Horizon Health (NASDAQ:HORC)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Horizon Health Charts. Click Here for more Horizon Health Charts.](/p.php?pid=staticchart&s=N%5EHORC&p=8&t=15)
Horizon Health Corporation (NASDAQ:HORC) today
announced results for the fourth fiscal quarter and fiscal year ended
August 31, 2005.
As the Company previously announced, results for the fourth
quarter include significant non-recurring charges related to the
restructuring of the EAP Services group, the termination of all
at-risk managed care contracts, and the sale of Procare One Nurses,
LLC ("Procare"). In the fourth quarter, the Company incurred
approximately $3.1 million in non-recurring restructuring charges for
the EAP Services group. In addition, the Company incurred
approximately $1.3 in charges, primarily legal reserves for Procare,
and recognized a loss of approximately $3.1 million on the divestiture
of Procare. The following schedule removes the non-recurring charges
from the actual fourth quarter 2005 results shown in the table below
and presents the operating results of Procare, and the loss on its
divestiture, as discontinued operations for purposes of comparison
with the prior period.
-0-
*T
Fourth Quarter Adjustments for Non-recurring Charges
(In millions, except per share data)
Quarter Ended August 31,
-----------------------------------------------------
2005
Non-
2005 Recurring 2005 2004
Actual Charges Adjusted Actual Change
--------- ---------- ---------- ---------- ----------
Revenues $ 56.6 $ - $ 56.6 $ 46.5 21.6%
Expenses 56.8 3.1 53.7 43.9
--------- ---------- ---------- ----------
Income from
continuing
operations (0.2) (3.1) 2.9 2.6 8.8%
Discontinued
Operations:
(Loss) income
from
discontinued
operations,
net (1.1) (1.3) 0.2 0.2
Loss on
disposal of
discontinued
operations,
net (3.1) (3.1) - -
--------- ---------- ---------- ----------
Discontinued
operations (4.2) (4.4) 0.2 0.2
Net Income $ (4.4) $ (7.5) $ 3.1 $ 2.8 10.6%
========= ========== ========== ==========
Diluted EPS -
Continuing
Operations $ (0.01) $ (0.20) $ 0.19 $ 0.23 (19.8%)
Diluted EPS -
Discontinued
Operations (0.28) (0.29) 0.01 0.02
--------- ---------- ---------- ----------
Diluted EPS $ (0.29) $ (0.49) $ 0.20 $ 0.25 (18.5%)
========= ========== ========== ==========
*T
Comparing the fourth quarter 2005, adjusted to exclude the
non-recurring charges, and the fourth quarter of 2004, revenues
increased 21.6% to $56.6 million versus revenues of $46.5 million in
the same period of the prior year. Income from continuing operations
adjusted increased 8.8% to $2.9 million, compared to income from
continuing operations of $2.6 million in the same period of the prior
year. Net income adjusted increased 10.6% to $3.1 million compared to
$2.8 million in the same period of the prior fiscal year. Income from
continuing operations adjusted was $0.19 per diluted share versus
$0.23 in the prior year quarter and net income adjusted was $0.20 per
diluted share versus $0.25 per diluted share in the prior year.
Earnings per share amounts in the fourth quarter of 2005 include the
dilutive effect of the additional shares issued in the follow-on
offering completed March 16, 2005.
During fiscal 2005, the Company incurred approximately $4.0
million in non-recurring restructuring charges for the EAP Services
group. In addition, the Company incurred approximately $1.3 in
non-recurring charges, primarily legal reserves for Procare, and
recognized a loss of approximately $3.1 million on the divestiture of
Procare. The following schedule removes the non-recurring charges from
the actual fourth quarter 2005 results shown in the table below and
presents the operating results of Procare, and the loss on its
divestiture, as discontinued operations for purposes of comparison
with the prior period.
