Companies in the News
AAH adds line of home health aids
AAH Pharmaceuticals is adding 360 new lines to its range of incontinence products and mobility and disability aids. The home health range is available from a new consumer catalogue, the Home Health Hotline, that divides 650 product lines into four sections, including personal medical care, about the house, mobility out and about, and sport and leisure, reported Chemist & Druggist. The Hotline can also identify the pharmacy nearest to a patient’s home, said AAH.
Spinoff of Gentiva approved
Gentiva Health Services (Melville, NY), the newly named home care subsidiary of Olsten Corp. (Melville, NY), reported a 12% increase in FY99 ended Jan. 2 net revenues to $1.5 billion from $1.3 billion in FY98. Gentiva posted a net loss for the year of $15.1 million, compared to a FY98 net loss of $101.5 million.
Total revenues for 4Q99 increased 3% to $372 million from $362 million in 4Q98, Gentiva said. The company saw a net loss in 4Q99 of $2.2 million, compared to a 4Q98 net loss of $43 million.
Olsten shareholders last week approved the spinoff of Gentiva from Olsten as a separate, publicly traded company and the sale of Olsten’s staffing and information technology services businesses to Adecco S.A., a Switzerland company. Olsten announced the merger plans in August. The company said Gentiva is expected to begin trading March 16 on the Nasdaq under the symbol GTIV.
In other news, Moody’s Investors Service (New York) assigned a (P)B2 rating to the senior secured credit facility of Gentiva and downgraded the rating of the convertible subordinated debentures of Gentiva’s Quantum Health Resources subsidiary to Caa1 from Ba3. Moody’s said the rating outlook for Gentiva is negative. The ratings, Moody’s said, reflect uncertainty regarding the refinancing of the Quantum subordinated debentures, which mature Oct. 1, Gentiva’s thin operating margins and negative pro forma cash flow from operations, and the potential for future impairment of goodwill given the company’s low returns.
Invacare gets buy rating from Warburg Dillon
Warburg Dillon Read (New York) has started coverage of Invacare Corp. (Elyria, OH) with a buy rating and set a 12-month price target of $34. The firm said it views Invacare "as one of the standout companies in home healthcare. Its competition is looking weak, and the reimbursement environment is looking better than it has in the past couple of years."
Lexington sees jump in stock price
Lexington Healthcare Group (Boston) CEO Harry Dermer said he doesn’t know why the company’s share prices jumped more than 70% last week. Dermer said the company experienced a similar scenario a few months ago, but not to the extent of last Monday’s activity.
National Home Health sees jump in 2Q00 results
National Home Health Care Corp. (Scarsdale, NY) reported net revenues for 2Q00 ended Jan. 31 of $15 million, an increase of 50% from 2Q99 revenues of $10 million. The company posted a net income for the quarter of $1.5 million, 29 cents per share, compared to a 2Q99 net income of $85,000, 2 cents per share. National Home Health Care said the increases reflect the company’s expansion of its existing operations in Connecticut through an opportunity represented by the bankruptcy of certain competitors, the acquisition in November of certain assets from the bankruptcy trustee, and the successful penetration of available market share.
Option Care’s FY99 revenues increase 5%
Option Care (Bannockburn, IL) saw a FY99 ended Dec. 31 net income of $4.6 million, 39 cents per share, up from a FY98 net loss of $691,000, 6 cents per share. The company recorded net revenues for the year of $119.8 million, a jump of 5% over FY98 revenues of $114.4 million.
During FY99, Option Care said, several key financial indicators improved. The company lowered its debt from $22 million at the end of FY98 to $9 million at FY99-end. Also, Option Care’s selling, general, and administrative costs declined by 3%, days sales outstanding declined to 65 days, and provision for doubtful accounts improved by 40%.
For 4Q99, Option Care posted a net income of $1.4 million, 12 cents per share, compared to a net loss in 4Q98 of $614,000, 6 cents per share. Revenues for 4Q99 totaled $31.4 million, an increase of 8% from 4Q98 revenues of $29.1 million.