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HOMEDCO ANNOUNCES RECORD FOURTH QUARTER/YEAR-END OPERATING RESULTS

 HOMEDCO ANNOUNCES RECORD FOURTH QUARTER/YEAR-END OPERATING RESULTS
 FOUNTAIN VALLEY, Calif., Dec. 3 /PRNewswire/ -- Homedco Group Inc. (NASDAQ: HOME) today reported a record increase in revenues and earnings for the fourth quarter and fiscal year ended Sept. 30, 1991.
 Net income for the quarter ended, Sept. 30, 1991, more than quadrupled to $3.4 million, as compared with $0.8 million for the same period last year. Net income per share (which reflects the accretion to fair value of a warrant and the accretion of dividends on preferred stock) increased to $0.27, as compared with $0.04 per share for the corresponding quarter of 1990. Supplementally, net income per share (before accretion to fair value of the warrant and accretion of dividends on preferred stock) was $0.27 as compared with $0.09 for the corresponding quarter of 1990. Revenues for the period were $58.9 million compared with $50.5 million for the fourth quarter of 1990, a 17 percent increase.
 For the year ended Sept. 30, 1991, the company's net income was $8.8 million, as compared to a loss of $2.2 million for the comparable preceding period. Net income per share (which reflects the accretion to fair value of a warrant and accretion of dividends on preferred stock) was $0.23, as compared with a loss per share of $0.48 for the comparable preceding period. Supplementally, net income per share (before accretion to fair value of the warrant and accretion of dividends on preferred stock) was $0.80 per share, as compared with a loss per share of $0.25 for the comparable preceding period. Included in net income for the year ended Sept. 30, 1991, was an extraordinary charge of $559,000 (net of income taxes of $229,000) or $0.05 per share, representing unamortized deferred debt costs relating to the refinancing of debt completed June 1991. Revenues for the year ended Sept. 30, 1991 rose 15 percent to $222.1 million from $193.7 million for the preceding fiscal year.
 In connection with an initial public offering on May 2, 1991, a warrant held by the company's then-existing lender was exercised, and therefore the company will no longer need to reflect in earnings per share the accretion to fair market value of the warrant. In addition, the company has redeemed all outstanding preferred stock, thereby eliminating the dividend accretion requirement going forward.
 Commenting on the operating results, Jeremy M. Jones, chairman and chief executive officer, said, "I am very pleased with the outstanding fourth quarter and fiscal year results, which reflect our continued focus on the higher margin respiratory therapy and infusion therapy lines of business. These two business lines grew at rates of 17 percent and 21 percent, respectively, for the year, and currently represent 78 percent of our total business volume."
 Homedco also announced that effective Sept. 1, 1991, it had completed a transaction with Glasrock Home Health Care Inc. to acquire Glasrock's Southern California and Southwest operations. The acquisition expands Homedco's current service offering to New Mexico and Nevada, which represent new markets for the company.
 Homedco Group Inc. is a leading integrated provider of home health care services, offering home respiratory care, home infusion therapy and home medical equipment. The company provides its service through 118 branch locations serving 35 states.
 HOMEDCO GROUP INC.
 Consolidated Statement of Operations
 (In thousands, except per share data)
 Three Months Ended Year Ended
 Sept. 30, Sept. 30,
 1991 1990 1991 1990
 (Unaudited) (Unaudited)
 Net Revenues $58,853 $50,480 $222,105 $193,668
 Gross Profit $42,759 $36,797 $161,463 $138,454
 Operating expense $18,106 $15,192 $67,915 $57,842
 General and
 administrative
 expense $17,754 $15,484 $66,622 $59,490
 Provision for
 doubtful accounts,
 net of recoveries $1,619 $1,850 $7,551 $8,981
 Amortization of
 intangible assets $30 $1,398 $962 $5,673
 Operating Income $5,250 $2,873 $18,413 $6,468
 Interest expense $653 $2,012 $5,546 $8,362
 Income (loss) before taxes
 and extraordinary
 charge $4,597 $861 $12,867 ($1,894)
 Income taxes $1,141 $85 $3,546 $350
 Income (loss) before
 extraordinary charge $3,456 $773 $9,321 ($2,244)
 Extraordinary charge on
 debt restructure,
 net of taxes of
 $229 $0 $0 $559 $0
 Net income (loss) $3,456 $773 $8,762 ($2,244)
 Accretion of warrant
 with put option to fair
 market value $0 ($203) ($5,702) ($814)
 Accretion of Series A
 preferred stock
 dividend $0 ($230) ($591) ($880)
 Net income (loss) applicable
 to common
 stockholders $3,456 $340 $2,469 $3,938
 Net income (loss) per
 common share before
 extraordinary charge $0.27 $0.04 $0.28 ($0.48)
 Extraordinary charge $0.00 $0.00 $0.05 $0.00
 Net income (loss) per
 common share $0.27 $0.04 $0.23 ($0.48)
 Weighted average number
 of common shares
 outstanding 13,001,223 8,154,110 10,950,453 8,154,110
 Supplemental per share
 data:
 Net income (loss) per
 share before accretion
 of warrant to fair market
 value and accretion of
 Series A Preferred
 stock dividend $0.27 $0.09 $0.80 ($0.25)
 Weighted average number of
 common shares outstanding
 for supplemental per
 share computation 13,001,223 8,968,621 10,950,453 8,968,621
 -0- 12/3/91
 /CONTACT: Jeremy M. Jones, chairman and CEO, Larry Smallen, CFO, both of Homedco Group Inc., 714-755-5600/
 (HOME) CO: Homedco ST: California IN: HEA SU: ERN


EH-DM -- LA005 -- 8579 12/03/91 07:32 EST
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Date:Dec 3, 1991
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