Things are looking up at Rotech?
ORLANDO, Fla. - Officials at Rotech Healthcare reported today 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 has $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.