DVI Second Quarter Net Income at $5.2 million with EPS of $0.35.Business Editors/Health & Medical Writers JAMISON, Pa.--(BUSINESS WIRE)--Feb. 13, 2003 DVI (1) (Digital Video Interactive) An earlier compression technique that provided up to 72 minutes of full-screen video on a CD-ROM. Acquired by Intel in 1988 from RCA's Sarnoff Research labs, Princeton, NJ, DVI never caught on. , Inc. (NYSE NYSE See: New York Stock Exchange :DVI), an independent specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. finance company for healthcare providers, today announced its financial results for the three-month and six-month periods ended December December: see month. 31, 2002. Net income for the quarter was $5.2 million, or $0.35 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $6.3 million, or $0.41 per diluted share, for the comparable period in the prior fiscal year. Net income for the six-month period ended December 31, 2002 was $10.3 million, or $0.66 per diluted share, compared with net income of $12.4 million, or $0.81 per diluted share for the six-month period ended December 31, 2001. At December 31, 2002, book value per share was $16.19 and managed net financed assets totaled $2.7 billion. New equipment loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , placements and commitments for the quarter increased by 8% compared with the same period in the prior fiscal year, while international origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and commitments for the same period declined 15%, reflecting DVI's suspension suspension, in vehicles suspension, in automobiles, system of springs used to suspend the frame, body, engine, and power train above the wheels. Its principal purpose is to lessen the jarring of the automobile that is caused by irregularities in the roads of new credit commitments in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. following adverse economic developments in that region. The new commitments booked in the quarter by DVI's Business Credit division were $11.4 million compared with $41.4 million for the same quarter in the prior fiscal year, reflecting the reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. and refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus of the division currently underway. U.S. domestic equipment loan origination for the quarter remained strong at $246.8 million, reflecting an increase of 10% compared with the same period in the prior fiscal year. Total new origination, placements and commitments for the six-month period ended December 31, 2002 were $578.2 million. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. A. O'Hanlon O'Hanlon is an Irish surname, and may refer to:
The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , which is the largest in our history. We are encouraged by the continued growth in earnings and returns in our domestic equipment financing business, which are being achieved despite a very soft U.S. economy. This growth highlights the value DVI derives from its sole focus on the healthcare sector, where we benefit from the stable and steady growth enjoyed by that market segment." Mr. O'Hanlon commented further, "We are pleased with the progress in our discussions with third parties regarding potential transactions involving our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . We plan to reduce our investment overseas while improving our performance and hope to announce more definitive arrangements to implement that plan in the relatively near future. We have reassigned our Third Coast Capital portfolio within DVI as we implement plans to manage the orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. withdrawal from this very modest business line. DVI Business Credit is well underway in its relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. to our headquarters, and good progress is being made in implementing our plan to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. that division and streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. its operations. Once that process is complete, we plan to pursue the healthcare receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed market more aggressively seeking cross-selling Cross-selling is the term used to describe the sale of additional products or services to a customer. Less frequently it is used to describe the sale of services to additional business units at an account or to different geographic units of a customer. opportunities with our medical equipment financing customers. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we will accomplish all our operating objectives and that our strong position in healthcare financing will continue to offer DVI a base to further extend our profitable growth." DVI is an independent specialty finance company for healthcare providers. The Company extends loans and leases to finance the purchase of diagnostic and other therapeutic medical equipment directly and through vendor programs. DVI also offers lines of credit for working capital backed by healthcare receivables in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Additional information is available at www.dvi-inc.com. 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. Statement under 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. Any statements contained in this press release that are not historical facts are 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. . Such statements are based upon many important factors, many of which may be outside the Company's control, causing actual results to differ materially from those suggested. Such factors include, but are not limited to, legislative and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes in general, including such changes affecting the healthcare industry, demand for DVI's services, pricing, market acceptance, fluctuations in interest rates and foreign currency exchange rates, general economic conditions, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , competition, capital markets conditions, the ability to complete funding transactions, and other risks identified in the Company's filings with the Securities and Exchange Commission.
