Earnings: Things are looking up at Rotech, American HomePatient
ORLANDO, Fla. - Officials at Rotech Healthcare reported last week that net revenues and earnings were up for the second quarter of 2010 and that, thanks to competitive bidding, the future looks even brighter.
"We look forward to considerable growth and expansion of our existing presence in these initial cities that we believe will more than offset the reduction in reimbursement rates over time," stated President and CEO Phil Carter in a release.
In July, Rotech accepted 17 competitive bidding contracts: six for oxygen; six for enteral nutrients; three for CPAP; and two for standard power wheelchairs.
Rotech reported net revenues of $124.3 million for the quarter ended June 30, 2010, up from $115.5 million for the same period last year. It reported net earnings of $3.4 million for the quarter this year, up from a net loss of $5.4 million last year.
There is, however, the issue of Rotech's debt. The provider has about $513.2 million of long-term debt outstanding consisting of $225.8 million payable under its senior credit facility, which matures in September 2011, and $287 million of senior subordinated notes, which mature in April 2012. (American HomePatient is $226 million in debt.)
"We continue to evaluate options and timing for addressing upcoming debt maturities," Carter stated. "We intend to refinance part or all of our debt prior to maturing, subject, of course, to continued favorable performance and market conditions."
Rotech's earnings included a $2.9 million settlement to resolve "a commercial arbitration proceeding related to previously unpaid claims and associated interest, fees, expenses and legal costs," according to the release.
For the six months ended June 30, 2010, Rotech reported net revenues of $247.76 million and a net loss of $3.1 million.
AHP: Back in black
BRENTWOOD, Tenn. - American HomePatient (AHP) reported last week net revenues of $69.2 million for the quarter ended June 30, 2010, up from $66 million for the same period last year. Net income was $900,000, up from a net loss of $4 million. The provider reported net revenues of $136.2 million for the first six months of 2010 compared to $132.2 million for the same period last year. Net loss was $2.9 million compared to $9.2 million. The increase in revenue is primarily attributable to growth in AHP's core respiratory product lines of oxygen and sleep therapy. It was partially offset by reductions in revenue for none-respiratory HME and infusion therapy. Per a restructuring agreement that will take AHP private and put the provider in the hands of an investment fund managed by Dallas-based Highland Capital Management, it has retired about $10.2 million out of $226.4 million of its outstanding secured debt obligations held by a single entity at a 15% discount.
ResMed surpasses $1 billion in revenue
SAN DIEGO - ResMed's revenue jumped 19% to $1.1 billion for the fiscal year that ended June 30, the company reported Aug. 5. "Surpassing the billion dollar mark in annual sales is a result of our ability to continue to innovate and launch new products to treat sleep-disordered breathing," CEO Kieran Gallahue stated in a release. "We believe continued growth will also come from the increasing confirmation of the strong impact between sleep-disordered breathing, obstructive sleep apnea and co-morbidities, such as cardiac disease, diabetes, hypertension and obesity."