Apria's fourth quarter revenues tumble due to cuts
LAKE FOREST, Calif. - Apria's revenues over the second half of 2005 proved so disappointing that "no executive officer will receive a salary increase or bonus for 2005," CEO Larry Higby stated in February. Revenues were $359.7 million in the fourth quarter of 2005 compared to revenues of $376.4 million for the fourth quarter in 2004, according to the company's fourth quarter results. Net income for the fourth quarter of 2005 was $19.5 million compared to $27.3 million for the same period last year. Full year revenues were $1.47 billion in 2005 compared to $1.45 billion in 2004. Net income for 2005 was $66.9 million vs. $114 million in 2004. Apria's fourth quarter revenues were negatively impacted by Medicare reimbursement reductions that went into effect for respiratory medications and certain items of HME on Jan. 1, 2005, and for oxygen and oxygen equipment on April 8, 2005. Without the Medicare pricing reductions, revenue growth would have been 3.5% for the year; revenue for the fourth quarter would have declined by 3%.