ORLANDO, Fla.—As of March 31, revenue-generating patients in Rotech’s core product lines of oxygen and CPAP grew 13.6 percent in this year’s first quarter compared to the first quarter of 2010, the company announced May 6.
According to the provider’s Q1 financials, adjusted EBITDA for the three months increased 13 percent to $28.3 million from $25.2 million for the same period last year. Its ratio of net debt to last 12 months’ adjusted EBITDA decreased to 4 times compared to 4.8 times at March 31, 2010.
The Florida-based provider, which operates about 425 locations in 48 states, also completed a refinancing of former senior subordinated notes due 2012 with the issuance of $290 million in aggregate principal amount of senior second lien notes. Along with an October 2010 offering of $230 million in senior secured notes to refinance its former payment-in-kind term loan facility, “we have now addressed our short-term debt maturities until 2015 and 2018,” the company reported.
“In comparing first quarter of 2011 with that of 2010, we are pleased to report improvement in profitability with increases in gross profit and adjusted EBITDA percentages, as well as reductions in SG&A percentage,” said Rotech President and CEO Philip Carter. “This was in spite of a $3.7 million decline in Medicare reimbursements and other non-patient service revenue.”