Net Income at Apria Sinks 28%
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Apria Healthcare Group Inc., a provider of home-based medical treatment, said Wednesday that its fourth-quarter profit tumbled 28% because of lower sales and reduced Medicare reimbursements.
The Lake Forest-based company’s earnings fell to $19.5 million, or 43 cents a share, from $27.3 million, to 55 cents, a year earlier. Excluding certain severance payments and a tax benefit, earnings would have been $18 million, or 40 cents a share.
Revenue fell 4.4% to $359.7 million from $376.4 million. Apria said lower Medicare reimbursements for certain therapies and machines accounted for 1 percentage point of the decrease, with the rest of the decline coming from lower sales of home medical equipment, infusion therapy and respiratory drug products.
“Our revenue was disappointing during the second half of 2005,” said Chief Executive Lawrence M. Higby. “As a result of our performance, no executive officer will receive a salary increase or bonus for 2005.”
Analysts surveyed by Thomson Financial had been looking for profit of 38 cents a share on sales of $376.8 million.
For the year, earnings fell 41% to $66.9 million, or $1.37 a share, even though sales rose 1.6% to $1.47 billion.
The company’s shares rose 22 cents to $23.98.
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