On the rebound
NASHVILLE, Tenn. - American HomePatient (AHP) emerged from Chapter 11 bankruptcy July 1 under a restructuring plan that preserves the company’s current management, restructures its long-term debt and ensures that all creditors and vendors will be paid 100% of what they are owed.
If that news isn’t good enough, in one of its best financial showings in years, AHP’s same-store sales for the first quarter of 2003 jumped $4.6 million or 5.9% compared to the first quarter of last year. The company’s first quarter net income of $4.3 million compares to a net loss of $66.9 million in the first quarter of 2002.
AHP filed for bankruptcy on July 31, 2002. The company was scheduled to pay off $275 million in debt Dec. 31, 2002, but AHP had nowhere near that much cash on hand.
Filing for Chapter 11 protection allowed AHP to continue its day-to-day operations and renegotiate more favorable terms for its debt. The better terms will free up more cash to fuel the company’s growth and pay down the debt’s principal.
Despite the company’s emergence from bankruptcy and its recent financials, the company hasn’t turned the corner yet, said President Joseph Furlong.
“Let’s say we are rounding the corner,” Furlong said. “There is still a lot we can do.” HME