Apria Healthcare Reports 29% Increase in Earnings per Share To $0.31 for First Quarter of 2001

Apr 26, 2001, 01:00 ET from Apria Healthcare Group Inc.

    COSTA MESA, Calif., April 26 /PRNewswire/ -- Apria Healthcare Group Inc.
 (NYSE:   AHG) today announced net income for the quarter ended March 31, 2001 of
 $17.1 million, or $0.31 per share, compared to net income of $12.8 million, or
 $0.24 per share, for the first quarter of 2000.
     Net revenues for the three months ended March 31, 2001 were
 $271.4 million, an 8.2% increase compared to $250.7 million in the first
 quarter of 2000.  The gross profit margin was 71.9% in the first quarter of
 2001, compared to 71.5% in the first quarter of 2000.  Earnings before
 interest, taxes, depreciation and amortization (EBITDA) was $63.2 million in
 the first quarter of 2001, compared to $58.4 million in the first quarter of
 2000.  Net operating cash flow was $45.2 million for the three months ended
 March 31, 2001, compared to $40.2 million in the first quarter of 2000.
     As of March 31, 2001, net accounts receivable were $155.2 million, with
 net days sales outstanding of 51 days.
     "The first quarter of 2001 marks Apria's tenth consecutive quarter of
 positive earnings and the tenth consecutive quarter-over-quarter increase in
 revenue, pre-tax earnings and EBITDA, and is a great start to the year," said
 Philip L. Carter, Chief Executive Officer.  "We are also pleased to report
 continued positive results in accounts receivable management.  Net days sales
 outstanding in accounts receivable remained at Apria's all-time low of
 51 days."
     Apria provides respiratory therapy, home infusion and home medical
 equipment through approximately 360 branches serving patients in 50 states.
 With over one billion in annual revenues, it is the nation's leading homecare
 company.
 
     This release contains statements regarding anticipated future developments
 that are forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995.  The risk factors set forth in the
 company's annual report on Form 10-K, filed with the Securities and Exchange
 Commission on March 22, 2001, constitute cautionary statements identifying
 important factors that could cause actual results to differ materially from
 those in the forward-looking statements.  Those risks include whether the
 company will be able to resolve issues pertaining to the collectibility of its
 accounts receivable, healthcare reform and the effect of federal and state
 healthcare regulations, the ongoing government investigations regarding
 patients covered by Medicare and other federal programs, pricing pressures
 from large payors and changes in governmental reimbursement levels, the
 effectiveness of the company's operating systems and controls, and the
 successful implementation of the company's acquisition strategy.
 
 
                          APRIA HEALTHCARE GROUP INC.
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
 
                                                    Three Months Ended
     (dollars in thousands, except                        March 31,
      per share data)                                2001           2000
 
     Net revenues                                 $271,354       $250,722
 
     Gross profit                                  195,076        179,221
 
     Selling, distribution and
      administrative expenses                      148,394        133,525
     Provision for doubtful accounts                 8,150         10,619
     Amortization of intangible assets               2,836          2,440
        OPERATING INCOME                            35,696         32,637
     Interest expense, net                           8,408         10,601
 
        INCOME BEFORE TAXES                         27,288         22,036
     Income tax expense                             10,212          9,255
 
         NET INCOME                                $17,076        $12,781
 
         EBITDA                                    $63,184        $58,398
 
     Earnings per common share
      - assuming dilution                            $0.31          $0.24
 
     Weighted average number of
      common shares outstanding                     55,484         53,947
 
 
                          APRIA HEALTHCARE GROUP INC.
 
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                  (unaudited)
 
                                                     Three Months Ended
                                                           March 31,
       (dollars in thousands)                        2001           2000
 
     OPERATING ACTIVITIES
     Net income                                    $17,076        $12,781
     Items included in net income
      not requiring cash:
       Provision for doubtful accounts               8,150         10,619
       Depreciation and amortization                28,104         26,449
       Deferred income taxes and other               9,412          8,418
     Changes in operating assets and liabilities,
      net of effects of acquisitions               (17,561)       (18,103)
         NET CASH PROVIDED BY OPERATING ACTIVITIES  45,181         40,164
 
