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Biotech / Medical : Continental Home Healthcare -A Demographic Play -- Ignore unavailable to you. Want to Upgrade?

To: Edward W. Richmond who wrote (66)	5/29/2001 5:48:51 PM
From: Edward W. Richmond	Read Replies (1) \| Respond to of 69

Here's the news. biz.yahoo.com Continental Home Healthcare Reports First Quarter Results; Revenues Increased 43%, Net Income Up 79% Glendale, California Continental Home Healthcare Ltd. today announced record revenues and outstanding profit for the first quarter of fiscal 2000. First Quarter Highlights: (three months ended March 31, 2001 compared with three months ended March 31, 2000) - Revenues up 43% - EBITDA* increased 74% - Net Income up 79% Q1 2001 Q1 2000 ------- ------- Revenue $7,715,665 $5,403,879 EBITDA $1,009,497 $579,917 Net Income $275,514 $153,534 EPS - basic $0.02 $0.01 - fully diluted $0.02 $0.01 Robert Thornton, President and C.E.O., said that the results for the first quarter were highly satisfactory and show significant improvement in all financial areas compared with the same period last year. The positive performance stems from internal growth in existing branches; from an expanded base in the high margin, respiratory and rental segments of the business; as well as from the integration of newly acquired businesses. The highly profitable rental equipment component of the business experienced the greatest percentage growth in the period, expanding by some 103%, and contributing meaningfully to the increase in net income. The rapid growth during the first quarter can be attributed, in part, to the recent acquisition of CarePoint Health Services, a home medical equipment business with assets of US$3.3 million and annual revenues of US$3.4 million. Continental acquired this company for a discount to book value by using an innovative acquisition financing proposal, which called for no up-front payments for six months. CarePoint, formerly one of Continental's formidable competitors, contributed a large patient base and referral network resulting from its preferred provider contract with the UCLA Medical Center, one of Los Angeles' largest medical facilities. CarePoint also delivers a high percentage of revenue derived from the rental and respiratory product sectors. Additionally, during the quarter Continental realized improved efficiencies in its delivery systems, proportionately reduced administrative and overhead costs and achieved significant economies of scale as a result of the on-going CarePoint integration process. ------ * <TABULAR_DATA> Earnings before interest, taxes, depreciation, amortization </TABULAR_DATA> The home medical equipment business is highly fragmented 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 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. In addition, the Company anticipates strong internal growth during the remainder of the year. Therefore, the outlook for fiscal 2001 is 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.