O.C. EARNINGS : $2.24-Million Net Reported by Homedco

FOUNTAIN VALLEY â€”  Homedco Group Inc., a home health care provider based in Fountain Valley, has announced improved earnings for the third quarter.

The company, which credits the improvement to a financial restructuring it completed in May, posted earnings of $2.24 million for the quarter ending June 30, contrasted with a loss of $237,000 for the corresponding quarter in 1990. Per-share earnings for the third quarter were 19 cents, contrasted with a 3-cents-per-share loss during 1990.

Revenue for the quarter increased 12% to $55.8 million, compared to $49.8 million for the 1990 third quarter.

The company restructured its debt in May, two weeks after completing an initial public stock offering that raised $64 million. The company paid off an existing $17-million loan and replaced it with a lower-interest credit line of $40 million from Wells Fargo Bank.

The company was heavily in debt and went public to improve its cash position, Homedco officials have said. Debt service and other costs related to the creation of the company in 1987--which was accomplished through a leveraged buyout of a National Medical Enterprises subsidiary--had caused Homedco to post losses each quarter until last fall.

Homedco supplies medical equipment for home-bound patients and provides home respiratory therapy, including oxygen systems, home ventilation and nebulizers, which turn medicines into aerosol form. The company also provides home infusion therapy, which is the intravenous supply of nutrients and medicines.

Homedco’s Performance

Homedco, a home health-care provider, posted a third-quarter profit of $2.24 million, which contrasts with a $237,000 loss in the year-ago quarter. The company credits the improvement to a financial restructuring after an initial public offering in May.

Figures are in thousands, except per-share data.

3rd Qtr 3rd Qtr 9 Months 9 Months 1991 1990 1991 1990 Revenue $55,805 $49,821 $163,252 $143,188 Net income (loss) 2,243 (237) 5,306 (3,017) Per share (loss) $.19 ($.03) $.52 ($.34)

Source: Homedco Group Inc.