Matria Healthcare Posts $0.18 EPS on 14% Revenue Growth

Apr 25, 2001, 01:00 ET from Matria Healthcare, Inc.

    MARIETTA, Ga., April 25 /PRNewswire Interactive Release/ --
 Matria Healthcare, Inc. (Nasdaq:   MATR) announced today its financial results
 for the first quarter of 2001.
     Revenues for the first quarter of 2001 increased 14% to $61.4 million,
 compared to first quarter of 2000 revenues of $53.7 million.  First quarter of
 2001 pro forma net earnings available to common shareholders increased 19% to
 $1.6 million, compared to pro forma net earnings available to common
 shareholders from continuing operations of $1.3 million in the 2000 first
 quarter.  Diluted pro forma earnings per share rose 29% in the first quarter
 of 2001 to $0.18 compared to pro forma diluted earnings per share from
 continuing operations of $0.14 in the first quarter of 2000.  Pro forma
 earnings before interest, taxes, depreciation and amortization ("EBITDA") for
 the first quarter of 2001 were $9.5 million, or $1.01 per diluted common
 share, compared to pro forma EBITDA from continuing operations of
 $9.3 million, or $0.91 per diluted common share, for the year-ago first
 quarter.
     Parker H. Petit, Chairman, President and CEO, commented, "We are pleased
 with our first quarter results and the progress we have made to date.  As you
 have seen in our previous communications, we are focusing on initiatives that
 will increase our revenue growth.  We believe Matria's first quarter results
 are an early indication of the impact of this focus."
     The Company also reported the results for Matria's two largest business
 segments.  Diabetes' revenues grew 31% in the first quarter of 2001 to
 $35.4 million, compared to first quarter of 2000 revenues of $27.0 million.
 Women's Health reported first quarter of 2001 revenues of $25.5 million, a 4%
 decline compared to revenues of $26.5 million for the first quarter of 2000.
     Petit added, "All parts of our diabetes business did extremely well during
 the quarter and produced strong growth.  Patient enrollments from our recent
 major diabetes disease management contracts with Medical Mutual of Ohio and
 Horizon Blue Cross/Blue Shield of New Jersey increased throughout the quarter
 and will further benefit our diabetes growth in the quarters ahead.  We
 continue to make investments in our call center infrastructure and expand our
 sales and marketing efforts to support these growth areas.  As anticipated,
 these investments led to a slight decline in our operating margins.  In our
 Women's Health business, we did not experience the growth we anticipated;
 however, we have a number of initiatives underway that will begin to show
 their effects during the next quarter."
     The Company stated that it expects second quarter of 2001 revenues of at
 least $62 million and pro forma net earnings per share of no less than $0.23
 per diluted common share.  The Company also reiterated its full year 2001
 expectations of approximately $250 million in revenues, pro forma net earnings
 in the range of $0.95 to $1.00 per diluted common share and pro forma EBITDA
 per diluted common share in the range of $4.20 to $4.40.
     Matria also continued its share repurchase program into the first quarter
 of 2001.  Since October 2000, the Company has bought 540,025 shares for
 approximately $5.7 million, representing close to 6% of the Company's total
 shares.
     Due to the recent dramatic stock market decline, the Company has adjusted
 the carrying values of amounts related to its split dollar life insurance
 program, established in 1997.  This adjustment resulted in a one-time non-cash
 charge to Other Expense of $0.7 million in the current period.  This charge
 has been excluded from the first quarter 2001 pro forma results.  The reported
 results, including this charge, were $0.13 per diluted common share for the
 first quarter of 2001.  The first quarter of 2000 pro forma results exclude
 gains from sales of shares of WebMD of $5.1 million.
 
     Matria is the leading provider of comprehensive population-based disease
 management programs, telemedicine services and fulfillment services to health
 plans and employers for women's health and the chronic conditions of diabetes
 and respiratory disorders.  Headquartered in Marietta, Georgia, Matria has
 more than 40 offices in the United States and internationally.  More
 information about Matria can be found online at www.matria.com .  The
 management team will discuss the results in a Webcast on April 25, 2001 at
 10:30 a.m. (Eastern Time).  Please access the News page of our Website for
 more information.
 
