Chaput jumps to a company whose earnings are actually beating expectations. Earlier this month, fourth-quarter profits at American Healthways more than doubled to $1.0 million (10 cents a share), compared to earnings of $401,000 (5 cents a share) in the same period last year. The company was expected to earn 7 to 11 cents a share for the period, with a consensus expectation of 9 cents a share, according to research firm Thomson Financial/First Call. Revenues at American Healthways jumped 48 percent to $22 million. Company management expects first-quarter and full-year 2002 profits to meet or exceed current analysts’ consensus estimates. For all of 2002, managers at the health-care specialist expect a profit of 78 cents to 81 cents a share, compared to analysts’ current consensus view of 79 cents a share.
In another big management shuffle at Western Gas, CEO Lanny Outlaw, announced his intention to retire at the end of the month. Peter Dea, the former chairman and chief executive of Barrett Resources Corp., a natural gas producer, will become president and chief executive.
Barrett Resources was acquired in early August by Williams Companies, a natural-gas storage and transportation company. Dea was also named director.
Second-quarter revenues at Western Gas Resources jumped to $887 million, a 38 percent increase from the same quarter a year prior. Net income shot up to $30 million, a substantial increase from the $11 million posted for the same period in 2000. Management attributed the increase to higher gas prices, increased production, and the sale of Pinnacle Gas Treating Inc., a wholly owned subsidiary. EBITDA, excluding asset sales and non-cash changes, increased 87 percent from the same period in 2000, to $141 million for the quarter.
Prior to joining Hanger, McHenry served for 14 years as CFO ofUS Vision Inc., a retailer of optical products and services. He has also been employed at both Deloitte & Touche and KPMG.
McHenry will need to get down to brass tacks in his new assignment. Hanger’s operating income, before non-recurring asset write-offs, restructuring, and integration charges, declined for the second quarter to $15 million, from $17 million the year prior. In the second quarter, the company recognized a non-cash $8.2 million charge to account for the proposed sale of its manufacturing business, and a $3.7 million charge for restructuring costs and other asset write-offs. The company posted a second quarter net loss of $6 million, down considerably from $1.2 million in income during the same period the previous year.
Paradigm Medical reported a net loss of $1.86 million, (14 cents per fully diluted share), in the second quarter, down slightly from the net loss of $2.1 million (19 cents per fully diluted share), for the same period in 2000.