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Pharmaceutical industry

Counsel Corporation Reports 1994 Results with Net Earnings of $9.4 Million

Strategic Insights

— 2 min read

Counsel Corporation, a Canadian company, today announced its 1994 financial results, which show a significant turnaround from the previous year. After a loss of $6.2 million in 1993, the company reported net earnings of $9.4 million in 1994, with earnings per share of 28 cents. This improvement is largely due to the success of American HomePatient Inc., Counsel's 66 percent-owned U.S. home health care business, which reported record earnings in 1994. Despite a decrease in revenues due to the sale of real estate assets in 1993, Counsel's strategy of focusing on niche health care markets in the U.S. and building its real estate and property management subsidiary is beginning to produce excellent returns.

Key Takeaways:

  • Counsel Corporation reported net earnings of $9.4 million in 1994, a significant improvement from the loss of $6.2 million in 1993.
  • Earnings per share were 28 cents in 1994, compared to a loss of 67 cents per share in 1993.
  • Pre-tax earnings from operations increased by 25 percent to $13.6 million in 1994, from $10.9 million in 1993.
  • American HomePatient Inc.'s revenues rose 47 percent to US$90.2 million in 1994, from US$61.3 million in 1993.
  • Net earnings from continuing operations increased 60 percent to US$5.6 million in 1994, from US$3.5 million in 1993, or US$1.00 per share compared to US$0.69 in 1993.
  • Counsel Corporation acquired a 25 percent equity ownership and management of Choice Drug Systems, Inc. (NASDAQ:DOSE) recently, despite Choice Drug announcing its intention to acquire Premier Pharmacy Inc., a privately-held provider of pharmacy services to nursing homes and hospitals.
  • Counsel's asset management business is carried on by its wholly-owned subsidiary, Counsel Management Services Inc.('CMSI'), which manages Counsel Real Estate Investment Trust (TSE: REI.Un) and assets for institutional and individual owners.

Statistics:

  • Net earnings: $9.4 million (1994) vs. $6.2 million (1993) loss
  • Earnings per share: 28 cents (1994) vs. 67 cents per share (1993) loss
  • Pre-tax earnings from operations: $13.6 million (1994) vs. $10.9 million (1993)
  • American HomePatient Inc. revenues: US$90.2 million (1994) vs. US$61.3 million (1993)
  • Net earnings from continuing operations: US$5.6 million (1994) vs. US$3.5 million (1993)
  • Earnings per share: US$1.00 (1994) vs. US$0.69 (1993)
  • Choice Drug Systems, Inc. revenues: US$55 million (fiscal year ended February 28, 1994)

Sources:

  • Counsel Corporation press release, MARCH 14, 1995
  • "Counsel Corporation Announces 1994 Results" (Business Wire, MARCH 14, 1995)

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