Advocat Reports Third Quarter 1998 Operating Results.FRANKLIN, Tennessee--(BUSINESS WIRE)--November 16, 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 third quarter ended September September: see month. 30, 1998. Total revenues increased to $51.3 million for the third quarter of 1998, compared with $43.7 million in the comparable period in 1997, representing an increase of 17.5%. Net income was $800,000 for the third quarter, or $0.15 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 $312,000, or $0.06 per diluted share for the same period in 1997. Third quarter 1998 results were adversely affected by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.03, representing direct expenses related to the previously announced conversion to a new information management system. For the nine months ended September 30, 1998, net revenues were $155.5 million, compared to $131.3 million in the comparable period in 1997, an increase of 18.4%. Net income for the first nine months of 1998 was $1.8 million or $0.33 per diluted share before non-recurring charges, compared with net income of $2.9 million or $0.54 per diluted share for the same period in 1997. After giving effect to a non-recurring charge of $940,000 (net of tax) recorded in the second quarter of the current year, the Company reported net income of $818,000 for the first nine months of 1998 compared with $2.9 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, "We are pleased to report continued improvement in the Company's operating results. The Company's 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). operations have now largely recovered from the negative impact of the issues with Alabama regulators that occurred in the last two quarters of 1997. The ongoing implementation of a new integrated management information system is proceeding as scheduled with the training of a group of nursing homes completed last week. We are already benefiting from the new system in the form of faster access to financial operating information regarding our nursing homes. This initiative along with our continuing commitment to contain costs should enable us to continue the momentum generated in the third quarter." -0- 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 115 facilities with 12,082 beds of which 52 are assisted living with 4,900 beds and 63 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 7,182 beds. The Company has facilities in ten 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 Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . 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 -0-
ADVOCAT INC.
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1998 1997 1998 1997
Revenues $51,305,000 $43,657,000 $155,496,000 $131,336,000
Pre-tax earnings
before
non-recurring
items 1,250,000 488,000 2,746,000 4,555,000
Net income before
non-recurring
items 800,000 312,000 1,758,000 2,915,000
Non-recurring
items (net of tax) 0 -- (940,000) --
Net income 800,000 312,000 818,000 2,915,000
Earnings per share
(diluted):
Earnings before
non-recurring
items $0.15 $0.06 $0.33 $0.54
Net earnings $0.15 $0.06 $0.15 $0.54
REVENUES:
Patient revenues $41,716,000 $40,566,000 $126,662,000 $122,030,000
Resident
revenues 8,649,000 2,097,000 25,983,000 6,364,000
Management fee
revenues 896,000 952,000 2,708,000 2,826,000
Interest income 44,000 42,000 143,000 116,000
Net revenues 51,305,000 43,657,000 155,496,000 131,336,000
EXPENSES:
Operating 40,163,000 36,139,000 123,546,000 105,072,000
Lease 4,816,000 3,577,000 14,379,000 11,192,000
General and
administrative 2,703,000 2,328,000 8,159,000 7,046,000
Depreciation and
amortization 1,024,000 667,000 2,818,000 2,000,000
Interest 1,349,000 458,000 3,848,000 1,471,000
Non-recurring
charges 0 0 1,468,000 0
Total expenses 50,055,000 43,169,000 154,218,000 126,781,000
INCOME BEFORE
INCOME TAXES 1,250,000 488,000 1,278,000 4,555,000
PROVISION FOR
INCOME TAXES 450,000 176,000 460,000 1,640,000
NET INCOME $800,000 $312,000 $818,000 $2,915,000
E.P.S. (basic) $0.15 $0.06 $0.15 $0.55
E.P.S. (diluted) $0.15 $0.06 $0.15 $0.54
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