Pediatric Services of America, Inc. Announces Fourth Quarter and Year-End Results For Fiscal Year 2003.Business Editors/Health/Medical Writers NORCROSS, Ga.--(BUSINESS WIRE)--Dec. 12, 2003 Company Reports a Fifty Percent Increase in Year Over Year Quarterly 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. ; Conference Call Today at 11 a.m. ET to Discuss Results Pediatric pediatric /pe·di·at·ric/ (pe?de-at´rik) pertaining to the health of children. pe·di·at·ric adj. Of or relating to pediatrics. Services of America, Inc. (Nasdaq:PSAI PSAI Pediatric Services of America Inc ) announced financial results for the twelve months and fourth quarter of fiscal year 2003. Highlights (in millions, except per share data)
FY03 FY02 % Change
----------------------------------------------------------------------
Net revenue $215.6 $197.5 9%
----------------------------------------------------------------------
Operating income $ 10.6 $ 8.9 18%
----------------------------------------------------------------------
Income from continuing operations, before
income tax expense (benefit) $ 8.5 $ 6.8 25%
----------------------------------------------------------------------
Income tax expense (benefit) $ 3.3 $ (6.9)
----------------------------------------------------------------------
Diluted EPS $ 0.72 $ 1.97
Q4 FY03 Q4 FY02 % Change
----------------------------------------------------------------------
Net revenue $ 55.2 $ 51.0 8%
----------------------------------------------------------------------
Operating income $ 3.2 $ 2.1 50%
----------------------------------------------------------------------
Income from continuing operations, before
income tax expense (benefit) $ 2.8 $ 1.5 79%
----------------------------------------------------------------------
Income tax expense (benefit) $ 1.1 $ (6.9)
----------------------------------------------------------------------
Diluted EPS $ 0.23 $ 1.25
Fiscal Year-End Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. Financial Results The highlights for the Company's year-end results included: -- Exceeded previously stated full year guidance of $0.71 per share by earning $0.72 per share -- 18% increase in operating income -- Repurchased a total of $4.0 million of the Company's outstanding Notes including $2.0 million in the fourth quarter -- Acquired the assets of a private duty nursing company in Pennsylvania -- Opened a pilot 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). Pediatric Extended Care Center in Raleigh, NC -- Opened two HME HME Home Medical Equipment HME Home Media Engine (TiVo) HME Heat and Moisture Exchange HME Hierarchical Mixtures-of-Experts HME Happy Meal Ethernet (UNIX driver) HME Honeymoon Experience branch offices -- Hired a Vice President of Sales and Marketing During the twelve months ended September 30, 2003, net revenue increased 9% to $215,592,000 from $197,459,000 in the twelve months ended September 30, 2002. Operating income increased 18% to $10,585,000 for the twelve months ended September 30, 2003 compared to $8,939,000 for the twelve months ended September 30, 2002. Net income was $5,127,000 for the twelve months ended September 30, 2003 compared to net income of $14,061,000 in the twelve months ended September 30, 2002. 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. net income per share was $0.72 in the twelve months ended September 30, 2003 compared to a diluted net income per share of $1.97 in the twelve months ended September 30, 2002. During the twelve months ended September 30, 2003, the Company had a current income tax expense of $3,323,000 compared to a current income tax benefit of $6,943,000 for September 30, 2002. In addition, during the twelve months ended September 30, 2003, the Company had a gain on the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of $100,000 compared to a gain on the early extinguishment of debt of $417,000 in the twelve months ended September 30, 2002. Fourth Quarter Financial Results The highlights of the Company's fourth quarter results included: -- A year over year increase in quarterly net revenue of 8% -- A year over year increase in quarterly operating income of 50% -- Repurchased $2.0 million of the Company's outstanding Notes For the fourth quarter of fiscal 2003, net revenue increased 8% to $55,244,000 from $51,034,000 in the same period of fiscal year 2002. Operating income increased 50% to $3,215,000 for the fourth quarter of fiscal year 2003 compared to $2,146,000 for the fourth quarter of fiscal year 2002. Net income was $1,678,000 for the fourth quarter of fiscal year 2003 compared to net income of $8,850,000 in the fourth quarter of fiscal year 2002. Diluted net income per share was $0.23 in the fourth quarter of fiscal year 2003 compared to $1.25 in the fourth quarter of fiscal year 2002. During the fourth quarter of fiscal 2003, the Company had a current income tax expense of $1,087,000 as compared to a current income tax benefit of $6,944,000 in the fourth quarter of fiscal 2002. Joseph D. Sansone, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company stated, "We are pleased with our fourth quarter and annual results for fiscal 2003. We had strong results in our pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. segment and continued to strengthen our balance sheet by reducing long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The growth in revenue and operating income is especially satisfying as we strengthened our efforts in nurse recruitment and improved our managed care contracting strategies." Growth Opportunities The Company believes that it is well positioned to sustain its current growth plans as well as explore future growth opportunities. The Company's growth plans are based on a strategic platform defined as a market matrix approach to development, which is to provide a combination of products and services in the local markets we serve, including: pediatric private