Coram Healthcare Announces First Quarter 1999 Results; EBITDA Doubled; Positive EPS Before Restructuring Charge.DENVER--(BW HealthWire)--May 4, 1999-- Coram Healthcare Corporation (NYSE NYSE See: New York Stock Exchange :CRH CRH corticotropin-releasing hormone. CRH abbr. corticotropin-releasing hormone CRH corticotropin releasing hormone. ) reported financial results today for the first quarter ended March 31, 1999. As previously announced, the company's results for the quarter include a one-time charge of $950,000 for severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when expenses related to an organizational 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). completed during the first quarter. Comparing the company's first quarter 1999 results with the same period last year: -0-
-- Revenue grew to $161.0 million from $107.7 million, an increase
of 49%.
-- EBITDA increased to $12.7 million from $5.8 million. Basic EBITDA
per share for the first quarter of 1999 was $0.26.
-- Net income (loss) improved to $(0.4) million from $(15.1)
million. Excluding the restructuring charge, net income was $0.5
million for the first quarter of 1999.
-- The loss per share was $(0.01) compared with a loss per share of
$(.31). Excluding the restructuring charge, basic EPS was $0.01.
-0- "We are very pleased with our first quarter performance, which reflects continued growth in the base 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. business as well as our network management, prescription, and clinical research services," said Richard M. Smith, Coram's chief executive officer. "Compared with the first quarter last year, home infusion revenue increased by 14% and patient census increased by 4,900 patients, or 10%. We continue to serve more medically complex patients, take market share from our competitors and sign new contracts with managed care and other payers." "The Company's Resource Network Division (R-Net) built an operational infrastructure in the last half of 1998 that is serving as a base of expansion for new accounts," Smith said. "R-Net's contract with Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. is fully operational and the Division is serving Aetna'enrollees in eight states." "Revenue in the Coram Prescription Services (CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. ) Division more than doubled in the first quarter compared with the prior year, driven by continued growth in both pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. and mail order services," Smith continued. "To accommodate its rapid growth, CPS moved into a new, high volume facility in Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. in March of this year. The Division is also establishing the technical infrastructure required to accept orders for prescription medicines, and to sell over-the-counter products and other health-related products on the Internet." "Coram's newest division, Clinical Research and Medical Informatics medical informatics, n the field of information science concerned with the analysis and dissemination of medical data through the application of computers to various aspects of health care and medicine. , has obtained several contract commitments in less than five months," Smith said. "Coram's national network of 1,000 highly skilled nurses and pharmacists This is a list of notable pharmacists.
Subsequent to the end of the quarter, the company announced changes to the terms of its Series A Senior Subordinated and Series B Senior Subordinated Convertible Notes. Coram and its debtholders agreed to increase the annual interest rate applicable to the Series A notes from the current rate of 9.875% to 11.5% until maturity. As of March 31, 1999, the principal amount outstanding under the Series A Notes totaled approximately $153.8 million. The new interest rate on the Series A notes will increase the interest expense of these notes by approximately $2.5 million annually. As of March 31, 1999, the principal amount outstanding under the Series B Notes totaled approximately $87.9 million and the interest rate remained unchanged at 8%. In addition, the conversion price applicable to the Series B Notes has been fixed at $2.00 per share (subject to customary anti-dilution adjustments). This change removes the uncertainty of the amount of potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. from the Series B Notes. After giving effect to the amendment, the number of shares of Coram common stock that would be issuable upon full conversion of the Series B Notes would be approximately 44 million shares as of March 31, 1999. Coram Healthcare is a leading provider of home infusion therapy with operations in over 90 locations in 44 states and Ontario, Canada. Through its Resource Network Division, the company manages networks of home health providers on behalf of managed care plans and other payers. Coram Prescription Services provides pharmacy benefit management services and mail order prescription services for chronically ill patients. The Clinical Research and Medical Informatics Division provides home care and product development services for pharmaceutical, biotechnology and medical device companies sponsoring clinical trials. Note: Except for historical information, all other statements provided in this press release are "forward-looking " within the meaning 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. The company's actual results may vary materially from the 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. made above due to important factors such as the company's history of operating losses 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. and uncertainties associated with future operating results; significant outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. ; equity conversion rights of its existing debt holders; dependence on relationships with third parties; the timing of or ability to complete acquisitions; and government regulation of the home health care industry. These and other risk factors that could materially affect Coram's financial results are further described in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Annual Report, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , Form 10-Q Form 10-Q See 10-Q. Quarterly Reports, and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. Current Reports on file with the Securities and Exchange Commission. For more information, visit Coram's web site at www.coramhealthcare.com -0-
CORAM HEALTHCARE CORPORATION
Consolidated Statements of Operations
(Unaudited)
(In Millions, Except Per Share Data)
Three Months
Ended
March 31,
1999 1998
Net Revenue $ 161.0 $ 107.7
Cost of Service 122.9 80.5
Gross Profit 38.1 27.2
Operating Expenses:
Selling, General
& Administrative Expenses 23.8 21.0
Provision for Estimated
Uncollectible Accounts 4.2 3.7
Amortization of Goodwill 2.7 2.8
Restructuring Costs, Net 0.9 0.0
Total Operating Expense 31.6 27.5
Operating Income (Loss) 6.5 (0.3)
Interest Expense (6.6) (14.1)
Other Income, Net 0.2 0.7
Income (Loss) Before
Income Taxes & Minority Interest 0.1 (13.7)
Income Tax Expense 0.1 1.0
Minority Interest in Net Income
of Consolidated Joint Ventures 0.4 0.4
Net Loss $ (0.4) $ (15.1)
Loss Per Common Share $ (0.01) $ (0.31)
CORAM HEALTHCARE CORPORATION
Consolidated Balance Sheets
(In Millions)
March 31, December 31,
1999 1998
(Unaudited)
Assets:
Cash and Cash Equivalents $ 3.8 $ 0.1
Cash Limited as to Use 1.4 1.5
Accounts Receivable, Net 129.9 113.7
Other Current Assets 35.0 32.9
Total Current Assets 170.1 148.2
Goodwill, Net 233.2 235.7
Other Assets 54.4 53.7
Total Assets $ 457.7 $ 437.6
Liabilities and Stockholders' Equity:
Current Liabilities $ 89.3 $ 83.6
Long-term Debt, including
Revolving Lines of Credit 257.2 242.2
Other Liabilities 18.7 18.9
Stockholders' Equity 92.5 92.9
Total Liabilities
and Stockholders' Equity $ 457.7 $ 437.6
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