Horizon Health (NASDAQ:HORC)
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Horizon Health Corporation (NASDAQ/NM: HORC) today
announced earnings of $0.24 per diluted share for the third fiscal
quarter ended May 31, 2005, which included the dilutive effect of
additional shares issued in the follow-on offering completed March 16,
2005, and was identical to the same period in the prior year. Revenues
increased 29.4% to $57.9 million compared with revenues of $44.8
million for the same quarter in the previous year, and net income
increased 27.9% to $3.5 million compared with net income of $2.7
million for the same quarter in the previous year.
For the nine months ended May 31, 2005, the Company had earnings
of $0.76 per diluted share, an increase of 8.6%, as compared with
earnings of $0.70 per diluted share for the same period in the
previous fiscal year. Revenues increased 27.5% to $164.4 million
compared with revenues of $128.9 million for the same period in the
previous fiscal year, and net income increased 19.7% to $9.6 million
compared with net income of $8.0 million for the prior year period.
During the quarter, the Company issued 1.725 million shares of
common stock in a follow-on offering effective March 16, 2005, and,
effective June 15, 2005, the Company issued approximately 7.39 million
shares of common stock in a two-for-one stock split effected as a 100%
stock dividend. Earnings per share amounts for the third quarter and
year-to-date are inclusive of the common stock shares issued in the
follow-on offering and stock split.
Mr. Ken Newman, chairman and chief executive officer of Horizon
Health, said, "During the third quarter we successfully positioned the
Company to continue its acquisition strategy by completing a follow-on
common stock offering which generated proceeds after expenses of $58.4
million. In addition, the Company increased its revolving credit
facility to a $125 million facility that, at the request of the
Company, can be increased to $175 million subject to the satisfaction
of certain conditions. As of May 31, 2005, the Company was "debt free"
with available cash of $30.8 million which is sufficient to fund the
fourth quarter acquisitions of Friends Hospital and River Park
Hospital."
The Company is revising its fiscal 2005 guidance to $1.00 to $1.02
per share, exclusive of approximately $7.0 to $9.0 million in one-time
charges expected to be incurred in the fourth fiscal quarter primarily
associated with the restructuring of its EAP Services Group and the
potential divestiture of ProCare One Nurses. The one-time charges
associated with the restructuring of the EAP Services Group relate to
real estate lease obligations at affected locations, relocation
expenses for certain employees, employee training and redundant
staffing. The Company is also issuing initial earnings guidance for
its fiscal 2006 of $1.14 to $1.18 per share, inclusive of $0.05 per
share in compensation expense related to the expensing of stock
options under FAS 123R that is applicable to the Company for its 2006
fiscal year commencing September 1, 2005. Included in both the revised
fiscal 2005 guidance and the initial 2006 guidance is the acquisition
of Friends Hospital effective June 30, 2005, and the anticipated
acquisition of River Park Hospital on July 31, 2005. Both the fiscal
2005 and 2006 guidance do not include the effects of any potential
acquisitions, other than River Park Hospital, or potential
divestitures.
A listen-only simulcast and a 30-day replay of Horizon's third
quarter conference call will be available online on July 12, 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 Months For the Nine Months
Ended May 31, Ended May 31,
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenue $ 57,905 $ 44,757 $ 164,416 $ 128,942
Cost of Services
(exclusive of
depreciation shown
separately below) 44,520 34,477 125,736 99,417
---------- ---------- ---------- ----------
Gross Profit 13,385 10,280 38,680 29,525
Selling, general and
administrative 6,001 5,031 17,091 14,111
Provision for (recovery
of) doubtful accounts 724 (135) 2,141 (250)
Depreciation and
amortization 794 680 2,479 1,988
---------- ---------- ---------- ----------
Income from operations 5,866 4,702 16,969 13,676
Interest expense (net of
interest and other
income) 140 270 1,308 735
---------- ---------- ---------- ----------
Income before income taxes 5,726 4,432 15,661 12,941
Income tax provision 2,233 1,702 6,108 4,961
---------- ---------- ---------- ----------
Net income $ 3,493 $ 2,730 $ 9,553 $ 7,980
========== ========== ========== ==========
Net income per common and
common equivalent
share(1)
Basic $ 0.25 $ 0.25 $ 0.79 $ 0.74
========== ========== ========== ==========
Diluted $ 0.24 $ 0.24 $ 0.76 $ 0.70
========== ========== ========== ==========
Weighted average shares
outstanding(1)
Basic 14,195 10,924 12,158 10,820
Diluted 14,744 11,366 12,601 11,338
(1) The number of shares and per share amounts have been restated to
reflect the impact of the June 15, 2005 stock split
CONSOLIDATED BALANCE SHEETS
May 31, August 31,
2005 2004
-------------- --------------
Cash $ 30,801 $ 1,908
Accounts receivable (net) 26,631 22,059
Other current assets 7,002 4,823
-------------- --------------
Total current assets 64,434 28,790
Property and equipment (net) 29,215 28,801
Goodwill and other intangible
assets (net) 86,859 87,244
Other long-term assets 65 430
-------------- --------------
Total assets $ 180,573 $ 145,265
============== ==============
Current liabilities $ 26,075 $ 23,230
Other liabilities 2,229 1,570
Long-term debt - 40,000
Deferred taxes 5,756 4,641
-------------- --------------
Total liabilities 34,060 69,441
Stockholders' equity 146,513 75,824
-------------- --------------
Total liabilities and stockholders'
equity $ 180,573 $ 145,265
============== ==============
HORIZON HEALTH
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except per share and statistical data)
SUMMARY STATISTICAL DATA
Quarter Quarter Quarter
Ended Ended Ended
May 31, Feb. 28, Nov. 30,
2005 2005 2004
---------- ---------- -----------
Number of contract locations:
Contract locations in operation 126 127 128
Contract locations signed & unopened 13 14 11
---------- ---------- -----------
Total contract locations 139 141 139
========== ========== ===========
Managed Care and EAP Lives 4,000,486 3,815,827 3,706,982
Managed Care and EAP Contracts 1,119 1,158 1,156
Owned/Leased Freestanding
Behavioral Health Hospitals:
Total net revenues (000's) $16,110 $12,175 $9,114
Number of facilities at period end 3 3 2
Licensed Beds 427 427 267
Weighted average available beds 357 316 241
Patient days 25,026 21,196 17,756
Admissions 1,777 1,314 847
Average length of stay 14.1 16.1 21.0
Revenue per patient day $644 $574 $513
Occupancy based on weighted
average available beds 76.2 % 74.5 % 81.0 %
As of August 31,
-------------------------------------------------
2004 2003 2002 2001 2000
--------- --------- --------- --------- ---------
Number of contract
locations:
Contract locations
in operation 132 127 131 124 128
Contract locations
signed & unopened 8 15 11 14 10
--------- --------- --------- --------- ---------
Total contract
locations 140 142 142 138 138
========= ========= ========= ========= =========
Managed Care and
EAP Lives 3,565,084 3,217,406 2,349,197 2,208,938 1,736,078
Managed Care and
EAP Contracts 1,175 1,175 687 641 258
Owned/Leased
Freestanding
Behavioral Health
Hospitals:
Total net revenues
(000's) $ 10,069 - - - -
Number of facilities
at period end 2 - - - -
Licensed Beds 267 - - - -
Weighted average
available beds 177 - - - -
Patient days 19,639 - - - -
Admissions 1,041 - - - -
Average length of
stay 18.9 - - - -
Revenue per patient
day $ 513 - - - -
Occupancy based on
weighted average
available beds 72.5 % - - - -
*T