HEALTHDYNE ANNOUNCES FINAL SECOND QUARTER RESULTS
HEALTHDYNE ANNOUNCES FINAL SECOND QUARTER RESULTS MARIETTA, Ga., July 23 /PRNewswire/ -- Healthdyne, Inc.
(OTC: HDYN) today announced its final financial results for the second quarter of 1992.
Revenues for the second quarter of $60.3 million increased 32 percent over the second quarter of 1991, while operating earnings for the quarter increased 97 percent to $6.7 million from $3.4 million in the second quarter of 1991. Net earnings of $3.7 million, or $0.24 per share, were almost six times the second quarter 1991 net earnings of $636,000, or $0.04 per share, which included a noncash, nonrecurring charge of $2.4 million, or $0.16 per share. Revenues for the six months ended June 30 were $116.3 million compared to $86.7 million in the first half of 1991. Operating earnings for the six-month period increased to $14.2 million from $7.9 million, while net earnings increased to $7.9 million, or $0.50 per share, from $3.0 million, or $0.20 per share, which included $2.4 million or $0.16 per share of a noncash, nonrecurring charge in the first six months of last year. Home Nutritional Services, Inc. (OTC: HNSI), the company's 68 percent-owned home infusion therapy subsidiary, had revenues for the quarter of $30.5 million, up 27 percent from $24.1 million for the second quarter of 1991. However, net earnings at HNS decreased to $2.3 million from $2.8 million in the second quarter of 1991. This decrease in net earnings was largely a result of HNS's investing in new strategies, which included development costs associated with a number of new alternate site Integrated Care Centers and an increased amount of managed care revenues as a result of national and regional contracts. These were both investments in HNS's future growth strategy, but they resulted in operating earnings decreasing from 17 percent in the first quarter to approximately 13 percent. It is the company's expectations that these margins will return to more conventional levels in the near future. Healthdyne Perinatal Services, the company's home obstetrical care subsidiary, continued its industry-leading rate of growth with a 60 percent increase in revenues for the quarter to $18.6 million from $11.6 million in the second quarter of 1991. Operating profit for the quarter increased 117 percent to $2.5 million, compared to $1.2 million in the second quarter of 1991. The division opened two additional service centers during the quarter which brings its national total to 35 with approximately 70 other sites of service. Healthdyne Technologies, the company's manufacturing division, also continued to improve its performance. Revenues increased 12 percent to $11.9 million from $10.6 million in the second quarter of 1991, and operating profit for the quarter increased 19 percent to $1.6 million from $1.3 million in the second quarter of 1991. Several of its new product lines are having a positive influence on its growth and profitability. This trend is expected to continue. Parker H. Petit, chairman and chief executive officer of Healthdyne, stated: "We were disappointed that HNS was unable to implement their new growth strategies without having their operating profit margins decrease by several percent. However, they are definitely making investments in their future as a major national infusion therapy provider. Our other two operating units continued to grow with significant operating profits, and the outlook for the high tech home health care environment in which we operate is still excellent. Even though there are some changes occurring in the infusion therapy area, I expect HNS to rebound to their more conventional operating profit percentages in the near future. Also, Healthdyne was successful in repurchasing approximately 365,000 shares of our outstanding common stock during the quarter." Healthdyne is a national provider of high technology home care medical services, including infusion therapy through Home Nutritional Services, its partially owned subsidiary, and obstetrical home care through Healthdyne Perinatal Services. In addition, Healthdyne manufactures high technology home care products through its Healthdyne Technologies division. HEALTHDYNE, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Amounts in thousands, except per share amounts) (Unaudited) 3 mos. ended 6/30 1992 1991 Revenues $60,310 $45,842 Cost of revenues 26,603 19,642 Gross profit 33,707 26,200 Selling and admin. expenses 21,587 16,116 Noncash compensation expense resulting from exercise of stock options --- 2,434 Provision for doubtful accounts 4,835 3,684 Research and development expenses 588 564 Operating profit 6,697 3,402 Interest income 200 205 Interest expense (233) (184) Other income (expense), net (87) --- Minority interest in earnings of partnerships (590) --- Earnings before income tax expense and minority interest in net earnings of subsidiary 5,987 3,423 Income tax expense 1,528 1,775 Earnings before minority interest in net earns. of subsidiary 4,459 1,648 Minority interest in net earnings of subsidiary 752 1,012 Net earnings $ 3,707 $ 636 Net earnings per common share and common share equivalent $ .24 $ .04 Weighted average number of common shares and common share equivalents 15,751 15,582 6 mos. ended 6/30 1992 1991 Revenues $116,291 $ 86,709 Cost of revenues 51,042 37,949 Gross profit 65,249 48,760 Selling and admin. expenses 40,669 30,447 Noncash compensation expense resulting from exercise of stock options --- 2,434 Provision for doubtful accounts 9,305 6,921 Research and development expenses 1,082 1,044 Operating profit 14,193 7,914 Interest income 433 427 Interest expense (374) (354) Other income (expense), net (193) (1) Minority interest in earnings of partnerships (822) --- Earnings before income tax expense and minority interest in net earnings of subsidiary 13,237 7,986 Income tax expense 3,546 3,058 Earnings before minority interest in net earns. of subsidiary 9,691 4,928 Minority interest in net earnings of subsidiary 1,807 1,884 Net earnings $ 7,884 $ 3,044 Net earnings per common share and common share equivalent $ .50 $ .20 Weighted average number of common shares and common share equivalents 15,849 15,503 HEALTHDYNE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Amounts in thousands) ASSETS 6/30/92 12/31/91 Current assets: (Unaudited) Cash and short-term investments $ 11,199 $ 23,015 Trade accounts receivable, net 83,321 74,165 Inventories 16,052 13,063 Deferred income taxes 1,084 841 Other current assets 6,429 4,702 Total current assets 118,085 115,786 Property and equipment, net 17,736 15,252 Goodwill and other intangibles, net 7,343 5,056 Other assets 2,229 2,649 Total $ 145,393 $ 138,743 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current installments of long- term debt and obligations under capital leases $ 901 $ 595 Accounts payable, principally trade 8,833 8,861 Other current liabilities 9,518 11,974 Total current liabilities 19,252 21,430 Long-term debt and obligations under capital leases, excluding current installments 17,669 6,576 Deferred income taxes 6,766 6,766 Other long-term liabilities 515 604 Total liabilities 44,202 35,376 Minority int. in subsidiary and partnerships 22,830 23,352 Shareholders' equity 78,361 80,015 Total $ 145,393 $ 138,743 -0- 7/23/92 /CONTACT: Donald R. Millard of Healthdyne, 404-423-4529/ (HDYN HNSI) CO: Healthdyne, Inc. ST: Georgia IN: HEA SU: ERN
BN-EA -- AT002 -- 2259 07/23/92 08:13 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 23, 1992|
|Previous Article:||INTERNATIONAL TECHNOLOGY CORP. ANNOUNCES FISCAL 1993 FIRST QUARTER RESULTS|
|Next Article:||HOME NUTRITIONAL SERVICES ANNOUNCES FINAL QUARTERLY RESULTS|