Horizon Healthcare Corp. said that for the fourth quarter ended May 31, 1994, net income skyrocketed 149% to $5.8 million, or 25 cents per share, compared with $2.3 million, or 18 cents per share, during the year-ago period. Net revenues rose 85% to $133 million.
For fiscal 1994, the company said net revenues soared 115% to $16.6 million, or 91 cents per share, compared with $7.7 million, or 62 cents per share, in fiscal 1993. Revenues climbed 62% to $375 million from $232 million in 1993.
Horizon executives attributed the results to the rapid growth of its specialty medical services, which account for about 44% of its fourth-quarter revenues and 38% of the company's total revenues for the year.
During the fourth quarter of fiscal 1994, Horizon completed the acquisition of Newton, Mass.-based Greenery Rehabilitation Group, which the company purchased for approximately $85 million.
The deal temporarily was delayed earlier this year after officials from the Service Employees International Union and patient advocacy groups lobbied against the purchase, arguing that it would lower the quality of patient care in Massachusetts (Jan. 3, p. 17).
It finally cleared in February, but not before Horizon was forced to settle for an 18-month probationary license and pay more than $1 million in related costs.
Nonetheless, Horizon expects to realize $7 million through the consolidation of its operations and the elimination of duplicate corporate and administrative overhead from the Greenery deal, the company said.
Horizon provides long-term care, subacute care, rehabilitation and other ancillary services through 123 nursing facilities, seven specialty hospitals and 21 subacute-care clinics in 18 states.