 AHOM American HomePatient
AHOM $0.15 $0 (%0)
BRENTWOOD, Tenn.--(BUSINESS WIRE)--
American HomePatient, Inc. (OTCBB: AHOM), one of the nation's largest
home health care providers, today announced its financial results for
the fourth quarter and year ended December 31, 2008.
Revenues for the fourth quarter of 2008 were $67.8 million compared to
$71.5 million for the fourth quarter of 2007, representing a decrease of
$3.7 million, or 5.2%. Revenues for the year ended December 31, 2008
were $266.9 million compared to $293.0 million for the same period in
2007, representing a decrease of $26.1 million, or 8.9%. The revenue
decreases for the fourth quarter and year were primarily attributable to
a change in inhalation drug product mix and the Company's de-emphasis of
less profitable product lines such as non-respiratory durable medical
equipment and infusion therapy.
Operating expenses declined in the fourth quarter of 2008 compared to
the fourth quarter of 2007 by approximately $3.1 million, or 8.6%.
Operating expenses for the year ended December 31, 2008 compared to the
same period in 2007 declined by $7.1 million, or 5.1%. The decreases in
operating expenses for the fourth quarter and year were primarily the
result of improved operating efficiencies associated with the Company's
branches and billing centers, resulting in reduced operating costs.
Areas of focus have included centralization of certain customer service
functions, consolidation of branches and branch functions, 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 change of control
expense) was $14.2 million, or 20.9% of net revenue, for the fourth
quarter of 2008 compared to $13.7 million, or 19.2% of net revenue, for
the same period of 2007. Adjusted EBITDA was $51.5 million, or 19.3% of
net revenue for the year ended December 31, 2008 compared to $52.7
million, or 18.0% of net revenue, for the same period of 2007. The
improvement in adjusted EBITDA as a percentage of net revenue in the
fourth quarter and current year is attributable to improved operating
efficiencies resulting in reduced operating costs and improved accounts
receivable collection processes resulting in reduced bad debt expense.
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Net income for the fourth quarter of 2008 was $1.5 million, or $0.09 per
diluted share, compared to a net loss of $(0.3) million, or $(0.02) per
diluted share, for the fourth quarter of 2007. Net income for the year
ended December 31, 2008 was $0.5 million, or $0.03 per diluted share,
compared to a net loss of $(5.5) million, or $(0.31) per diluted share,
for the same period of 2007. The comparison of net income for the year
ended December 31, 2008 to the same period in 2007 was affected by the
recording in 2007 of a change of control expense of $5.6 million,
partially offset by a gain on discontinued operations of $1.8 million.
The improvement in net income in the fourth quarter and current year,
excluding the change of control expense and gain on discontinued
operations in 2007, is primarily the result of the improved operating
efficiencies and improved accounts receivable collection processes, as
mentioned above.
American HomePatient, Inc. is one of the nation's 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
NASD's 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 Company's 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 Company's 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
Company's 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 Company's GAAP financial statements.
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