HORIZON Pharmacies, Inc. Announces Year-End 2000 Results

Net Revenues of $136 Million, Increase of 3.4% Over 1999, Loss for the Year



Apr 18, 2001, 01:00 ET from HORIZON Pharmacies, Inc.

    DENISON, Texas, April 18 /PRNewswire/ -- HORIZON Pharmacies, Inc.,
 (Amex:   HZP) (Frankfurt: HPZ) today announced financial results for the year
 ended December 31, 2000.
     Rick McCord, President and CEO of HORIZON, states, "Our restructuring plan
 continues with a company focus on achieving positive EBITDA and cash flow.
 Through our new supply agreement with AmeriSource, we will obtain a reliable
 source of pharmaceutical products on favorable cost and credit terms, which
 will immediately improve our liquidity and contribute to the improvement of
 operating results and cash flow.  Investments in our new mail order facility
 and the company's online pharmacy, www.horizonscripts.com, which is now
 licensed in all 50 states, and the expansion of the home medical equipment
 operation from $5.0 million to $8.0 million in revenues, combined with several
 non-cash items resulted in a year-end loss.  However, we consider these
 expenses to be imperative investments for future growth and profitability.
 The losses in 2000 were expanded by several non-cash charges exceeding
 $6 million."
     For the year-ended December 31, 2000, net revenues increased 3.4% to
 $136,294,000 from $131,756,000 in 1999 with less stores in operation.  Same
 store sales for the year increased 3.4%.  Prescription drug sales were
 $105,666,000, or 77.5%, of total net revenues for the year.  Third-party
 prescription sales were 79.0% of pharmacy sales for the year.  HORIZON
 reported a net loss for the year of $14,936,000, or $2.49 per diluted share,
 with the non-cash charges of approximately $6.2 million including $1.7 million
 in interest and penalties, over $600,000 for an impairment provision, over
 $1.0 million in bad debt reserves, and $2.8 million in amortization and
 depreciation.  Aside from the impact of the non-cash charges of $6.2 million,
 a portion of Horizon's increased SG&A expense for the year was due to the
 growth in home medical equipment & respiratory services, mail order, and the
 kiosk program development.
     McCord also stated, "Our company will continue to focus on improving the
 basics of store operations while seeking to achieve positive EBITDA.  We
 closed year-end 2000 with over $2.0 million in cash, $53.9 million in assets
 and $136.0 million in revenues.  Our model store continues to be an
 8,500 square foot store with prescriptions, health and beauty care, and a
 minimum of 10% in home medical equipment creating one-stop shopping for the
 customer.  Many growth companies undergo growing pains as they work toward
 achieving their company goals and strategic plans.  The year 2000 was no
 exception for our company.  We have experienced many changes not only within
 our company over the past year, but within the healthcare industry, which has
 compounded the timeliness and necessity of these changes.  Finally, we will
 look to strengthen our management structure by utilizing outside consultants
 and adding key management with extensive industry experience to improve our
 operation performance."
     McCord continues, "Our revenue growth signifies our commitment to
 providing customers with one of the highest levels of service in the industry.
 Our company will continue to focus on strong brand recognition, investments in
 technology and commitment to alliances to achieve the total healthcare
 concept.  We will continue to look for opportunities to increase the customer
 and prescription base while currently filling more than 2.6 million
 prescriptions annually.  Horizon will continue to grow the higher margin home
 medical and respiratory operations and the mail order business, while
 aggressively seeking to lower selling, general and administrative expense.  We
 have faced many challenges in the past and will in the future.  As we continue
 to restructure debt, we will continue to streamline company operations while
 seeking to lower the cost of sales and expand higher margin operations
 offsetting prescription margin declines.  We must continue to grow revenues
 with increases in same store sales and acquisitions to gain economies and
 operating efficiencies to improve profitability going forward."
     Currently, Horizon is a "brick and click" pharmacy Company with over one
 million customers and owns and operates one Internet pharmacy at
 www.horizonscripts.com, two mail order pharmacies, 45 retail pharmacies in 16
 states, 16 home medical equipment operations, five closed-door institutional
 pharmacies, seven intravenous (IV) operations, and one home healthcare agency.
 Horizon's focus is to become an innovative leader in the healthcare industry
 by providing value-added services to the customers.  Horizon's business
 strategy is to focus primarily on total customer service and convenience.
 Horizon's revenue growth comes from existing brick and mortar stores,
 acquisitions of new stores, Internet strategy, kiosk development and joint
 ventures.  Horizon's primary growth will occur with acquisitions of new stores
 with conversions to the new concept store model, thereby, improving operating
 efficiencies.
     This news release contains forward-looking statements concerning the
 future performance of HORIZON Pharmacies, Inc., which are subject to a number
 of factors over which it has no control.  Forward-looking information includes
 statements concerning pharmacy sales trends, online pharmacy sales trends,
 prescription margins, number of new store openings and the level of capital
 expenditures; as well as those that include or are preceded by the words
 "expects," "estimates," "believes," or similar language.  For a more complete
 discussion of the risks associated with an investment in Horizon and for
 additional information please refer to the reports on file with the Securities
 and Exchange Commission.
 
