Headquarters: 26220 Enterprise Court, Lake Forest
Employees: 13,000; 710 in OC
Business: home healthcare services provider
Market value as of April 1: $885 million
Revenue for 12 months ended Dec. 31: $1.6 billion, up 8%
Net income for 12 months ended Dec. 31: $86 million, up 16%
Year in review:
The Lake Forest home healthcare provider went back to one of its old standbys at the end of 2007,growing through a deal. Apria shelled out $350 million for Coram Inc., a Denver-based provider of drugs and feeding tubes to patients in their homes.
Chief Executive Lawrence Higby said buying Coram fills out its infusion business and makes it a national provider. Higby also defended the price that Apria paid for Coram, saying it was in line with other deals in its sector. Apria paid 16 times Coram’s earnings before interest, taxes and other items.
What’s ahead:
Apria will gain a larger footprint through Coram,it says it expects its revenue to shoot up more than 30% this year, even taking into account planned reimbursement reductions in Medicare.
After beating expectations for the fourth quarter, Apria upped its guidance. The company expects 2008 revenue to come in at $2.17 billion to $2.2 billion, up 33% to 35% from 2007. It is forecasting a profit of $90 million to $94.5 million, up 5% to 10% from 2007. Analysts expect Apria to make $91.5 million on revenue of $2.18 billion this year.
Wall Street’s Take:
Lately, analysts have been concerned about how congressional action could affect Medicare, which makes up some 35% of Apria’s revenue.
Deutsche Bank analyst Darren Lehrich downgraded Apria earlier this month. In a research note, Lehrich said he was worried that Medicare reimbursement for breathing treatments would be reset “substantially lower” because of competitive contract bidding.
,
Vita Reed
WHO’S IN CHARGE
LAWRENCE M. HIGBY
Chief executive, Apria
Joined Company:
1997, promoted to current job in 2002
Education:
Bachelor’s in political science from the University of California, Los Angeles; attended business school there
Career:
Served as president, chief operating officer of Unocal’s 76 Products Co. and group vice president of Unocal Corp. from 1994 to 1997.
Notable:
Worked as administrative assistant to the late H.R. Haldeman when he was President Nixon’s chief of staff in the 1970s.
