Companies in the News
Companies in the News
Allied gets new web site
Allied Healthcare Products (St. Louis) last week launched a new version of its Web site, which has been completely reconfigured. The company says the site was changed to better meet the needs of its customers. The Web site, located at www.alliedhpi.com, provides information about all of Allied’s products; its sales, customer service, and technical support contacts, and its corporate background.
American Home Products’ 1Q99 sales drop
American Home Products (Madison, NJ) saw a decrease of 1% in its net sales for 1Q99, ended March 31, after adjusting for the sale of the Sherwood-Davis & Geck medical devices business, which the company sold in February. Excluding the gain on the sale of Sherwood-Davis of $330.8 million, net income in 1Q99 was $654.9 million, 49 cents per share, compared to a net income of $651.4 million, 49 cents per share, in 1Q98. The company’s 1Q99 sales dropped 1% from 1Q98 to $3.4 billion, excluding the company’s previously owned medical devices business.
Beverly sees declines in 1Q99
Beverly Enterprises (Fort Smith, AR) saw 1Q99 ended March 31 revenues of $635 million, down slightly from 1Q98 revenues of $697.4 million. The company recorded a 1Q99 net income of $5.9 million, 6 cents per share, compared to a net income in 1Q98 of $13.6 million, 17 cents per share. The declines in revenues and net earnings, the company said, are primarily the result of the federal government’s Medicare prospective payment system, which affected Beverly’s skilled nursing operations.
Chemed’s Patient Care sees 1Q99 growth
Chemed (Cincinnati) reported total revenues in 1Q99 ended March 31 of $104.1 million, an increase over 1Q98 revenues of $88.4 million. The company reported a 1Q99 net income of $5.4 million, 51 cents per share, compared to a 1Q98 net income of $6.3 million, 63 cents per share. The company’s home care subsidiary, Patient Care (West Orange, NJ), achieved earnings growth of 5% in 1Q99, said Chemed Chairman/CEO Edward Hutton. The subsidiary also saw revenues of $30.2 million, an increase of 1.4% over 1Q98 revenues.
Patient Care continues its focus on private-pay revenue opportunities and is opening important new accounts throughout its service market in the areas of assisted living, private individuals, and properly funded insurance programs. In addition, Patient Care has further expanded its service market with the recent acquisition of Georgia Nursing Services.
Coram’s Resource Network moves
Coram’s (Denver) Resource Network subsidiary has relocated its regional call center, which is designed to coordinate a national network of management services for the provision of integrated home care, to Whippany, NJ.
Flagship buys home care branches from Shands
Flagship Healthcare (Miami Lakes, FL) and Shands HealthCare have signed a definitive agreement for Flagship to acquire 10 Shands HomeCare branches. The planned acquisition reflects Flagship’s goal to offer statewide home infusion and home nursing services and Shands’ effort to restructure home care operations in Gainesville and its primary market area.
The 10 branches to be acquired serve more than 1,000 patients throughout North and Central Florida, providing home infusion and home nursing services. Flagship Home Health currently treats 8,000 patients annually and conducts more than 450,000 patient visits per year. With these additions, Flagship will have a presence in every major market in Florida and will increase annual revenues by $20 million, officials said.
With the restructuring of home care operations, Shands will close some field sites, while continuing to operate its home care business in Gainesville, FL, and the surrounding area. This will allow Shands to refocus its efforts on its fundamental core competencies of caring for patients in its regional market, offering patients a full range of treatment options following discharge from its hospitals.
Our decision to reorganize locally and divest the remainder of our home care operations allows us to reinvest in programs and services that best serve our acute care mission, while providing the highest level of care for our patents, Shands officials said.
HealthCor trades under new symbol
HealthCor Holdings (Dallas) began trading under a new symbol, HCORE, effective April 20.
Heller to buy HealthCare Financial
Heller Financial (Chicago) has agreed to acquire HealthCare Financial Partners (Chevy Chase, MD) for $483 million in stock and cash. HealthCare Financial specializes in making secured loans to home healthcare providers, nursing homes, and physician practices. Heller went public through an initial offering last year, but remains majority owned by Fuji Bank of Japan, reported The Wall Street Journal. Heller said it expects the transaction, which will be paid for in a format of 41% common stock and 59% in cash, to either be neutral or add modestly to earnings in FY99 and to contribute more significantly in FY2000.
HHCA’s chairman/CEO resigns
Home Health Corp. of America (King of Prussia, PA) said last week, subject to bankruptcy court approval, Bruce Feldman, chairman/CEO, has entered into an agreement to resign his positions with the company and as a director in order to pursue other business interests. The company also announced that Michael Bellenghi, CEO of Recordex Services, a wholly owned subsidiary of F.Y.I. Incorporated, and an outside director of HHCA since 1995, will be named chairman, and David Geller, HHCA’s CFO, will be named interim CEO and a director upon bankruptcy court approval of the agreement.
