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MEDISYS COMPLETES MERGER WITH AMERICAN HOME THERAPIES; ANNOUNCES SECOND QUARTER RESULTS

 MINNEAPOLIS, July 29 /PRNewswire/ -- Medisys, Inc. (NASDAQ: MEDS), a leading provider of alternative site health care services and related products announced today that the shareholders of Medisys and those of American Home Therapies approved the merger of their two companies.
 American Home Therapies, which had $8.8 million in revenue for the 12 months ended Dec. 31, 1992, is a privately held home infusion provider based in St. Louis. The company, which also has branches in Kansas City, Kan., and Springfield, Ill., will continue to do business in those locations as American Home Therapies.
 "American Home Therapies is well-managed and profitable. They bring us significant market share in St. Louis and open avenues into Kansas City, two markets that are strategically important to our growth as a major regional provider," said William Brummond, Medisys' chief executive officer. "Over the past 18 months, Medisys has undertaken a major expansion plan, adding seven operations. We are confident that American Home Therapies will play a key role in the success of the organization that we have built through that expansion," Brummond continued.
 The following financial results reflect the merger with American Home Therapies for all the periods presented. Since the merger of AHT is accounted for as a pooling of interests, generally accepted accounting principals require the restatement of all prior periods to reflect the combined companies.
 Net revenues for the first six months of 1993 increased 143 percent to $25.4 million compared to $10.5 million for the same period of the prior year. This growth in net revenues comes from a 30 percent increase in revenue in existing regional centers with the remaining growth primarily from acquisitions completed by Medisys in 1992. For the second quarter of 1993, net revenues were $12.8 million, a 113 percent increase over the $6.0 million for the prior year.
 Income from operations for the first six months of 1993 increased 39 percent to $1.8 million from $1.3 million for the same period in 1992. For the second quarter of 1993, income from operations increased only 3 percent primarily due to a decrease in revenues at two of the pharmacy services locations.
 Net income for the first six months of 1993, after adjustments for the elimination of merger related expenses and the provision of income taxes on AHT's subchapter S corporation earnings, would have been $1,030,000, up 14 percent from $914,000 in the prior year. Adjusted net income for the second quarter of 1993 would have been $512,000 versus $536,000 in the prior year.
 Fully diluted net income per share, as adjusted, would have been eight cents per share for the first six months and four cents per share for the second quarter of 1993 compared to nine cents per share and four cents per share for the same periods in 1992. Fully diluted weighted average shares outstanding increased 28 percent to 12.3 million shares for the first six months of 1993 compared to 10.3 million shares for the same period in 1992.
 "Finalizing the merger with American Home Therapies completes one phase of our growth and development plans for Medisys. We will now concentrate on improving operating performance by developing operating efficiencies among locations and expanding the range of programs offered by each location. Of course, we will also continue to explore opportunities to expand our organization beyond its current scope," Brummond concluded.
 Medisys provides comprehensive home infusion therapy services and products, which involves the intravenous or other administration of physician-prescribed nutrients, antibiotics, chemotherapeutic agents or other medications to patients in their homes. The company also provides comprehensive pharmacy services to long-term care and retirement communities. These services include prescription dispensing, pharmaceutical consulting, IV therapy, enteral therapy and medical supplies. In addition to the locations added through this transaction, the company maintains operations in Minnesota, Wisconsin, Texas, Ohio, Illinois, Arizona and California.
 MEDISYS FINANCIAL RESULTS
 STATEMENTS OF OPERATIONS
 Six Months Ended Percent
 6/30/93 6/30/92 Change
 Net revenues $25,437,568 $10,491,481 142.5
 Income from operations 1,790,965 1,288,255 39.0
 Merger expenses and
 deferred taxes 1,597,280 0 N/A
 Net income (loss) $(58,238) $1,086,108 N/A
 Net income (loss) per
 common share:
 Primary $0.00 $0.11 N/A
 Fully diluted $0.00 $0.11 N/A
 Weighted average common
 shares outstanding:
 Primary 12,255,000 10,317,000 18.9
 Fully diluted 13,195,000 10,317,000 27.9
 Three Months Ended Percent
 6/30/93 6/30/92 Change
 Net revenues $12,802,098 $5,999,664 113.4
 Income from operations 811,413 787,544 3.0
 Merger expenses and
 deferred taxes 1,597,280 0 N/A
 Net income (loss) $(845,742) $646,057 N/A
 Net income (loss) per
 common share:
 Primary $(0.07) $0.06 N/A
 Fully diluted $(0.06) $0.06 N/A
 Weighted average common
 shares outstanding:
 Primary 12,280,000 10,348,000 18.7
 Fully diluted 13,347,000 10,355,000 28.9
 BALANCE SHEETS
 6/30/93 12/31/92
 Assets
 Current assets:
 Cash and cash equivalents $739,930 $3,011,087
 Accounts receivable, net 12,894,369 11,054,946
 Other 2,639,517 3,920,423
 Total current assets 16,273,816 17,986,456
 Equipment and leaseholds, net 2,307,022 2,117,157
 Intangible assets, net 19,246,193 17,682,364
 Total assets $37,827,031 $37,785,977
 Liabilities and stockholders' equity
 Current liabilities $11,956,670 $11,031,751
 Long-term liabilities 1,285,630 1,725,055
 Minority interest 308,595 302,594
 Total stockholders' equity 24,276,136 24,726,577
 Total liabilities and
 stockholders' equity $37,827,031 $37,785,977
 -0- 7/29/93
 /CONTACT: William Brummond, CEO or David Byrd, CFO, both of Medisys, 612-835-8300/
 (MEDS)


CO: Medisys, Inc, ST: Minnesota IN; MTC SU: ERN

DS -- MN029 -- 7527 07/29/93 19:17 EDT
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Date:Jul 29, 1993
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