duty nursing, pediatric day treatment centers (PPECs), respiratory therapy respiratory therapy Medical profession concerned with assisting the respiratory function of individuals who have severe lung disorders. Practices include suctioning to clear secretions from the airway, use of aerosol mists (sometimes medicated) or gases to ease breathing, services and medical equipment, pharmaceuticals and related supplies. We believe this approach leverages our capabilities to achieve the local market density necessary to impact payor reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates. For fiscal year 2004, the Company plans to explore its growth opportunities in the following areas: -- The Company intends to continue to focus on local market opportunities. In addition, the Company seeks to enhance its same store internal growth plans through the implementation of an aggressive managed care marketing strategy. -- The Company also plans to grow through accretive acquisitions and is pleased with its current pipeline of candidates. -- The Company plans to have other PPEC PPEC Permanent Periodic Error Correction PPEC Prescribed Pediatric Extended Care PPEC Pitch Period Error Concealment PPEC Paper & Paperboard Packaging Environmental Council PPEC Pressurized Planar Electrochromatography PPEC Pacific Postsecondary Education Council centers under development and operating in fiscal year 2004. -- The Company also plans to open additional branch offices in identified key markets. Medicare Changes The Medicare Prescription Drug, Improvement, and Modernization Act The Medicare Prescription Drug, Improvement, and Modernization Act (Pub.L. 108-173, 117 Stat. 2066, also called Medicare Modernization Act or MMA) is a law of the United States which was enacted in 2003. of 2003 (the Act), signed into law in December 2003, represents an important change to the Medicare program. While the more immediately visible changes mandated by the Act relate to extension of the Medicare benefit to prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, coverage, other aspects may impact the operations and profitability of health care providers, including the Company. For instance, the Act mandates a phased-in competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. process for Medicare procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of certain durable medical equipment Durable medical equipment is a term of art used to describe certain Medicare benefits, that is, whether Medicare may pay for the item. The item is defined by Title XVIII the Social Security Act: DME - Distributed Management Environment ), commencing in the ten (10) largest Metropolitan Statistical Areas (MSAs) in 2007, followed by the next 80 largest MSAs in 2009. Moreover, the Secretary of the Department of Health & Human Services has the authority to apply competitive bidding nationally - for the highest cost, highest volume items and services and those items and services that the Secretary determines have the "largest savings potential." There will also be at least a five year freeze in the Consumer Price Index update for reimbursement rates for DME where competitive bidding prices are not applicable. In addition, commencing in 2005, reimbursement for certain items and services (e.g., oxygen and oxygen equipment) that are not subject to competitive bidding will be capped at the 2002 rate or the "Median FEHP FEHP Federal Employees Health Program Price" established in 2002, whichever is lower. Under the Act, reimbursement for infusion drugs is set at 95% of Average Wholesale Price (AWP AWP Awaiting Parts (military equipment status) AWP Average Wholesale Price AWP Annual Work Plan AWP Associated Writing Programs AWP Amusement with Prizes AWP Any Willing Provider AWP Aerial Work Platform ) in effect on October 1, 2003, and then will be subject to competitive bidding starting in 2007. Inhalation inhalation /in·ha·la·tion/ (in?hah-la´shun) 1. the drawing of air or other substances into the lungs.inhala´tional 2. the drawing of an aerosolized drug into the lungs with the breath. 3. drugs will be paid at 85% of AWP in 2004, with 2005 reimbursement based on the Average Sales Price plus 6% for the drug, updated quarterly. A number of other pilots and demonstrations are mandated by the Act, signaling the likelihood of continued re-design of certain aspects of the Medicare program. While the impact of the 2003 reforms of Medicare on the Company cannot yet be determined, particularly since implementing regulations have not yet been promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. , these and other changes may have a material adverse impact on the Company's operations and financial results. Recent Board of Directors Actions In October 2003, the Company appointed Mr. David Crane David Crane may refer to:
The Company has obtained a financing commitment and is presently negotiating the terms of a definitive credit agreement with a potential lender. However, there is no assurance that the negotiations will result in the completion of a new credit facility. Earnings Guidance Earnings guidance for fiscal year 2004 is $0.81 to $0.85 earnings per diluted share. Pediatric Services of America, Inc. is a leading provider in the market for pediatric home health care services. PSAI provides comprehensive pediatric home health care services through a network of over 120 branch offices in 22 states, including satellite offices and branch office start-ups. Services are provided through three product lines: Home Nursing and Prescribed Pediatric Extended Care Centers (PPEC) that provide daily medical care for medically fragile children, Pharmacy, and Respiratory Therapy, Equipment and Services. Additional information on PSA (Professional Services Automation) An information system designed to organize, track and manage all opportunities, work, resources, costs, revenues and invoices to improve the