Selected Financial Information
Condensed Consolidated Financial Highlights
(Unaudited)
For Quarter Ended
December 31, Change
----------------------- ----------------------
2002 2001 $ %
---------- ---------- -------- ---------
Per Common Share
Data
=================
($ in thousands,
except per share
data and book
value)
Net Earnings $ 5,237 $ 6,273 $ (1,036) (16.5%)
Diluted Earnings
per Share $ 0.35 $ 0.41 $ (0.06) (14.6%)
Basic Earnings
per Share $ 0.35 $ 0.44 $ (0.09) (20.5%)
Book Value $ 16.19 $ 16.15 $ 0.04 0.2%
Period End Shares 15,154 14,371 783 5.4%
Diluted EPS
Shares 15,088 15,860 (772) (4.9%)
Basic EPS Shares 15,085 14,354 731 5.1%
Financial Ratios
=================
ROE (%) 8.82% 11.12% (20.7%)
ROA (%) 1.24% 1.58% (21.5%)
Assets/Equity (x) 6.82 6.94 (1.7%)
Equity/Assets (%) 14.67% 14.42% 25 B.P.
Asset Quality ($
in thousands)
=================
Net Charge-offs $ 6,768 $ 2,435 $ 4,333 177.9%
Allowance for
Losses on
Receivables $ 22,548 $ 16,955 $ 5,593 33.0%
Allowance of Net
Financed Assets
(%) 1.60% 1.27% 33 B.P.
Period End
Balances ($ in
millions)
=================
Total Assets $ 1,672 $ 1,610 $ 62 3.9%
Net Financed
Assets $ 1,406 $ 1,336 $ 70 5.2%
Managed Net
Financed Assets $ 2,733 $ 2,487 $ 246 9.9%
Borrowings under
Warehouse
Facilities $ 317 $ 346 $ (29) (8.4%)
Long-term Debt $ 866 $ 869 $ (3) (0.3%)
Shareholders'
Equity $ 245 $ 232 $ 13 5.6%
Average Balances
($ in millions)
=================
Total Assets $ 1,696 $ 1,586 $ 110 6.9%
Net Financed
Assets $ 1,460 $ 1,380 $ 80 5.8%
Managed Net
Financed Assets $ 2,687 $ 2,404 $ 283 11.8%
Shareholders'
Equity $ 238 $ 226 $ 12 5.3%
Portfolio
Activity ($ in
millions)
=================
Domestic Loan
Origination,
Placements &
Commitments $ 247 $ 225 $ 22 9.8%
International
Loan
Origination,
Placements &
Commitments $ 41 $ 42 $ (1) (2.4%)
Business Credit
Commitments $ 12 $ 41 $ (29) (70.7%)
Total
Origination,
Placements &
Commitments $ 300 $ 308 $ (8) (2.6%)
Selected Financial Information
Condensed Consolidated Income Statements
($ in thousands, except per share data and book value)
(Unaudited)
For Quarter Ended Variance
December 31, B (W)
----------------------- ----------------------
2002 2001 $ %
---------- ---------- -------- ---------
Finance and Other
Income:
Amortization of
Finance Income $ 24,597 $ 28,985 $ (4,388) (15.1%)
Other Income 6,425 4,427 1,998 45.1%
---------- ---------- --------
Total Finance and
Other Income 31,022 33,412 (2,390) (7.2%)
Interest Expense 20,725 21,138 413 2.0%
---------- ---------- --------
Net Interest and
Other Income 10,297 12,274 (1,977) (16.1%)
Provision for
Losses on
Receivables 2,427 1,793 (634) (35.4%)
---------- ---------- --------
Net Interest and
Other Income
After Provision
for Losses 7,870 10,481 (2,611) (24.9%)
Net Gain on Sale
of Financing
Transactions 16,584 12,708 3,876 30.5%
---------- ---------- --------
Net Operating
Income 24,454 23,189 1,265 5.5%
Selling, General
and
Administrative
Expenses 16,461 12,838 (3,623) (28.2%)
---------- ---------- --------
Earnings Before
Minority
Interest, Equity
in Net Gain
(Loss)
of Investees and
Provision for
Income Taxes 7,993 10,351 (2,358) (22.8%)
Minority Interest
in Net Loss
(Gain) of
Consol. Subs. 89 (379) 468 123.5%
Equity in Net
Gain (Loss) of
Investees (22) 2 (24) NA
Provision for
Income Taxes (2,823) (3,701) 878 23.7%
---------- ---------- --------
Net Earnings $ 5,237 $ 6,273 $ (1,036) (16.5%)
========== ========== ========
Diluted Earnings
per Share $ 0.35 $ 0.41 $ (0.06) (14.6%)
Diluted Shares 15,088 15,860 (772) (4.9%)
The financial statements for the quarter ended December 31, 2002
include the consolidated operations for Valley Health Group, Inc.
