Coram Buy Bumps 2007 Numbers at Apria

LAKE FOREST, Calif.–Apria Healthcare Group announced its
financial results for the fourth quarter and twelve months ended
Dec. 31, 2007, and the numbers are up.

Providing home infusion, respiratory therapy and HME through 550
locations, on Dec. 3, 2007, Apria completed its acquisition of
Coram Inc., which the company said strengthened its infusion
business and future earnings capacity.

Excluding Coram, fourth quarter revenues were $410.6 million, a
4.9 percent increase compared to the fourth quarter of 2006.
Respiratory therapy grew by 5.1 percent, and infusion therapy
revenues grew by 8.2 percent during the quarter. Including the
impact of the Coram acquisition, fourth quarter revenues were
$452.7 million, a 15.7 percent increase over the period in 2006,
and infusion therapy revenues jumped 66.9 percent.

Net income for the quarter increased by 16.9 percent to $25
million from $21.4 million in 2006. Excluding Coram, fourth quarter
net income was $24.3 million, an increase of 13.6 percent.

For the year, revenues grew 7.6 percent to $1.632 billion from
$1.517 billion in 2006. Excluding Coram, revenues were $1.590
billion, a 4.8 percent increase over 2006. In 2007, respiratory
therapy revenues grew by 5.3 percent. Including the Coram
acquisition, infusion therapy revenues grew by 21.6 percent during
2007. Excluding Coram, infusion therapy revenues increased 6.3
percent during 2007.

Net income for 2007 was $86 million versus $74.3 million in
2006. The results include contributions from one-time positive tax
benefits and the Coram acquisition. Excluding Coram, net income was
$85.3 million, an increase of 14.9 percent over 2006.

“Revenue grew in the second half of the year due to a heightened
focus on sales force training, development and retention, as well
as the expansion of the sales force,” said Lawrence M. Higby, Apria
CEO. “Additionally, the cost-reduction initiatives we implemented
during the year contributed to our strong financial results.
Strategically, with the fourth quarter acquisition of Coram, we
also positioned the company for long-term success by diversifying
our therapy and payer mix and significantly enhancing our position
in the home infusion industry.”

Based on recent performance and a strong start to the
integration process, Apria said it now expects the acquisition of
Coram to be neutral to earnings in 2008. Including the impact of
anticipated Medicare reimbursement reductions and the impact of
Coram from the date of acquisition, management estimated 2008
revenue growth will be in the range of 33 to 35 percent.

In 2009, Apria said the combined impacts of the Coram
acquisition, organic revenue growth and cost-saving initiatives
will mitigate a portion of the anticipated effect of expanded
competitive bidding and the implementation of the Deficit Reduction
Act.