-0-
*T
Fiscal 2005 Adjustments for Non-recurring Charges
(In millions, except per share data)
Year Ended August 31,
-----------------------------------------------------
Non-
2005 Recurring 2005 2004
Actual Charges Adjusted Actual Change
--------- ---------- ---------- --------- ----------
Revenues $ 207.4 $ - $ 207.4 $ 161.8 28.2%
Expenses 198.6 4.0 194.6 151.6
--------- ---------- ---------- ---------
Income from
continuing
operations 8.8 (4.0) 12.8 10.2 25.2%
Discontinued
Operations:
(Loss) income
from
discontinued
operations,
net (0.5) (1.3) 0.8 0.6
Loss on
disposal of
discontinued
operations,
net (3.1) (3.1) - -
--------- ---------- ---------- ---------
Discontinued
operations (3.6) (4.4) 0.8 0.6
Net Income $ 5.2 $ (8.4) $ 13.6 $ 10.8 26.1%
========= ========== ========== =========
Diluted EPS -
Continuing
Operations $ 0.66 $ (0.30) $ 0.96 $ 0.90 6.7%
Diluted EPS -
Discontinued
Operations (0.27) (0.33) 0.06 0.05
--------- ---------- ---------- ---------
Diluted EPS $ $0.39 $ (0.63) $ 1.02 $ 0.95 7.6%
========= ========== ========== =========
*T
Comparing fiscal 2005, adjusted to exclude the non-recurring
charges, to the prior year, revenues increased 28.2% to $207.4 million
versus revenues of $161.8 million for the previous fiscal year. Income
from continuing operations adjusted increased 25.2% to $12.8 million,
compared to income from continuing operations of $10.2 million in the
prior fiscal year. Net income adjusted increased 26.1% to $13.6
million versus net income of $10.8 million in the prior fiscal year.
Income from continuing operations adjusted increased 6.7% to $0.96 per
diluted share versus income from continuing operations of $0.90 per
diluted share in the prior year. Earnings per diluted share adjusted
increased 7.6% to $1.02 versus $0.95 in the prior year. Earnings per
share amounts for fiscal 2005 include the dilutive effect of the
additional shares issued in the follow-on offering completed March 16,
2005.
Per the above schedule, diluted earnings per share for fiscal
2005, excluding one-time charges for the EAP Services restructuring
and the divestiture of Procare, was $1.02 and therefore consistent
with previously stated guidance.
At August 31, 2005, the Company was debt free, had available cash
of approximately $8.1 million, and had approximately $118.6 million
available under it's revolving credit facility, after deducting
letters of credit.
Mr. Ken Newman, chairman and chief executive officer of Horizon
Health, said, "We are pleased with the many significant
accomplishments of fiscal 2005 including: the acquisition of three
freestanding behavioral hospitals; the restructure of our EAP Services
group and the termination of all our at-risk managed care contracts; a
secondary stock offering which raised proceeds of $58.4; a portion of
which was used to repay all our outstanding debt; the amendment of our
credit facility to increase availability from $90 million to $125
million; and the divestiture of our specialty nurse staffing business.
Growth for the 2005 fiscal year, achieved through accretive
acquisitions and internal growth, was substantial. Importantly, the
completion of our fiscal 2005 objectives leaves us well positioned
both strategically and financially to continue our stated strategy for
growth in the area of behavioral healthcare services."
Due to the divestiture of Procare One Nurses, LLC effective August
29, 2005, the Company is revising its previously announced earnings
guidance for fiscal 2006 from $1.14 to $1.18 per diluted share to
$1.08 to $1.12 per diluted share. As is customary for the Company, the
2006 earnings guidance does not include the effect of any future
acquisitions.
A listen-only simulcast and a 30-day replay of Horizon's fourth
quarter and fiscal 2005 results call will be available online on
October 26, 2005, beginning at 10:00 a.m. Central Time through the
Company's website at www.horizonhealth.com or at www.earnings.com.
Horizon Health is a leading contract manager of clinical services
for acute care hospitals and employers and an owner of behavioral
health care facilities.
The statements contained herein based on future expectations
rather than on historical facts are forward-looking statements as
defined under the Private Securities Litigation Reform Act of 1995
that involve a number of risks and uncertainties. Numerous factors as
outlined in the SEC Report filed by the Company could cause actual
results to differ materially from those in any such forward-looking
statements. There can be no assurance that statements made in this
press release relating to future events will be achieved. The Company
undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results over time.
