Homedco Group Inc. / FOUNTAIN VALLEY
Nature of business: Provides in-home health care services. Total employees: 4,500 In Orange County: 200 Stock listing in The Times: On NASDAQ “HomedC” Ticker symbol: “HOME” Friday’s stock close: $27.00 One-week change: Unchanged *
Analyst review: “Since going public in 1991, Homedco has enjoyed strong earnings growth in its respiratory and infusion businesses. The company increased its size with the acquisition last September of Glasrock, a similar firm operating in the Southeast. We expect the integration of this acquisition to continue to benefit earnings. As the health-care industry continues to evolve into a more competitive business, our stock recommendations focus on companies that appear well-positioned to gain market share or are in niches that are experiencing growth. Homedco falls into both these sectors.” --Helen T. O’Donnell, analyst PaineWebber, New York
Revenue and Profit Dollar amount in millions
1991 1992 1990 1991 1992 3 quarters 3 quarters Revenue $193.7 $222.1 $303.4 $208.2 $349.2 Profit -$2.3 $10.5 $17.6 $15.7 $17.6
Corporate outlook: “We are 68%-70% ahead of prior years in revenue and expect to finish the year consistent with this trend. Homedco grew 40% last year when it acquired Glasrock, which contributed significantly to revenues. Increasing emphasis on low-cost health care will benefit Homedco in the long-term.” --Jerry Jones, president, CFO
RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE
Fiscal year ended Sept. 30 Sept. 30 Sept. 30 3 qtrs. 1990 1991 1992 1992 52-week high* N/A $20.75 $29.50 $29.50 52-week low* N/A $15.25 $17.75 $17.75 Book value per share N/A $3.18 $4.12 $4.12 Price per share* N/A $18.50 $24.25 $19.00 Net earnings (loss) per share N/A $0.38 $1.35 $1.20 Price-to-earnings ratio N/A 49:1 18:1 16:1 Avg. return on investor equity N/A 0.3% 33.0% 29.0%
Fiscal year ended 3 qtrs. 1993 52-week high* $37.00 52-week low* $21.25 Book value per share $5.38 Price per share* $23.00 Net earnings (loss) per share $1.33 Price-to-earnings ratio 17:1 Avg. return on investor equity 25.0%
Note: Homedco sold 3.7 million shares of stock at its initial public offering May 2, 1991; net proceeds: $55.5 million.
For more information call or write, Homedco Group Inc.: 17650 Newhope St., Fountain Valley, Calif., 92708. (714) 755-5600
Source: Homedco Group Inc.; Bloomberg Business News.
Researched by JANICE L. JONES / Los Angeles Times