     This press release contains forward-looking statements.  Such statements
 include but are not limited to the impact of the Company's initiatives on
 increasing revenue and profit growth, the effect of increased enrollments from
 the Company's recent diabetes contracts on diabetes growth, the effects of the
 Women's Health initiatives and the Company's ability to achieve its financial
 expectations for the second quarter of 2001 and the twelve months ending
 December 31, 2001.  Among the important factors that could cause actual
 results to differ materially from those indicated by such forward-looking
 statements include developments in the healthcare industry, third-party
 actions over which Matria does not have control, regulatory requirements
 applicable to Matria's business and the risk factors detailed from time to
 time in Matria's periodic reports and registration statements filed with The
 Securities and Exchange Commission, including Matria's Annual report on Form
 10-K for the year ended December 31, 2000.  By making these forward-looking
 statements, Matria does not undertake to update them in any manner except as
 may be required by Matria's disclosure obligations in filings it makes with
 the Securities and Exchange Commission under the federal securities laws.
 
 
                            Matria Healthcare, Inc.
                Consolidated Condensed Statements of Operations
                (Amounts in thousands, except per share amounts)
                                  (Unaudited)
 
                                                       Three Months Ended
                                                            March 31,
                                                         2001        2000
 
     Revenues                                       $  61,368      53,746
 
     Cost of revenues                                  33,450      27,911
     Selling and administration expenses               17,836      15,898
     Provision for doubtful accounts                    1,778       1,667
     Amortization of intangible assets                  2,457       2,446
 
         Operating earnings                             5,847       5,824
     Interest expense, net                             (1,707)     (2,176)
     Other income (expense), net                         (759)      5,057
     Earnings from continuing operations
      before income taxes                               3,381       8,705
     Income tax expense                                (1,350)     (3,379)
     Earnings from continuing operations                2,031       5,326
     Earnings from discontinued operations,
      net of income taxes                                  --         430
         Net earnings                                   2,031       5,756
     Redeemable preferred stock dividends                (800)       (800)
     Accretion of Series B redeemable preferred stock    (109)       (109)
         Net earnings available
          to common shareholders                    $   1,122       4,847
 
     Net earnings (loss) per common share:
       Basic:
         Continuing operations                      $    0.13        0.48
         Discontinued operations                           --        0.05
                                                    $    0.13        0.53
 
       Fully Diluted:
         Continuing operations                      $    0.13        0.44
         Discontinued operations                           --        0.04
                                                    $    0.13        0.48
 
     Weighted average shares outstanding:
       Basic                                            8,749       9,206
       Diluted                                          8,811      10,250
 
 
                            Matria Healthcare, Inc.
                     Consolidated Condensed Balance Sheets
                             (Amounts in thousands)
 
                                                     March 31,  December 31,
     ASSETS                                            2001        2000
 
     Current assets:
       Cash, cash equivalents and
        short-term investments                       $  1,626         4,045
       Trade accounts receivable, net                  43,598        39,969
       Other receivables                                7,504        27,608
       Inventories                                     16,503        17,035
       Deferred income taxes                            2,836         3,182
       Prepaid expenses                                 2,854         2,011
         Total current assets                          74,921        93,850
 
     Property and equipment, net                       16,426        15,644
     Intangible assets, net                           117,043       119,486
     Deferred income taxes                             26,824        27,315
     Other assets                                      13,447        11,998
                                                     $248,661       268,293
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Current installments of long-term debt
        and obligations under capital leases         $  7,630        11,815
       Accounts payable, principally trade             19,621        21,734
       Accrued liabilities                              7,513         8,698
         Total current liabilities                     34,764        42,247
 
     Long-term debt and obligations under capital
      leases, excluding current installments           64,705        76,996
     Other long-term liabilities                        8,676         8,754
         Total liabilities                            108,145       127,997
 
     Redeemable preferred stock                        41,555        41,446
 
     Shareholders' equity                              98,961        98,850
                                                     $248,661       268,293
 
     George Dunaway, CFO - 770/767-4500
     Matria Contact
 
     Media and Investor Relations Inquiries:
     Morgen-Walke Associates, Inc.
     Sarah Torres - 212/850-5600
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X76235187
 
