ahom.ob, earned $0.48 in 4q04, traded at only at $4.2
I believe that it will rise nearly $10 within a week.
BRENTWOOD, Tenn.--(BUSINESS WIRE)--March 22, 2005--American HomePatient, Inc. (OTCBB:AHOM - News) today reported net income of $8.2 million and revenues of $84.2 million for the fourth quarter ended December 31, 2004. For the year ended December 31, 2004, the Company reported net income of $13.2 million and revenues of $335.8 million.
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The Company's revenues of $84.2 million for the fourth quarter of 2004 represent a decrease of $2.7 million, or 3.1%, from the fourth quarter of 2003. The Company's revenues of $335.8 million for the year ended December 31, 2004 represent a decrease of $0.4 million, or 0.1%, from the prior year. Revenues in the current quarter and year were reduced by approximately $1.8 million, or 2.1%, and $7.4 million, or 2.2%, respectively, as a result of an approximate 15.8% reduction in the Medicare reimbursement rates for inhalation drugs effective January 1, 2004. The sale of inhalation drugs comprised approximately 12% of the Company's total revenues for the fourth quarter and twelve months ended December 31, 2004.
The Company's net income of $8.2 million, or $0.48 per share on a diluted basis, for the fourth quarter of 2004 compares to net income of $4.7 million, or $0.25 per share, for the fourth quarter of 2003 representing an increase of $3.5 million, or 74%. This improvement is primarily attributable to reduced operating expenses. Operating expenses decreased by approximately $5.5 million in the fourth quarter of 2004 compared to the fourth quarter of 2003 and decreased by approximately $9.9 million for the current year compared to the prior year. These decreases are primarily the result of the Company's initiatives to improve productivity and reduce personnel costs in its operating centers and billing centers. Also contributing to lower operating expenses in 2004 was the closure and consolidation of three of the Company's billing centers in 2004 and the full year impact of the closure and consolidation of eight billing centers in 2003.
The Company's net income of $13.2 million, or $0.78 per share on a diluted basis, for the year ended December 31, 2004 compares to net income of $14.0 million, or $0.74 per share, for the same period of 2003. Net income for the year ended December 31, 2003 excluded approximately $10.0 million in non-default interest expense prior to the Company's emergence from bankruptcy protection on July 1, 2003. Net income for the year ended December 31, 2003 included approximately $4.1 million of reorganization items compared to $0.7 million for the same period of 2004.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a non-GAAP financial measurement that is calculated as net income excluding interest, taxes, depreciation and amortization. EBITDA for the fourth quarter of 2004 and for the fourth quarter of 2003 was $19.3 million and $15.8 million, respectively. For the fourth quarter of 2004, adjusted EBITDA (calculated as EBITDA excluding reorganization items) was $19.4 million or 23.0% of revenues. For the fourth quarter of 2003, adjusted EBITDA was $16.2 million or 18.6% of revenues. EBITDA for year ended December 31, 2004 and for year ended December 31, 2003 was $58.5 million and $47.1 million, respectively. For the current year, adjusted EBITDA was $59.2 million or 17.6% or revenues. For the prior year, adjusted EBITDA was $51.2 million or 15.2% of revenues.
American HomePatient, Inc. is one of the nation's largest home health care providers with 276 centers in 35 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, and medical equipment for patients in their home. American HomePatient, Inc.'s common stock is currently traded in the over-the-counter market or, on application by broker-dealers, in the NASD's Electronic Bulletin Board under the symbol AHOM or AHOM.OB.
American HomePatient, Inc. provides information related to non-GAAP financial measurements such as, EBITDA, adjusted EBITDA and, from time to time, other non-GAAP financial measurements that adjust for certain items outside of the ordinary course of its business. To enable interested parties to reconcile non-GAAP measures to the Company's GAAP financial statements, the Company clearly defines EBITDA and adjusted EBITDA, and quantifies all other adjustments to GAAP measurements (see Schedule B). The Company provides EBITDA information, a widely used non-GAAP financial measurement, as a performance measure to assist in analyzing the Company's operations and in comparing the Company to its competitors. The Company provides other non-GAAP financial measurements, such as adjusted EBITDA, that adjust for certain items outside of the ordinary course of business in order to assist in comparing the Company's current operating performance to its historical performance. These adjustments typically reflect non-recurring items but sometimes reflect items, such as dispositions of assets and restructuring charges that are not technically non-recurring but are outside of the ordinary course of operations. Investors should note that such measures may not be comparable to similarly titled measures used by other companies, and investors are encouraged to use this information only in connection with the information contained in the Company's GAAP financial statements.
Certain statements made in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks and uncertainties, including, without limitation, risks and uncertainties regarding current and future reimbursement rates, as well as reimbursement reductions and the Company's ability to mitigate the impact of the reductions. These risks and uncertainties are in addition to risks, uncertainties, and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company cautions investors that any forward-looking statements made by the Company are not necessarily indicative of future performance. The Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.
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