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HORIZON HEALTHCARE ANNOUNCES RECORD THIRD QUARTER RESULTS

 HORIZON HEALTHCARE ANNOUNCES RECORD THIRD QUARTER RESULTS
 ALBUQUERQUE, N.M., March 23 /PRNewswire/ -- Horizon Healthcare Corp. (NYSE: HHC) today announced the results of its fiscal third quarter ended Feb. 29, 1992. Horizon reported net earnings of $1,184,000, a 183 percent increase over the net earnings of $418,000, reported for the third quarter of the prior fiscal year. Net earnings per share were 10 cents, an increase of 67 percent over the 6 cents earned in the third quarter of fiscal 1992. These results also reflect an average increase of 4.5 million shares and common share equivalents used in computing earnings per share. Net revenues from continuing operations were $40.6 million for the third quarter of fiscal 1992, a 54 percent increase as compared to $26.4 million for the like period of fiscal 1991. For the nine months ended Feb. 29, 1992, revenues from continuing operations were $115.3 million, a gain of 48 percent, and net earnings were $3,315,000, a 184 percent increase over the $78.1 million and $1.167 million respectively for the prior fiscal year. Earnings per share for the nine months, increased to 29 cents from 16 cents, an 81 percent increase from the comparable period of the prior year, also with more common shares outstanding.
 Net revenues from Horizon's specialty services and programs, including its pharmacy services, Alzheimer's Living Centers, Specialty Hospital, and therapies increased 89 percent to $9.06 million or 22.3 percent of revenues for the third quarter, as compared to 18.1 percent of revenues for the like period of the prior fiscal year.
 Commenting on the quarter, Horizon's chairman and CEO, Neal Elliott stated; "We are extremely pleased with the positive results of the third quarter, our twelfth consecutive quarter of increased profitability which clearly confirms our growing financial strength. The combination of revenue enhancement and growth from our specialty services and programs has served to improve our profit margins as well.
 "On Feb. 7, 1992, we successfully completed a public offering of $57.5 million of 6 3/4 percent convertible subordinated notes due Feb. 1, 2002. The notes were priced at par and are convertible into common stock of the company at any time prior to Feb. 1, 2002, unless previously redeemed at the price of $12 per share. We are very pleased with the success of this offering. It puts us in an excellent financial position to take advantage of the many growth opportunities in the long-term care industry. The proceeds of this offering will be used to retire outstanding long-term debt, to finance future acquisitions, and for general corporate purposes. In fact, approximately $6,000,000 has already been used to retire certain long- term indebtedness and approximately $19,000,000 were used to pay-down the outstanding balance on the credit agreement with the company's lead bank.
 "This credit agreement effective June 1, 1990, provides the company a $20,000,000 facility which included a revolving line of credit which converted
to a six year term loan. While the company has paid off all amounts which were outstanding under the line, we are requesting that the banks restore the revolving feature to the line. Due to the financial difficulties of our lead bank, we are now uncertain if the lead bank will be able to accommodate this request."
 Addressing other developments during the quarter, Elliott noted; "Controlled growth in areas in which we operated efficiently and profitably continues with the acquisition of two skilled nursing facilities in Montana, as of Jan. 1, 1992. These additions are already contributing to our profitability.
 "During the quarter, our Ohio and Southwest institutional pharmacy joint ventures continued vigorous expansion. Pharmacy services were extended to residents of our seven facilities in Nevada, through our Southwest joint venture, bringing the total number of beds served to 9,450. In the future, new pharmacy programs will be initiated on a wholly owned basis. We now understand the institutional pharmacy business from both the provider and nursing home owner positions. We have the correct mix of arms-length and captive pharmacy business to maximize revenue, profit, and return on investment from our pharmacy division. We are very excited about the value we have created. Our goal is to become one of the leading institutional pharmacy providers in the country.
 "Our joint venture with Quantum Health Resources Inc., to provide infusion therapy services to selected Horizon facilities has shown positive results since it's commencement. During the fourth quarter, we will expand the services to other Horizon facilities."
 Finally, Elliott noted; "Based upon the success of our first licensed Specialty Hospital in Oklahoma City, we will open Horizon's second Specialty Hospital in Las Vegas, Nev. on April 1, 1992, to serve the needs of patients with medically complex conditions. We also plan to open an Alzheimer's Living Center with 26 beds at one of our facilities in Northern Nevada.
 "As a result of the offering, and the continued progress we have made, we are ideally positioned to capitalize on new opportunities in the long-term care industry."
 Horizon Healthcare, headquartered in Albuquerque is a leading provider of quality long-term healthcare, which includes nursing homes, subacute hospitals, Alzheimer care, and related ancillary services. As of Feb. 29, 1992, the company operated 60 long-term care centers with a total of 6,000 beds, in seven states, and two joint venture institutional pharmacies serving 9,450 beds.
 HORIZON HEALTHCARE CORP.
 Statement of Earnings Data
 (In thousands, except per share data)
 Quarter Ended Nine Months Ended
 Feb. 29, Feb. 28, Feb. 29, Feb. 28,
 1992 1991 1992 1991
 Net revenues from
 continuing operations $40,641 $26,243 $115,299 $78,150
 Pre-tax earnings from
 continuing operations 1,586 418 4,498 1,162
 Provision for income
 taxes (402) --- (1,183) (88)
 Extraordinary item: tax
 benefit of net operating
 loss carry forward --- --- --- 88
 Net earnings $1,184 $418 $3,315 $1,162
 Per share:
 Primary: $.10 $.06 $.29 $.16
 Fully diluted: .10 .06 .29 .16
 Shares used in calculating
 earnings per
 share-primary 11,726 7,178 11,343 7,088
 -0- 3/23/92 R
 /CONTACT: Michael H. Seeliger of Horizon Healthcare, 505-881-4961/
 (HHC) CO: Horizon Healthcare Corp. ST: New Mexico IN: HEA SU: ERN


MC -- DV003 -- 0537 03/23/92 11:31 EST
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Date:Mar 23, 1992
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