Apria positioned for ‘added scale’

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Wednesday, May 1, 2013

LAKE FOREST, Calif. – Execs at Apria Healthcare say the company is well-positioned going into Round 2 of competitive bidding.

Apria has confirmed to HME News that it has accepted 371 contracts under Round 2, mainly in its core business lines of oxygen, CPAP and enteral nutrition, as well as a “significant number” of contracts for negative pressure wound therapy (NPWT).

“Our clinical expertise, coupled with our national platform, makes us well-positioned to take on added scale, while leveraging our current infrastructure to further drive increased earnings,” said John Figueroa, CEO, during a May 1 call to discuss the company’s first quarter 2013 earnings.

Still, in its 10-K filing, Apria estimates a reduction in revenues from Round 2 of $57 million before any changes in volume are accounted for.

Figueroa also pointed to a debt re-fi completed in April resulting in a $900 million loan facility. The move will save Apria an estimated $38 million annually in interest expenses, he said.

“That will further contribute to our ability to generate free cash flow going forward,” said Figueroa.

The numbers

Revenues for the three months ended March 31, 2013, were $614.7 million compared to $595 million for the same period in 2012, an increase of 3.2%.

Net loss for the quarter was $1.9 million. EBITDA was $58.6 million.

Home infusion vs. RT/HME

Home infusion revenues for the quarter were $316.2 million, compared to $294.8 million for the same period in 2012, a 7.3% increase.

Respiratory therapy/HME revenues for the quarter were $299 million, compared to $300.9 million for the same period in 2012, a decrease of 0.8%.

Home infusion revenues now account for just more than 51% of Apria’s consolidated total revenues, said Figueroa.