Coram Announces Fourth Quarter and Fiscal 1998 Results and Announces Restructuring Charge of $1.8 Million in First Quarter 1999
DENVER, March 2 /PRNewswire/ -- Coram Healthcare (NYSE: CRH) today
reported results for the fourth quarter and its fiscal year ended December 31,
1998.
For the fiscal year ended December 31, 1998, net revenue was
$526.5 million, compared with $473.1 million in 1997. Eliminating the revenue
generated by the Lithotripsy Division operations that were sold in 1997 and
1998, the Company's revenue grew by 20.6%.
Comparing the Company's fourth quarter results with those of the third
quarter ended September 30, 1998:
-- Revenue increased 10.1% to $158.0 million from $143.6 million.
-- Basic EPS was $.02 compared to a third quarter loss per
share of $(.06).
-- EBITDA increased to $12.9 million from $9.4 million.
-- Patient census grew by 5.1% to approximately 55,600 patients.
-- Net income for the quarter improved to $805,000 due to improved
operational contributions and the reversal of $3.9 million of
restructuring reserves primarily related to the 1994 Coram and
1995 Caremark Consolidation Plans.
Fourth quarter 1998 EBITDA included several non-operating adjustments that
should be noted in making comparisons to the third quarter. The Company
reversed $3.9 million of restructuring reserves; expensed $1.0 million of
financing costs; and reported a $1.1 million difference related to a reduction
in the gain on the sale of assets in the third quarter and the write off of
certain assets in the fourth quarter. Including these adjustments in the
fourth quarter, the adjusted or comparative fourth quarter EBITDA is
$11.1 million compared to $9.4 million in the third quarter, an increase of
18.1%.
"We are very excited to report our fourth consecutive quarter of sales
growth in our Company. We are gaining market share in nearly every one of our
markets and the 1998 revenue for Coram Prescription Services was
$49.3 million, an increase of 74% over 1997," stated Donald J. Amaral,
Chairman & Chief Executive Officer. "While our acquisition program has yet to
add any strategic business acquisitions, we continue to review numerous
opportunities."
In comparing the twelve months ended December 31, 1998 results to the
prior year, excluding in both the results of the Lithotripsy Division's
operations and other non-recurring items:
-- Revenue increased by 20.6% to $525.9 million.
-- Patient census increased by approximately 8,000, or a
4.0% improvement.
-- EBITDA increased to $31.6 million.
-- Net loss improved by $57.3 million.
Loss per share reported for fiscal 1998 is $(.44) compared to income per
share (basic EPS) of $2.64 in fiscal 1997. Coram's 1997 results included
$156.8 million of income from litigation settlement (net of related expenses)
and a $26.7 million gain on the sale of the lithotripsy operations.
1999 Initiatives
Through the Coram Prescription Services (CPS) division, the Company
intends to enter the "E-Commerce" market by the third quarter of 1999, selling
pharmacy products, supplies and services over the internet. Richard M. Smith,
President, stated, "This is the next step for Coram. We not only have an
established audience of over 40,000 patients each month that we service
through our base business, R-Net, and CPS divisions, but we also plan to
participate in the growing worldwide market of people interested in obtaining
healthcare products and services on-line.
Mr. Amaral also announced that - at the recommendation of senior
management, and unanimously approved by the Coram Board of Directors - the
Company is developing a bonus compensation program whereby 50% of senior
management bonuses would be paid in Coram common stock.
Restructuring Charge
In the first quarter of 1999, Coram will be taking a restructuring charge
of approximately $1.8 million. The costs result from a major corporate
reorganization in the first quarter of 1999. The reorganization eliminated
certain management positions and is expected to save $6.3 million annually. |
