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 WOBURN, Mass., Jan. 5 /PRNewswire/ -- AdvantageHEALTH Corporation (NASDAQ: ADHC) reported today that it generated net revenue of $26,427,000 for its first quarter ended Nov. 30, 1993, up 18% from $22,319,000 for the same period last year. Income from operations for the first quarter exceeded $3,000,000 up 5% over last year, net income totalled $1,645,000, and earnings per share for the quarter were 28 cents, up 4% over the same period last year.
 Robert Spencer, chief financial officer, said "The company had significant net income and earnings per share growth in the first quarter of 1994 as compared to the fourth quarter of 1993. Net income of $1,645,000 for the three months ended Nov. 30, 1993 was up 21% from $1,354,000 for the three month period ended Aug. 31, 1993. Earnings per share for the quarter of 28 cents, was up 22%, compared to 23 cents achieved in the fourth quarter of 1993."
 Further, Spencer said, "We are also pleased to report that for the first quarter of 1994 compared to the first quarter of 1993 patient service revenue increased 18% to $22,953,000 and management service revenue increased 57% to $2,113,000." Spencer attributed the revenue gains to business generated from acquired physical therapy practices, increased visits in the home health division, and the operation of seven additional management contracts. For the first quarter, outpatient treatments increased 124% to 317,229 in 1993 from 141,532 in 1992 and home health visits increased 36% to 95,002 in 1993 from 70,089 in 1992.
 Raymond Dunn, chairman and CEO, said "The company's net income and earnings per share increased significantly in the first quarter of 1994 from the fourth quarter of 1993 primarily due to the implementation of expense control measures over the past several months. I am pleased that some early results from our productivity efforts have enabled us to show earnings improvement in a changing external environment where volume and pricing are under growing pressure. Our continued focus on general expense control, staffing level and skill mix, and new service delivery models should continue to moderate expenses."
 Dunn also announced four new ventures which further expand the company's New England network. Dunn said, "Our affiliation with the 351- bed Saints Memorial Medical Center in Lowell, Mass. to manage 99 acute and sub-acute rehabilitation beds on a long-term basis is a strategic regional alliance for the company. In addition, a new 4,000 square foot outpatient site opened in Westborough, Mass., as part of the company's joint venture with the Fallon Clinic and University of Massachusetts Medical Center and a new 1,800 square foot outpatient site opened in So. Yarmouth, Maine. The company also expanded its affiliation with the 308-bed Berkshire Medical Center by opening a 12,600 square foot outpatient site on the Center's campus. These ventures continue to integrate our regional hub and spoke growth plan with our existing alliances with 18 major tertiary and dominant community hospitals in New England and puts the company in a positive position to deal with the changes presented by consolidations in the health care delivery system."
 AdvantageHEALTH Corporation operates the largest network of comprehensive medical rehabilitation facilities in New England. The company currently employs in excess of 3,100 employees at 74 locations in seven states.
 Consolidated Statements of Income
 (dollar amounts in thousands, except per share amounts)
 Three Months Ended
 Nov. 30, 1993 Nov. 30, 1992
 (unaudited) (unaudited)
 Net patient service revenue $22,953 $19,436
 Management service revenue 2,113 1,343
 Other operating revenue 1,361 1,540
 Total 26,427 22,319
 Operating and administrative 22,061 18,437
 Depreciation and amortization 961 634
 Interest expense 402 386
 Total 23,424 19,457
 Income from operations 3,003 2,862
 Non-operating gains (losses):
 Income on investments in
 limited partnerships
 and other affiliates 85 31
 Minority interest in net
 income of subsidiary (18) (10)
 Total 67 (21)
 Income before income taxes 3,070 2,883
 Income taxes 1,425 1,254
 Net income $1,645 $1,629
 Net income applicable
 to common stock $1,645 $1,629
 Net income per share 28 cents 27 cents
 Weighted average common
 and common share
 equivalents outstanding 5,979,627 6,043,190
 Summary Financial Results
 (Dollars in thousands, except per share amounts)
 Three Months Ended
 Nov. 30, 1993 Nov. 30, 1992
 (unaudited) (unaudited)
 Net revenues $26,427 $22,319
 Net income $1,645 $1,629
 Weighted average common
 and common equivalent
 shares outstanding 5,979,627 6,043,190
 Earnings per share 28 cents 27 cents
 AdvantageHEALTH Corporation and Subsidiaries
 Condensed Consolidated Balance Sheets
 (dollar amounts in thousands)
 Nov. 30, Aug. 31,
 1993 1993
 Current Assets:
 Cash and cash equivalents $10,658 $14,344
 Short term investments 1,042 ---
 Accounts receivable, less
 allowances of $3,212 and $3,287
 for uncollectible accounts,
 respectively 19,039 16,720
 Prepaid expenses and other
 current assets 4,256 4,695
 Total current assets 34,995 35,759
 Property, plant & equipment, net 24,386 24,074
 Other Assets:
 Goodwill, less accumulated
 amortization of $4,114 and
 $3,809, respectively 32,560 30,859
 Deferred financing costs, less
 accumulated amortization of $552
 and $499, respectively 1,173 1,226
 Investments in limited
 partnerships and other affiliates,
 and other assets 3,600 3,074
 Subtotal 37,333 35,159
 Total $96,714 $94,992
 Current Liabilities:
 Accounts payable and
 accrued expenses $4,540 $4,202
 Accrued compensation, amounts
 withheld and related payroll taxes 3,974 4,623
 Income taxes payable 1,084 3,299
 Amounts payable to third party
 payors 3,464 1,758
 Current portion of long-term
 debt 4,578 3,879
 Total current liabilities 17,640 17,761
 Other liabilities:
 Long-term debt, less current
 portion 23,961 22,975
 Deferred income taxes and other 7,110 7,039
 Stockholders Equity:
 Preferred stock --- ---
 Common stock 60 60
 Class B common stock --- ---
 Additional paid-in capital 40,071 40,071
 Retained earnings 9,672 8,027
 Less treasury stock at cost (1,800) (941)
 Total stockholders' equity 48,003 47,217
 Total $96,714 $94,992
 The Aug. 31, 1993 balance sheet has been restated for the cumulative effect adjustment associated with the company's adoption of the Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
 -0- 1/5/94
 /CONTACT: Raymond J. Dunn, chairman and CEO of AdvantageHEALTH, 617-935-2500/

CO: AdvantageHEALTH Corporation ST: Massachusetts IN: HEA SU: ERN

CM-DD -- NE008 -- 9274 01/05/94 10:44 EST
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Publication:PR Newswire
Date:Jan 5, 1994

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