-0-
*T
HORIZON HEALTH
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except per share and statistical data)
For the Three For the Twelve
Months Months
Ended August 31, Ended August 31,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenues $56,589 $46,528 $207,392 $161,824
Cost of Services (exclusive
of depreciation shown
separately below) 46,661 34,839 160,032 121,554
Selling, general and
administrative 6,276 4,892 23,220 18,834
Provision for doubtful
accounts 2,294 1,019 4,382 869
Impairment loss on building 1,015 - 1,015 -
Depreciation and amortization 1,002 906 3,387 2,795
--------- --------- --------- ---------
Operating (loss) income (659) 4,872 15,356 17,772
Interest expense (net of
interest and other income) 10 (572) (1,298) (1,307)
--------- --------- --------- ---------
Income before income taxes,
minority interest and
discontinued operations (649) 4,300 14,058 16,465
Income tax provision (411) 1,659 5,332 6,252
Minority interest, net (15) -- (15) --
--------- --------- --------- ---------
Income from continuing
operations (223) 2,641 8,741 10,213
Discontinued Operations:
(Loss) income from
discontinued operations,
net (1,078) 154 (488) 562
Loss on disposal of
discontinued operations,
net (3,102) -- (3,102) --
--------- --------- --------- ---------
Discontinued operations (4,180) 154 (3,590) 562
Net income $(4,403) $2,795 $5,151 $10,775
========= ========= ========= =========
Basic earnings per common
share(1)
Continuing operations $(0.02) $0.24 $0.68 $0.94
Discontinued operations (0.28) 0.02 (0.28) 0.05
--------- --------- --------- ---------
$(0.30) $0.26 $0.40 $0.99
Diluted earnings per common
share (1)
Continuing operations $(0.01) $0.23 $0.66 $0.90
Discontinued operations (0.28) 0.02 (0.27) 0.05
--------- --------- --------- ---------
$(0.29) $0.25 $0.39 $0.95
========= ========= ========= =========
Weighted average shares
outstanding(1)
Basic 14,843 10,937 12,829 10,849
========= ========= ========= =========
Diluted 15,424 11,371 13,306 11,346
========= ========= ========= =========
(1) The number of shares and per share amounts have been restated
to reflect the impact of the June 15, 2005 stock split.
HORIZON HEALTH
CONSOLIDATED BALANCE SHEETS
(In Thousands, except per share and statistical data)
August 31, August 31,
2005 2004
---------- ----------
Cash $ 8,089 $ 1,908
Accounts receivable (net) 28,876 22,059
Other current assets 15,066 4,823
Other current assets - discontinued operations 1,322 --
---------- ----------
Total current assets 53,353 28,790
Property and equipment (net) 51,698 28,801
Goodwill and other intangible assets (net) 81,086 87,244
Other long-term assets 1,752 430
Other long-term assets - discontinued operations 655 --
---------- ----------
Total assets $ 188,544 $ 145,265
========== ==========
Current liabilities $ 32,209 $ 23,230
Other current liabilities - discontinued
operations 1,654 --
Other liabilities 3,874 1,570
Long-term debt -- 40,000
Deferred taxes 3,693 4,641
Other long-term liabilities - discontinued
operations 128 --
---------- ----------
Total liabilities 41,558 69,441
Minority interest 3,865 --
Stockholders' equity 143,121 75,824
---------- ----------
Total liabilities and stockholders' equity $ 188,544 $ 145,265
========== ==========
SUMMARY STATISTICAL DATA
As of August 31,
------------------------------------------------------
2005 2004 2003 2002 2001
---------- ---------- ---------- ---------- ----------
Covered lives 4,063,389 3,565,084 3,217,406 2,349,197 2,208,938
Number of
contract
locations:
Contract
locations in
operation 123 132 127 131 124
Contract
locations
signed &
unopened 12 8 15 11 14
---------- ---------- ---------- ---------- ----------
Total contract
locations 135 140 142 142 138
========== ========== ========== ========== ==========
Services
Covered by
Contracts:
Inpatient 121 129 126 127 123
Partial
Hospital-
ization 10 17 25 31 40
Outpatient 21 24 21 21 17
Home Health 1 2 3 3 3
CQI+ 110 105 109 108 120
Types of
Treatment
Programs:
Geropsychiatric 79 85 87 106 109
Adult
psychiatric 43 49 48 44 45
Substance abuse 2 4 4 2 1
Physical
rehabilitation 28 33 32 28 24
Other
behavioral
health 4 4 8 2 4
Owned/Leased
Freestanding
Behavioral
Health
Hospitals:
Total net
revenues
(000's) $23,179 $10,069 --- --- ---
Number of
facilities at
period end 5 2 --- --- ---
Licensed Beds 806 267 --- --- ---
Weighted
average
available beds 520 177 --- --- ---
Patient days 36,418 19,639 --- --- ---
Admissions 2,807 1,041 --- --- ---
Average length
of stay 13.0 18.9 --- --- ---
Revenue per
patient day $636 $513 --- --- ---
Occupancy based
on weighted
average
available beds 76.1% 72.5% --- --- ---
*T