GLENDALE, CA, Aug. 13 /PRNewswire-FirstCall/ -- Continental Home Healthcare Ltd. (TSX: CHT) today announced results for the second quarter and first six months of fiscal 2004. All funds are in U.S. dollars unless otherwise stated.
Second Quarter Results: ----------------------- (three months ended June 30, 2004 compared with three months ended June 30, 2003) Q2-2004 Q2-2003 ------------ ------------ Revenue $5,886,332 $5,407,403 EBITDA(x) $235,030 $278,484 Net Loss ($398,441) ($294,300) EPS - basic & diluted ($0.03) ($0.02) Year-to-Date Results: --------------------- (six months ended June 30, 2004 compared with six months ended June 30, 2003) 2004 2003 ------------ ------------ Revenue $12,191,979 $10,623,563 EBITDA(x) $562,108 $626,183 Net Loss ($685,423) ($506,517) EPS - basic & diluted ($0.05) ($0.04) ---- (x)Earnings before interest, taxes, depreciation, amortization
Robert Thornton, President and C.E.O., said, “We are encouraged by the revenue growth for both the current quarter and the first six months of 2004, which reflects an increase of approximately $1.6 million for the first six months of the year. The recently acquired MK branches continue to mature operationally and will contribute to solid future operating performance in light of the Company’s recent overhead expense reductions.”
For the current quarter, the Company enjoyed a 9% increase in total revenue, which reflects increases in sales as well as rental revenues. On a year to date basis, revenues have increased by approximately $1.6 million, or 15%, which is the result of the MK branches acquired in August of 2003. The Company also enjoyed an improvement in gross profit of $418,131 and $1,236,510 for the current quarter and year to date period, respectively, as a result of increased rental revenues and lower cost of product purchases. Operating expenses for both the current quarter and the six-month period have increased as a result of the MK branches. However, on a same-store basis, managements’ administrative reductions have resulted in operating expense savings of approximately $600,000 for the current six-month period. Financing costs increased by $41,714 for the current quarter and $88,352 for the six-month period as a result of increases to long-term debt.
Management anticipates improvements to operating performance in future quarters as revenue levels increase and the full period effect of the administrative expense reductions are realized in the third and fourth quarters of 2004.
The Company continues to make progress to secure a new primary U.S. lender to replace its existing lender that filed for protection under chapter 11 of the U.S. Bankruptcy code. The Company has received two lender proposals subsequent to June 30, 2004 for a $6.0 million revolving credit facility. The additional working capital provided from the facility will provide liquidity necessary for continued future growth. The Company also reached an agreement with its subordinated lender to amortize an existing Cdn$1.0 million payment due over a five-month period beginning August 2004.
Continental Home Healthcare Ltd. acquires, consolidates and manages healthcare equipment retailers that provide equipment such as hospital beds, custom power and manual wheelchairs, scooters, respiratory products and services, bathroom safety products, ambulatory aids, and aids for daily living sold to individuals and healthcare institutions. Branches are located in Glendale, Indian Wells, Cerritos, Bakersfield and Fresno California as well as Las Vegas, Nevada.
The Company’s shares trade on the Toronto Stock Exchange under the symbol “CHT”. Current Company updates can be found at the web site: http://www.continentalhomehealth.com/.
Continental Home Healthcare Ltd.
CONTACT: Cathy Hume, Investor Relations Counsel, Cavalcanti Hume Funfer(CHF) Inc., (416) 868-1079; Robert Thornton, President & C.E.O., ContinentalHome Healthcare Ltd., (818) 242-4171; Toll free Continental investorinformation: 1-800-286-4566; If you wish to receive company press releases viaemail, please advise Cathy Hume at cathy@chfir.com
