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 ALBUQUERQUE, N.M., Sept. 20 /PRNewswire/ -- Horizon Healthcare Corporation (NYSE: HHC) today announced the results of its first fiscal quarter ended Aug. 31, 1993. Horizon reported net earnings of $2,816,000, an 86 percent increase over the net earnings of $1,512,000 reported for the first quarter of the prior fiscal year. Net earnings per share were 21 cents, an increase of 62 percent over the 13 cents earned in the first quarter of fiscal 1993. Net revenues were $74.9 million for the first quarter of fiscal 1994, a 60 percent increase as compared to $46.7 million for the same period of fiscal 1994.
 Commenting on the quarter, Horizon's chairman and CEO, Neal Elliott, stated: "We are extremely pleased with the results achieved during the first quarter. Both net earnings and revenue are records for any quarter in our history. We've now had 18 straight quarters of increased profitability. This trend clearly demonstrates the continuing successful execution of our strategic business plan.
 "A key component of this plan is to focus management efforts on Horizon's higher margin specialty services. Net revenues from Horizon's specialty services and programs for the current quarter reached $23.3 million, a 99 percent increase over the $11.7 million for the same quarter of the prior fiscal year. With this rapid growth from existing programs, the scheduled opening of several new subacute units, and the future impact of recently announced opening of two specialty hospitals and the opening of our clinical laboratory services, Horizon's strong revenue and earnings growth from internal development will continue."
 Addressing the major developments of the first quarter, Mr. Elliott noted: "We took a major step to become a leading provider of subacute and specialty healthcare services in the nation. We entered into an agreement by which horizon will acquire Greenery Rehabilitation Group, Inc. (NYSE: GRG), in a merger. Upon consummation of the merger, we will create one of the country's largest providers of subacute and specialty healthcare facilities to serve the needs of medically complex cases. Additional economies of scale and operating efficiencies will be gained from consolidating dual functions and the combined purchasing power of the two companies. Horizon will introduce a broader array of specialty program in Greenery facilities. We are very excited about the merger with Greenery and are confident the transaction will have a positive impact on earnings."
 Specialty Hospital and Subacute Units
 During the quarter, Mr. Elliott noted: "We continued our specialty services growth with the opening of a 31-bed specialty hospital in Corpus Christi, Texas, and a 26-bed specialty hospital in El Paso, Texas, subsequent to the end of the quarter. Vigorous expansion of our specialty hospital and subacute program will continue with the opening of four new licensed specialty hospital and subacute care units during the next two quarters. These programs provide services at costs that are 50 percent below comparable care in acute care hospitals. We are now convinced that this program is very consistent with the objectives of the Clinton administration's healthcare reform package."
 Clinical Laboratory and Institutional Pharmacy
 "Consistent with our strategy to expand our role as a full-service provider of healthcare, we established LTC Medical Laboratories, Inc., as a wholly owned subsidiary of Horizon Healthcare Corporation. Centrally located in Dallas, Texas, LTC laboratory is the first clinical laboratory in the industry that provides comprehensive clinical laboratory services specifically targeted to long-term care providers nationwide. During the quarter the laboratory began performing test for 11 facilities and will expand to approximately 100 facilities by the end of the fiscal year. Mr. Elliott stated that, "We know what lab services long-term care facilities need. We developed a highly cost effective system that makes test results available the next day on a proprietary computer terminal in each home. Our approach will dramatically reduce the amount of paperwork and potential for mistakes."
 Addressing other developments, Mr. Elliott noted, "During the quarter National Institutional Pharmacy Services, Inc., continued its expansion with the addition of 2,064 non-affiliated beds in the state of Texas and Nevada. NIPSI pharmacy services were also added to the nursing centers acquired during the quarter and to our specialty hospital in Corpus Christi, Texas."
 Rehabilitation Therapies
 "Consistent with our strategy to build our rehabilitation therapy business, we incorporated CRC of Florida, which will further enhance our growth efforts in Florida. We now provide comprehensive rehabilitation therapy services to 19,500 beds in nine states with more than 360 licensed therapists on staff."
 Elliott continued: "We increased our bank credit facility to $50 million with Boatmen's National Bank of St. Louis and First Interstate Bank of Texas, N.A. The additional availability will provide flexibility for timing future financing alternatives.
 "As previously announced, due to the unfavorable stock market conditions, Horizon's board of directors has decided to complete the Greenery transaction using only internal resources and will delay or modify the proposed 5 million share offering when market conditions improve. Approximately 2 million Horizon shares will be exchanged to complete the purchase of Greenery."
 Horizon Healthcare Corporation, headquartered in Albuquerque, is a leading provider of quality specialty healthcare services including licensed specialty hospitals and subacute care, pharmacy services, rehabilitation therapies, laboratory services, Alzheimer's care and long-term nursing care. Through National Institutional Pharmacy Services, Inc., CRC Rehabilitation Centers, Inc., and LTC Medical Laboratories, Inc., Horizon provides pharmacy services, rehabilitation therapies and clinical laboratory services. As of Sept. 20, 1993, Horizon operates six specialty hospitals, five subacute units, 83 long- term care centers with a total of 9,025 in beds in 11 states, and institutional pharmacy services serving more than 24,000 beds.
 Income Statement
 (In thousands, except per share data)
 For the Quarter Ended Aug. 31, 1993 1992
 Total Operating Revenues $74,967 $46,719
 Earnings Before Income Taxes 4,597 2,194
 Income Taxes (1,781) (682)
 Net Earnings 2,816 1,512
 Per Share:
 Earnings per Share $0.24 $0.13
 Fully Diluted:
 Earnings per share $0.21 $0.13
 -0- 9/20/93
 /CONTACT: Michael H. Seeliger of Horizon Healthcare Corporation, 505-881-4961/

CO: Horizon Healthcare Corporation ST: New Mexico IN: HEA SU: ERN

SM-TW -- NY028 -- 3571 09/20/93 10:37 EDT
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Publication:PR Newswire
Date:Sep 20, 1993

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