<PAGE> 1
EXHIBIT 99.1
ACCREDO HEALTH, INC. ANNOUNCES RECORD YEAR-END, 4TH QUARTER RESULTS
ANNUAL EARNINGS INCREASE 126%
MEMPHIS, Tenn.--(BUSINESS WIRE)--Aug. 16, 2000--Accredo Health, Incorporated
(Nasdaq:ACDO - news) today reported record results for the fiscal year and
fourth quarter ended June 30, 2000. Net earnings increased 126% to $9,896,000,
or $.67 per diluted share, for the year ended June 30, 2000, compared to
$4,382,000, or $.42 per diluted share, for the year ended June 30, 1999.
Revenues for the year increased 37% to $353,035,000, compared to $258,354,000
in the previous year. In addition, net income as a percentage of revenues
improved to 2.8% for the year ended June 30, 2000, a 110 basis point increase
from 1.7% in the previous year.
For the fourth quarter ended June 30, 2000, net earnings increased 90% to
$2,847,000, or $0.19 per diluted share, compared to $1,499,000, or $0.11 per
diluted share, for the same period in fiscal 1999. Revenues for the quarter
increased 38% to $98,417,000, compared to $71,447,000 for the same period in
fiscal 1999. In addition, Accredo's fourth quarter revenues reflected a 6%
"same store" sequential growth, as compared to the preceding quarter,
resulting in eight consecutive quarters of record revenues. Excluding the
revenues of the seasonal drug Synagis(R), the sequential growth in revenues of
the remaining product lines was 8% on a "same store" basis.
During the quarter, the Company's subsidiary Hemophilia Health Services, Inc.
increased its investment in one of its joint ventures, Children's Hemophilia
Services, by purchasing an additional 30% interest in the joint venture,
bringing its ownership interest to 80%. "We are excited to have the opportunity
to increase our investment in this successful joint venture," stated David
Stevens, Accredo chairman and CEO. "As with our two other acquisitions made
during this fiscal year, this investment was immediately accretive to earnings
and will add approximately $7,000,000 in annualized revenues going forward,"
Stevens explained.
In addition to historical facts, this press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Matters subject to forward-looking statements involve risks and
uncertainties, that could cause actual outcomes and results and the timing of
certain events to differ materially from these statements. Risks and
uncertainties include without limitation, the Company's dependence on
relationships with a limited number of drug manufacturers, reimbursement and
payer related risks, risks associated with making acquisitions, application of
government laws and regulations and general economic, competitive, and
technological risks that may affect the Company's business and prospects. These
and other risks and uncertainties are discussed in the Company's filings with
the Securities and Exchange Commission.
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Accredo Health, Incorporated
Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
<TABLE>
<CAPTION>
(Unaudited)
Year Ended Three Months Ended
June 30, June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Net revenues $ 353,035 $ 258,354 $ 98,417 $ 71,447
Cost of services 300,973 220,517 83,523 61,319
----------- ----------- ----------- -----------
Gross profit 52,062 37,837 14,894 10,128
General & administrative 23,831 17,637 6,743 4,731
Bad debts 6,117 4,739 1,568 1,319
Depreciation and amortization 3,397 3,911 993 908
----------- ----------- ----------- -----------
Income from operations 18,717 11,550 5,590 3,170
Interest expense (net) 2,136 3,165 638 511
Minority interest in
consolidated subsidiary 177 -- 177 --
----------- ----------- ----------- -----------
Net income before income
taxes and extraordinary item 16,404 8,385 4,775 2,659
Provision for income taxes 6,508 4,003 1,928 1,160
----------- ----------- ----------- -----------
Net income(1) $ 9,896 $ 4,382 $ 2,847 $ 1,499
=========== =========== =========== ===========
Earnings per share:
Basic $ 0.71 $ 0.46 $ 0.20 $ .12
Diluted $ 0.67 $ 0.42 $ 0.19 $ .11
Weighted average shares
outstanding:
Basic 13,843,187 9,501,806 14,080,242 12,718,104
Diluted 14,783,219 10,431,945 14,907,468 13,736,858
</TABLE>
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Condensed Balance Sheets
(amounts in thousands)
<TABLE>
<CAPTION>
June 30, June 30,
2000 1999
<S> <C> <C>
Cash & cash equivalents $ 10,204 $ 5,542
Accounts receivable, net 68,417 54,816
Other current assets 45,299 29,801
Fixed assets, net 6,992 3,025
Other assets 74,317 53,562
-------- --------
Total assets $205,229 $146,746
======== ========
Current liabilities $ 88,281 $ 61,253
Long-term debt 37,000 20,500
Other liabilities 2,404 866
Stockholders' equity 77,544 64,127
-------- --------
Total liabilities and stockholders' equity $205,229 $146,746
======== ========
</TABLE>
(1) Excludes the effect of the extraordinary, non-recurring charge for the
early extinguishment of the Company's senior subordinated notes and the
cumulative preferred stock dividends for the year ended June 30, 1999.
The senior subordinated notes and preferred stock were redeemed in
connection with the Company's initial public offering in April 1999.
Earnings per share including the effect of the extraordinary
non-recurring charge and preferred stock dividends is reflected below:
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<TABLE>
<CAPTION>
(Unaudited)
Year Ended Three Months Ended
June 30, June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Net income before
extraordinary item $ 9,896 $ 4,382 $ 2,847 $ 1,499
Extraordinary,
non-recurring charge
for early extinguishment
of debt, net of income
tax benefit -- (1,254) -- (1,254)
Preferred stock dividends -- (1,617) -- (85)
--------- --------- --------- ---------
Net income to common stockholders $ 9,896 $ 1,511 $ 2,847 $ 160
========= ========= ========= =========
Basic earnings per common
share(1)
Net income before
extraordinary item $ 0.71 $ 0.46 $ 0.20 $ 0.12
Extraordinary,
non-recurring charge -- (0.13) -- (0.10)
Preferred stock dividends -- (0.17) -- (0.01)
--------- --------- --------- ---------
Net income to common stockholders $ 0.71 $ 0.16 $ 0.20 $ 0.01
========= ========= ========= =========
Diluted earnings per
common share(1)
Net income before extraordinary item $ 0.67 $ 0.42 $ 0.19 $ 0.11
Extraordinary, non-recurring charge -- $ (0.12) -- (0.09)
Preferred stock dividends -- (0.16) -- (0.01)
--------- --------- --------- ---------
Net income to common stockholders $ 0.67 $ 0.14 $ 0.19 $ 0.01
========= ========= ========= =========
</TABLE>
Contact:
Accredo Health Inc., Memphis
Joel Kimbrough, 901/385-3621 (Financial Contact)
www.AccredoHealth.com
or
Mimi Hall Communications Inc., Memphis
Mimi Hall, 901/682-1360 (Media Contact)
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