Home infusion provider Homedco said its net income for the fourth quarter ended Sept. 30, 1993, skyrocketed 264% to $6.9 million, or 53 cents per share, from net income of $1.9 million, or 15 cents per share, during the year-ago period. Revenues rose 27% to $121.1 million. For fiscal 1993, the company's net income rose 39% to $24.5 million, or $1.86 per share, from net income of $17.6 million, or $1.35 per share, in the previous year. Revenues rose 55% to $470 million. The company attributed the results to increases in its two major business lines-home respiratory therapy and home infusion, which grew by 33% and 13%, respectively. Fountain Valley, Calif.-based Homedco provides home respiratory, infusion and home medical equipment through 218 branches in 44 states.
Integrated Health Services sold $125 million in convertible senior subordinated debentures last month. The 5.75% debentures, due in 2001, may be converted to common stock beginning July 1. They also may be converted at or before maturity at a price of $32.60. Smith Barney Shearson purchased the bonds for sale to institutional investors and selected brokers. After commissions and other expenses, the Owings Mills, Md.-based subacute-care company netted $121.7 million, which will be used to repay some long-term debt under a credit facility and term loan agreement with Citicorp. Integrated's common stock price dropped more than 6% to close at $26.875 following the company's Dec. 15, 1993, announcement that Robert Elkins, M.D., its chairman and chief executive, is investing in a new company. MODERN HEALTHCARE recently learned of the new company, called Community Care of America, which has been formed to provide long-term-care services in rural communities (Dec. 20/27, 1993, p. 18). In anticipation of MODERN HEALTHCARE's story, Dr. Elkins' attorneys advised him to disclose the investment in a press release. On Dec. 17, 1993, the day of the bond sale, Integrated's stock price dipped another 0.375 cents per share to close at $26.125. But its shares have since rebounded, closing at $28.125 on Dec. 27.
Mental Health Management reported net income of $515,000, or 17 cents per share, for the fiscal year ended Sept. 30, compared with a net loss of $24.4 million, or $8.18 per share, in the year-ago period. Revenues rose less than 1% to $46.7 million. The McLean, Va.-based psychiatric services company, formerly a subsidiary of Pennsauken, N.J.-based Mediq, was spun off from the company in an August stock distribution. Mental Health's shares are traded on the American Stock Exchange. The 1992 results include a $23 million write-down of goodwill and $809,000 in management fees paid to Mediq. For the fourth quarter, the company reported net income of $411,000, or 14 cents per share, compared with a net loss of $23.7 million, or $7.97 per share, in the year-ago period. Revenues rose 16% to $12.6 million. Mental Health operates 61 hospital-based and freestanding psychiatric units in 21 states.
As part of a renewed effort to expand through acquisitions, Brentwood, Tenn.-based Rehability Corp. has acquired four companies in three states operating eight outpatient rehabilitation centers. Terms of the separate transactions weren't revealed. The company said that, through its acquisition of Jewett Orthopaedic Clinic in Orlando, Fla., it will provide therapy and athletic training at four sites for patients, including members of the Orlando Magic basketball organization. Other acquisitions include Upstate Therapy Services, an orthopedic clinic in Greenville, S.C.; Hand Therapy Services, a hand surgery clinic with two sites in Charleston, S.C.; and Mid Tennessee Bone and Joint Clinic in Columbia, Tenn. Rehability manages 146 rehabilitation centers nationally.