Pediatric Services of America, Inc. Completes Sale of Pharmacy Business
November 21 2005 - 6:00AM
Business Wire
Pediatric Services of America, Inc. (Nasdaq:PSAI) today announced
that it has completed the previously announced sale of certain
selected assets of its Pharmacy business to Accredo Health,
Incorporated, a wholly-owned subsidiary of Medco Health Solutions,
Inc. (NYSE: MHS). PSAI received approximately $72 million in cash
for the Pharmacy business and retained the assets of its Pensacola,
Florida unit dose pharmacy. The transaction closed upon the
expiration of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976. Daniel J. Kohl, President and
CEO of PSAI said, "We are pleased to announce the closing of the
sale of the Pharmacy business. The transaction was the result of
our strategic review process and will enable us to bring about
crisper execution in our remaining businesses, simplification of
our message to customers and clarity regarding who we are to
investors." "With the completion of the sale of the Pharmacy
business, we now plan to focus our attention on accelerating the
growth of our pediatric private duty nursing and PPEC businesses in
key states via start-ups and acquisitions." continued Mr. Kohl. "In
addition, we will be focused on maximizing the profitability of our
respiratory therapy and equipment services business through
continued improvement in operating efficiencies and the growth of
the adult high tech respiratory business." "We are grateful to our
pharmacy employees for their outstanding commitment to our patients
and the professionalism with which they assist patients on a day to
day basis." The parties have entered into a Transition Services
Agreement that will provide for the collection of outstanding
accounts receivable and other items. PSAI anticipates the proceeds
of the transaction will be used for further implementation of the
Company's strategic plans, including growth of its pediatric
nursing business through acquisition and start-ups. In addition,
PSAI intends to use a portion of the proceeds to retire its $20.35
million, 10% Senior Subordinated Notes due 2008. PSAI provides
comprehensive pediatric home health care services through a network
of over 100 branch offices in 19 states, including satellite
offices and branch office start-ups. Through these offices PSAI
provides a combination of services, including pediatric private
duty nursing, pediatric day treatment centers (PPECs) and
respiratory therapy equipment. Additional information on PSAI may
be found on the Company's website at http://www.psakids.com. NOTE:
This press release contains certain forward-looking statements (as
such term is defined in the Private Securities Litigation Reform
Act of 1995) relating to future financial performance of Pediatric
Services of America, Inc. (the "Company"). When used in this press
release, the words "may," "targets," "goal," "could," "should,"
"would," "believe," "feel," "expects," "confident," "anticipate,"
"estimate," "intend," "plan," "potential" and similar expressions
may be indicative of forward-looking statements. These statements
by their nature involve substantial risks and uncertainties,
certain of which are beyond the Company's control. The Company
cautions that various factors, including the factors described
hereunder and those discussed in the Company's other filings with
the Securities and Exchange Commission, as well as general economic
conditions, industry trends, the Company's anticipated uses of the
proceeds from the sale of its Pharmacy Business, the Company's
ability to collect for equipment sold or rented, assimilate and
manage previously acquired field operations, collect accounts
receivable, including receivables related to acquired businesses
and receivables under appeal, hire and retain qualified personnel
and comply with and respond to billing requirements issues,
including those related to the Company's billing and collection
system, nurse shortages, competitive bidding, HIPAA regulations,
Average Wholesale Price ("AWP") reductions, adverse litigation,
workers' compensation losses, availability and cost of medical
malpractice insurance and reduced state funding levels and nursing
hours authorized by Medicaid programs, and the impact of changes
resulting from the recently enacted Medicare Act, could cause
actual results or outcomes to differ materially from those
expressed in any forward-looking statements of the Company made by
or on behalf of the Company. Any forward-looking statement speaks
only as of the date on which such statement is made, and the
Company undertakes no obligation to update any forward-looking
statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of an unanticipated event. New factors emerge from time
to time, and it is not possible for management to predict all of
such factors. Further, management cannot assess the impact of each
such factor on the business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Pediatric Services OF America (NASDAQ:PSAI)
Historical Stock Chart
From May 2024 to Jun 2024
Pediatric Services OF America (NASDAQ:PSAI)
Historical Stock Chart
From Jun 2023 to Jun 2024