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.