Rotech’s earnings remain flat in 4th quarter

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Wednesday, April 30, 2003

ORLANDO — Rotech Healthcare’s fourth quarter net revenues came in at $154.9 million, a sliver less than the $156 million it tallied in the same period a year ago. Net earnings for the fourth quarter were $2.1 million as compared to net earnings of $1.3 million in the fourth quarter of 2001.

Respiratory therapy equipment and services represented 81.4% of total revenue for the fourth quarter, a 4.6% increase over the fourth quarter of last year. Home respiratory therapy revenues represented 79.6% of the revenue for the nine-month period ended Dec. 31, 2002, a 3.8% increase versus the same period last year. The increase in respiratory revenues reflects Rotech’s focus on its oxygen concentrator and nebulizer medication businesses, the company stated in a release.

Rotech limited its financial reporting to April through December 2002. The company previously operated as subsidiary of Integrated Health Services. As a result historical results may not be comparable, the company cautioned.

Net earnings for the nine-month period ended Dec. 31, 2002 were $13.9 million as compared to net earnings of $6.5 million for the nine-month period ended Dec. 31, 2001.

DME revenues represented 16.8% of total revenue in the fourth quarter and declined 22.1% versus the same period last year. DME revenues represented 18.4% of total revenue for the nine-month period ended Dec. 31, 2002 and declined 14.8% versus the same period last year. The decline in DME revenues is the result of a decreased emphasis on this business in recent quarters. Rotech has initiated new efforts to rebuild its DME rental business, the company stated in a release. HME

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