Exhibit 99.1
Matria Healthcare Expects to Exceed Third Quarter Earnings Estimates; Company
Awarded Five New Disease Management Accounts
MARIETTA, Ga.--(BUSINESS WIRE)--Oct. 13, 2004--Matria Healthcare,
Inc. (NASDAQ/NM: MATR) today announced that it expects to exceed the
high end of its previously announced third quarter of 2004 guidance
for earnings per diluted common share from continuing operations. On
July 22, 2004, the Company issued guidance for earnings per diluted
common share from continuing operations to be in the range of $0.33 to
$0.38. This guidance excludes costs related to the collection of
accounts receivable retained by the Company in connection with its
divested Pharmacy and Supplies subsidiary, which will be shown in
discontinued operations.
The Company will issue its fourth quarter 2004 guidance with the
release of third quarter 2004 results. The Company reiterated its
previously released guidance for full year 2004 revenues to be in the
range of $287 million to $293 million. The Company recorded earnings
per share, excluding unusual items, of $0.38 for the first six months
of 2004. The Company expects earnings per share from continuing
operations for the second six months of 2004 to be in excess of $0.72.
The Company's results for the third quarter and nine months ended
September 30, 2004, will be released after the close of the market on
Tuesday, October 19, 2004. The Company will also provide an online Web
simulcast of its third quarter 2004 earnings conference call on
Wednesday, October 20, 2004. The live broadcast of Matria Healthcare's
conference call will begin at 10:30 a.m. Eastern time on October 20,
2004. A 30-day online replay will be available approximately an hour
following the conclusion of the live broadcast. A link to these events
can be found on the Company's website at www.matria.com or at
www.fulldisclosure.com.
The Company also announced that it has been recently awarded five
new disease management accounts. The Company's five new awards of
business are with large self-insured employers and are in addition to
its previously announced awards of business.
Matria reported that the Company will manage multiple diseases and
conditions in each of the new accounts with one of the new awards
calling for the management of seven diseases and conditions, another
two awards involving six diseases and conditions and another providing
for the management of five diseases and conditions. In the remaining
new account, Matria will manage four diseases and conditions. Matria's
comprehensive suite of health enhancement programs for the conditions
of diabetes, congestive heart failure, coronary artery disease,
asthma, chronic obstructive pulmonary disease, cancer, maternity, low
back pain and depression are managed in the newly awarded business.
Collectively, the new accounts will represent in excess of 330,000
additional covered lives under management.
Of the five self-insured employers awarding business to Matria,
one is a Fortune 100 company, two are in the Fortune 300, and the two
others are in the Fortune 400 and 600, respectively.
Parker H. Petit, Chairman and Chief Executive Officer, stated "As
evidenced by our new awards, we continue to experience good growth
from our disease management business. We are pleased that the Fortune
1000 employer market continues to produce an increasing sales
pipeline. This market is realizing the urgent need to address the
escalating negative impact that chronic diseases and episodic
conditions are having on their benefits costs and employee health and
productivity. These successes demonstrate that these employers see
disease management programs as an excellent solution to the
double-digit inflation facing their benefit plans."
Petit continued, "In addition, our strategy continues to include
the targeting of health plans and the Medicare, Medicaid and
pharmaceutical markets as significant opportunities to grow our
disease management business."
Matria Healthcare is a leading provider of comprehensive disease
management programs to health plans and employers. Matria manages the
following major chronic diseases and episodic conditions - diabetes,
cardiovascular diseases, respiratory diseases, high-risk obstetrics,
cancer, chronic pain and depression. Headquartered in Marietta,
Georgia, Matria has more than 40 offices in the United States and
internationally. More information about Matria can be found on line at
www.matria.com.
This press release contains forward-looking statements. Such
statements include but are not limited to the Company's financial
expectations for the third quarter and full year 2004, the ability of
the Company to convert awards of business into implemented contracts,
the timing of contract implementation, the continued success of the
Company's growth strategy for its disease management business, and the
continuing demand for the Company's disease management programs. These
statements are based on current information and belief, and are not
guarantees of future performance. Among the important factors that
could cause actual results to differ materially from those indicated
by such forward-looking statements include the failure to achieve the
Company's financial expectations for the third quarter and full year
2004, delays or problems in implementation of new disease management
contracts, failure to convert awards of disease management business
into implemented contracts, decreased employer and healthplan interest
in disease management programs, the failure of the Company's strategy
to grow its disease management business, a decrease or lack of growth
in demand for the Company's disease management products and services,
developments in the healthcare industry, third-party actions over
which Matria does not have control, regulatory requirements applicable
to Matria's business and the risk factors detailed from time to time
in Matria's periodic reports and registration statements filed with
the Securities and Exchange Commission, including Matria's Annual
Report on From 10-K for the year ended December 31, 2003. By making
these forward-looking statements, Matria does not undertake to update
them in any manner except as may be required by Matria's disclosure
obligations in filings it makes with the Securities and Exchange
Commission under the federal securities laws.
MATRIA HEALTHCARE, INC.
RECONCILIATION OF NET EARNINGS TO EARNINGS
FROM CONTINUING OPERATIONS EXCLUDING UNUSUAL ITEMS
(Amounts in thousands, except per share amounts)
Six Months
Ended
June 30, 2004
Net earnings $22,207
Less gain on disposal of
discontinued operations, net of tax (32,799)
Add loss on retirement of senior notes, net of tax 14,144
Add additional interest due to timing
of retirement of senior notes, net of tax 371
Add restructuring charges, net of tax 165
--------
Net earnings, excluding unusual items 4,088
Less earnings from discontinued operations (987)
--------
Earnings from continuing operations,
excluding unusual items $3,101
========
Net earnings (loss) per common share, as reported:
Basic:
Continuing Operations $(1.13)
Discontinued Operations 3.29
--------
$2.16
========
Diluted:
Continuing Operations $(1.13)
Discontinued Operations 3.29
--------
$2.16
========
Net earnings per common share, excluding unusual items:
Basic:
Continuing Operations $0.30
Discontinued Operations 0.10
--------
$0.40
========
Diluted:
Continuing Operations $0.29
Discontinued Operations 0.09
--------
$0.38
========
Shares used in calculating net earnings per share,
excluding unusual items:
Weighted average shares outstanding, basic 10,267
Shares issuable from assumed exercise of options 547
--------
Weighted average shares outstanding, diluted 10,814
========
CONTACT: Matria Healthcare, Inc., Marietta
Stephen M. Mengert, 770-767-4500