Company's 13% senior subordinated notes and 9.5% senior subordinated notes, and other lenders, for purposes of determining the Company's performance in light of its debt covenant requirements, which are stated in the Company's debt agreements as measures that relate to Adjusted EBITDA. Adjusted EBITDA is disclosed because compliance with the liquidity covenants included in these agreements is considered material to the Company. The Company's computations of this measure may differ from that provided by other companies due to differences in the inclusion or exclusion of items in its computations as compared to that of others. The Company's measure of Adjusted EBITDA has been prepared in accordance with the requirements of the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. that relates to its 13% senior subordinated notes and 9.5% senior subordinated notes. Adjusted EBITDA is a measure that is not prescribed for under Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Adjusted EBITDA specifically excludes changes in working capital, capital expenditures and other items that are set forth on a cash flow statement presentation of a company's operating, investing and financing activities, and it also excludes the effects of interest expense, depreciation expense, amortization expense, taxes and other items that are included when determining a company's net income. As such, the Company would encourage a reader not to use this measure as a substitute for the determination of net income, operating cash flow, or other similar GAAP-related measures, and to use it primarily for the debt covenant compliance purposes above. These results are preliminary and subject to change pending the Company's completion of its review and audit of financial results for the periods presented. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion