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8-K - FORM 8-K - AMERICAN HOMEPATIENT INC | g22388e8vk.htm |
EX-99.2 - EX-99.2 - AMERICAN HOMEPATIENT INC | g22388exv99w2.htm |
EX-99.3 - EX-99.3 - AMERICAN HOMEPATIENT INC | g22388exv99w3.htm |
EX-99.4 - EX-99.4 - AMERICAN HOMEPATIENT INC | g22388exv99w4.htm |
Exhibit 99.1
News Release
Contact:
|
Joseph F. Furlong | or | Stephen L. Clanton | |||
President and CEO | Executive VP & CFO | |||||
(615) 221-8884 | (615) 221-8884 | |||||
Primary Contact |
For Immediate Release
AMERICAN HOMEPATIENT REPORTS FINANCIAL RESULTS FOR
THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2009
THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2009
BRENTWOOD, Tenn. (March 4, 2010) American HomePatient, Inc. (OTCBB: AHOM), one of the nations
largest home health care providers, today announced its financial results for the fourth quarter
and year ended December 31, 2009.
Revenues for the fourth quarter of 2009 were $61.3 million compared to $67.8 million for the fourth
quarter of 2008, representing a decrease of $6.5 million, or 9.6%. Revenues for the year ended
December 31, 2009 were $236.3 million compared to $266.9 million for the same period in 2008,
representing a decrease of $30.6 million, or 11.5%. Medicare reimbursement reductions effective
January 1, 2009 reduced revenues by approximately $6.5 million in the fourth quarter of 2009 and
$27.4 million for the year ended December 31, 2009. Further reductions in revenues in 2009
resulted from the impact of Medicare policy changes related to coverage guidelines for positive
airway pressure devices, a change in inhalation drug product mix resulting from Medicare
reimbursement reductions, and the Companys reduced emphasis on less profitable product lines such
as non-respiratory durable medical equipment and infusion therapy. These revenue decreases were
partially offset by growth in sleep therapy revenue.
Operating expenses declined in the fourth quarter of 2009 compared to the fourth quarter of 2008 by
approximately $1.6 million, or 4.9%. Operating expenses for the year ended December 31, 2009
compared to the same period in 2008 declined by $8.0 million, or 6.0%. The decreases in operating
expenses for the fourth quarter and year ended December 31, 2009 were primarily the result of
improved operating efficiencies and the resulting reduced operating costs, partially offset by
increases in certain expenses associated with the development and implementation of initiatives
designed to provide additional productivity improvements. Areas of focus have included
centralization of branch functions, consolidation of branches, improved routing and delivery
systems, and more effective utilization of leased space.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a non-GAAP financial
measurement that is calculated as net income excluding interest, taxes, depreciation and
amortization. Adjusted EBITDA (EBITDA excluding discontinued operations and debt restructuring
expenses) was $9.4 million, or 15.3% of net revenue, for the fourth quarter of 2009 compared to
$14.2 million, or 20.9% of net revenue, for the same period of 2008. Adjusted EBITDA was $32.7
million, or 13.8% of net revenue, for the year ended December 31, 2009 compared to $51.6 million,
or 19.3% of net revenue, for the same period of 2008.
Net loss for the fourth quarter of 2009 was $(1.2) million, or $(0.07) per diluted share, compared
to net income of $1.5 million, or $0.09 per diluted share, for the fourth quarter of 2008. Net
loss for the year ended December 31, 2009 was $(13.1) million, or $(0.75) per diluted share,
compared to net income of $0.5 million, or $0.03 per diluted share for the same period in 2008.
Medicare reimbursement cuts effective January 1, 2009 reduced adjusted EBITDA and net income in the
fourth quarter and twelve months of 2009 by approximately $6.5 million and $27.4 million,
respectively. Adjusted EBITDA and net income were further reduced in 2009 as a result of the impact
of Medicare policy changes related to coverage guidelines for positive airway pressure devices and
a change in inhalation drug product mix resulting from Medicare reimbursement reductions. These
items were partially offset by reduced operating expenses resulting from improved operating
efficiencies, reduced bad debt expense resulting from improved revenue qualification and collection
processes, and growth in sleep therapy revenues.
Secured Debt Maturity
The Company has secured debt of $226.4 million that was due to be repaid on August 1, 2009. As
previously announced, a series of forbearance agreements have been entered into by and among the
Company, the agent for the secured debt, and certain forbearance holders. The parties to the
forbearance agreement have agreed to not exercise, prior to the expiration of the term of the
agreement, any of the rights or remedies available to them as a result of the Companys failure to
repay the Secured Debt on the maturity date. The current forbearance agreement expires March 16,
2010. Since the maturity date, the Company has continued to pay interest on a monthly basis in an
amount consistent with the original terms of the secured debt. The Company, the agent, and the
forbearance holders continue to work toward a resolution of the debt maturity issue. However,
there can be no assurance a resolution will be reached with favorable terms to the Company and its
stockholders or at all.
American HomePatient, Inc. is one of the nations largest home health care providers with
operations in 33 states. Its product and service offerings include respiratory services, infusion
therapy, parenteral and enteral nutrition, and medical equipment for patients in their home.
American HomePatient, Inc.s common stock is currently traded in the over-the-counter market or, on
application by broker-dealers, in the NASDs Electronic Bulletin Board under the symbol AHOM or
AHOM.OB.
American HomePatient, Inc. prepares its financial statements in accordance with U.S. generally
accepted accounting principles (GAAP). American HomePatient, Inc. also provides information
related to non-GAAP financial measurements such as EBITDA, and from time to time, other non-GAAP
financial measurements that adjust for certain items outside of the ordinary course of its
business. To enable interested parties to reconcile non-GAAP measures to the Companys GAAP
financial statements, the Company clearly defines EBITDA and quantifies all other adjustments to
GAAP measurements (see Schedule B). The Company provides EBITDA information, a widely used
non-GAAP financial measurement, as a performance measure to assist in analyzing the Companys
operations and in comparing the Company to its competitors. The Company provides other non-GAAP
financial measurements that adjust for certain items
outside of the ordinary course of business in
order to assist in comparing the Companys current operating performance to its historical
performance. These adjustments typically reflect non-
recurring items but sometimes reflect items, such as dispositions of assets and restructuring
charges that are not technically non-recurring but are outside of the ordinary course of
operations. Investors should note that such measures may not be comparable to similarly titled
measures used by other companies, and investors are encouraged to use this information only in
connection with the information contained in the Companys GAAP financial statements.
Certain statements made in this press release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements
are based on managements current expectations and include known and unknown risks, uncertainties
and other factors, many of which the Company is unable to predict or control, that may cause the
Companys actual results or performance to materially differ from any future results or performance
expressed or implied by such forward-looking statements. These statements involve risks and
uncertainties, including, without limitation, risks and uncertainties regarding the maturity of the
Companys secured debt, current and future reimbursement rates, and reimbursement reductions and
the Companys ability to mitigate the impact of the reductions. These risks and uncertainties are
in addition to risks, uncertainties, and other factors detailed from time to time in the Companys
filings with the Securities and Exchange Commission. The Company cautions investors that any
forward-looking statements made by the Company are not necessarily indicative of future
performance. The Company is not responsible for updating the information contained in this press
release beyond the published date, or for changes made to this document by wire services or
Internet services.
American HomePatient, Inc. | Schedule A | |
Summary Financial Data | ||
(In thousands, except per share data) |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenues, net |
$ | 61,309 | $ | 67,805 | $ | 236,297 | $ | 266,854 | ||||||||
Cost of sales and related services |
14,306 | 15,299 | 52,891 | 56,612 | ||||||||||||
Cost of rentals and other revenues, including rental equipment depreciation |
7,092 | 8,217 | 29,674 | 34,682 | ||||||||||||
Operating expenses |
30,929 | 32,516 | 124,548 | 132,523 | ||||||||||||
Bad debt expense |
928 | 614 | 3,517 | 4,635 | ||||||||||||
General and administrative expenses |
5,153 | 5,320 | 20,909 | 19,841 | ||||||||||||
Depreciation, excluding rental equipment, and amortization |
877 | 1,012 | 3,866 | 4,102 | ||||||||||||
Interest expense, net |
3,134 | 3,860 | 14,734 | 15,618 | ||||||||||||
Other income, net |
154 | (389 | ) | (345 | ) | (1,040 | ) | |||||||||
Change of control income |
(3 | ) | (3 | ) | (12 | ) | (77 | ) | ||||||||
Earnings from unconsolidated joint ventures |
(1,358 | ) | (1,795 | ) | (5,243 | ) | (6,201 | ) | ||||||||
