Lake Forest-based home healthcare provider Apria Healthcare Group Inc. on Thursday released second-quarter results delayed by accounting issues and forecast slower 2008 revenue growth on the sale of a business.
The company said it resolved a look into its accounting for accounts receivable reserves, which it said were $1.5 million higher than they needed to be in the second quarter.
The company, which provides breathing and other treatments to patients in their homes, also clarified accounting for Medicare equipment it provides.
Apria said it restated results for 2007 and the first quarter.
For the second quarter, net income rose more than 20% from a year earlier to $23.2 million. The figure reflects reduced payments from Medicare and some onetime expenses.
Analysts on average expected a profit of $21.8 million.
Revenue came in 36% higher at $531.2 million, boosted by last year’s $350 million acquisition of Coram Inc., a Denver-based provider of drugs and feeding tubes to patients in their homes.
For the rest of the year, Apria sees revenue growing slightly less than prior expectations, at 30% to 33% to about $1.9 billion.
The company earlier forecast revenue growth of 33% to 35%
The outlook is based on the sale of Apria’s complex rehabilitation business and Medicare funding cuts for breathing treatments provided by Apria.
For the year, Apria said it expects to meet its profit forecast of $91 million to $95 million.
Apria is in the process of selling to Blackstone Group LP in a $1.6 billion buyout that will take the company private.
The deal cleared antitrust review in July and awaits shareholder approval.
Some company watchers speculated that Apria’s accounting issues needed to be resolved before the deal would close.
The acquisition is slated to close by year’s end.