Invacare sees growth in 1Q99
Invacare (Elyria, OH) last week reported 1Q99, ended March 31, net sales of $196.1 million, an 8.3% jump from 1Q98 sales of $181.1 million. The company recorded a net income in 1Q99 of $8.5 million, 28 cents per share, compared to a 1Q98 net income of $7.5 million, 25 cents per share, an increase of 12.6%. Invacare’s North American sales increased 5.3%, while European sales grew 23.1%, the company said.
Lincare reports 22% increase in 1Q99 revenues
Lincare Holdings (Clearwater, FL) reported revenues in 1Q99 ended March 31 of $136.1 million, a 22% increase over 1Q98 revenues of $111.9 million. The company recorded a net income in 1Q99 of $23.5 million, 40 cents per share, compared to a 1Q98 net income of $18.2 million, 31 cents per share.
During 1Q99, Lincare completed the acquisition of six companies with aggregate annual revenues of $31 million. The acquired businesses were located in Alabama, Florida, Illinois, Indiana, Kentucky, Massachusetts, New Hampshire, Ohio, and Tennessee. Through acquisitions and internal growth, Lincare added 22 new operating centers in 1Q99, bringing the total number of locations to 400.
Mallinckrodt respiratory group sees 3Q99 growth
Mallinckrodt (St. Louis) reported 3Q99 ended March 31 net sales of $675 million, up from 3Q98 sales of $649.8 million. The company recorded a net income in 3Q99 of $54.1 million, 75 cents per share, compared to a net income in 3Q98 of $27.9 million, 38 cents per share.
The company’s respiratory group reported sales in 3Q99 of $302.5 million, an increase of 6% over the $286 million reported in 3Q98. Solid sales of ventilators, pulse oximetry, and disposables contributed to the continued improvement in operating earnings, the company said.
New York Health Care revenues increase in FY98
New York Health Care (NYC; Brooklyn, NY) reported net revenues in FY98 of $20.2 million, compared to FY97 revenues of $13.2 million. The company recorded a net income in FY98 of $341,152, 9 cents per share, compared to an FY98 net income of $183,863, 5 cents per share.
NYC said most of the revenue increase was due to the acquisition of seven offices in New Jersey in December 1997, February 1998, and March 1998. Also contributing to the increase, NYC said, were new contracts in New York state.
The company’s largest contract with New York City to provide home attendant services for Medicaid patients, which began to contribute to revenues in 1Q99, and which the company expects to renew in June for an additional year, should provide annualized revenues estimated at $11 million over a one-year contract term, assuming a full patient case load after the ramp-up period, NYC President/CEO Jerry Braun said. The contract, when fully implemented, has the potential to increase gross revenue an additional 50%.
Staff Builders’ ATC reshuffles
Staff Builders (Lake Success, NY) has reshuffled its management team at its staffing division, ATC Healthcare Services. Staff Builders Chairman Stephen Savitsky said the board appointed Ed Teixeira executive vice president/COO of ATC. Teixeira was previously senior vice president of franchising for Staff Builders and will now be based in Atlanta. Carla Perotta, formerly COO of ATC, will be leaving the company to pursue other interests.
The company also announced the promotion of Rob Laufer to vice president-franchising for ATC.
In late March, Staff Builders announced their plan to separate its home health business from its supplemental staffing business and to create a separate, publicly traded company engaged exclusively in home care services. The spin-off would create a separate and distinct identity for the supplemental staffing business of Staff Builders, which is currently comprised of ATC and Chelsea Computer Consultants. In connection with the spin off, David Savitsky was appointed the new president/COO for the staffing entity.
Star Multi Care sees 3Q99 loss
Star Multi Care Services (Hicksville, NY), which discontinued operations of its Medicare division in late February because of reimbursement reductions associated with both reduced cost caps and the Interim Payment System, recorded a loss of $655,000 in 3Q99.
For the quarter ended Feb. 26, Star Multi Care recorded a loss from continuing operations of $104,084 and a loss from discontinued operations of $551,457. The loss per share was 11 cents. This compares to a 3Q98 loss from continued operations of $3.1 million and from discontinued operations of $4.2 million. In 3Q98, the net loss per share was 79 cents.
Revenues in 3Q99 totaled $11.5 million, compared to 3Q98 revenues of $12.9 million.
The company had FY98 sales of $58 million, with Medicare services accounting for 15% of its revenues in FY98. Medicaid services accounted for 46% of sales, and private insurance brought in 34% of revenues, said Star Multi Care COO Greg Turchan.
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