("Valley"). Included in the above financial statement is $2.7
million in Finance and Other Income, $2.4 million in Selling, General
& Administrative Expenses and a tax benefit of $1.3 million that are
attributable to Valley.
Selected Financial Information
Condensed Consolidated Financial Highlights
(Unaudited)
Year-to-Date
December 31, Change
----------------------- ----------------------
2002 2001 $ %
---------- ---------- -------- ---------
Per Common Share
Data
=================
($ in thousands,
except per share
data and book
value)
Net Earnings $ 10,310 $ 12,433 $ (2,123) (17.1%)
Diluted Earnings
per Share $ 0.66 $ 0.81 $ (0.15) (18.5%)
Basic Earnings
per Share $ 0.69 $ 0.87 $ (0.18) (20.7%)
Book Value $ 16.19 $ 16.15 $ 0.04 0.2%
Period End Shares 15,154 14,371 783 5.4%
Diluted EPS
Shares 16,208 15,834 374 2.4%
Basic EPS Shares 14,934 14,346 588 4.1%
Financial Ratios
=================
ROE (%) 8.80% 11.11% (231)B.P.
ROA (%) 1.21% 1.60% (39)B.P.
Assets/Equity (x) 6.82 6.94 (1.7%)
Equity/Assets (%) 14.67% 14.42% 25 B.P.
Asset Quality ($
in thousands)
=================
Net Charge-offs $ 9,377 $ 4,938 $ 4,439 89.9%
Allowance for
Losses on
Receivables $ 22,548 $ 16,955 $ 5,593 33.0%
Allowance of Net
Financed Assets
(%) 1.60% 1.27% 33 B.P.
Period End
Balances ($ in
millions)
=================
Total Assets $ 1,672 $ 1,610 $ 62 3.9%
Net Financed
Assets $ 1,406 $ 1,336 $ 70 5.2%
Managed Net
Financed Assets $ 2,733 $ 2,487 $ 246 9.9%
Borrowings under
Warehouse
Facilities $ 317 $ 346 $ (29) (8.4%)
Long-term Debt $ 866 $ 869 $ (3) (0.3%)
Shareholders'
Equity $ 245 $ 232 $ 13 5.6%
Average Balances
($ in millions)
=================
Total Assets $ 1,703 $ 1,554 $ 149 9.6%
Net Financed
Assets $ 1,464 $ 1,367 $ 97 7.1%
Managed Net
Financed Assets $ 2,670 $ 2,356 $ 314 13.3%
Shareholders'
Equity $ 234 $ 224 $ 10 4.5%
Portfolio
Activity ($ in
millions)
=================
Domestic Loan
Origination,
Placements &
Commitments $ 451 $ 435 $ 16 3.7%
Corporate
Acquisitions $ - $ 13 $ (13) (100.0%)
International
Loan
Origination,
Placements &
Commitments $ 108 $ 89 $ 19 21.3%
Business Credit
Commitments $ 19 $ 100 $ (81) (81.0%)
Total
Origination,
Placements &
Commitments $ 578 $ 637 $ (59) (9.3%)
Selected Financial Information
Condensed Consolidated Income Statements
($ in thousands, except per share data and book value)
(Unaudited)
Year-to-Date Variance
December 31, B (W)
----------------------- ----------------------
2002 2001 $ %
---------- ---------- -------- ---------
Finance and Other
Income:
Amortization of
Finance Income $ 51,507 $ 56,793 $ (5,286) (9.3%)
Other Income 15,161 7,879 7,282 92.4%
---------- ---------- --------
Total Finance and
Other Income 66,668 64,672 1,996 3.1%
Interest Expense 41,564 43,216 1,652 3.8%
---------- ---------- --------
Net Interest and
Other Income 25,104 21,456 3,648 17.0%
Provision for
Losses on
Receivables 6,009 4,350 (1,659) (38.1%)
---------- ---------- --------
Net Interest and
Other Income
After Provision
for Losses 19,095 17,106 1,989 11.6%
