BEI Third-Quarter Net Income Totals $22 Million; Revenues, EBITDA and Operating Margins Show Strong Gains.FORT SMITH, Ark. -- Beverly Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals. Enterprises, Inc. (BEI Bei (pā, bā), river, c.200 mi (320 km) long, formed by the union of two headstreams in the Nanling Mts., N Guangdong prov., S China. It flows S into the Xi River, E of Guangzhou, to form the Pearl River delta. ) (NYSE NYSE See: New York Stock Exchange : BEV) today announced that net income for the third quarter of 2005 totaled $22 million (18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. 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. ), compared to $24.4 million (20 cents per share diluted) in the same period of 2004. Net income for the two periods reflected the following: --2005 third-quarter expenses totaling $11.5 million (9 cents per share diluted) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the process of selling the company, --reclassification of 22 nursing facilities in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). to Continuing Operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , with results restated to reflect increases in Continuing Operations pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income of $1.2 million for the 2005 third quarter and $1.3 million for the comparable 2004 period, and --2005 third-quarter pre-tax income of $2.9 million (2 cents per share diluted) due to retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. rate increases in California. Excluding sale-related expenses and the retroactive Medicaid increases, net income from continuing operations totaled $30.1 million (24 cents per share diluted) in the 2005 third quarter, a 28 percent increase from $23.5 million (20 cents per share diluted) in the year-earlier period. Discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. (which no longer includes on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" California nursing facility results) accounted for income of $520,000 in the 2005 third quarter and $1.1 million in the comparable 2004 period. Revenues for the 2005 third quarter totaled $583.9 million, up 11 percent from $524.8 million in the same period in 2004. Excluding retroactive California Medicaid rate adjustments, 2005 third-quarter revenues were up 10 percent from the year-earlier period. For the first nine months - and excluding sale process expenses ($36.6 million or 29 cents per share diluted) and retroactive Medicaid rate adjustments in California, Pennsylvania California is a borough in Washington County, Pennsylvania, along the Monongahela River. The population was 5,274 at the 2000 census. It includes the campus of California University of Pennsylvania. and Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). ($19.9 million or 16 cents per share diluted) - net income from continuing operations totaled $95.8 million (77 cents per share diluted) in 2005, a 35 percent increase from $71.1 million (59 cents per share diluted) from the comparable 2004 period (excluding early debt extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. costs in that year). Revenues for the first nine months of 2005 were up 15 percent from the year-earlier period (10 percent excluding retroactive Medicaid adjustments). "We achieved strong operating and financial results in all our major business units, compared to the 2004 third quarter," said William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack R. Floyd Floyd is a variant spelling of the Welsh name Lloyd, which means grey, and may refer to: Places
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were up significantly in Nursing Facilities, Aegis Therapies and AseraCare Hospice/Home Health. As a result, our total EBITDA for the third quarter was up 15 percent to $57.1 million and our overall EBITDA margin averaged 9.9 percent (comparison excludes impact of retroactive Medicaid rate adjustments). "EBITDA in our Nursing Facilities increased 19 percent, and the EBITDA margin was up a full percentage point - reflecting revenue increases, continuing improvement in patient mix and higher census census, periodic official count of the number of persons and their condition and of the resources of a country. In ancient times, among the Jews and Romans, such enumeration was mainly for taxation and conscription purposes. levels. Aegis Therapies also recorded another strong quarter, as continuing growth in its client base contributed to substantial increases in EBITDA and EBITDA margin. AseraCare Hospice/Home Health revenues were up more than 50 percent, and both its EBITDA and EBITDA margin showed significant increases." Floyd continued: "Our performance continues to reflect fundamental operating improvements we've we've Contraction of we have. we've have been making during the past three years, as well as initiatives we've developed to generate on-going profitable growth in all our businesses. I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in particularly proud of the results our associates have achieved this year - despite the challenges posed pose 1 v. posed, pos·ing, pos·es v.intr. 1. To assume or hold a particular position or posture, as in sitting for a portrait. 