IN HOME HEALTH REPORTS 64 PERCENT GAIN IN NET INCOME; 86 PERCENT
INCREASE IN REVENUES FOR FISCAL YEAR ENDED SEPT. 30, 1991
PLYMOUTH, Minn., Nov. 22 /PRNewswire/ -- In Home Health, Inc. (NASDAQ: IHHI), today reported net income of $1.1 million for the fiscal year ended Sept. 30, 1991, a 64 percent increase over the $686,000 reported a year ago, according to Judy M. Figge, president and chief executive officer.
Operating income rose 58 percent to $1.9 million from $1.2 million the year earlier. Service revenue for the year was $36.0 million, up 86 percent over the $19.4 million of the previous fiscal year. Excluding revenues that resulted from acquisitions, service revenues rose 78 percent for the fiscal year from markets served at the beginning of the fiscal year.
Earnings per share were 11 cents, on 11.6 million weighted average shares for fiscal 1991, as compared with 15 cents per share on 4.7 million weighted average shares for fiscal 1990. The 150 percent increase in the number of shares outstanding reflects the offering of 2.5 million additional common shares in August 1990 and the exercise of In Home Health's Class A and B warrants during the year. The decline in earnings per share also was affected by fiscal 1991 earnings being subjected to a full tax rate versus the use of a tax-loss carryforward for much of fiscal 1990.
Since the beginning of fiscal 1991, In Home Health has grown to 22 branches in ten markets from ten branches in five markets, Ms. Figge said. In addition, the company opened five infusion pharmacies to service its facilities in Chicago, Los Angeles, Phoenix, St. Louis and San Francisco.
"We are very pleased with fiscal 1991 results. With revenues slightly in excess of our operating plan," Ms. Figge said, "we enter fiscal 1992 with considerable operating momentum."
For the fourth quarter ended Sept. 30, 1991, net income was $479,000, a 101 percent increase over the $238,000 of the fourth quarter of fiscal 1990. This was the company's tenth consecutive profitable quarter.
Operating income was $770,000, a 56 percent improvement over the $493,000 reported for the three months ended Sept. 30, 1990. Revenue increased 102 percent to $12.1 million from $6.0 million the prior year.
Earnings per share for the fourth quarter were 4 cents on 13.9 million average shares, as compared with 4 cents per share on 5.9 million shares outstanding in the fourth quarter of fiscal 1990. The increased number of shares is the result of the aforementioned stock offering and exercise of warrants in the second quarter and the dilution of the Class C warrants.
Subsequent to the end of fiscal 1991, In Home Health's Class C warrants also were exercised, which resulted in proceeds to the company in excess of $7.4 million, Ms. Figge said. With this capital infusion, total cash on hand is over $11 million, she added.
As a result of the warrant exercise, there are currently 14.3 million common shares outstanding. "Because the warrants were already represented in the weighted average share calculation," Ms. Figge said, "there will be no significant earnings dilution to shareholders from this action."
Since the beginning of the 1991 fiscal year, In Home Health entered markets in Los Angeles; Denver; Detroit; Kansas City, Mo.; and Cincinnati.
It added branches in: Scottsdale, Ariz.; Novato, Riverside, San Mateo, Santa Rosa and West Covina, Calif.; Denver; Arlington Heights/Rolling Meadows, Ill.; Detroit; Kansas City, Mo.; and Cincinnati.
The company also opened infusion pharmacies in Phoenix, Ariz.; Riverside and San Leandro, Calif.; Westchester, Ill.; and St. Louis, to service its Phoenix, Los Angeles, San Francisco, Chicago and St. Louis markets, respectively.
According to Ms. Figge, plans call for continued expansion in fiscal 1992 in terms of new markets, branches and infusion pharmacies.
In Home Health specializes in high-quality health services to clients in their own homes, including infusion therapy, high-tech nursing, rehabilitation and personal care. Home health care is estimated to be a $12 billion per year industry in the United States at present, which is expected to grow to $30 billion by the mid-1990s.
IN HOME HEALTH, INC.
Consolidated Statements of Operations (Unaudited)
(Amounts in thousands, except per share amounts)
Periods ended Three Months 12 Months
Sept. 30 1991 1990 1991 1990
Service revenue $12,149 $ 6,005 $36,050 $19,411
Direct costs of services 6,866 3,281 19,788 10,446
and selling expenses 4,513 2,231 14,329 7,743
Income from operations 770 493 1,933 1,222
Interest expense, net 2 75 93 340
Income before income taxes 768 418 1,840 882
Income tax expense 289 180 718 196
Net income $ 479 $ 238 $ 1,222 $ 686
Net income per share:
Primary $.04 $.04 $.11 $.15
Fully diluted $.04 $.04 $.10 $.15
Weighted average number
of common and common
Primary 13,936 5,925 11,639 4,653
Fully diluted 13,975 5,925 12,988 4,653
/CONTACT: Kenneth J. Figge, executive vice president and chief financial officer of In Home Health, 612-545-0102; or Philip L. Thomas of the P.L. Thomas Group, 312-906-8060, for In Home Health/
(IHHI) CO: In Home Health, Inc. ST: Minnesota IN: HEA SU: ERN GK-TS -- NY014 -- 6266 11/22/91 09:34 EST