Net Gain on Sale
of Financing
Transactions 30,150 27,600 2,550 9.2%
---------- ---------- --------
Net Operating
Income 49,245 44,706 4,539 10.2%
Selling, General
and
Administrative
Expenses 31,221 23,471 (7,750) (33.0%)
---------- ---------- --------
Earnings Before
Minority
Interest, Equity
in Net Gain
(Loss) of
Investees and
Provision for
Income Taxes 18,024 21,235 (3,211) (15.1%)
Minority Interest
in Net Loss
(Gain) of
Consol. Subs. 243 (112) 355 317.0%
Equity in Net
Gain (Loss) of
Investees (50) 13 (63) (484.6%)
Provision for
Income Taxes (7,907) (8,703) 796 9.1%
---------- ---------- --------
Net Earnings $ 10,310 $ 12,433 $ (2,123) (17.1%)
========== ========== ========
Diluted Earnings
per Share $ 0.66 $ 0.81 $ (0.15) (18.5%)
Diluted Shares 16,208 15,834 374 2.4%
The financial statements for year-to-date December 31, 2002 include
the consolidated operations for Valley Health Group, Inc. ("Valley").
Included in the above financial statement is $5.2 million in Finance
and Other Income, $4.7 million in Selling, General & Administrative
Expenses and a tax benefit of $1.3 million that are attributable to
Valley.
Selected Financial Information
Condensed Consolidated Balance Sheets
($ in thousands, except per share data and book value)
(Unaudited)
December 31, Change
----------------------- ----------------------
2002 2001 $ %
---------- ---------- -------- ---------
ASSETS
-----------------
Cash and Cash
Equivalents $ 16,276 $ 18,615 $ (2,339) (12.6%)
Restricted Cash 113,457 118,891 (5,434) (4.6%)
Net Investment in
Direct Financing
Leases and Notes
Secured by
Equipment 1,118,179 1,039,742 78,437 7.5%
Medical
Receivables 275,751 286,740 (10,989) (3.8%)
Allowance for
Losses on
Receivables (22,548) (16,955) (5,593) 33.0%
Other Assets 170,733 163,253 7,480 4.6%
---------- ---------- --------
Total Assets $1,671,848 $1,610,286 $ 61,562 3.8%
========== ========== ========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
-----------------
Borrowings under
Warehouse
Facilities $ 316,956 $ 345,766 $(28,810) (8.3%)
Senior Notes 155,000 155,000 - 0.0%
Long-term
Financings
(Primarily
Limited
Recourse) 549,767 556,705 (6,938) (1.2%)
Other Debt 123,762 143,823 (20,061) (13.9%)
Convertible
Subordinated
Notes 37,750 13,750 24,000 174.5%
---------- ---------- --------
Total Interest
Bearing
Liabilities 1,183,235 1,215,044 (31,809) (2.6%)
Other Liabilities 239,796 155,759 84,037 54.0%
---------- ---------- --------
Total
Liabilities 1,423,031 1,370,803 52,228 3.8%
Minority Interest
in Consolidated
Subsidiaries 3,529 7,345 (3,816) (52.0%)
Shareholders'
Equity 245,288 232,138 13,150 5.7%
---------- ---------- --------
Total
Liabilities
and
Shareholders'
Equity $1,671,848 $1,610,286 $ 61,562 3.8%
========== ========== ========
Book Value per
Number Shares
Outstanding
(Period End) $ 16.19 $ 16.15 $ 0.04 0.2%
Number Shares
Outstanding
(Period End) 15,154 14,371 783 5.4%
TABLE I
LOAN ORIGINATION AND MEDICAL RECEIVABLE COMMITMENTS
($ in millions)
2Q03 FY03
vs. vs.
