Companies in the News
Companies in the News
Amedisys revenues surge
Amedisys (Baton Rouge, LA) saw revenues in FY99 ended Dec. 31 of $97.4 million, an increase from FY98 revenues of $25.5 million. The company posted a FY99 net income of $1.3 million, 42 cents per share, compared to a FY98 net loss of $24.9 million, $8.12 per share.
Amedisys attributes the revenue growth to the purchase of 83 home healthcare agencies from Columbia/HCA Healthcare (Nashville, TN) in late 1998. The FY98 amounts have been restated for comparative purposes due to a decision made in 1999 to reflect its management services, outpatient surgery, and infusion therapy divisions as discontinued operations, Amedisys said.
Rise at New York Health Care
New York Health Care (NYC; Brooklyn, NY) reported a 17.5% increase in FY99 ended Dec. 31 revenues to $23.8 million from $20.2 million in FY98. The company posted a net loss in FY99, after paid dividends, of $236.4 million, 6 cents per share, compared to a FY98 net income of $341.2 million, 9 cents per share.
NYC said disproportionately high staffing ratios at certain low volume offices during the first half of FY99 were rectified by management in 3Q99.
Southern Home Care expands coverage
ResCare’s (Louisville, KY) Southern Home Care Services unit obtained contracts to provide support, monitoring, and respite services to special needs individuals in the Atlanta and northern Georgia areas. ResCare said it expects annualized revenues of $5.8 million from the contracts. The company anticipates beginning full operations under the contracts in 2Q00.
Simione, Confer link up
Simione Central Holdings (Atlanta) and Confer Software (Redwood City, CA) have entered into an Enterprise Application Partnership Licensing Agreement. Under the agreement, Simione will use Confer’s patented eProcess technology for eCare, the ConferWeb Platform, to develop business-to-business software applications for automating a wide range of intra- and inter-company transactions among home care providers, suppliers, payors, and physicians. The applications will allow Simione’s suite of software applications for home care providers and third-party applications using the Internet.
Simione reported FY99 ended Dec. 31 total revenues of $25.8 million, compared to total revenues in FY98 of $41.6 million, a decrease of 38%. Simione saw a net loss in FY99 of $10.4 million, $5.95 per share, a smaller loss from FY98 when it posted a loss of $12.2 million, $7.11 per share.
For the quarter, Simione recorded revenues of $5.5 million, a 6.4% increase over 4Q98 revenues of $5.2 million. The company reported a 4Q99 net loss of $5.1 million, $2.93 per share, compared to a 4Q98 net loss of $2.4 million, $1.39 per share.
New financing plan announced
Builders’ (Lake Success, NY) ATC Healthcare Services and ATC Staffing subsidiaries secured a new financing relationship with Copelco/American HealthFund consisting of a $20 million revolving loan. The prior credit facility, in the amount of $16.5 million between Staff Builders, its ATC subsidiaries, and the prior lender, has been repaid, Staff Builders said.
The new credit facility consists of a revolving line of credit under which the company’s ATC subsidiaries can borrow up to an aggregate amount of $20 million. These obligations will be secured by a security interest in the ATC subsidiaries’ accounts receivable and other collateral. The proceeds, said Staff Builders, will be used for working capital purposes and to grow the business of the ATC subsidiaries.
Star Multi Care makes a buy
Star Multi Care Services (Huntington Station, NY) will acquire U.S. HomeCare’s (USHC; Hartford, CT) Pennsylvania operations. The company has entered into a contract with USHC to acquire its operations in Philadelphia, Pittsburgh, and Lancaster, PA, which produce annual sales of $4.5 million. The new locations will complement Star Multi Care’s existing operations in Allentown, PA, the company said.
The purchase represents Star Multi Care’s first acquisition in almost three years and will immediately be accretive to earnings. Star Multi Care expects to complete the deal by May 1.
USHC announced last week that it will shut down April 14 and that its agent bank, Chase Manhattan, will acquire its assets and sell them off. The company cited cash flow problems as its reason for closing.
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