looks good, bottom should be in
Coram Healthcare Announces First Quarter 1999 Results; EBITDA Doubled; Positive EPS Before Restructuring Charge
DENVER--(BW HealthWire)--May 4, 1999--Coram Healthcare
Corporation (NYSE:CRH) reported financial results today for the first
quarter ended March 31, 1999.
As previously announced, the company's results for the quarter
include a one-time charge of $950,000 for severance expenses related
to an organizational restructuring completed during the first quarter.
Comparing the company's first quarter 1999 results with the same
period last year:
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-- Revenue grew to $161.0 million from $107.7 million, an increase
of 49%.
-- EBITDA increased to $12.7 million from $5.8 million. Basic EBITDA
per share for the first quarter of 1999 was $0.26.
-- Net income (loss) improved to $(0.4) million from $(15.1)
million. Excluding the restructuring charge, net income was $0.5
million for the first quarter of 1999.
-- The loss per share was $(0.01) compared with a loss per share of
$(.31). Excluding the restructuring charge, basic EPS was $0.01.
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"We are very pleased with our first quarter performance, which
reflects continued growth in the base home infusion therapy business
as well as our network management, prescription, and clinical research
services," said Richard M. Smith, Coram's chief executive officer.
"Compared with the first quarter last year, home infusion revenue
increased by 14% and patient census increased by 4,900 patients, or
10%. We continue to serve more medically complex patients, take market
share from our competitors and sign new contracts with managed care
and other payers."
"The Company's Resource Network Division (R-Net) built an
operational infrastructure in the last half of 1998 that is serving as
a base of expansion for new accounts," Smith said. "R-Net's contract
with Aetna U.S. Healthcare is fully operational and the Division is
serving Aetna'enrollees in eight states."
"Revenue in the Coram Prescription Services (CPS) Division more
than doubled in the first quarter compared with the prior year, driven
by continued growth in both pharmacy benefit management and mail order
services," Smith continued. "To accommodate its rapid growth, CPS
moved into a new, high volume facility in Orlando, Florida in March of
this year. The Division is also establishing the technical
infrastructure required to accept orders for prescription medicines,
and to sell over-the-counter products and other health-related
products on the Internet."
"Coram's newest division, Clinical Research and Medical
Informatics, has obtained several contract commitments in less than
five months," Smith said. "Coram's national network of 1,000 highly
skilled nurses and pharmacists and sophisticated information systems
allow the company to provide a full range of support services for
clinical research trials. Clinical information from our data warehouse
is being used by managed care organizations and the pharmaceutical
industry to make important product development and marketing
decisions. We anticipate that this division will grow at a substantial
rate in 1999 and beyond."
Subsequent to the end of the quarter, the company announced
changes to the terms of its Series A Senior Subordinated and Series B
Senior Subordinated Convertible Notes. Coram and its debtholders
agreed to increase the annual interest rate applicable to the Series A
notes from the current rate of 9.875% to 11.5% until maturity. As of
March 31, 1999, the principal amount outstanding under the Series A
Notes totaled approximately $153.8 million.
The new interest rate on the Series A notes will increase the
interest expense of these notes by approximately $2.5 million
annually. As of March 31, 1999, the principal amount outstanding under
the Series B Notes totaled approximately $87.9 million and the
interest rate remained unchanged at 8%. In addition, the conversion
price applicable to the Series B Notes has been fixed at $2.00 per
share (subject to customary anti-dilution adjustments).
This change removes the uncertainty of the amount of potential
dilution from the Series B Notes. After giving effect to the
amendment, the number of shares of Coram common stock that would be
issuable upon full conversion of the Series B Notes would be
approximately 44 million shares as of March 31, 1999. |