 

SOURCE Matria Healthcare, Inc.
    MARIETTA, Ga., April 25 /PRNewswire Interactive Release/ --
 Matria Healthcare, Inc. (Nasdaq:   MATR) announced today its financial results
 for the first quarter of 2001.
     Revenues for the first quarter of 2001 increased 14% to $61.4 million,
 compared to first quarter of 2000 revenues of $53.7 million.  First quarter of
 2001 pro forma net earnings available to common shareholders increased 19% to
 $1.6 million, compared to pro forma net earnings available to common
 shareholders from continuing operations of $1.3 million in the 2000 first
 quarter.  Diluted pro forma earnings per share rose 29% in the first quarter
 of 2001 to $0.18 compared to pro forma diluted earnings per share from
 continuing operations of $0.14 in the first quarter of 2000.  Pro forma
 earnings before interest, taxes, depreciation and amortization ("EBITDA") for
 the first quarter of 2001 were $9.5 million, or $1.01 per diluted common
 share, compared to pro forma EBITDA from continuing operations of
 $9.3 million, or $0.91 per diluted common share, for the year-ago first
 quarter.
     Parker H. Petit, Chairman, President and CEO, commented, "We are pleased
 with our first quarter results and the progress we have made to date.  As you
 have seen in our previous communications, we are focusing on initiatives that
 will increase our revenue growth.  We believe Matria's first quarter results
 are an early indication of the impact of this focus."
     The Company also reported the results for Matria's two largest business
 segments.  Diabetes' revenues grew 31% in the first quarter of 2001 to
 $35.4 million, compared to first quarter of 2000 revenues of $27.0 million.
 Women's Health reported first quarter of 2001 revenues of $25.5 million, a 4%
 decline compared to revenues of $26.5 million for the first quarter of 2000.
     Petit added, "All parts of our diabetes business did extremely well during
 the quarter and produced strong growth.  Patient enrollments from our recent
 major diabetes disease management contracts with Medical Mutual of Ohio and
 Horizon Blue Cross/Blue Shield of New Jersey increased throughout the quarter
 and will further benefit our diabetes growth in the quarters ahead.  We
 continue to make investments in our call center infrastructure and expand our
 sales and marketing efforts to support these growth areas.  As anticipated,
 these investments led to a slight decline in our operating margins.  In our
 Women's Health business, we did not experience the growth we anticipated;
 however, we have a number of initiatives underway that will begin to show
 their effects during the next quarter."
     The Company stated that it expects second quarter of 2001 revenues of at
 least $62 million and pro forma net earnings per share of no less than $0.23
 per diluted common share.  The Company also reiterated its full year 2001
 expectations of approximately $250 million in revenues, pro forma net earnings
 in the range of $0.95 to $1.00 per diluted common share and pro forma EBITDA
 per diluted common share in the range of $4.20 to $4.40.
     Matria also continued its share repurchase program into the first quarter
 of 2001.  Since October 2000, the Company has bought 540,025 shares for
 approximately $5.7 million, representing close to 6% of the Company's total
 shares.
     Due to the recent dramatic stock market decline, the Company has adjusted
 the carrying values of amounts related to its split dollar life insurance
 program, established in 1997.  This adjustment resulted in a one-time non-cash
 charge to Other Expense of $0.7 million in the current period.  This charge
 has been excluded from the first quarter 2001 pro forma results.  The reported
 results, including this charge, were $0.13 per diluted common share for the
 first quarter of 2001.  The first quarter of 2000 pro forma results exclude
 gains from sales of shares of WebMD of $5.1 million.
 
     Matria is the leading provider of comprehensive population-based disease
 management programs, telemedicine services and fulfillment services to health
 plans and employers for women's health and the chronic conditions of diabetes
 and respiratory disorders.  Headquartered in Marietta, Georgia, Matria has
 more than 40 offices in the United States and internationally.  More
 information about Matria can be found online at www.matria.com .  The
 management team will discuss the results in a Webcast on April 25, 2001 at
 10:30 a.m. (Eastern Time).  Please access the News page of our Website for
 more information.
 
