Financials

Matria Reports First Quarter Earnings: For the first quarter ended March 31, 2002, Matria Healthcare of Marietta, Ga., reported net earnings of $1.6 million, or 17 cents per diluted share, compared to $1.1 million, or 13 cents per diluted share, for the first quarter of 2001. Revenue for the first quarter of 2002 grew 6 percent to $65.2 million, compared to $61.4 million for the same period in 2001.

Lincare Announces Q1 Results: For the first quarter ended March 31, 2002, Clearwater, Fla.-based Lincare reported a net income of $45.2 million, or 41 cents per diluted share, compared to a net income of $31.5 million, or 29 cents per diluted share, for the same period a year ago. Revenue for the first quarter of 2002 grew 19 percent to $228.5 million, compared to $191.7 million for the same period in 2001.

Praxair Releases First Quarter Results: For the first quarter of 2002, Praxair of Danbury, Conn., reported a net income of $127 million, or 77 cents per diluted share, compared to a net income of $126 million, or 77 cents per diluted share, for the first quarter in 2001. Sales for the quarter dropped slightly, compared to sales in the first quarter of 2001, from $1.34 billion to $1.23 billion.

Apria Announces First Quarter Earnings: For the quarter ended March 31, 2002, Lake Forest, Calif.-based Apria announced a net income of $23 million, or 41 cents per diluted share, compared to a pro forma net income of $18.5 million, or 33 cents per diluted share, for the same period a year ago. First quarter 2002 sales rose 11 percent to $301.3 million, compared to sales of $271.4 million in the first quarter of 2001.

PSAI Posts Positive Results in Q2: Pediatric Services of America, Norcross, Ga., posted net revenue of $48 million for the second quarter ended March 31, 2002, up 5 percent from the $45.7 million posted for the same quarter a year ago. Net income was $1.14 million, or 16 cents per share, for the quarter, compared to a net income of $3.38 million, or 49 cents per share, for the same quarter a year ago.

American HomePatient Posts Small Gain in Q1: American HomePatient of Brentwood, Tenn., posted a net income of $300,000, or 6 cents per share, for the first quarter ended March 31, 2002, compared to a net loss of $6.6 million, or 40 cents per share, for the same quarter a year ago. Revenues for the three months were $81.3 million, down from $91.1 million reported for the same period of 2001.

Option Care Reports Q1 Earnings: For the first quarter of 2002 ended March 31, 2002, Bannockburn, Ill.-based Option Care reported a net income of $3.5 million, or 16 cents per diluted share, compared to $2.1 million, or 14 cents per diluted share, for the same period in 2001. Revenue for the quarter increased 58 percent, compared to the first quarter of 2001, from $45.9 million to $72.7 million.

Gentiva Announces First Quarter Results: After an accounting charge related to the company's adoption of FAS 142 (Goodwill and Other Intangible Assets), Gentiva Health Services of Melville, N.Y., reported a net loss for the quarter ended March 31, 2002, of $209,194, or a loss of $7.72 per diluted share, compared to a net income of $6.1 million, or 26 cents per diluted share, for the same quarter in 2001. Revenue for the quarter rose 3 percent to $369.6 million, compared to $357.2 million for the same period in 2001.

Transworld Healthcare Reports Q2 Results: For the second quarter ended March 31, 2002, New York-based Transworld Healthcare reported a net income of $1,626, or 9 cents per diluted share, compared to a net loss of $448, or a loss of 3 cents per diluted share, for the same quarter in 2001. Revenue for the second quarter was $61,884, compared to $35,917 for the same quarter in 2001.

Mergers & Acquisitions

Matria Agrees to Acquire Quality Oncology: As part of a strategy to address the nation's five most costly diseases, Matria Healthcare of Marietta, Ga., has agreed to acquire Fort Lauderdale, Fla.-based Quality Oncology — a company that provides cancer management programs — for $3 million in cash and $17 million in common stock, Matria said. Matria expects to complete the acquisition this summer.

Option Care Acquires Two Infusion Pharmacies: Bannockburn, Ill.-based Option Care has acquired two infusion pharmacies during the past month: Houston-based Infusion Specialties and Buffalo, N.Y.-based Springville Pharmacy Infusion Therapy. Under the terms of the Infusion Specialties acquisition, Option Care paid $2 million in cash for 60 percent of Infusion Specialties' stock, and agreed to acquire the remaining 40 percent of the stock in one year. Option Care acquired Springville Pharmacy Infusion Therapy for $3.6 million in cash.

O2 Science Acquires Health N Home: On the heels of two recent acquisitions in Colorado and Nevada, O2 Science of Tempe, Ariz., has announced its acquisition of Phoenix-based Health N Home. The acquisition will bring approximately 5,000 new patients under O2 Science's umbrella, increasing the company's presence throughout Arizona, California, Nevada and Kansas. To serve these newly acquired patients, O2 Science has opened additional locations in Tucson, Ariz., Santa Clara, Calif., and Kansas City, Kan.

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