Respiratory Giants Report Mixed Earnings Results

Atlanta

Two of the nation’s largest respiratory providers announced that earnings were up for the second-quarter ended June 30.

Apria Healthcare Group reported that its income for the quarter rose to $18.5 million, up from $3 million a year earlier.

The 500-branch provider said this period’s results were hurt by Medicare reimbursement reductions and related respiratory product cost increases, and now estimates sales growth for 2006 at 3 percent. However, collection and cost control initiatives have boosted savings, according to CEO Lawrence Higby.

The company also announced that Amin Khalifa has stepped down as chief financial officer to take another position with a telecommunications company. Alicia Price, Apria’s vice president and controller, will act as CFO until a replacement is found.

Lincare Holdings also reported a 3.6 percent increase for the second quarter. The provider earned $51.9 million, up from $50.1 million during the same period last year. Revenue increased 11 percent from last year to $350.1 million.

During the second quarter, the company acquired five businesses with annual revenues of about $14 million and added 18 new operating centers.

Rotech Healthcare reported less positive results. Revenues for the provider, which operates 400 locations in 48 states, were $111.8 million for the second quarter this year compared to $133 million for the same period in 2005. The company also reported a net loss of $430.7 million compared to net earnings of $1.1 million during the quarter last year.