     INVESTING ACTIVITIES
     Purchases of patient service equipment
      and property, equipment and improvements,
      net of effects of acquisitions               (30,029)       (20,628)
     Proceeds from disposition of assets                41             74
     Acquisitions and payments of
      contingent consideration                     (25,299)        (4,860)
         NET CASH USED IN INVESTING ACTIVITIES     (55,287)       (25,414)
 
     FINANCING ACTIVITIES
     Net borrowings (payments) on debt                (214)        (7,691)
     Issuances of common stock                       4,833          1,513
         NET CASH PROVIDED BY (USED IN)
          FINANCING ACTIVITIES                       4,619         (6,178)
 
 
     NET (DECREASE) INCREASE IN CASH
      AND CASH EQUIVALENTS                          (5,487)         8,572
 
     Cash and cash equivalents at
      beginning of year                             16,864         20,493
 
     CASH AND CASH EQUIVALENTS AT END OF PERIOD    $11,377        $29,065
 
 
                          APRIA HEALTHCARE GROUP INC.
 
                          CONSOLIDATED BALANCE SHEETS
 
                                                  March 31,      December 31,
       (dollars in thousands)                        2001            2000
                                                 (unaudited)
       ASSETS
 
     CURRENT ASSETS:
     Cash and cash equivalents                     $11,377         $16,864
     Accounts receivable, net of allowance
      for doubtful accounts                        155,216         145,518
     Inventories, net                               21,855          22,404
     Other current assets                           41,732          41,684
         TOTAL CURRENT ASSETS                      230,180         226,470
 
     PATIENT SERVICE EQUIPMENT, NET                140,035         134,812
     PROPERTY, EQUIPMENT & IMPROVEMENTS, NET        43,101          40,630
     OTHER ASSETS, NET                             228,310         214,691
         TOTAL ASSETS                             $641,626        $616,603
 
       LIABILITIES & STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
     Accounts payable and accrued liabilities     $131,725        $130,612
     Current portion of long-term debt               8,956           1,999
         TOTAL CURRENT LIABILITIES                 140,681         132,611
 
     LONG-TERM DEBT, net of current portion        332,794         337,750
         TOTAL LIABILITIES                         473,475         470,361
 
     STOCKHOLDERS' EQUITY                          168,151         146,242
         TOTAL LIABILITIES AND EQUITY             $641,626        $616,603
 
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SOURCE Apria Healthcare Group Inc.
    COSTA MESA, Calif., April 26 /PRNewswire/ -- Apria Healthcare Group Inc.
 (NYSE:   AHG) today announced net income for the quarter ended March 31, 2001 of
 $17.1 million, or $0.31 per share, compared to net income of $12.8 million, or
 $0.24 per share, for the first quarter of 2000.
     Net revenues for the three months ended March 31, 2001 were
 $271.4 million, an 8.2% increase compared to $250.7 million in the first
 quarter of 2000.  The gross profit margin was 71.9% in the first quarter of
 2001, compared to 71.5% in the first quarter of 2000.  Earnings before
 interest, taxes, depreciation and amortization (EBITDA) was $63.2 million in
 the first quarter of 2001, compared to $58.4 million in the first quarter of
 2000.  Net operating cash flow was $45.2 million for the three months ended
 March 31, 2001, compared to $40.2 million in the first quarter of 2000.
     As of March 31, 2001, net accounts receivable were $155.2 million, with
 net days sales outstanding of 51 days.
     "The first quarter of 2001 marks Apria's tenth consecutive quarter of
 positive earnings and the tenth consecutive quarter-over-quarter increase in
 revenue, pre-tax earnings and EBITDA, and is a great start to the year," said
 Philip L. Carter, Chief Executive Officer.  "We are also pleased to report
 continued positive results in accounts receivable management.  Net days sales
 outstanding in accounts receivable remained at Apria's all-time low of
 51 days."
     Apria provides respiratory therapy, home infusion and home medical
 equipment through approximately 360 branches serving patients in 50 states.
 With over one billion in annual revenues, it is the nation's leading homecare
 company.
 
     This release contains statements regarding anticipated future developments
 that are forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995.  The risk factors set forth in the
 company's annual report on Form 10-K, filed with the Securities and Exchange
 Commission on March 22, 2001, constitute cautionary statements identifying
 important factors that could cause actual results to differ materially from
 those in the forward-looking statements.  Those risks include whether the
 company will be able to resolve issues pertaining to the collectibility of its
 accounts receivable, healthcare reform and the effect of federal and state
 healthcare regulations, the ongoing government investigations regarding
 patients covered by Medicare and other federal programs, pricing pressures
 from large payors and changes in governmental reimbursement levels, the
 effectiveness of the company's operating systems and controls, and the
 successful implementation of the company's acquisition strategy.
 
