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 ORANGE, Calif., Aug. 3 /PRNewswire/ -- Quantum Health Resources Inc. (NASDAQ: QHRI) today reported record revenues and net income for the second quarter ended June 30, 1993.
 For the second quarter of 1993, revenues were $48,774,000, an increase of 51 percent over the comparable 1992 quarter. Operating income increased 53 percent to $6,741,000. Net income increased to $4,173,100 from $3,096,600 for the second quarter of 1992. Earnings per share rose to $0.27 per share from $0.20 per share in 1992.
 For the six months ended June 30, 1993, revenues were $91,068,700, 49 percent greater than the year-ago period. Operating income increased 35 percent to $11,693,300. Net income rose to $7,382,100 from $6,386,800 in the first half of 1992. Earnings per share rose to $0.48 per share from $0.42 per share a year earlier.
 Current period and restated prior-period financial data reflect the Feb. 25, 1993, acquisition of The I.V. Clinic Inc. ("IVC"), which has been accounted for as a pooling of interests.
 Commenting on the quarter and six months just ended, Douglas H. Stickney, chairman, chief executive officer and president, stated, "We clearly had an exceptionally strong second quarter and first half of 1993. Revenues were up significantly and operating income reflected solid gains as well. Overall gross margin is also tracking as expected."
 Stickney continued, "These reported gains underscore the continued demand for the company's therapies and support services by persons affected by chronic disorders. While we experienced our most significant absolute growth in the hemophilia market, the company was also quite pleased with the growth in the Other Chronicare Disorders category consisting of alpha1-antitrypsin deficiency, immunodefiency diseases, Gaucher disease and growth deficiencies. The company also benefited from certain economies of scale in its field operations and corporate support functions.
 "As initially noted in our first quarter release, there are several important considerations in assessing 1993's three- and six-month operating results. First, IVC's historical financials for the 1992 periods (as well as for the first two months of 1993) reflected a reported effective tax rate of only 14 percent due to the S Corporation status of a significant portion of IVC's earnings prior to our acquisition of IVC. Moreover, IVC's 1992 six-month revenue and earnings included three months' business attributable to a traditional home I.V. therapy relationship which IVC chose to discontinue at March 31, 1992. On the other hand, our 1993 figures include one-time merger transaction costs incurred in the first quarter of this year to acquire IVC. These factors lead us to believe that certain adjustments to our reported results yield more appropriate comparisons.
 "As explained in the attached Summary Financial Data, the use of a pro forma income tax rate resulted in an earnings per share comparison of $0.27 this year to $0.19 for the second quarter of 1992, and a comparison of $0.47 to $0.38 for the first half of 1993 vs. 1992. The 1992 six-month period also included $0.02 in earnings relating to the discontinued IVC business relationship discussed above, while this year's six-month period bore a rounded $0.04 in merger transaction costs. An apples-to-apples comparison is more representative of our strong 1993 performance, especially year-to-date -- $0.27 this year, compared to $0.19 last year for the second quarter, and $0.51 this year, compared to $0.36 last year for the six-month period. Of these factors, the difference in IVC's effective tax rate will continue to be relevant in assessing quarterly comparisons for the balance of 1993.
 "We continue to be tremendously pleased with the IVC acquisition and our combined results," noted Stickney. "IVC brought to us a major position in the southwest marketplace and some unique expertise in new disease categories. We believe we have significantly enhanced our ability to serve existing and future chronic disorder markets."
 The company's balance sheet remains strong -- cash and temporary investments totaled $24 million, there was no debt and equity rose to $81 million at June 30, 1993. The company's receivable portfolio was also solid -- net DSO at June 30, 1993, was 81 days, unchanged from March 31, 1993.
 Quantum Health Resources Inc. is a national provider of therapies and support services to individuals affected by chronic disorders requiring life-long therapy. Quantum's Chronicare service is designed to provide therapies and services that enable patients and their families to manage the patient's condition with greater independence, address psychosocial issues related to the disorder and manage the financial burden of the cost of care. Quantum presently operates 23 licensed branches and 13 satellite offices throughout the United States.
 Summary Financial Data
 Three Months Ended Six Months Ended
 6/30/93 6/30/92(a) 6/30/93(b) 6/30/92(a)(d)
 Revenues $48,774,000 $32,320,700 $91,068,700 $61,139,300
 income 6,741,000 4,397,500 11,693,300 8,681,100
 Net income $4,173,100 $3,096,600 $7,382,100 $6,386,800
 per share $0.27 $0.20 $0.48 $0.42
 Weighted average
 outstanding 15,409,000 15,162,000 15,407,000 15,161,000
 Pro Forma
 Net income $4,173,100 $2,896,600 $7,257,100 $5,823,800
 Earnings per
 share $0.27 $0.19 $0.47 $0.38
 6/30/93 12/31/92(a)
 Selected Balance Sheet Items:
 Current assets $89,188,300 $88,598,500
 Total assets 97,381,100 94,591,400
 Liabilities 16,302,200 21,125,900
 Stockholders' equity $81,078,900 $73,465,500
 (a) Restated for the Feb. 25, 1993, acquisition of all of the capital stock of The I.V. Clinic Inc. and its two 75-percent-owned subsidiaries ("IVC"), which has been accounted for as a pooling of interests.
 (b) Operating income for six months ended June 30, 1993, includes $927,000 of non-recurring merger transaction costs pertaining to the acquisition of IVC which are not deductible for income tax purposes. These charges reduced six-month 1993 net income and earnings per share by $675,000 and $0.04 per share, respectively.
 (c) Supplemental pro forma data reflects net income of the company, adjusted in accordance with generally accepted accounting principles for a pro forma increase in income tax expense for financial reporting purposes resulting from the use of the company's effective income tax rate for the respective periods times the S Corporation earnings of IVC which had not been subject to federal income taxes prior to the Feb. 25, 1993, acquisition.
 (d) Operating results for six months ended June 30, 1992, include revenues and earnings attributable to one of IVC's then-largest business relationships which was discontinued, by mutual agreement, on March 31, 1992, in conjunction with IVC's decision to shift its strategic emphasis to patients affected by chronic disorders. Revenues, operating income and earnings per share (reported and pro forma) generated from this relationship between Jan. 1 and March 31, 1992, were approximately $1.5 million, $0.4 million and $0.02 per share, respectively.
 -0- 8/3/93
 /CONTACT: Douglas H. Stickney, chairman, CEO and president, or William James Nicol, senior VP and CFO, of Quantum Health Resources, 714-750-1610; or Gary Strong or Kathy Brunson of The Financial Relations Board, 312-266-7800, for Quantum Health Resources/

CO: Quantum Health Resources Inc. ST: California IN: HEA SU: ERN

EH-JL -- LA025 -- 9055 08/03/93 16:32 EDT
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Date:Aug 3, 1993

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