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HORIZON HEALTHCARE REPORTS RECORD FOURTH QUARTER AND FISCAL-YEAR RESULTS

 ALBUQUERQUE, N.M., July 7 /PRNewswire/ -- Horizon Healthcare Corp. (NYSE: HHC) today announced record results for the fourth quarter of its fiscal year ended May 31, 1993. Net revenues from continuing operations for the quarter increased to $71.86 million from $43.7 million for the like period of the prior fiscal year, a gain of 64 percent. Net earnings for the quarter increased 20 percent to $2,350,000 or 18 cents per share from $1,712,000 or 15 cents per share from the like period of the prior fiscal year. The prior fiscal period included a one-time tax credit of 1 cent per share. Therefore, the current period compares 18 cents to 14 cents before the adjustment which is a real increase of 29 percent quarter to quarter. For the fiscal year ended May 31, 1993, Horizon's net revenues from continuing operations were $232.2 million as compared to net revenues from continuing operations of $159.0 for the prior fiscal year, a gain of 46 percent. At the same time, net earnings for the year ended May 31, 1993 were $7.78 million, or 62 cents per share, a 41 percent increase over the net earnings of $5.03 million or 44 cents per share reported for fiscal 1992.
 Commenting on the quarter and year-end results, Horizon's chairman and chief executive officer Neal Elliott noted, "We are extremely pleased with the results of fiscal 1993 and especially with the fourth quarter. The strong financial performance marks our 17th consecutive quarter of increased profitability and demonstrates our continued strong growth trends. Our outstanding year-to-year comparisons are due to growth of our higher margin specialty medical services and programs, as well as the strengthening of margins in our nursing centers."
 Net revenues from Horizon's specialty services and programs including its specialty hospitals, pharmacy services, Alzheimer's Living Centers, and therapies increased 76 percent to $62.9 million as compared to $35.7 million for the prior year. For the fourth quarter, specialty services and programs revenue was 29.1 percent of total operating revenue as compared to 23.3 percent for like quarter of the prior fiscal year.
 Licensed Specialty Hospitals
 Addressing the major developments of the quarter, Elliott noted, "In April we opened two licensed specialty hospitals in separate wings at our facilities in Wichita and Overland Park, Kan. These new specialty hospitals can serve 54 patients with medically complex conditions requiring ventilator care, I.V. therapy and specialized rehabilitation. Patient census for our two new specialty hospitals are ahead of expectations. Our licensed specialty hospital program will accelerate in fiscal 1994 with the opening of four additional specialty hospitals during the first two quarters. This will increase our specialty hospital/subacute services operating capacity by 73 percent to get 1994 off to a great start."
 Rehabilitation Therapies
 Commenting on the progress of our therapy division, Elliott added, "Community Rehabilitation Centers (CRC), our wholly owned subsidiary continued aggressive expansion with the addition of 21 contracts totaling 3,550 beds. We will continue to focus our efforts on expanding our therapy services through new contracts and by acquisition in our areas of regional concentration. Our successful recruitment and retention programs have resulted in the hiring of 39 new therapists during the fourth quarter."
 Institutional Pharmacy Services
 "National Institutional Pharmacy Services Inc. (NIPSI), our wholly owned pharmacy subsidiary continued its rapid expansion during the quarter with the addition of 5,700 non-affiliated beds in the state of Texas. NIPSI pharmacy services were also added to the nursing centers we acquired during the quarter, and we opened a pharmacy in the state of Montana to service the facilities which we operate in that state. This brings the total number of Horizon operated and non-affiliated beds served by NIPSI to 22,000. We are very pleased with the growth of our pharmacy services unit during fiscal 1993. This strong foundation along with upcoming positive changes in "patient choice" legislation in Texas make us very excited about further expansion during fiscal 1994."
 Acquisitions in Long-Term Care
 Elliott continued, "The fourth quarter included the acquisition of two nursing centers in Nevada and one in Texas. This brings the total number of nursing centers operated by Horizon in the State of Nevada to 11, consisting of 1,284 beds.
 "For the fiscal year ended May 31, 1993, we acquired a total of 23 nursing centers with 3,300 beds. Several of these acquisitions were targeted as a means of accelerating our subacute services program. We will continue to take advantage of selective acquisition opportunities and will continue our strategy of regional concentration."
 Bank Credit Facility
 During the quarter, Elliott noted, "We finalized a new bank credit facility in the amount of $33.0 million with the Boatman's Bank of St. Louis and First Interstate Bank of Texas, N.A. With this credit facility in place, we have the flexibility to take advantage of growth opportunities in expanding our base business and continued growth of our specialty medical services and programs."
 Laboratory Services
 "In regard to expanding our services, Horizon announced yesterday the opening of our new laboratory subsidiary, LTC Medical Laboratories Inc. We are in the process of implementing services to serve 15,000 beds which will be complete by the fourth quarter."
 Finally Elliott stated, "While 1993 was a highly successful year for Horizon, we have even higher expectations for fiscal 1994. We will continue to seek other opportunities and expand our role as a full service provider of high-quality health care services."
 Horizon Healthcare Corp., headquartered in Albuquerque, N.M., is a leading provider of quality specialty healthcare services including licensed specialty hospitals and subacute units, laboratory services, rehabilitative therapies, pharmacy 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 institutional pharmacy services, rehabilitation therapies and clinical laboratory services. As of July 7, 1993, Horizon operates four specialty hospitals and four subacute units, 81 nursing centers with a total of 8,962 beds in 11 states and institutional pharmacy services serving more than 22,000 beds.
 HORIZON HEALTHCARE CORP.
 Statement of Earnings Data
 (In thousands, except per share data)
 Quarter Ended Year Ended
 May 31, May 31,
 1993 1992 1993 1992
 Net revenues from
 continuing operations $71,861 $43,680 $232,199 $158,979
 Pre-tax earnings from
 continuing operations 3,591 2,157 11,843 6,655
 Provision for
 income taxes (1,241) (445) (4,060) (1,628)
 Net earnings $2,350 $1,712 $7,783 $5,027
 Per share:
 Primary .20 .15 .66 .44
 Fully diluted .18 .15 .62 .44
 Shares used in calculating
 earnings per share:
 Primary 11,800 11,628 11,712 11,401
 Fully diluted 16,366 --- 16,276 ---
 Fully diluted earnings
 adjusted for effect of
 tax credit --- .14 --- ---
 -0- 7/7/93
 /CONTACT: Michael H. Seeliger of Horizon Healthcare, 505-881-4961/
 (HHC)


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

EH-MC -- DV004 -- 9055 07/07/93 11:53 EDT
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Date:Jul 7, 1993
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