ADVOCAT REPORTS HIGHER REVENUES AND NET INCOME FOR THIRD QUARTER.FRANKLIN, Tenn.--(BUSINESS WIRE)--Nov. 14, 1995--Advocat Inc. (NYSE NYSE See: New York Stock Exchange :AVC (1) (Advanced Video Coding) The video compression techniques used in the H.264 standard, jointly developed by ISO and the ITU-T. See H.264. (2) (Audio Visual C ) today announced higher revenues and net income for the third quarter and nine months ended September 30, 1995. "Advocat's revenues increased 39.6% to $36.7 million in the third quarter, and net income rose 19.7% to $1.4 million," stated Dr. Charles W. Birkett, chairman and chief executive officer of Advocat. "Our improved results were due to a 13.7% increase in same center revenues and the contribution from facilities acquired since the third quarter of last year." Revenues for the third quarter of 1995 included a 41.1% increase in patient revenues to $35.7 million from $25.3 million. Total revenues for the third quarter of 1995 were $36.7 million compared with revenues of $26.3 million recorded in the prior year. Net income for the third quarter of 1995 was $1,379,000, or $0.26 per share, compared with net income of $1,152,000, or $0.22 per share, in the third quarter of 1994. "Advocat's same center revenue growth was due to improved payor payor (payer) n. The one who must make payment on a promissory note. mix, the contribution from ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services and an increase in occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) in our owned and leased facilities," continued Dr. Birkett. "Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. revenue increased to 23.2% of net patient revenues in the latest quarter compared with 15.4% in the third quarter of 1994. Revenue from ancillary services was up 105.4% on a gross basis since the third quarter of 1994, and we launched our first Alzheimer's care unit in March 1995, which is expected to contribute to future revenue growth. "We have added 1,020 net new long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. beds since the third quarter of last year. These new beds were largely due to the lease of ten facilities in Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. and Ohio completed in December 1994. Three of these facilities containing 180 beds are still under construction and are expected to be open by the end of 1995. New facility revenues accounted for approximately 68% of the total revenue growth during 1995. The new facility revenue growth was somewhat offset by lower operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: resulting from the high proportion of Medicaid revenues in these long-term care facilities long-term care facility n. See skilled nursing facility. . We continue to work on building our revenue base and improving our quality mix at our new facilities as well as our existing ones. "We have been very active in the pursuit of acquisition opportunities for long-term care facilities during 1995. We believe sellers' pricing expectations were unrealistically high earlier in the year but they have recently begun to moderate to more economically viable levels. We are very hopeful that some of these opportunities will lead to the addition of new properties to our portfolio in the near future. We also continue to pursue new management contracts, particularly in our Canadian region," concluded Dr. Birkett. Advocat Inc. operates 85 long-term care facilities, including 65 nursing homes containing 7,303 licensed beds and 20 retirement centers containing 2,335 units at September 30, 1995. The Company's common stock is traded on The New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol AVC. -0-
ADVOCAT INC.
Unaudited Financial Highlights
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Actual Actual Actual Pro Forma/a
Revenues: Patient revenues $ 35,705 $ 25,309 $ 99,808 $ 71,925 Management fee revenues 908 905 2,684 2,575 Interest income 59 50 180 112 Net revenues $ 36,672 $ 26,264 $102,672 $ 74,612 Expenses 34,517 24,464 97,059 70,026 Income before income taxes $ 2,155 $ 1,800 $ 5,613 $ 4,586 Provision for income taxes 776 648 2,021 1,651 Net income $ 1,379 $ 1,152 $ 3,592 $ 2,935 Earnings per share $ 0.26 $ 0.22 $ 0.67 $ 0.56 Weighted average number of common shares outstanding 5,359 5,261 5,330 5,252
(a) The results for the nine-month period of 1994 are on a pro
forma basis to reflect the conversion of certain owned facilities to
leasehold interests coincident with Advocat's initial public
offering. The pro forma results include the estimated additional
corporate, administrative and public financial reporting expenses
which would have been incurred by Advocat if it had operated as a
separate entity effective January 1, 1994.
CONTACT: Advocat, Inc., Franklin Charles W. Birkett or Mary Margaret Hamlett, 615/771-7575 |
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