Health Firm Reports Quantum Leaps in Profit, Sales
For the second straight quarter, Quantum Health Resources Inc. has delivered a shot in the arm to the home-infusion company’s stockholders by reporting record gains in profit and sales.
And 1992 is the best year yet for the company, which treats patients with chronic disorders.
“Quantum’s ability to produce consistent quarterly earnings growth is most directly attributable to the broadening acceptance . . . by physicians,” said Chairman Douglas H. Stickney in a statement.
Orange-based Quantum Health specializes in intravenous services to patients stricken with leukemia, genetic emphysema, hemophilia and other blood- and marrow-related disorders.
The company recorded a profit of $9.2 million, or 67 cents a share, up 67% from $5.5 million, or 44 cents a share, for 1991.
Revenue for the 12 months ended Dec. 31 jumped 46% to $118.2 million, from $80.8 million a year ago.
Fourth-quarter net income also rose, despite $1.8 million paid to settle a lawsuit filed by competitor Caremark Inc., a subsidiary of Baxter International. Caremark accused Stickney and another director of violating non-competition contracts when they started Quantum Health Resources in 1988.
Quarterly net income was $1.97 million, or 14 cents a share, a 4% increase from net income of $1.89 million for the same period a year ago. Revenue for the quarter was $34.8 million, up 48% from $23.5 million for 1991’s fourth quarter.
Krishen Sud, an analyst with New York brokerage Needham & Co., said that the company has successfully found a market with few competitors. Most home health-care companies focus on acute patients--those who need intensive treatment for a short period of time.
By targeting patients with chronic diseases, Quantum Health has drawn consistent revenue, because the patients usually require lifelong care.
Caremark is the company’s only competitor, based in Deerfield, Ill., in the home health-care field.
“They have basically targeted a niche and focused on it,” Sud said. “It’s a defined strategy that is well executed.”
The stock market, jittery over all health-care stocks, did not respond favorably to the healthy earnings report. Quantum Health stock Wednesday closed at $24.375 a share on the NASDAQ market, down 87.5 cents a share from Tuesday.
