HEALTHDYNE ANNOUNCES THIRD QUARTER RESULTS
HEALTHDYNE ANNOUNCES THIRD QUARTER RESULTS MARIETTA, Ga., Oct. 30 /PRNewswire/ -- Healthdyne, Inc.
(NASDAQ: HDYN) today announced its financial results for the third quarter of 1992.
Revenues for the third quarter of $65.6 million increased 31 percent over the third quarter of 1991. However, as previously announced, net earnings for the quarter of $2.2 million, or $0.15 per share, were lower than the $0.21 per share for the third quarter of 1991. The decrease in earnings is primarily the result of the previously announced continuation in the shift at Home Nutritional Services (NASDAQ: HNSI), Healthdyne's 68-percent owned subsidiary, to increased managed care revenue coupled with seasonally reduced growth in patient census associated with the summer months. Revenues for the nine months ended Sept. 30 were $181.9 million compared to $136.7 million during the same period in 1991. Net earnings for the period were $10.1 million, or $0.65 per share in 1992, compared to $6.4 million, or $0.41 per share, which included a noncash, nonrecurring charge of $2.4 million or $0.16 per share during the first nine months of 1991. Home Nutritional Services had revenues for the quarter of $33.3 million, which was up 27 percent from $26.2 million for the third quarter of 1991. Net earnings for the quarter, however, were $1.5 million compared to $2.9 million in the third quarter of 1991. As was the case in the second quarter of 1992, an increasing amount of managed care business accepted at lower prices reduced gross profit margins during the third quarter to 50 percent from 55 percent in the second quarter. HNS management has been modifying clinical and pharmacy policy so that quality care can be maintained while eliminating any unnecessary clinical activities, particularly those associated with the new managed care business. Although this process is well underway, it is expected to take at least another quarter to fully transition HNS operations to take full advantage of the growth in its managed care revenues. Healthdyne Perinatal Services, the company's home obstetrical care subsidiary, achieved a revenue growth of 50 percent to $19.3 million, while operating profits for the quarter increased to $1.8 million or 27 percent over the third quarter of 1991. Healthdyne Perinatal Services' results for the quarter were slightly impacted by seasonally reduced growth in patient census. Late in the quarter, the Perinatal Services division received several contracts from HMO organizations for its new First Steps(SM) obstetrical risk screening program, including a relationship with the John Alden Risk Management Services which was the subject of a press release on Oct. 14. Healthdyne Technologies, the company's manufacturing division, continued its strong performance with an increase in revenues to $13.7 million, which is a 21 percent increase over the third quarter of 1991. Its operating profit for the quarter increased 16 percent to $1.7 million. According to Parker H. Petit, chairman and chief executive officer of Healthdyne: "We have recently provided shareholders with our thoughts regarding the changing issues in health care in a Special Report dated October 1992. We believe that revenues at HNS will continue to grow as a result of their new strategy of increasing their managed care business. HNS' earnings will begin to increase again as they make the necessary adjustment to match operating expenses with managed care revenues and their new Integrated Care Centers begin to produce increasing amounts of revenue and profit. Our Perinatal Services division has launched a totally new program, First Steps(SM), which offers obstetrical risk screening services to employers and payors. This new program has additional revenue and profit potential and is complementary to their basic business. Our Technologies business continues to show progress which is being driven by their new product lines. While we no longer expect to meet original estimates for the 1992 fiscal year, we are making the adjustments necessary to maximize profits in this changing health care environment." 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 division, 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) (Unaudited) 3 mos. ended 9/30 1992 1991 Revenues $65,602 $50,011 Cost of revenues 31,096 21,928 Gross profit 34,506 28,083 Selling and admin. expenses 23,986 16,890 Noncash compensation expense resulting from exercise of stock options --- --- Provision for doubtful accounts 5,131 4,164 Research and development expenses 660 576 Operating profit 4,729 6,453 Interest income 157 204 Interest expense (410) (204) Other income (expense), net (132) (27) Minority interest in earnings of partnerships (699) (227) Earnings before income tax expense and minority interest in net earnings of subsidiary 3,645 6,199 Income tax expense 929 1,887 Earnings before minority interest in net earns. of subsidiary 2,716 4,312 Minority interest in net earnings of subsidiary 469 975 Net earnings $ 2,247 $ 3,337 Net earnings per common share and common share equivalent $ .15 $ .21 Weighted average number of common shares and common share equivalents 15,353 15,708 9 mos. ended 9/30 1992 1991 Revenues $181,893 $136,720 Cost of revenues 82,138 59,877 Gross profit 99,755 76,843 Selling and admin. expenses 64,655 47,337 Noncash compensation expense resulting from exercise of stock options --- 2,434 Provision for doubtful accounts 14,436 11,085 Research and development expenses 1,742 1,620 Operating profit 18,922 14,367 Interest income 590 631 Interest expense (784) (558) Other income (expense), net (325) (28) Minority interest in earnings of partnerships (1,521) (349) Earnings before income tax expense and minority interest in net earnings of subsidiary 16,882 14,063 Income tax expense 4,475 4,945 Earnings before minority interest in net earns. of subsidiary 12,407 9,118 Minority interest in net earnings of subsidiary 2,276 2,737 Net earnings $10,131 $ 6,381 Net earnings per common share and common share equivalent $ .65 $ .41 Weighted average number of common shares and common share equivalents 15,684 15,571 HEALTHDYNE, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Amounts in thousands) ASSETS 9/30/92 12/31/91 Current assets: (Unaudited) Cash and short-term investments $ 18,373 $ 23,015 Trade accounts receivable, net 88,195 74,165 Inventories 15,270 13,063 Deferred income taxes 1,084 841 Other current assets 7,038 4,702 Total current assets 129,960 115,786 Property and equipment, net 19,968 15,252 Goodwill and other intangibles, net 27,837 5,056 Other assets 2,232 2,649 Total $ 179,997 $ 138,743 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current installments of long- term debt and obligations under capital leases $ 908 $ 595 Accounts payable, principally trade 10,690 8,861 Other current liabilities 11,493 11,974 Total current liabilities 23,091 21,430 Long-term debt and obligations under capital leases, excluding current installments 45,205 6,576 Deferred income taxes 6,766 6,766 Other long-term liabilities 471 604 Total liabilities 75,533 35,376 Minority int. in subsidiary and partnerships 23,724 23,352 Shareholders' equity 80,740 80,015 Total $ 179,997 $ 138,743 -0- 10/30/92 /CONTACT: Donald R. Millard of Healthdyne, 404-423-4529/ (HDYN HNSI) CO: Healthdyne, Inc. ST: Georgia IN: HEA SU: ERN
EA-BN -- AT001 -- 6963 10/30/92 08:51 EST
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|Date:||Oct 30, 1992|
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