AHP Reports Q2 Revenues Down

BRENTWOOD, Tenn. — American HomePatient posted second-quarter revenues of $57.7 million
compared to $64.2 million for the second quarter of 2008, a 10.1
percent decrease. Revenues for the six months ended June 30 were
down 13 percent to $116 million from $133.4 million for the same
period last year.

Net losses for Q2 were $4 million against $2.1 million in 2008,
and net losses for the six months were $9.2 million compared to
$1.6 million last year.

The giant provider, which operates in 33 states, attributed the
losses mainly to Medicare reimbursement cuts affecting oxygen and
other product lines effective in January. The cuts reduced revenue
by $6.9 million for the second quarter and $14.1 million for the
six months ended June 30. The company also said its reduced
emphasis on less profitable product lines like non-respiratory DME
and infusion therapy was another contributing factor. A change in
inhalation drug product mix resulting from Medicare cuts reduced
revenue by an additional $3 million for the six months, AHP said.
The decreases were partially offset by growth in oxygen patients
and sleep therapy revenues, the company’s core product lines.

An AHP statement said under a forbearance agreement on a $226.4
million debt that was due to be repaid Aug. 1, NexBank and a
majority of the secured debt holders have agreed not to take any
action until Sept. 1. As AHP and the forbearance holders work to
resolve the issue, the statement said, “there can be no assurance
that these discussions will result in a resolution with favorable
terms to the company and its stockholders or at all.”