     For more information, visit the Company's Web site at www.horizonrx.com or
 www.horizonscripts.com
 
 

SOURCE HORIZON Pharmacies, Inc.
    DENISON, Texas, April 18 /PRNewswire/ -- HORIZON Pharmacies, Inc.,
 (Amex:   HZP) (Frankfurt: HPZ) today announced financial results for the year
 ended December 31, 2000.
     Rick McCord, President and CEO of HORIZON, states, "Our restructuring plan
 continues with a company focus on achieving positive EBITDA and cash flow.
 Through our new supply agreement with AmeriSource, we will obtain a reliable
 source of pharmaceutical products on favorable cost and credit terms, which
 will immediately improve our liquidity and contribute to the improvement of
 operating results and cash flow.  Investments in our new mail order facility
 and the company's online pharmacy, www.horizonscripts.com, which is now
 licensed in all 50 states, and the expansion of the home medical equipment
 operation from $5.0 million to $8.0 million in revenues, combined with several
 non-cash items resulted in a year-end loss.  However, we consider these
 expenses to be imperative investments for future growth and profitability.
 The losses in 2000 were expanded by several non-cash charges exceeding
 $6 million."
     For the year-ended December 31, 2000, net revenues increased 3.4% to
 $136,294,000 from $131,756,000 in 1999 with less stores in operation.  Same
 store sales for the year increased 3.4%.  Prescription drug sales were
 $105,666,000, or 77.5%, of total net revenues for the year.  Third-party
 prescription sales were 79.0% of pharmacy sales for the year.  HORIZON
 reported a net loss for the year of $14,936,000, or $2.49 per diluted share,
 with the non-cash charges of approximately $6.2 million including $1.7 million
 in interest and penalties, over $600,000 for an impairment provision, over
 $1.0 million in bad debt reserves, and $2.8 million in amortization and
 depreciation.  Aside from the impact of the non-cash charges of $6.2 million,
 a portion of Horizon's increased SG&A expense for the year was due to the
 growth in home medical equipment & respiratory services, mail order, and the
 kiosk program development.
     McCord also stated, "Our company will continue to focus on improving the
 basics of store operations while seeking to achieve positive EBITDA.  We
 closed year-end 2000 with over $2.0 million in cash, $53.9 million in assets
 and $136.0 million in revenues.  Our model store continues to be an
 8,500 square foot store with prescriptions, health and beauty care, and a
 minimum of 10% in home medical equipment creating one-stop shopping for the
 customer.  Many growth companies undergo growing pains as they work toward
 achieving their company goals and strategic plans.  The year 2000 was no
 exception for our company.  We have experienced many changes not only within
 our company over the past year, but within the healthcare industry, which has
 compounded the timeliness and necessity of these changes.  Finally, we will
 look to strengthen our management structure by utilizing outside consultants
 and adding key management with extensive industry experience to improve our
 operation performance."
     McCord continues, "Our revenue growth signifies our commitment to
 providing customers with one of the highest levels of service in the industry.
 Our company will continue to focus on strong brand recognition, investments in
 technology and commitment to alliances to achieve the total healthcare
 concept.  We will continue to look for opportunities to increase the customer
 and prescription base while currently filling more than 2.6 million
 prescriptions annually.  Horizon will continue to grow the higher margin home
 medical and respiratory operations and the mail order business, while
 aggressively seeking to lower selling, general and administrative expense.  We
 have faced many challenges in the past and will in the future.  As we continue
 to restructure debt, we will continue to streamline company operations while
 seeking to lower the cost of sales and expand higher margin operations
 offsetting prescription margin declines.  We must continue to grow revenues
 with increases in same store sales and acquisitions to gain economies and
 operating efficiencies to improve profitability going forward."
     Currently, Horizon is a "brick and click" pharmacy Company with over one
 million customers and owns and operates one Internet pharmacy at
 www.horizonscripts.com, two mail order pharmacies, 45 retail pharmacies in 16
 states, 16 home medical equipment operations, five closed-door institutional
 pharmacies, seven intravenous (IV) operations, and one home healthcare agency.
 Horizon's focus is to become an innovative leader in the healthcare industry
 by providing value-added services to the customers.  Horizon's business
 strategy is to focus primarily on total customer service and convenience.
 Horizon's revenue growth comes from existing brick and mortar stores,
 acquisitions of new stores, Internet strategy, kiosk development and joint
 ventures.  Horizon's primary growth will occur with acquisitions of new stores
 with conversions to the new concept store model, thereby, improving operating
 efficiencies.
     This news release contains forward-looking statements concerning the
 future performance of HORIZON Pharmacies, Inc., which are subject to a number
 of factors over which it has no control.  Forward-looking information includes
 statements concerning pharmacy sales trends, online pharmacy sales trends,
 prescription margins, number of new store openings and the level of capital
 expenditures; as well as those that include or are preceded by the words
 "expects," "estimates," "believes," or similar language.  For a more complete
 discussion of the risks associated with an investment in Horizon and for
 additional information please refer to the reports on file with the Securities
 and Exchange Commission.
 
     For more information, visit the Company's Web site at www.horizonrx.com or
 www.horizonscripts.com
 
 SOURCE  HORIZON Pharmacies, Inc.

RELATED LINKS

http://www.horizonrx.com