productivity and efficiency of the workforce. may be found on the Company's website at http://www.psakids.com. The dial-in number for the Earnings Conference Call for all participants is 1-800-374-1702. NOTE: This press release contains 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. (as such term is defined in 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) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future financial performance of Pediatric Services of America, Inc. (the "Company"). When used in this press release, the words "may," "targets," "goal," "could," "should," "would," "believe," "feel," "expects," "anticipate," "estimate," "intend," "plan," "potential" and similar expressions may be indicative of forward-looking statements. These statements by their nature involve substantial risks and uncertainties, certain of which are beyond the Company's control. The Company cautions that various factors, including the factors described hereunder Adv. 1. hereunder - in a subsequent part of this document or statement or matter etc.; "the landlord demises unto the tenant the premises hereinafter called the demised premises"; "the terms specified hereunder" hereafter, hereinafter 2. and those discussed in the Company's other filings with the Securities and Exchange Commission, as well as general economic conditions, industry trends, the Company's ability to collect for equipment sold or rented, 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. and manage previously acquired field operations, collect accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , including 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 related to acquired businesses and receivables under appeal, hire and retain qualified personnel and comply with and respond to billing requirements issues, including those related to the Company's billing and collection system, nurse shortages, competitive bidding, HIPAA (Health Insurance Portability & Accountability Act of 1996, Public Law 104-191) Also known as the "Kennedy-Kassebaum Act," this U.S. law protects employees' health insurance coverage when they change or lose their jobs (Title I) and provides standards for patient health, regulations, Average Wholesale Price ("AWP") reductions, adverse 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. , workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. losses, availability and cost of medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. insurance and reduced state funding levels and nursing hours authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by Medicaid programs, the impact of changes resulting from the recently enacted Medicare Act, could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements of the Company made by or on behalf of the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date on which such statement is made or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all of such factors. Further, management cannot assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
PEDIATRIC SERVICES OF AMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
Three Months Ended Twelve Months Ended
September 30 September 30
(Unaudited)(Unaudited)
2003 2002 2003 2002
-------- -------- -------- --------
Net revenue $ 55,244 $ 51,034 $215,592 $197,459
Costs and expenses:
Costs of goods and
services 30,276 27,476 117,945 106,709
Other operating costs and
expenses
Salaries, wages and
benefits 9,921 9,683 40,144 38,426
Business insurance 1,739 1,469 7,065 4,795
Overhead 3,731 3,742 15,293 14,325
-------- -------- -------- --------
Other operating costs
and expenses 15,391 14,894 62,502 57,546
Corporate, general and
administrative
Salaries, wages and
benefits 3,487 3,350 13,838 13,351
Business insurance 74 79 319 284
Professional
services 674 453 2,125 1,783
Overhead 620 693 2,749 2,848
-------- -------- -------- --------
Corporate, general
and administrative 4,855 4,575 19,031 18,266
Provision for doubtful
accounts 534 942 1,475 1,930
Depreciation and
amortization 973 1,001 4,054 4,069
-------- -------- -------- --------
Total costs and
expenses 52,029 48,888 205,007 188,520
-------- -------- -------- --------
Operating income 3,215 2,146 10,585 8,939
Other income 3 - 56 -
Gain on early extinguishment
of debt 37 - 100 417
Interest income 57 39 138 167
Interest expense (547) (640) (2,429) (2,766)
-------- -------- -------- --------
Income from continuing
operations, before income
tax expense (benefit) 2,765 1,545 8,450 6,757
Income tax expense (benefit) 1,087 (6,944) 3,323 (6,943)
-------- -------- -------- --------
Income from continuing
operations 1,678 8,489 5,127 13,700
Discontinued operations:
Gain on disposal of
discontinued operations,
net of tax - 361 - 361
-------- -------- -------- --------
Net income $ 1,678 $ 8,850 $ 5,127 $ 14,061
======== ======== ======== ========
Basic net income per share
data:
Income from continuing
operations $ 0.24 $ 1.24 $ 0.75 $ 2.02
Gain on disposal of
discontinued operations,
net of tax - 0.05 - 0.05
-------- -------- -------- --------
Net income $ 0.24 $ 1.29 $ 0.75 $ 2.07
======== ======== ======== ========
Diluted net income per share
data:
Income from continuing
operations $ 0.23 $ 1.20 $ 0.72 $ 1.92
Gain on disposal of
discontinued operations,
net of tax - 0.05 - 0.05
-------- -------- -------- --------
Net income $ 0.23 $ 1.25 $ 0.72 $ 1.97
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 6,874 6,838 6,861 6,791
======== ======== ======== ========
Diluted 7,190 7,059 7,096 7,150
======== ======== ======== ========
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
September 30, September 30,
2003 2002
------------- -------------
Cash and cash equivalents $ 9,171 $ 10,990
Total current assets 56,667 52,990
Total assets 107,721 102,068
Total current liabilities 26,143 21,653
Total stockholders' equity 61,063 55,774
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion