Odyssey HealthCare, Inc. (NASDAQ: ODSY), one of the largest providers of hospice care in the United States, today announced financial results for the three and six months ended June 30, 2010.
On May 24, 2010, Odyssey HealthCare and Gentiva Health Services, Inc. (NASDAQ: GTIV) announced that they had entered into a definitive merger agreement whereby Gentiva will acquire Odyssey in an all cash merger transaction for a price per share of Odyssey common stock of $27.00 in cash, without interest. The transaction is expected to close during the month of August, subject to the satisfaction of standard closing conditions, including approval by Odyssey's stockholders at a special meeting to be held on August 9, 2010.
For the second quarter of 2010, net patient service revenue from continuing operations increased 3.5% to $176.2 million, compared with $170.3 million for the second quarter of 2009. The Company's net income attributable to Odyssey stockholders for the second quarter of 2010 was $14.0 million, or $0.41 per diluted share, as compared with $8.5 million, or $0.26 per diluted share, for the second quarter of 2009. The Company's EBITDA from continuing operations for the second quarter of 2010 was $26.3 million, compared with $17.4 million for the second quarter of 2009.
For the six months ended June 30, 2010, net patient service revenue from continuing operations was $347.7 million, compared with $337.8 million for the same six-month period in 2009. The Company's net income attributable to Odyssey stockholders for the six months ended June 30, 2010, was $27.4 million, or $0.80 per diluted share, as compared with $17.2 million, or $0.52 per diluted share, for the same period of 2009. The Company's EBITDA from continuing operations for the first six months of 2010 was $51.4 million as compared with $34.5 million for the first six months of 2009.
Conference Call
Due to the aforementioned pending merger, Odyssey will not be hosting a conference call this quarter.
Based in Dallas, Texas, Odyssey is one of the largest providers of hospice care in the country in terms of both average daily patient census and number of locations. Odyssey seeks to improve the quality of life of terminally ill patients and their families by providing care directed at managing pain and other discomforting symptoms and by addressing the psychosocial and spiritual needs of patients and their families.
Earnings before interest, taxes, depreciation and amortization (?EBITDA?) is a non-GAAP financial measure included in this press release and is reconciled to the comparable GAAP financial measure in the tables attached to this press release.
Additional Information
Odyssey HealthCare, Inc. (the ?Company?) filed a definitive proxy statement with the Securities and Exchange Commission (the ?SEC?) on July 9, 2010 and intends to file other relevant materials in connection with the acquisition in due course. The definitive proxy statement has been sent or given to the stockholders of the Company. Before making any voting or investment decision with respect to the acquisition, investors and stockholders of the Company are urged to read the proxy statement and the other relevant materials because they contain important information about the acquisition. The proxy statement and other relevant materials, and any other documents filed by the Company with the SEC, may be obtained free of charge from the Company by directing a request to the Company's Investor Relations Department at toll free phone number 888-922-9711, email address InvestorRelations@odsyhealth.com or through the Company Web site www.odsyhealth.com under ?Investor Relations ? InfoRequest.?
Participants in the Solicitation
The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company's stockholders in connection with the merger. Information about the Company's directors and executive officers is set forth in the Company's proxy statement on Schedule 14A filed with the SEC on April 5, 2010 and the Company's Annual Report on Form 10-K filed on March 10, 2010. Additional information regarding the interests of participants in the solicitation of proxies in connection with the merger is included in the Company's proxy statement.
Forward-looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements are based on management's current expectations and are subject to known and unknown risks, uncertainties and assumptions which may cause the forward-looking events and circumstances discussed in this press release to differ materially from those anticipated or implied by the forward-looking statements. The Company faces additional risks, uncertainties and assumptions associated with the Agreement and Plan of Merger, dated as of May 23, 2010, among the Company, Gentiva Health Services, Inc. and GTO Acquisition Corp. (attached as Exhibit 2.1 to the Company's Current Report on Form 8-K as filed with the Securities and Exchange Commission on May 24, 2010). Such risks, uncertainties and assumptions include, but are not limited to, the ability to obtain regulatory approval for the transaction; the expected timing of the completion of the transaction; management plans regarding the transaction; the inability to complete the transaction due to the failure to satisfy the conditions required to complete the transaction; the risk that the businesses of the Company and Gentiva will not be integrated successfully, or will take longer than anticipated; the risk that expected cost savings from the transaction will not be achieved or unexpected costs will be incurred; any statements of the plan, strategies and objectives of management for future operations; the risk that disruptions from the transaction will harm relationships with employees, referral sources, patients and suppliers; and the outcome of litigation and regulatory proceedings to which we may be a party. Many of these factors are beyond the ability of the Company to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements, which reflect management's views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained in this press release to reflect any change in the Company's expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements.
ODYSSEY HEALTHCARE, INC. AND SUBSIDIARIES | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | ||||||||||||||
Continuing Operations:(1) | |||||||||||||||||
Admissions | 12,469 | 12,531 | 25,213 | 25,233 | |||||||||||||
Discharges | 12,245 | 12,159 | 24,937 | 24,884 | |||||||||||||
Average daily census | 12,588 | 12,268 | 12,456 | 12,227 | |||||||||||||
Discharge average length of stay | 80.4 | 78.8 | 83.5 | 81.0 | |||||||||||||
Gross revenue per patient day | $ | 158.78 | $ | 155.56 | $ | 159.00 | $ | 156.78 | |||||||||
Medicare cap as % of gross revenue | 0.9 | % | (0.6 | %) | 0.8 | % | 0.1 | % | |||||||||
Net revenue per patient day | $ | 153.84 | $ | 152.54 | $ | 154.23 | $ | 152.65 | |||||||||
Operating expense per patient day | $ | 132.38 | $ | 138.59 | $ | 133.01 | $ | 138.42 | |||||||||
Adjusted operating expense per patient day(2) | $ | 130.89 | $ | 136.98 | $ | 131.45 | $ | 137.07 | |||||||||
Bad debt expense as % of net revenue | 0.5 | % | 1.5 | % | 0.7 | % | 1.4 | % | |||||||||
Same-Facility:(3) | |||||||||||||||||
Admissions | 12,446 | 12,531 | 25,156 | 25,233 | |||||||||||||
Average daily census | 12,538 | 12,268 | 12,404 | 12,227 | |||||||||||||
Average length of stay | 80.2 | 78.8 | 83.4 | 81.0 | |||||||||||||
(1) | Continuing operations excludes the operations of hospices that the Company classifies as discontinued operations. | ||||||||||||||||
(2) | Adjusted operating expense per patient day for the three months ended June 30, 2010, excludes depreciation and amortization expenses of $1.46 and $0.03 per patient day of care, respectively. Adjusted operating expense per patient day for the three months ended June 30, 2009, excludes depreciation and amortization expenses of $1.55 and $0.06 per patient day of care, respectively. Adjusted operating expense per patient day for the six months ended June 30, 2010, excludes depreciation and amortization expenses of $1.52 and $0.04 per patient day of care, respectively. Adjusted operating expense per patient day for the six months ended June 30, 2009, excludes depreciation and amortization expenses of $1.29 and $0.06 per patient day of care, respectively. | ||||||||||||||||
(3) | Same-facility information includes Odyssey hospice programs that have been in operation for the entire period of each period presented and Medicare certified for at least 12 months. | ||||||||||||||||
ODYSSEY HEALTHCARE, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||
Net patient service revenue | $ | 176,227 | $ | 170,295 | $ | 347,723 | $ | 337,827 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||
Direct hospice care | 98,032 | 99,444 | 194,433 | 197,899 | ||||||||||||||||||||||||||
General and administrative – hospice care | 31,913 | 34,131 | 64,607 | 67,931 | ||||||||||||||||||||||||||
General and administrative – support center | 19,110 | 16,841 | 34,911 | 32,646 | ||||||||||||||||||||||||||
Provision for uncollectible accounts | 877 | 2,506 | 2,410 | 4,869 | ||||||||||||||||||||||||||
Depreciation | 1,673 | 1,731 | 3,418 | 2,860 | ||||||||||||||||||||||||||
Amortization | 38 | 70 | 96 | 141 | ||||||||||||||||||||||||||
Income from continuing operations before other income (expense) | 24,584 | 15,572 | 47,848 | 31,481 | ||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||
Interest income | 103 | 121 | 170 | 287 | ||||||||||||||||||||||||||
Interest expense | (1,434 | ) | (1,606 | ) | (2,872 | ) | (3,491 | ) | ||||||||||||||||||||||
(1,331 | ) | (1,485 | ) | (2,702 | ) | (3,204 | ) | |||||||||||||||||||||||
Income from continuing operations before provision for income taxes | 23,253 | 14,087 | 45,146 | 28,277 | ||||||||||||||||||||||||||
Provision for income taxes | 8,975 | 5,065 | 17,090 | 10,347 | ||||||||||||||||||||||||||
Income from continuing operations | 14,278 | 9,022 | 28,056 | 17,930 | ||||||||||||||||||||||||||
Loss from discontinued operations, net of income taxes | (71 | ) | (422 | ) | (197 | ) | (475 | ) | ||||||||||||||||||||||
Net income | 14,207 | 8,600 | 27,859 | 17,455 | ||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 229 | 81 | 482 | 217 | ||||||||||||||||||||||||||
Net income attributable to Odyssey stockholders | $ | 13,978 | $ | 8,519 | $ | 27,377 | $ | 17,238 | ||||||||||||||||||||||
1st Jan change | Capi. | |
---|---|---|
+24.66% | 88.38B | |
-21.76% | 77.56B | |
+1.76% | 26.97B | |
+7.94% | 18.45B | |
-13.50% | 16.57B | |
+3.23% | 15.81B | |
+77.51% | 13.65B | |
+76.96% | 13.06B | |
+23.02% | 12.55B |
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