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Matria Healthcare, Inc. Announces Fourth Quarter & Year-End Results
MARIETTA, Ga., Feb. 17 /PRNewswire/ -- Matria Healthcare, Inc., (Nasdaq: MATR), today announced its financial results for the fourth quarter and the year ended December 31, 1997.
Revenues for the fourth quarter of 1997 increased to $37.1 million, compared to $36.2 million reported in the fourth quarter of 1996. Net income for the quarter, excluding amortization of goodwill and other intangibles, was $5.0 million, or $0.14 per share, which was 201% over the fourth quarter of 1996 net income of $2.5 million, or $0.07 per share, excluding these amortization expenses and restructuring charges. Including the amortization of goodwill and other intangibles of $9.1 million ($0.25 per share), the Company reported a net loss of $4.1 million, or $0.11 per share, for the fourth quarter of 1997, which was 29% of the net loss of $14.1 million, or $0.39 per share, for the fourth quarter of 1996.
For the year ended December 31, 1997, the Company had revenues of $144.5 million, an increase of 10% over the $130.8 million in revenue reported for 1996. Net income for the year was $15.7 million, or $0.43 per share, before deduction of goodwill and other intangible amortization charges of $36.6 million ($1.00 per share), compared to $1.5 million, or $0.05 per share in 1996. Including the deduction of goodwill and other intangible amortization and restructuring charges, the Company's performance for the twelve-month period improved 59% from a loss of $51.1 million, or $1.58 per share, in 1996 to a loss of $20.9 million, or $0.57 per share in 1997.
Donald R. Millard, President and CEO stated, "We have worked diligently on a three-phased agenda since the merger. Our first two phases, focusing on the successful integration of the two companies and obtaining full operational synergies from the merger, are clearly evidenced in our 1997 results. We have achieved in excess of $40 million in annualized cost savings, well ahead of our initial projection of $30 million." Millard further commented, "Our third phase, maximizing the strategic value of the merger, is currently our primary focus."
Frank D. Powers, Executive Vice President and COO added, "The fourth quarter marked the seventh consecutive quarter since the merger in which we produced increased operating earnings before goodwill amortization and restructuring charges. One element of our plan to maximize the merger's strategic value is to concentrate on acute patients and hospital-based selling. As a result, we are seeing a shift in our patient mix to the more acute patients requiring therapeutic interventions which generate greater profit margins. Our fourth quarter results are reflecting the early impact of this focus."
According to Parker H. Petit, Chairman, "Our plan to maximize the strategic value of the merger also involves leveraging Matria's core competency of disease state management into diseases beyond the condition of pregnancy. The recent expansion of our gestational diabetes program provides us with a natural launching point into disease state management of the chronic diabetes population. We expect to implement a comprehensive patient management program for this population later this year. We are very pleased with the 1997 results and look forward to reporting our progress as we expand into other disease states."
This press release contains forward-looking statements that involve risks and uncertainties, including developments in the healthcare industry, third-party actions over which the Company does not have control, and regulatory requirements applicable to the Company's business, as well as other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.
Matria Healthcare, Inc. is the leading provider of comprehensive obstetrical homecare and maternity management services to HMOs, indemnity carriers, and employers.
MATRIA HEALTHCARE, INC.
Consolidated Condensed Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three months ended 12/31/97 12/31/96
Revenues $ 37,101 $ 36,205
Cost of revenues 14,281 15,091
Selling and administrative expenses 16,078 16,806
Provision for doubtful accounts 1,776 1,984
Amortization of goodwill and other intangibles 9,147 9,111
Restructuring expenses --- 7,500
Total 41,282 50,492
Operating loss (4,181) (14,287)
Interest income, net 69 269
Other income (expense), net (28) (102)
Net loss $(4,140) (14,120)
Basic and diluted loss per share $ (.11) (.39)
Weighted average shares 36,685 36,258
Twelve months ended 12/31/97 12/31/96
Revenues $144,533 $130,806
Cost of revenues 57,610 55,911
Selling and administrative expenses 65,024 66,775
Provision for doubtful accounts 6,599 7,591
Amortization of goodwill and other intangibles 36,603 30,083
Restructuring expenses --- 22,525
Total 165,836 182,885
Operating loss (21,303) (52,079)
Interest income, net 486 824
Other income (expense), net (85) 134
Net loss $(20,902) (51,121)
Basic and diluted loss per share $ (.57) (1.58)
Weighted average shares 36,527 32,328
MATRIA HEALTHCARE, INC.
Consolidated Condensed Balance Sheets
(Amounts in thousands)
(Unaudited)
ASSETS December 31, December 31,
1997 1996
Current assets:
Cash and short-term investments $ 20,942 $ 24,640
Trade accounts receivable, net 39,601 29,456
Inventories 1,088 867
Other current assets 2,264 1,628
Total current assets 63,895 56,591
Property and equipment, net 12,364 15,220
Goodwill and other intangibles, net 112,149 148,099
Other assets 2,724 3,278
Total $191,132 $223,188
Liabilities and Shareholders' Equity
Current Liabilities:
Current installments of long-term debt and
obligations under capital leases 884 2,521
Accounts payable, principally trade 5,712 6,486
Deferred revenues 3,561 3,402
Other current liabilities 12,586 22,157
Total current liabilities 22,743 34,566
Long-term debt and obligations under capital
leases, excluding current installments 1,712 2,499
Accrued pension costs 5,328 4,096
Other long-term liabilities 8,180 8,849
Total liabilities 37,963 50,010
Shareholders' equity 153,169 173,178
Total $191,132 $223,188
SOURCE Matria Healthcare, Inc.
CO: Matria Healthcare, Inc.
ST: Georgia
IN: HEA
SU: ERN
02/17/98 09:56 EST prnewswire.com |
