TheraTx Reports Record Revenues and Earnings for 2Q and 6M of 1995

Strategic Insights -

TheraTx, Incorporated announced record revenues and earnings for the second quarter and six months ended June 30, 1995. The company's net revenues for the quarter exceeded $72.3 million, representing a 163% increase over the $27.4 million reported for the same quarter in 1994. Earnings before merger-related expenses and an extraordinary item totaled $4.3 million, or $0.24 per share, compared to net income of $1.4 million, or $0.14 per share, for the same quarter in 1994. For the six months ended June 30, 1995, net revenues totaled $124.1 million, a 171% increase over the $45.7 million reported for the same period in 1994.

Key Takeaways:

  • TheraTx's net revenues for the quarter ended June 30, 1995, were $72.3 million, a 163% increase from $27.4 million in the same quarter of 1994.
  • The company reported earnings before merger-related expenses and an extraordinary item of $4.3 million, or $0.24 per share, for the quarter ended June 30, 1995.
  • Transaction costs of $600,000 and a deferred tax provision of $276,000 were recorded in connection with the merger of TheraTx and Respiratory Care Services, Inc. ("RCS") during the quarter ended June 30, 1995.
  • The acquisition of five skilled nursing facilities, an adult congregate living facility, and a medical supply business from affiliates of Southern Management Services, Inc. ("SMS") added 896 beds in attractive markets and provided an entry into a specialized segment of the medical supply distribution business.
  • The merger with RCS integrated respiratory therapy into TheraTx's managed rehabilitation programs and served as a platform for future growth.
  • TheraTx improved its financial capacity through the addition of a $125 million senior revolving credit facility in May 1995.
  • The company relocated its managed rehabilitation programs out of facilities managed by Convalescent Services, Inc. ("CSI") and reported strong revenue growth from existing programs and new programs.

Statistics:

  • Net revenues for the quarter ended June 30, 1995: $72.3 million
  • Net revenues for the same quarter in 1994: $27.4 million
  • Earnings before merger-related expenses and an extraordinary item for the quarter ended June 30, 1995: $4.3 million
  • Net income for the quarter ended June 30, 1995: $3.3 million
  • Net revenues for the six months ended June 30, 1995: $124.1 million
  • Net revenues for the same period in 1994: $45.7 million
  • Earnings before merger-related expenses and an extraordinary item for the six months ended June 30, 1995: $7.8 million
  • Net income for the six months ended June 30, 1995: $6.7 million
  • Pro forma net revenues for the quarter ended June 30, 1994: $52.9 million
  • Pro forma earnings before merger-related expenses and an extraordinary item for the quarter ended June 30, 1994: $1.2 million

Sources:

  • "TheraTx, Incorporated (NASDAQ/NNM:THTX) today announced record revenues and earnings for the second quarter and the six months ended June 30, 1995." - BUSINESS WIRE, August 1, 1995
  • Contact: TheraTx, Incorporated, John A. Bardis or Donald R. Myll, 404/518-9449