Apria building momentum, CEO says

Friday, August 9, 2013

LAKE FOREST, Calif. – Apria Healthcare has experienced its “strongest results” in several years, company officials said during an earnings call Aug. 9. 

CEO John Figueroa pointed to a $34.7 million improvement in the company’s free cash flow for the second quarter ended June 30, 2013, as one indicator. Apria reported a negative free cash flow of $13.4 million for the quarter compared to $48.1 million for the same period last year.

“This represents the strongest results we have achieved in the first half of the year since Blackstone acquired us in late 2008,” he said.

The company reported net revenues of $620.6 million for the second quarter, compared to $607.7 million for the same period in 2012, a 2.1% increase. Net loss was $36.1 million vs. $12.7 million.

Figueroa said Apria is building momentum from quarter to quarter.

“We saw continued improvement in operations efficiencies via a disciplined focus on eliminating costs, improving collections and focusing on profitable lines of business,” he said.

Figueroa said Apria, which accepted 371 contracts under Round 2 of competitive bidding, expects minimal disruption for its patients and referral sources under the program.

“While absorbing this level of cut is very challenging, we believe that Apria is well positioned to continue to be successful,” he said.

At the same time, “We continue to work toward informing Congress about our products and services in the hopes they will come to further understand the numerous benefits as compared to other sites of care,” he said.

Apria’s revenue growth was due primarily to the home infusion therapy division, which saw net revenues of $330 million for the second quarter this year compared to $304.4 million last year, an 8.4% increase.

Home respiratory therapy and home medical equipment continued to decline: Net revenues were $290.6 million for the second quarter this year compared to $303.4 million last year, a decrease of 4.2%.

Apria reported net revenues of $1.24 billion for the six months ended June 30, 2013, compared to $1.20 billion for the same period last year. Net loss was $38 million vs. $32.3 million.


Why is this article slanted as positive?  Who grows 2.1% or $20 million in sales while increasing their losses three fold and spins it as a positive because of cash flow freed up.  Apria just went through a massive debt restructuring which is probably why their cash flow is freed up.  I want to work for Blackstone if they buy into what this guy is selling!  All I can say is wow!  The only fix for Apria is to wipe out the top level of management. 

I thought it was crazy that Apria thinks its building momentum. Yeah they are building momentum in the loss column and with all those bid contracts its about to get worse. Does Blackstone know that there are people who have actually managed profitable businesses in the hme industry? A ton of Apria's upper management came from industries other than HME. Its a common problem for the larger companies who want no part of anyone with experience. Does Blackstone have the guts to make the changes needed to save their investment? What does Blackstone tell their investors? Apria should be the best managed business in our industry but with results like this are becoming the butt of jokes.