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Amedisys (Baton Rouge, LA) reported 1Q99 ended March 31 revenues of $29 million, up 256% from 1Q98 total revenues of $8.1 million. Amedisys restated its financial earnings for 1Q98. The increase, Amedisys said, is directly attributed to the acquisition of certain Columbia/HCA Healthcare (Nashville, TN) home health agencies in late 1998.
Amedisys recorded a net loss in 1Q99 of $2.49 million, 81 cents per share, compared to a net loss in 1Q98 of $2.52 million, 83 cents per share. The company said it reduced its operating loss for the quarter as a result of the restructuring plan implemented in 1998 to reduce direct and indirect operating costs and to improve operating efficiencies, but the reduction is not apparent in the net loss figure due to the income tax benefit recorded in FY98.
Amedisys said it intends to focus on repayment or restructuring of its short-term debts, including a $14 million payment, which is due in December as a result of its acquisition of the Columbia agencies.
Apria Healthcare Group (Costa Mesa, CA) has entered into an agreement with Sharps Compliance Corp. (Houston) under which Sharps will become Apria’s exclusive provider of mail sharps disposal systems for home health patients. The contract is for three years. Sharps officials said the disposal-by-mail system is a cost-efficient alternative to expensive trips to patients’ homes to retrieve sharps containers and infusion therapy equipment.
Biomerica (Newport Beach, CA) agreed to buy TheBigRx.com Internet domain name and enter an alliance with TheBigHub Group, a network of affiliated Web sites. The agreement brings the company one step closer to opening a home healthcare products Web site. As part of the transaction, TheBigHub group will make an investment in Biomerica, but financial terms were not disclosed.
Coram (Denver) said last week it will take its Coram Prescription Services division on line in 3Q99. Coram has chosen Mediconsult.com to provide content and promotion for the new site. Under the agreement, Coram will be the exclusive prescription and over-the-counter (OTC) product provider to Mediconsult.com Web sites, providing visitors with a seamless interface to purchase their prescriptions and OTC products, including vitamins.
In other news, the Supreme Court declined to review a lawsuit filed by shareholders who claimed Coram fraudulently inflated its stock price in 1995, reported Dow Jones News Service. The judges let stand a lower court ruling dismissing the case, which arose from the settlement of a class action securities suit filed against T2 Medical in 1992. T2 Medical merged with three other companies in 1994 to form Coram. Early in 1995, Dow Jones reported, Coram settled the T2 suit, paying shareholders $25 million in cash and issuing them 2.5 million warrants. Under the accord, the exercise price of the warrants would be set based on the market value of Coram’s common stock between June 5 and June 19, 1995. The plaintiffs alleged that Coram misrepresented its financial condition to inflate the price of its stock, which in turn hurt the value of the warrants.
Coram also said last week it opened a pharmacy in Tustin, CA. From the new pharmacy, Coram offers home care services, including high-tech infusion therapy, and nursing.
Chemed (Cincinnati) elected a slate of 16 directors at its 1999 annual shareholders’ meeting last week. Newly elected members to the board include Rick Arquilla, president/COO of the company’s Roto-Rooter subsidiary, and Spencer Lee, chairman/CEO of Roto-Rooter.
Stockholders also approved and adopted Chemed’s 1999 Stock Incentive Plan and ratified the continuation of PricewaterhouseCoopers as its independent accountants for FY99.
Following the meeting, Chemed’s board declared a quarterly cash dividend of 53 cents per share on its capital stock, payable on June 16 to stockholders of record on June 2.
Graham-Field Health Products (GF; Bay Shore, NY) said last week it has delayed filing its 1Q99 report with the Securities and Exchange Commission (Washington) until it files its form 10-K for FY98. The annual report, which is being reviewed by company auditors, will include restated results for FY96 and FY97. GF said it expects to file the report later this month and the quarterly report shortly thereafter.
GF expects to post FY98 revenues of about $380 million, a pre-tax operating loss of $12 million, and a pre-tax net loss of $33 million, reported Dow Jones Business News. The loss includes corrections to accounting errors from the first three quarters of FY98.