 
                          APRIA HEALTHCARE GROUP INC.
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
 
                                                    Three Months Ended
     (dollars in thousands, except                        March 31,
      per share data)                                2001           2000
 
     Net revenues                                 $271,354       $250,722
 
     Gross profit                                  195,076        179,221
 
     Selling, distribution and
      administrative expenses                      148,394        133,525
     Provision for doubtful accounts                 8,150         10,619
     Amortization of intangible assets               2,836          2,440
        OPERATING INCOME                            35,696         32,637
     Interest expense, net                           8,408         10,601
 
        INCOME BEFORE TAXES                         27,288         22,036
     Income tax expense                             10,212          9,255
 
         NET INCOME                                $17,076        $12,781
 
         EBITDA                                    $63,184        $58,398
 
     Earnings per common share
      - assuming dilution                            $0.31          $0.24
 
     Weighted average number of
      common shares outstanding                     55,484         53,947
 
 
                          APRIA HEALTHCARE GROUP INC.
 
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                  (unaudited)
 
                                                     Three Months Ended
                                                           March 31,
       (dollars in thousands)                        2001           2000
 
     OPERATING ACTIVITIES
     Net income                                    $17,076        $12,781
     Items included in net income
      not requiring cash:
       Provision for doubtful accounts               8,150         10,619
       Depreciation and amortization                28,104         26,449
       Deferred income taxes and other               9,412          8,418
     Changes in operating assets and liabilities,
      net of effects of acquisitions               (17,561)       (18,103)
         NET CASH PROVIDED BY OPERATING ACTIVITIES  45,181         40,164
 
     INVESTING ACTIVITIES
     Purchases of patient service equipment
      and property, equipment and improvements,
      net of effects of acquisitions               (30,029)       (20,628)
     Proceeds from disposition of assets                41             74
     Acquisitions and payments of
      contingent consideration                     (25,299)        (4,860)
         NET CASH USED IN INVESTING ACTIVITIES     (55,287)       (25,414)
 
     FINANCING ACTIVITIES
     Net borrowings (payments) on debt                (214)        (7,691)
     Issuances of common stock                       4,833          1,513
         NET CASH PROVIDED BY (USED IN)
          FINANCING ACTIVITIES                       4,619         (6,178)
 
 
     NET (DECREASE) INCREASE IN CASH
      AND CASH EQUIVALENTS                          (5,487)         8,572
 
     Cash and cash equivalents at
      beginning of year                             16,864         20,493
 
     CASH AND CASH EQUIVALENTS AT END OF PERIOD    $11,377        $29,065
 
 
                          APRIA HEALTHCARE GROUP INC.
 
                          CONSOLIDATED BALANCE SHEETS
 
                                                  March 31,      December 31,
       (dollars in thousands)                        2001            2000
                                                 (unaudited)
       ASSETS
 
     CURRENT ASSETS:
     Cash and cash equivalents                     $11,377         $16,864
     Accounts receivable, net of allowance
      for doubtful accounts                        155,216         145,518
     Inventories, net                               21,855          22,404
     Other current assets                           41,732          41,684
         TOTAL CURRENT ASSETS                      230,180         226,470
 
     PATIENT SERVICE EQUIPMENT, NET                140,035         134,812
     PROPERTY, EQUIPMENT & IMPROVEMENTS, NET        43,101          40,630
     OTHER ASSETS, NET                             228,310         214,691
         TOTAL ASSETS                             $641,626        $616,603
 
       LIABILITIES & STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
     Accounts payable and accrued liabilities     $131,725        $130,612
     Current portion of long-term debt               8,956           1,999
         TOTAL CURRENT LIABILITIES                 140,681         132,611
 
     LONG-TERM DEBT, net of current portion        332,794         337,750
         TOTAL LIABILITIES                         473,475         470,361
 
     STOCKHOLDERS' EQUITY                          168,151         146,242
         TOTAL LIABILITIES AND EQUITY             $641,626        $616,603
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46534298
 
 SOURCE  Apria Healthcare Group Inc.