Apria, Liberator report earnings

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Friday, August 17, 2012

LAKE FOREST, Calif. – Apria Healthcare last week reported net revenues of $607.7 million for the three months ended June 30, 2012, compared to $576.3 million for the same period last year. It reported net losses of $12.7 million vs. $9.4 million.

Apria reported net revenues of $1.2 billion for the six months ended June 30, 2012, compared to $1.1 billion for the same period last year. It reported net losses of $32.3 million vs. $30.5 million.

Revenues for the second quarter and the first half of 2012 increased due to a boost in volume in the home infusion therapy segment and the RT/HME segment. Revenues for the first half of 2012 also increased due to the acquisition of Praxair assets in March 2011.

Apria reported net revenues of $301.5 million for the RT/HME segment for the quarter ended June 30, 2012, compared to $292.6 million for the same period last year, a 3% increase. This segment generated 49.6% of net revenues for the quarter.

It reported net revenues of $306.2 million for the home infusion segment for the quarter ended June 30, 2012, compared to $283.7 million for the same period last year, an increase of 7.9%. This segment generated 50.4% of net revenues for the quarter.

In an accompanying Form 10-Q, Apria also reported:

• On Round 2 of competitive bidding: “Assuming few changes to the Round 2 bidding rules and the markets included, we estimate that approximately $141 million of our net revenues for the fiscal year ending Dec. 31, 2011, would be subject to competitive bidding.”

• On audits: “We, along with others in the industry, experienced a very significant increase in audits in 2011 and the first half of 2012. We believe that such increased audit activity will continue to be the case for the foreseeable future. Such audits are designed to measure industry and provider claim error rates, primarily relating to medical necessity documentation in the treating physician’s records for various DMEPOS items. Such audits are labor-intensive to respond to and are likely to result in refunds to the government. Additionally, commercial insurers have increased their post-payment audit volume in 2012 as well.”

• On outsourcing: “The increase in labor costs of $3.7 million was primarily due to an increase in salaries and related benefits resulting from headcount increases associated with our decision to return certain outsourced functions relating to documentation, billing and collections back to Apria personnel.”

To read the 10-Q in full, go to:

http://www.apria.com/wps/portal/apria/home/about-us/investor-relations

Liberator: Revenues continue to rise

STUART, Fla. – Mail-order provider Liberator Medical reported a 12.3% increase in revenues for the quarter ended June 30, 2012. Revenues were $15 million compared to $13.3 million for the same period in 2011. Sales for the nine months ended June 30, 2012, increased by 16.3% to $44.4 million. The company reported current assets of $17.8 million and current liabilities of $6.5 million.