     This press release contains forward-looking statements.  Such statements
 include but are not limited to the impact of the Company's initiatives on
 increasing revenue and profit growth, the effect of increased enrollments from
 the Company's recent diabetes contracts on diabetes growth, the effects of the
 Women's Health initiatives and the Company's ability to achieve its financial
 expectations for the second quarter of 2001 and the twelve months ending
 December 31, 2001.  Among the important factors that could cause actual
 results to differ materially from those indicated by such forward-looking
 statements include developments in the healthcare industry, third-party
 actions over which Matria does not have control, regulatory requirements
 applicable to Matria's business and the risk factors detailed from time to
 time in Matria's periodic reports and registration statements filed with The
 Securities and Exchange Commission, including Matria's Annual report on Form
 10-K for the year ended December 31, 2000.  By making these forward-looking
 statements, Matria does not undertake to update them in any manner except as
 may be required by Matria's disclosure obligations in filings it makes with
 the Securities and Exchange Commission under the federal securities laws.
 
 
                            Matria Healthcare, Inc.
                Consolidated Condensed Statements of Operations
                (Amounts in thousands, except per share amounts)
                                  (Unaudited)
 
                                                       Three Months Ended
                                                            March 31,
                                                         2001        2000
 
     Revenues                                       $  61,368      53,746
 
     Cost of revenues                                  33,450      27,911
     Selling and administration expenses               17,836      15,898
     Provision for doubtful accounts                    1,778       1,667
     Amortization of intangible assets                  2,457       2,446
 
         Operating earnings                             5,847       5,824
     Interest expense, net                             (1,707)     (2,176)
     Other income (expense), net                         (759)      5,057
     Earnings from continuing operations
      before income taxes                               3,381       8,705
     Income tax expense                                (1,350)     (3,379)
     Earnings from continuing operations                2,031       5,326
     Earnings from discontinued operations,
      net of income taxes                                  --         430
         Net earnings                                   2,031       5,756
     Redeemable preferred stock dividends                (800)       (800)
     Accretion of Series B redeemable preferred stock    (109)       (109)
         Net earnings available
          to common shareholders                    $   1,122       4,847
 
     Net earnings (loss) per common share:
       Basic:
         Continuing operations                      $    0.13        0.48
         Discontinued operations                           --        0.05
                                                    $    0.13        0.53
 
       Fully Diluted:
         Continuing operations                      $    0.13        0.44
         Discontinued operations                           --        0.04
                                                    $    0.13        0.48
 
     Weighted average shares outstanding:
       Basic                                            8,749       9,206
       Diluted                                          8,811      10,250
 
 
                            Matria Healthcare, Inc.
                     Consolidated Condensed Balance Sheets
                             (Amounts in thousands)
 
                                                     March 31,  December 31,
     ASSETS                                            2001        2000
 
     Current assets:
       Cash, cash equivalents and
        short-term investments                       $  1,626         4,045
       Trade accounts receivable, net                  43,598        39,969
       Other receivables                                7,504        27,608
       Inventories                                     16,503        17,035
       Deferred income taxes                            2,836         3,182
       Prepaid expenses                                 2,854         2,011
         Total current assets                          74,921        93,850
 
     Property and equipment, net                       16,426        15,644
     Intangible assets, net                           117,043       119,486
     Deferred income taxes                             26,824        27,315
     Other assets                                      13,447        11,998
                                                     $248,661       268,293
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Current installments of long-term debt
        and obligations under capital leases         $  7,630        11,815
       Accounts payable, principally trade             19,621        21,734
       Accrued liabilities                              7,513         8,698
         Total current liabilities                     34,764        42,247
 
     Long-term debt and obligations under capital
      leases, excluding current installments           64,705        76,996
     Other long-term liabilities                        8,676         8,754
         Total liabilities                            108,145       127,997
 
     Redeemable preferred stock                        41,555        41,446
 
     Shareholders' equity                              98,961        98,850
                                                     $248,661       268,293
 
     George Dunaway, CFO - 770/767-4500
     Matria Contact
 
     Media and Investor Relations Inquiries:
     Morgen-Walke Associates, Inc.
     Sarah Torres - 212/850-5600
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X76235187
 
 SOURCE  Matria Healthcare, Inc.