HealthCor Holdings (Dallas) reported 1Q99 ended March 31 net revenues of $22.7 million, a $9.9 million decrease from 1Q98 revenues. The drop is primarily attributable to a reduction in Medicare nursing revenues resulting from regulatory changes and office closures, officials said. The company’s decision to withdraw from providing services to Medicare Part A beneficiaries was a direct result of changes in reimbursement as a result of the 1998 Medicare interim payment system. The decrease in Medicare nursing revenues is partially offset by growth in revenues in the respiratory therapy/medical equipment line of business.
HealthCor recorded a net loss in 1Q99 of $11.5 million, compared to a net loss in 1Q98 of $5.5 million. HealthCor said it continues to modify its operations internally while considering the possibility of a merger or sale of all or a portion of the operating assets.
HealthCor is now trading under the symbol HCOR.
Help at Home (Chicago) posted net revenues for 3Q99 ended March 31 of $6.9 million, a 20% increase over revenues of $5.7 million in 3Q98. The company recorded a net income in 3Q99 of $131,000, 7 cents per share, up from a 3Q98 net income of $95,000, 5 cents per share.
Infu-Tech (Englewood Cliffs, NJ) reported revenues of $6.5 million in 3Q99 ended March 31, compared to revenues in 3Q98 of $6.3 million. The company recorded a net loss in 3Q99 of $43,000, 1 cent per share, compared to a net income of $155,000, 5 cents per share, in 3Q98. The growth in revenues reflected increased sales from specialty pharmaceuticals, the company said. The drop in net income is due to decreased margins in the core infusion business and loss of business in the contract services division due to the impact of a change in Medicare reimbursement policy.
Kuala Healthcare (Englewood Cliffs, NJ) posted total revenues of $15.4 million in 3Q99 ended March 31, compared to total revenues of $15.8 million in 3Q98. Kuala officials said the decline in revenues was primarily attributable to a decrease in revenues in the nursing home services division. The company recorded a net loss for the quarter of $942,000, 28 cents per share, compared to a 3Q98 net loss of $34,000, 1 cent per share.
Kuala President/CEO Jack Rosen said, "Changes in reimbursement and the increasing competition from assisted living facilities in the region have clearly impacted Kuala’s skilled nursing and home healthcare businesses over the past 12 months. As the long term care and home healthcare industries continue to be impacted by these changes, Kuala is looking for avenues to create shareholder value by shifting its business mix toward specialty pharmaceuticals and assisted living projects. The company continues to review its operations to reduce costs while ensuring the level of services remains strong."
Lexington Healthcare Group (Farmington, CT) reported last week 3Q99 ended March 31 revenues of $20.7 million, a 38% increase over 3Q98 revenues of $15.1 million. The company, which provides management, healthcare, and ancillary services to the home care industry, recorded a net income for the quarter of $47,000, 1 cent per share, compared to a net income of $28,000, 1 cent per share, in 3Q98.
Effective Jan. 1, the company acquired the remaining 50% membership interest in Lexicore Rehab Services and began accounting for Lexicore’s operations as a wholly owned subsidiary in line with its strategy of consolidating ancillary operations.
Mallinckrodt (St. Louis) managers have said they are comfortable with a projection of $2.50 to $2.60 per share for FY2000 earnings. The company also expects sales growth of 7 to 8% in its respiratory division, driven by market growth and new products. Operating earnings are also expected to rise as the business continues to benefit from the synergies achieved from the Nellcor Puritan Bennett acquisition. "We believe our product lines for respiratory care, diagnostic imaging, and analgesic pharmaceuticals put us in the right market segment at the right time," CEO C. Ray Holman told investors, analysts, and bankers at a meeting. "In fact, the markets we serve are growing faster than the overall medical supplies market."
Mariner Post-Acute Network (Atlanta) recorded net revenues of $615 million in 2Q99 ended March 31, compared with revenues of $487 million in 2Q98. The company posted a net loss of $44 million, 60 cents per share, compared to a net income in 2Q98 of $4 million, 11 cents per share. The 2Q99 results include a charge of $30 million to increase reserves against other receivables in non-core businesses, related to the Mariner merger. Due to reductions in Medicare reimbursements, the company has decided to close its Prism Rehab Systems’ operations. More than 7,000 employees have been laid off, and Mariner expects to close 20 offices around the country by November.
