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HORIZON HEALTHCARE CORP. ANNOUNCES RECORD THIRD QUARTER RESULTS

 ALBUQUERQUE, N.M., March 22 /PRNewswire/ -- Horizon Healthcare Corp. (NYSE: HHC) today announced record results for its fiscal third quarter ended Feb. 28, 1993. Horizon reported net earnings of $2,012,000, or $.16 per share, a 60 percent increase over the net earnings of $1,184,000, or $.10 per share reported for the third quarter of the prior fiscal year. Operating revenues were $60.9 million for the third quarter of fiscal 1993, a 50 percent increase, as compared to $40.6 million for the same period of fiscal 1992. For the nine months ended Feb. 28, 1993, net earnings were $5,433 million, or $.44 per share, a 52 percent increase over the $3,315 million or $.29 per share for the prior fiscal period. The growth in net earnings for the nine months were on operating revenues of $160.3 million, which was a 39 percent increase over the $115.3 million of the comparable fiscal period.
 Commenting on the possible implications of health care reform and the third quarter results, Horizon's chairman and chief executive officer, Neal Elliott stated, "Fears in recent weeks over the uncertainty surrounding the national health care reform effort has resulted in the decline in valuations of many health care stocks including Horizon Healthcare. While very little specific information has emerged, we believe Horizon is well positioned to benefit from health care reform due to our cost containment focus. The principal elements of our strategic focus are: the continued growth and development of our specialty programs: for example, our speciality hospital program which can provide hospital level care at costs savings of up to 50 percent below hospital costs must benefit in any reform plan. Additionally our institutional pharmacy and contract therapy companies provide quality services to meet the increasing need to reduce the long-term cost of treating patients. Horizon provides an ideal combination of services to the rapidly growing managed care market."
 Addressing the major developments of the third quarter, Elliott noted, "We are pleased with the record results of the third quarter which marks our 16th straight quarter of increased profitability. We continue our dual focus of increasing revenue and profitability through selective acquisitions and continued growth from our higher margin specialty services and programs.
 "We expanded our specialty services and programs at the same pace as in the past several quarters. Growth of these programs will continue to play a significant role in our success. Net specialty programs revenues for the quarter rose to $15.8 million, a 72 percent increase over the same quarter of the prior fiscal year. These programs now comprise 26 percent of our total revenues."
 Licensed Specialty Hospitals and Subacute Care
 "The Horizon Specialty Hospitals provide a lower-cost alternative to serve the needs of patients with an extensive array of medically complex conditions. We go through the rigorous process for hospital licensure to meet the needs of the rapidly growing managed care market with a practical cost containment alternative to the acute care setting. This alternative site program positions us to benefit from cost containment initiatives.
 "We opened our third specialty hospital in Wichita, Kan., on Feb. 24, 1993, and our fourth specialty hospital, the Horizon Specialty Hospital in Overland Park, Kan., a 28-bed specialty unit, in early March.
 "The total capacity of our licensed specialty hospitals and subacute care program has increased to 168 beds during fiscal 1993, a 140 percent increase. This vigorous expansion of our specialty hospital and subacute care programs will continue with the opening of two additional licensed specialty hospitals during the fourth quarter."
 Rehabilitation Therapies
 "Consistent with our strategy to build our rehabilitation therapy business, we acquired Nevada Rehabilitation Services Corp. and incorporated Community Rehabilitation Centers (CRC) of Ohio. Our rehabilitative business now provides physical, occupational and speech therapy services to 14,600 beds in eight states with over 290 full-time staff therapists. The demand for rehabilitation services in the long-term care setting continues to out-pace the capacity to deliver care. We expect continued strong growth in our rehabilitation business during the fourth quarter and throughout fiscal 1994, as we continue to successfully recruit and retain qualified therapists."
 Institutional Pharmacy
 Commenting on the progress of our institutional pharmacy services, Elliott added, "National Institutional Pharmacy Services Inc. (NIPSI), our wholly owned subsidiary, increased the number of beds served with the conversion of 6,000 beds in Texas during the quarter. The conversion of these beds brings the total number of beds served by NIPSI to 15,740, as of the end of the third quarter. During the fourth quarter, we will be adding another 6,400 beds to bring the total number of beds served by NIPSI to 22,140 by the end of fiscal 1993. By grouping our marketing efforts and product purchasing, our pharmacies will increase their market share and enhance profitability. The growth of NIPSI will continue through fiscal 1994."
 Growth
 "During the third quarter," Elliott noted, "We continued expansion of our long-term care business with the acquisition of 10 long-term care centers in Michigan, Wisconsin, Texas, Montana and New Mexico. These acquisitions will allow us to expand the Horizon specialty programs. In fact, three of the nursing centers have been targeted as locations for specialty hospitals and one as a dedicated Alzheimer's facility. Remodeling of these centers is currently in progress and openings are planned during the first quarter of fiscal 1994."
 Finally, Elliott stated, "We are confident about continued outstanding revenue and profit growth for Horizon from opportunistic acquisitions, growth from our specialty services and programs and expanded margins. The company's financial condition is as strong as it has ever been, and will continue to provide a strong base for profitable future growth."
 Horizon Healthcare Corp., headquartered in Albuquerque, is a leading provider of quality specialty health care services including licensed specialty hospitals and subacute units, institutional pharmacy services, rehabilitation therapies, Alzheimer's care and long-term nursing care. As of March 22, 1993, the company operated four specialty hospitals and four subacute care units, 77 long-term care centers with a total of 8,582 beds in 10 states and institutional pharmacy operations implementing contractss?erve more than 22,000 beds by the end of this fiscal year.
 HORIZON HEALTHCARE CORP.
 Statement of Earnings Data
 (In thousands, except per share data)
 Quarter Ended Nine months ended
 Feb. 28, Feb. 29, Feb. 28, Feb. 29,
 1993 1992 1993 1992
 Net revenues from
 continuing
 operations $60,920 $40,641 $160,338 $115,299
 Pre-tax earnings
 from continuing
 operations 3,098 1,586 8,252 4,498
 Provision for
 income taxes (1,086) (402) (2,819) (1,183)
 Net earnings $2,012 $1,184 $5,433 $3,315
 Per share:
 Primary .17 .10 .46 .29
 Fully diluted .16 .10 .44 .29
 Shares used in
 calculating
 earnings per
 share:
 Primary: 11,797 11,726 11,683 11,343
 Fully diluted 16,319 --- 16,246 ---
 -0- 3/22/93
 /CONTACT: Michael H. Seeliger of Horizon Healthcare, 505-881-4961/
 (HHC)


CO: Horizon Healthcare Corp. ST: New Mexico IN: HEA SU: ERN

EH-BP -- DV003 -- 8190 03/22/93 11:30 EST
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