Income (loss) from operations before income taxes |
97 | 3,154 | (8,242 | ) | 6,159 | |||||||||||
Provision for income taxes |
1,211 | 1,362 | 4,515 | 5,054 | ||||||||||||
Net (loss) income |
(1,114 | ) | 1,792 | (12,757 | ) | 1,105 | ||||||||||
Less: net income attributable to the noncontrolling interest |
(107 | ) | (101 | ) | (341 | ) | (408 | ) | ||||||||
Net (loss) income attributable to American HomePatient, Inc. from continuing operations |
(1,221 | ) | 1,691 | (13,098 | ) | 697 | ||||||||||
Discontinued operations: |
||||||||||||||||
Loss from discontinued operations |
| (183 | ) | | (183 | ) | ||||||||||
Net (loss) income attributable to American HomePatient, Inc. |
$ | (1,221 | ) | $ | 1,508 | $ | (13,098 | ) | $ | 514 | ||||||
Basic (loss) income per common share attributable to American HomePatient, Inc common shareholders
- Continuing operations |
$ | (0.07 | ) | $ | 0.10 | $ | (0.75 | ) | $ | 0.04 | ||||||
Basic (loss) income per common share attributable to American HomePatient, Inc common shareholders
- Discontinued operations |
| (0.01 | ) | | (0.01 | ) | ||||||||||
Basic (loss) income per common share attributable to American HomePatient, Inc common shareholders |
$ | (0.07 | ) | $ | 0.09 | $ | (0.75 | ) | $ | 0.03 | ||||||
Diluted (loss) income per common share attributable to American HomePatient, Inc common shareholder
- Continuing operations |
$ | (0.07 | ) | $ | 0.10 | $ | (0.75 | ) | $ | 0.04 | ||||||
Diluted (loss) income per common share attributable to American HomePatient, Inc common shareholders
- Discontinued operations |
| (0.01 | ) | | (0.01 | ) | ||||||||||
Diluted (loss) income per common share attributable to American HomePatient, Inc common shareholders |
$ | (0.07 | ) | $ | 0.09 | $ | (0.75 | ) | $ | 0.03 | ||||||
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
(unaudited) | ||||||||
Cash and cash equivalents |
$ | 21,944 | $ | 13,488 | ||||
Restricted cash |
250 | 250 | ||||||
Net patient receivables |
25,850 | 38,284 | ||||||
Other receivables |
521 | 777 | ||||||
Total receivables |
26,371 | 39,061 | ||||||
Net inventories |
10,808 | 10,789 | ||||||
Prepaid expenses and other current assets |
6,675 | 9,863 | ||||||
Total current assets |
66,048 | 73,451 | ||||||
Property and equipment, net |
30,256 | 32,042 | ||||||
Goodwill |
122,093 | 122,093 | ||||||
Other assets |
20,900 | 26,940 | ||||||
Total Assets |
$ | 239,297 | $ | 254,526 | ||||
Current portion of long-term debt and capital leases |
$ | 229,120 | $ | 234,259 | ||||
Accounts payable |
13,849 | 11,989 | ||||||
Other current liabilities |
21,191 | 24,535 | ||||||
Total current liabilities |
264,160 | 270,783 | ||||||
Long-term debt and capital leases, less current portion |
3 | 51 | ||||||
Deferred tax liability |
12,031 | 7,841 | ||||||
Other noncurrent liabilities |
82 | 8 | ||||||
Total liabilities |
276,276 | 278,683 | ||||||
American HomePatient, Inc. shareholders deficit |
(37,411 | ) | (24,619 | ) | ||||
Noncontrolling interest |
432 | 462 | ||||||
Total shareholders deficit |
(36,979 | ) | (24,157 | ) | ||||
Total Liabilities and Shareholders Deficit |
$ | 239,297 | $ | 254,526 | ||||
Schedule B
American HomePatient, Inc.
Reconciliation of Non-GAAP Financial Measurements to GAAP Financial Statements
(In thousands)
Reconciliation of Non-GAAP Financial Measurements to GAAP Financial Statements
(In thousands)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Net (loss) income |
$ | (1,221 | ) | $ | 1,508 | $ | (13,098 | ) | $ | 514 | ||||||
Add: |
||||||||||||||||
Provision for income taxes |
1,211 | 1,362 | 4,515 | 5,054 | ||||||||||||
Interest expense, net |
3,134 | 3,860 | 14,734 | 15,618 | ||||||||||||
Rental equipment depreciation |
5,181 | 6,263 | 21,824 | 26,085 | ||||||||||||
Other depreciation and amortization |
877 | 1,012 | 3,866 | 4,102 | ||||||||||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
$ | 9,182 | $ | 14,005 | $ | 31,841 | $ | 51,373 | ||||||||
Debt restructuring expense (Note A) |
169 | | 878 | | ||||||||||||
Discontinued operations (Note B) |
| 183 | | 183 | ||||||||||||
Adjusted EBITDA |
$ | 9,351 | $ | 14,188 | $ | 32,719 | $ | 51,556 | ||||||||
Note A: Debt restructuring expense is excluded to determine adjusted EBITDA, as the expense is
non-recurring.
Note B: Discontinued operations are excluded to determine adjusted EBITDA, as the loss is
non-recurring.