Earnings: Apria, Rotech

Monday, May 9, 2011

LAKE FOREST, Calif. - Apria Healthcare this week reported net revenues of $536.7 million for the first quarter ended March 31, 2011, compared to $508.9 million for the same period last year. It reported a net loss of $21 million.

Apria credited the increase in revenues on an increase in home infusion therapy revenues and its acquisition of Praxair's U.S. homecare business in March. The increase was partially offset by the non-renewal or termination of or changes to certain payer contracts, among other factors.

The provider expects its acquisition of Praxair to contribute about $85 million to $95 million in revenue for the year.

Apria believes its performance in 2011 will be affected by, among other things, increased selling, distribution and administrative costs related to the return of certain offshored billing and collections functions to its personnel in the United States; a full year impact of additional sales personnel that were only added for a portion of 2010; and an unfavorable impact related to competitive bidding.

Rotech 'pleased' despite $3.7M decline in reimbursement

ORLANDO, Fla. - In a limited earnings report released May 6, Rotech Healthcare announced that its revenue generating patients in its core product lines of oxygen and CPAP grew 13.6% in the first quarter ended March 31, 2011, compared to the same period last year.

The provider reported $28.3 million in adjusted EBITDA for the first quarter of 2011, a 13% increase compared to $25.2 million for the same period last year.

Rotech also noted that it completed in March a refinancing of its former senior subordinated notes due 2012 with an issuance of $290 million in aggregate principal amount of senior second lien notes. That follows an offering in October 2010 of $230 million in senior secured notes to refinance loan facility. The provider has now addressed its short-term debt maturities until 2015 and 2018.

President and CEO Phil Carter had this to say: "In comparing first quarter of 2011 with that of 2010, we are pleased to report improvement in profitabilty with increases in gross profit and adjusted EBITDA percentages. This was in spite of a $3.7 million decline in Medicare reimbursements and other non-patient service revenue."