2Q02 FY02
Business Unit Fiscal 2003 Vari- Vari-
------------- -------------------------------------------- ance ance
1Q 2Q 3Q 4Q Total % %
-------- -------- -------- -------- -------- ---- ----
Equipment
Finance
Group:
Domestic
Equipment
Origination $ 204.8 $ 246.8 $ 451.6 9.6% 4.0%
Loan
Placements 6.0 8.3 14.3 167.7% 138.3%
International
Origination
&
Commitments 60.5 33.0 93.5 (14.7%) 12.2%
-------- -------- --------
Total Loan
Orig.,
Placements
& Commit. 271.3 288.1 559.4 7.9% 4.3%
Business
Credit
Commitments 7.4 11.4 18.8 (72.5%)(81.2%)
-------- -------- --------
Total Orig.,
Placements
&
Commitments $ 278.7 $ 299.5 $ 578.2 (2.9%)(9.2%)
======== ======== ========
Business Unit Fiscal 2002
------------- -------------------------------------------------
1Q 2Q 3Q 4Q Total
--------- --------- --------- --------- ---------
Equipment
Finance
Group:
Domestic
Equipment
Origination $ 209.0 $ 225.2 $ 233.0 $ 232.2 $ 899.4
Corporate
Acquisitions 13.0 - - - 13.0
Loan
Placements 2.9 3.1 2.8 4.1 12.9
International
Origination
&
Commitments 44.6 38.7 38.5 44.9 166.7
-------- -------- -------- -------- --------
Total Loan
Orig.,
Placements &
Commit. 269.5 267.0 274.3 281.2 1,092.0
Business
Credit
Commitments 58.7 41.4 56.3 30.5 186.9
-------- -------- -------- -------- --------
Total Orig.,
Placements
&
Commitments $ 328.2 $ 308.4 $ 330.6 $ 311.7 $1,278.9
======== ======== ======== ======== ========
TABLE II
NET FINANCED ASSETS
($ in millions)
2Q03 FY03
vs. vs.
2Q02 FY02
Fiscal 2003 Vari- Vari-
-------------------------------------------- ance ance
1Q 2Q 3Q 4Q Year % %
-------- -------- -------- -------- -------- ----- ----
Period End
Net Financed
Assets $1,416.4 $1,406.0 5.3%
Period End
Assets
Serviced $1,349.1 $1,422.6 18.5%
Period End
Managed Net
Financed
Assets $2,657.3 $2,732.9 9.9%
Average Net
Financed
Assets $1,466.9 $1,460.3 $1,463.6 5.9%
Avg. Managed
Net Financed
Assets $2,652.5 $2,686.9 $2,669.7 11.8%
Net Financed
Assets Sold $ 165.9 $ 183.0 $ 348.9 10.3% 7.6%
Fiscal 2002
-------------------------------------------------
1Q 2Q 3Q 4Q Year
--------- --------- --------- --------- ---------
Period End
Net Financed
Assets $1,302.2 $1,335.5 $1,367.3 $1,419.3
Period End
Assets
Serviced $1,130.9 $1,200.7 $1,248.8 $1,342.1
Period End
Managed Net
Financed
Assets $2,376.0 $2,487.1 $2,556.9 $2,664.8
Average Net
Financed
Assets $1,354.8 $1,379.5 $1,423.4 $1,450.8 $1,402.1
Avg. Managed
Net Financed
Assets $2,308.3 $2,404.4 $2,510.3 $2,583.9 $2,451.7
Net Financed
Assets Sold $ 158.5 $ 165.9 $ 163.9 $ 170.5 $ 658.8
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion