LAKE FOREST, Calif., Oct. 7, 2005 (PRIMEZONE) -- Apria Healthcare Group Inc. (NYSE:AHG), the nation's leading home healthcare company, today announced that revenues for the third quarter appear to have slowed to less than 1% growth over the prior year due to a slow-down in the durable medical equipment, respiratory medications and infusion therapy lines of business -- particularly with respect to the company's discounted contractual arrangements with hospitals. The company's oxygen and enteral lines of business remain strong.
In view of the third quarter revenue shortfall, the company now projects that fourth quarter revenue growth will also be impacted by this slowing trend. Reflecting these developments, the company now projects 2005 full year revenue growth in the range of 2% to 3% instead of 5% to 6% as previously estimated.
As a result of the lower revenue expectations, combined with increases in fuel and health benefit costs, hurricane-related expenses and decreases in the average sales prices (ASPs) for Medicare-reimbursed respiratory drugs, Apria now estimates that, for the full year, earnings will be in the $1.68 to $1.72 range (excluding non-recurring items). Apria is scheduled to announce results for the third quarter on October 25.
Apria also announced two developments concerning the litigation described in its filings with the Securities and Exchange Commission. First, the settlement agreement concluding the company's long-standing qui tam litigation over Medicare billing documentation has now been finalized and signed by all parties. Accordingly, the company paid the previously-announced settlement amount of $17.6 million to the government on September 30, 2005. Second, this week the government informed Apria that the most recent qui tam case filed under seal against the company, alleging improper billing at several locations during 2002-2004, has now been dismissed with prejudice at the government's request. As a result of these developments, the company is no longer involved in any material pending litigation.
Apria provides home respiratory therapy, home infusion therapy and home medical equipment through more than 500 branches serving patients in 50 states. With $1.5 billion in annual revenues, it is the nation's leading homecare company.
This release may contain statements regarding anticipated future developments that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Results may differ materially as a result of the risk factors included in the Company's filings with the Securities and Exchange Commission and other factors over which the Company has no control.