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HEALTHDYNE ANNOUNCES 1992 FINANCIAL RESULTS

 MARIETTA, Ga., March 3 /PRNewswire/ -- Healthdyne, Inc. (NASDAQ: HDYN) today announced financial results for the year and fourth quarter ended Dec. 31, 1992.
 Revenues for the year reached $247 million, which is a 29 percent increase over 1991. Net earnings, before giving effect to an after-tax charge due to restructuring and a special provision for doubtful accounts receivable totaling $11.2 million, were $7.7 million, or $0.49 per share, compared to $10.5 million, or $0.67 per share, in 1991.
 Revenues for the fourth quarter increased 20 percent to $65.5 million, compared to $54.7 million in the equivalent quarter of 1991. For the quarter, before giving effect to the special charges, the company incurred a net loss of $2.4 million, or $0.16 per share, as compared to net earnings of $4.1 million, or $0.26 per share, in the fourth quarter of 1991.
 After taking into account the charges, the company incurred net losses of $13.6 million, or $0.89 per share, for the fourth quarter and $3.5 million, or $0.22 per share, for the year.
 Home Nutritional Services (HNS), the company's 68 percent-owned home infusion therapy subsidiary, had revenues increase 27 percent for the year to $129 million from $101 million in 1991. HNS's operating earnings decreased to $14.2 million before restructuring charges and a special provision for doubtful accounts receivable. HNS's revenues for the fourth quarter increased 26 percent to $36.2 million, compared to $28.7 million for the prior year's fourth quarter. During the year, HNS relocated its corporate headquarters from Parsippany, N.J., to Marietta, added a second major reimbursement center, and restructured operations as a result of changes in the reimbursement patterns that were occurring in the home infusion therapy industry. As a result, an after-tax restructuring charge totaling $4.2 million was incurred. In addition, further changes in the reimbursement patterns of indemnity insurance carriers which developed during the last half of the year required a special provision for doubtful accounts of $6.7 million after-tax. These charges resulted in a net loss for the year at HNS of $2.6 million. This is the first loss that HNS has incurred in seven years.
 Healthdyne Perinatal Services, the company's home obstetrical care subsidiary, encountered a national decline in birth rates which led to a significant decrease in patients on service during the fourth quarter. Revenues for the year increased to $69.3 million, a 41 percent increase from 1991. However, operating earnings for the year, before consideration of certain fourth quarter charges, were $3.9 million, which is a 17 percent decline from the previous year. Although revenues in the fourth quarter increased 4 percent to $15.4 million from 1991, there was an operating loss of $2.4 million for the fourth quarter before consideration of a restructuring charge for a realignment of the field organizational structure and a reserve for inventory of rental equipment of $3.8 million. The inventory reserve was necessary because a modular system of the division's product line is being introduced for use with all obstetrical patients, including patients with hypertensive disorders, gestational diabetes, and preterm labor.
 Healthdyne Technologies, the company's manufacturing division, had improved results for the fourth quarter and the year. Revenues for the year increased to $52.5 million, a 22 percent increase over the $43.0 million in 1991, and operating earnings for the year increased 25 percent to $6.6 million from $5.3 million in 1991. During the fourth quarter, Technologies' revenues increased to $15.1 million, which was a 26 percent increase over 1991, and the operating earnings increased to $1.7 million, which was a 13 percent increase over the fourth quarter of 1991.
 Parker H. Petit, chairman and chief executive officer, commented: "We are very pleased with the performance of our Technologies division. Technologies has shown a steady annual increase in profits and revenues over the last four years, and I think they have positioned themselves very well in their respective markets, particularly the market for therapeutic and diagnostic devices for adult sleep disorders. However, Home Nutritional Services, our publicly traded infusion therapy subsidiary, had their industry go through significant changes in reimbursement patterns in 1992. While HNS was the first company to make note of those changes in 1992, they saw further changes in the reimbursement patterns related to indemnity insurance