Companies in the News
Companies in the News
Coram gets new chairman
Coram Healthcare (Denver), which recently lost another key executive, has named Daniel Crowley its new chairman/president/CEO. Crowley replaces Donald Amaral, the company’s chairman who had been acting as interim CEO since the resignation of Richard Smith in October. Coram announced two weeks ago that Executive Vice President/CFO Wendy Simpson had resigned and that it had begun a search for a new CFO.
In taking on the new position, Crowley will fill the seat vacated by Smith, so the size of the board will return to seven, Coram said. Amaral will remain a member of the board. Crowley is chairman/president/CEO of Dynamic Healthcare Solutions (Sacramento) and was previously president/CEO of HMO Foundation Health Corp., also in California.
Extendicare sells UPC unit
Extendicare (Markham, Ontario) sold its UPC Home Health Care (Milwaukee) unit to Walgreens Advance Care, a wholly owned subsidiary of Walgreen Co. (Deerfield, IL), for $12.7 million. Proceeds of the sale will be used to reduce the company’s debt under its term credit facilities. The sale closed on Nov. 30. UPC provides medical specialty equipment and home care services in Wisconsin.
Interwest sees improvement in FY99
Interwest Home Medical (Salt Lake City) reported total revenues for FY99 ended Sept. 30 of $33.3 million, compared to FY98 revenues of $28.6 million, an increase of 16%. Interwest posted a FY99 net income of $1.9 million, 45 cents per share, compared to a FY98 net income of $1.4 million, 35 cents per share. The company said the results of the year and of 4Q99 reflect the benefits of its renewed focus on its core respiratory/oxygen business.
Interwest saw 4Q99 revenues of $9.9 million, an increase of 28% over 4Q98 revenues of $7.7 million. The company reported a net income for the quarter of $649,000, 15 cents per share, compared to a 4Q98 net income of $377,000, 9 cents per share.
Sparta Surgical buys Home Med-Equip
Sparta Surgical Corp. (Concord, CA) has signed a non-binding letter of intent to purchase all or substantially all of the assets of Home Med-Equip Co. (Concord, CA). Sparta said it is working towards the execution of a binding Asset Purchase Agreement, which will be subject to several conditions, including approval by Sparta’s board. The companies anticipate completing the transaction by the end of January.
The letter of intent, Sparta said, provides for a purchase price of $2.5 million, consisting of cash, note, and common stock.
Star approves reverse stock split
Star Multi Care Services’ (Huntington Station, NY) shareholders have approved a 1-for-3, reverse stock split. The split was required so that the company's common stock would continue to meet the Nasdaq SmallCap Market listing requirement of a minimum market price of $1 per share. The reverse stock split is effective Dec. 13, 1999.
Star CEO Stephen Sternbach said the company "turned the corner" recently, when it reported its first quarterly income in two years for the quarter ended Aug. 31. In addition, he said, Star anticipates that it will report an even larger profit for the quarter ended Nov. 30. "Unfortunately, the market has not yet recognized Star's remarkable turnaround, but has continued to undervalue the company's stock along with the entire home healthcare industry," he said. "I hope that after the second quarter results are released in January, the market will acknowledge Star's continued profitability."
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