Companies in the News
AHOM to trade on OTC
American HomePatient (AHOM; Brentwood, TN) said it has stopped pursuing a listing on the American Stock Exchange and will begin trading on the over-the-counter bulletin board Sept. 1. Its trading symbol will remain AHOM, the company said. AHOM reported in late July that its shares were being delisted from Nasdaq Aug. 31 for failing to meet the minimum bid price requirement of $5.
Mallinckrodt posts EPS of $2.72 for FY99
Mallinckrodt (St. Louis) reported results for its FY99 and 4Q99 ended June 30. For the year, the company posted a net income of $196 million, $2.72 per share, compared to a net loss of $204 million, $2.81 per share, in FY98. Net sales in FY99 were $2.58 billion, compared to $2.37 billion in FY98. For 4Q99, the company recorded a net income of $52.7 million, 74 cents per share, compared to a net income of $71.9 million, 98 cents per share, in 4Q98. The company is comfortable with earnings per share projections of $2.50 to $2.60 for FY00, said CFO Michael Rocca.
McKesson HBOC records charge for ITB troubles
McKesson HBOC (San Francisco) posted a charge of $16.3 million after taxes in 1Q99 ended June 30 for accounting and legal expenses relating to the audit review that led to the company’s restatement of earnings, as well as for severance and benefit costs for the change in executive management. The restatements were the result of improperly recognized revenues in the Information Technology Business (ITB) unit, formerly HBO & Co. before McKesson acquired it in January. For 1Q99, McKesson HBOC recorded a net income of $70.1 million, 25 cents per share, compared to $69.1 million, 25 cents per share, in 1Q98. Revenues were $8.7 billion, which includes sales to customers’ warehouses of $2.2 billion and is an increase of 38% from $6.28 billion in 1Q98. Co-CEOs John Hammergren and David Mahoney said that negative effects from Y2K upgrades, changes in Medicare spending and the implementation of the prospective payment system had an impact on 1Q99 results. The company’s total debt at the end of 1Q99 was $1.7 billion, while stockholders’ equity was about $3 billion. McKesson HBOC has an earnings goal of $2.50 a diluted share for FY00, but a First Call estimate of 15 analysts predicts it will be $1.63 per share.
Nyer to sell interest in Nyer Nutritional
Nyer Medical Group (Bangor, ME) has signed a letter of intent to sell its interest, an 80% stake, in Nyer Nutritional Systems, which has suffered continued losses. The buyer or the purchase price has not been disclosed. The Bangor Daily News reported that the company buying Nyer’s subsidiary is a national medical distribution company with more than $3 billion in annual sales. Terms of the agreement are expected to be signed this week. The acquisition is subject to a definitive asset purchase agreement, expected to be completed within 40 days.
Olsten instructs employees in Web creation
Olsten Corp. (Melville, NY) is using FrontPage 98 software to evaluate job candidates. The software is part of the company’s new Precise System with an interactive, performance-based evaluation. The company expects there will be a demand for people skilled in basic Web creation and editing so it is training its assignment employees in the skills, said Ron Malone, president of Olsten Staffing Services North American Operations.
Option Care reports 2Q99 results
Option Care (Bannockburn, IL) reported earnings of 9 cents per share for 2Q99 ended June 30, exceeding analysts expectations of 7 cents per share for that period. Net income for 2Q99 was $1.1 million, 9 cents per share, compared to a net loss of $585,000, 5 cents per share, in 2Q98. Revenue increased 4% from $55 million in 2Q98 to $58.4 million in 2Q99. The company plans to continue with expansion of its managed pharmaceutical distribution program and to expand its penetration of existing markets and new areas through strategic partnerships, acquisitions or start-ups, said CEO Michael Rusnak.
PSA to file 2Q99 results late
Pediatric Services of America (PSA; Norcross, GA) said it intends to sell the paramedical testing business of its Paramedical Services of America subsidiary. To allow time for modification of its financial statements to reflect the paramedical testing business as a discontinued operation, PSA said it will report its 2Q99 ended June 30 financial results late. PSA said it will file a notice with the Securities and Exchange Commission (Washington) extending its 2Q99 filing date.
PSA said it is discussions with prospective purchasers of the business, but that it has not reached agreement on the terms of a transaction at this time.
Sunrise introduces compliance meter
Sunrise Medical (Carlsbad, CA) has introduced DeVilbiss Horizon LT CPAP, a compliance meter that can record up to six months of data in graphic or numeric form. The information can be downloaded so healthcare providers can quickly identify non-compliant patients.