carriers develop in the latter half of the year which necessitated a special provision for doubtful accounts. In addition, HNS relocated their corporate headquarters to Marietta, added a second major reimbursement center and restructured operations during the year which resulted in restructuring charges. However, I am confident that HNS is prepared for the new managed care environment that all infusion therapy providers will face, and I expect to see their revenues continue to grow at rates higher than the industry and see their profits begin to grow again in 1993. Relative to Healthdyne Perinatal Services, they faced a national decline in birth rates of approximately 15 percent, but which we believe was much larger with families who were making conscious decisions to delay family planning because of recessionary pressures. We are beginning to see the birth rates increase again, and we expect to see Perinatal Services' patient census climb accordingly. Expenses have been reduced, and Perinatal Services should be in an ideal position to continue their rapid growth rate in 1993 as the birth rates return to normal levels.
 "As previously announced in our Special Report to Shareholders, our strategy continues to be directed towards having all three operations as stand-alone subsidiaries."
 Healthdyne is a national provider of high technology home care medical services, including infusion therapy through Home Nutritional Services, its partially owned subsidiary, and home obstetrical care through its Healthdyne Perinatal Services subsidiary, and a manufacturer of high-tech home care products through its Healthdyne Technologies division.
 HEALTHDYNE, INC. AND SUBSIDIARIES
 Consolidated Condensed Statements of Earnings
 (Amounts in thousands, except per share amounts)
 3 mos. ended 12/31 12 mos. ended 12/31
 1992 1991 1992 1991
 (Unaudited)
 Revenues $65,461 $54,712 $247,354 $191,432
 Cost of revenues 33,127 23,768 115,265 83,645
 Gross profit 32,334 30,944 132,089 107,787
 Selling and administrative
 expenses 25,818 18,966 90,473 66,303
 Provision for doubtful
 accounts 5,550 4,114 19,986 15,199
 Noncash compensation expense
 resulting from exercise of
 stock options --- --- --- 2,434
 Research and development
 expenses 839 616 2,581 2,236
 Special provision for doubtful
 accounts and restructuring
 expenses 21,670 --- 21,670 ---
 Operating profit (loss) (21,543) 7,248 (2,621) 21,615
 Interest income 111 334 701 965
 Interest expense (748) (186) (1,532) (744)
 Other expense, net (164) (15) (489) (43)
 Minority interest in earnings of
 partnerships (435) (195) (1,956) (544)
 Earnings (loss) before income tax
 expense (benefit), and minority interest
 in net earnings (loss) of
 subsidiary (22,779) 7,186 (5,897) 21,249
 Income tax expense (benefit) (6,079) 2,000 (1,604) 6,945
 Earnings (loss) before minority interest
 in net earnings (loss) of
 subsidiary (16,700) 5,186 (4,293) 14,304
 Minority interest in net earnings
 (loss) of subsidiary (3,072) 1,070 (796) 3,807
 Net earnings (loss) $(13,628) $ 4,116 $ (3,497) $ 10,497
 Net earnings (loss) per common share
 and common share equivalent $(.89) $.26 $(.22) $.67
 Weighted average number of common
 shares and common share
 equivalents 15,254 15,830 15,576 15,636
 Consolidated Condensed Balance Sheets
 (Amounts in thousands)
 ASSETS 12/31/92 12/31/91
 Current assets:
 Cash and short-term
 investments $ 14,931 $ 23,015
 Trade accounts receivable,
 net 80,096 74,165
 Inventories 13,341 13,063
 Deferred income taxes 4,814 841
 Other current assets 5,401 4,702
 Total current assets 118,583 115,786
 Property and equipment, net 21,975 15,252
 Goodwill and other intangibles,
 net 26,623 5,056
 Other assets 2,176 2,649
 Total $ 169,357 $ 138,743
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current installments of long-term
 debt and obligations under
 capital leases $ 3,388 $ 595
 Accounts payable, principally
 trade 12,349 8,861
 Other current liabilities 13,489 11,974
 Total current liabilities 29,226 21,430
 Long-term debt and obligations
 under capital leases, excluding
 current installments 44,265 6,576
 Deferred income taxes 6,766 6,766
 Other long-term liabilities 426 604
 Total liabilities 80,683 35,376
 Min. interest in subsidiary
 and partnerships 21,025 23,352
 Shareholders' equity 67,649 80,015
 Total $ 169,357 $ 138,743
 -0- 3/3/93
 /CONTACT: Donald R. Millard of Healthdyne, 404-423-4529/
 (HDYN)


CO: Healthdyne, Inc. ST: Georgia IN: HEA SU: ERN

RA-BN -- AT002 -- 2272 03/03/93 08:05 EST
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Date:Mar 3, 1993
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