Advocat Reports Second Quarter 1998 Operating Results.FRANKLIN, Tennessee--(BUSINESS WIRE)--August 13, 1998--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 ), a leading provider of assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. and skilled nursing services, today reported earnings for the second quarter ended June June: see month. 30, 1998. Total revenues increased to $52.7 million for the first quarter of 1998, compared with $44.2 million in the comparable period in 1997, representing an increase of 19.2%. Net income before non-recurring items was $603,000 for the second quarter, or $0.11 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $1.3 million, or $0.25 per diluted share for the same period in 1997. The Company announced in May it anticipated recording a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. non-recurring charge in the second quarter of approximately $1.0-$1.5 million. The non-recurring charge for the second quarter was $1.47 million, before tax, representing the write- off of obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. computer hardware and software and certain capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software development costs, the costs associated with the closing of certain regional offices, the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. and reduction of accounting personnel, and certain other non- non- word element [L.]not . non- pref. Not: noninvasive. recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. charges. Net revenues for the first six months of 1998 were $104.2 million, compared to $87.7 million in the comparable period in 1997, an increase of 18.8%. Net income for the first six months, before non-recurring items, was $958,000, or $0.18 per diluted share, compared with net income of $2.6 million, or $0.49 per diluted share for the same period in 1997. After giving effect to the non-recurring charge, the Company reported net income of $18,000 for the first six months of 1998 compared with $2.6 million for the same period in 1997. Commenting on the Company's results, Dr. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by W. Birkett, Chairman and Chief Executive Officer, stated, "The negative trend Advocat experienced from issues with Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). regulators in the last two quarters of 1997 has now been largely reversed. Occupancy of these two homes has increased to 78.7% and 90.7%, approximately 20% above their lows, and we anticipate further sequential improvements in occupancy at these homes. The Company's implementation of an integrated information management system to provide enhanced monitoring and tracking of all its operations is on schedule and on budget and should be completed by November 1998. The Company will begin to experience the benefits of the new system in the fourth quarter of this year." Dr. Birkett further commented, "Our assisted living facilities, both in the U.S. and Canada, are generating high customer satisfaction scores while meeting our financial expectations. With more than 4,900 beds, the assisted living business will remain a key area of focus for Advocat. In summary, Alabama is behind us, our assisted living division is performing well and the implementation of our new information management system is on schedule." Forward looking statements made in this release involve a number of risks and uncertainties, including, but not limited to, changes in governmental reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , government regulation and health care reforms, the effectiveness of marketing on census levels, the impact of future state licensure licensure (lī´s  nsh surveys, the ability to execute on the
Company's acquisition program, both in finding suitable
acquisitions and financing therefore, changing economic and market
conditions and other risk factors detailed in the Company's
Securities and Exchange Commission filings.
Advocat is an owner and operator of 116 facilities with 12,201 beds of which 52 are assisted living with 4,980 beds and 64 are skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. containing 7,221 beds. The Company has facilities in eleven Southern States Southern States U.S. Confederacy government of 11 Southern states that left the Union in 1860. [Am. Hist.: EB, III: 73] Dixie popular name for Southern states in U.S. and for song. [Am. Hist. and two Provinces of Canada. Assisted living is part of a spectrum of long term care services that provide a combination of housing, personal services personal services n. in contract law, the talents of a person which are unusual, special or unique and cannot be performed exactly the same by another. These can include the talents of an artist, an actor, a writer, or professional services. and health care designed to respond to elderly individuals who require assistance with activities of daily living. Within this portfolio, seven facilities offer both levels of care. For additional information about the Company, visit Advocat's web site: http://www.irinfo.com/avc Consolidated financial information follows: ADVOCAT INC. (unaudited) For the Three Months For the Six Months Ended June 30, Ended June 30, ---------------------- -------------------- 1998 1997 1998 1997 ---------------------------------------------------------------------- Revenues $52,698,000 $44,237,000 $104,191,000 $87,680,000 Pre-tax earnings before non-recurring items 942,000 2,085,000 1,496,000 4,067,000 Net income before non-recurring items 603,000 1,334,000 958,000 2,603,000 Non-recurring items (net of tax) (940,000) -- (940,000) -- Net income (337,000) 1,334,000 18,000 2,603,000 Earnings per share (basic & diluted): Earnings before non-recurring items $0.11 $0.25 $0.18 $0.49 Net earnings (loss) ($0.06) $0.25 $0.00 $0.49 ---------------------------------------------------------------------- REVENUES: Patient revenues $43,108,000 $41,150,000 $84,946,000 $81,464,000 Resident revenues 8,629,000 2,093,000 17,334,000 4,267,000 Management fee revenues 906,000 957,000 1,812,000 1,875,000 Interest income 55,000 37,000 99,000 74,000 ----------- ----------- ------------ ----------- Net revenues 52,698,000 44,237,000 104,191,000 87,680,000 ----------- ----------- ------------ ----------- EXPENSES: Operating 42,131,000 34,859,000 83,383,000 68,932,000 Lease 4,809,000 3,744,000 9,563,000 7,615,000 General and administrative 2,730,000 2,406,000 5,456,000 4,719,000 Depreciation and amortization 832,000 671,000 1,794,000 1,333,000 Interest 1,254,000 472,000 2,499,000 1,014,000 Non-recurring charges 1,468,000 0 1,468,000 0 ----------- ----------- ------------ ----------- Total expenses 53,224,000 42,152,000 104,163,000 83,613,000 ----------- ----------- ------------ ----------- INCOME BEFORE INCOME TAXES (526,000) 2,085,000 28,000 4,067,000 PROVISION FOR INCOME TAXES (189,000) 751,000 10,000 1,464,000 ----------- ----------- ------------ ----------- NET INCOME ($337,000) $1,334,000 $18,000 $2,603,000 ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- E.P.S. (basic and diluted) ($0.06) $0.25 $0.00 $0.49 ----------- ----------- ------------ ----------- ----------- ----------- ------------ ----------- CONTACT: Charles W. Birkett, M.D. Chairman and Chief Executive Officer Mary Margaret Hamlett Executive Vice President and Chief Financial Officer Kevin McGrath Kevin McGrath is President and CEO of Digital Angel. He previously spent 16 years at El Segundo, California-based Hughes Electronics Corporation where he was a Corporate Vice President. McGrath also spent two years as President of DirecTV International. Cameron Associates, Financial Relations (212) 245-8800 |
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