A Boston law firm is charging that HBO & Co. artificially inflated revenues and earnings and issued false financial statements prior to its acquisition by McKesson. After the merger, McKesson HBOC (San Francisco) also issued false financials, said the law firm of Berman, DeValerio & Pease. The firm has filed a class action lawsuit on behalf of shareholders who bought HBOC stock from April 14, 1998 to Jan. 12, or McKesson HBOC stock from Jan. 12 to April 27.
Medix Resources (Denver), which provides medical personnel for home care facilities, announced that revenues decreased by 38% in 1Q99. The company posted $3.1 million in revenues, compared to $5 million in 1Q98. It also reported a net loss of $595,000, 3 cents per share, compared to $610,000, 3 cents per share, in 1Q98. The revenue decrease is due to the sale of the company’s Stat and Ellis offices in New York.
New York Health Care (NYC; Brooklyn, NY) attributes a rise in revenues in 1Q99 to the purchase of home healthcare offices in New Jersey. Revenues increased 11.1% to $5 million, compared to $4.6 million in 1Q98. The company posted a net loss in 1Q99 of $114,218, 3 cents per share, compared to a net income in 1Q98 of $113,244, 3 cents per share. NYC bought the New Jersey offices in February and March 1998. Following the acquisition, the company stopped doing business with slow-paying customers and offset those revenues with a new contract to provide home attendant services to New York City Medicaid patients. Once fully utilized, that contract should generate about $11 million a year in revenues, company officials said.
NuMed Home Health Care’s (Clearwater, FL) board has appointed Deloitte & Touche as the company’s auditors. NuMed CEO Susan Carmichael said the firm will help the company maintain its compliance programs, as well as establish improved processes to maximize shareholder value.
Paracelsus Healthcare Corp. (Houston) announced that net revenue was $150.9 million for 1Q99 ended March 31, compared to $186.9 million for 1Q98. The company reported a net loss of $1.6 million, 3 cents per share, compared to a net income of $450,000, 1 cent per share, in 1Q98. The company has appointed Joan Fortune as a director of the company. Fortune is an independent consultant and a former partner with the Frontenac Company. She has more than 20 years experience in the healthcare industry.
Pediatric Services of America (PSAI; Norcross, GA) reported, in a late filing with the Securities and Exchange Commission (SEC; Washington) 2Q99 ended March 31 revenues of $77 million, a decrease of 3.1% from 2Q98 revenues of $79.5 million. The company recorded a net loss for the quarter of $28.8 million, $4.33 per share, compared to a 2Q98 net income of $2.1 million, 30 cents per share.
The company’s plan, said Chairman/President/CEO Joseph Sansone, is to refocus its resources on core competencies in pediatric nursing, pharmacy, and respiratory services. He added that PSAI will exit service lines and geographic markets where the market fundamentals do not match the company’s strengths. He also said the company will reshape its management team to execute the plan.
Early last week, PSAI filed a notice with the SEC saying it would delay the filing of its report for 2Q99. The company said it needed the extra time because negotiations with lenders to obtain a waiver and amendment to its credit facility had taken time away from preparing the report. Nasdaq halted trading of the company on Monday, but Sansone told The Atlanta Constitution that he didn’t understand the reason. "We filed the proper form," he said.
REM (EDINA, MN) has acquired Enid Group Homes (Enid, OK), which will become part of REM Oklahoma Community Services. REM offers home healthcare, disability and senior services, rehabilitation therapy, and housing services. The transition occurred April 1.
Transworld Healthcare (Clark, NJ) reported revenues of $39 million in 2Q99 ended March 31, an increase of 4.4% over 2Q98 revenues of $37.3 million. The increase is primarily due to continued growth of the company’s home care subsidiary, Transworld Healthcare Limited, located in the United Kingdom. The company posted a net loss of $954,000, 5 cents per share, compared to a net loss in 2Q98 of $595,000, 3 cents per share. The increased net losses are due to softer revenues from a transition period for the Specialty Mail-0rder Pharmacy division.