Nice Q2 results
It looks like demographics and good management are beginning to be reflected in CHT's operation. I guess the investment community is beginning to notice this company. One institutional investor is a good start. I like the recent price action.
Regards,
Ed
Continental Home Healthcare Reports Second Quarter Results
Revenues up 55%, EBITDA up 85%, Net Income Increases 63%
GLENDALE, Calif.--(BUSINESS WIRE)--Aug. 23, 2001--Continental Home Healthcare Ltd. (TSE:CHT - news) today announced record revenues and outstanding profit for the second quarter and first six months of fiscal 2001.
Second Quarter Highlights: (three months ended June 30, 2001
compared with three months ended June 30, 2000)
-- Revenues up 55%
-- EBITDA(a) increased 85%
-- Net Income up 63%
Q2-2001 Q2-2000
-------- --------
Revenue $9,099,291 $5,873,713
EBITDA(a) $1,221,909 $661,128
Net Income $279,443 $171,105
EPS - basic $0.03 $0.02
- fully diluted $0.03 $0.02
Year-to-Date Results: (six months ended June 30, 2001 compared with
six months ended June 30, 2000)
-- Revenues up 49%
-- EBITDA(a) increased 80%
-- Net Income up 71%
2001 2000
------- ------
Revenue $16,814,956 $11,276,592
EBITDA(a) $2,231,406 $1,241,045
Net Income $554,957 $324,639
EPS - basic $0.05 $0.03
- fully diluted $0.05 $0.03
(a)Earnings before interest, taxes, depreciation, amortization Robert Thornton, President and C.E.O., said that the positive results for the second quarter were particularly noteworthy as the Company recorded the highest revenues in its history and continued to excel in EBITDA and net income performance, quarter-over-quarter and year-over-year. Exposure to a large and expanding patient base and referral network, through various preferred provider contracts coupled with the rapidly-growing, high margin, rental component of the business contributed to the meaningful increase in gross profit and earnings.
Revenue growth derived from the rental and respiratory product segments of the business can be attributed, in part, to the recent acquisition of CarePoint Health Services. In addition, access to the UCLA Medical Center patient base through CarePoint has had a positive impact on internal growth at the Glendale branch. The acquisition of the assets of Medical Mart at the end of the second quarter should fuel excellent revenue growth and expand Continental's market share in the Las Vegas area during the second half of the year. By retaining the key, experienced personnel at this location, Continental significantly reduced the integration period thus this acquisition will be immediately accretive to earnings per share.
Another important milestone of the second quarter was the attraction of Continental's first institutional shareholder, the Resolute Growth Fund. ``We are delighted to be held in a portfolio that has ranked amongst the best performers in Canada,'' added Mr. Thornton.
Continental has developed an excellent track record for growth through acquisition and internal expansion. Numerous growth opportunities exist within the highly fragmented industry and management will continue to seek out strategic acquisitions which add to Continental's extensive product offering, provide geographic distribution and offer other significant opportunities for revenue and net income growth. The industry is supported by a demographic shift of the aging North American population. As a result, the industry is forecast to grow at 12-14% into 2005. As the Company heads into the strongest half of the year, management anticipates continued, robust internal growth. Therefore, the outlook for fiscal 2001 remains very positive.
Continental Home Healthcare Ltd. acquires, consolidates and manages healthcare equipment retailers that provide equipment such as hospital beds, custom power and manual wheelchairs, scooters, respiratory products and services, bathroom safety products, ambulatory aids, and aids for daily living sold to individuals and healthcare institutions. Branches are located in Glendale and Indian Wells, California; Las Vegas, Nevada; Penticton and Vancouver, British Columbia. |