2. To affect a particular mental attitude. by the on-going sale process. They remain sharply focused on providing quality care and on accomplishing our financial objectives." Note: EBITDA is earnings from continuing operations before interest expense, interest income, taxes, depreciation and amortization; EBITDA for 2005 third quarter has been adjusted to exclude expenses relating to the sale of the company and earnings relating to retroactive Medicaid rate increases. EBITDA margin is EBITDA as a percentage of total adjusted revenues. FINANCIAL AND OPERATIONAL HIGHLIGHTS General --Third-quarter 2005 net income from continuing operations up 28 percent (comparison excludes sale process costs and retroactive Medicaid rate increases in California). --Net income increase primarily reflects revenue, EBITDA and margin improvements in all three principal businesses - Nursing Facilities, Aegis Therapies and AseraCare Hospice/Home Health. --Overall EBITDA margin averaged 9.9 percent for the 2005 third quarter, up more than 40 basis points from the year-earlier period (comparison excludes retroactive Medicaid revenues and sale expenses). --Capital investments, primarily to support business unit growth, totaled $23 million in the 2005 third quarter, a 43 percent increase from the investments made in the year-earlier period. Nursing Facilities --California Medicaid rate adjustment (retroactive to August 1, 2004) increased 2005 third-quarter revenue by $8 million and raised related provider tax expense by $3.1 million, for a net pre-tax income benefit of $4.9 million. This included a net adjustment to pre-tax income of $2.9 million related to prior periods. --Excluding favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of California rate adjustment, 2005 third-quarter EBITDA increased 19 percent and EBITDA margin rose 100 basis points (compared to year-earlier period). --EBITDA gains (excluding retroactive California rate adjustment) primarily reflect 7.5 percent revenue increase, continuing improvements in patient mix and higher census. --Occupancy in the 345 facilities in continuing operations rose 110 basis points (compared to the 2004 third quarter) to an average of 90.5 percent. Total nursing patient days also increased. --Medicare patient days as a percentage of total patient days averaged 12.5 percent for the 2005 third quarter, up 130 basis points from the year-earlier period. --Medicare revenues as a percentage of total revenues averaged 29.8 percent, up 240 basis points from the 2004 third quarter (comparison excludes impact of retroactive Medicaid increases). --Total 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. revenues rose 16 percent, reflecting treatment of higher acuity acuity /acu·i·ty/ (ah-ku´i-te) clarity or clearness, especially of vision. a·cu·i·ty n. Sharpness, clearness, and distinctness of perception or vision. patients, increased patient volume and a 2.8 percent increase in rates (effective October October: see month. 1, 2004). --During the 2005 third quarter, Medicaid rate increases were approved for California that significantly improved the projected cash flows for Beverly's 22 remaining 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. in that state, which were being held for sale as part of Discontinued Operations. Primarily because the potential sales value is now expected to be less than the present value of expected future cash flows Expected future cash flows Projected future cash flows associated with an asset. resulting from the higher rates, the Board of Directors approved termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of marketing efforts on these facilities, resulting in their reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. as Continuing Operations. Results for both the 2005 and 2004 third quarter have been restated to reflect this change. Aegis Therapies / AseraCare --Aegis Therapies third-party revenues increased 25 percent ($7.9 million) over 2004 third quarter. This gain reflects continuing growth in its client base as well as 4.4 percent volume-based growth in revenue per nursing home contract during the past 12 months. Client-initiated turnover averaged less than 2 percent for the quarter. --Aegis raised its EBITDA significantly and also achieved a strong increase in its EBITDA margin from 2004 third-quarter levels, primarily due to lower bad debt expense associated with improved collections. Operating margins were in the high teens. --Aegis continued to build a solid foundation for growth through aggressive hiring of therapists during the quarter, resulting in a 24 percent increase in full-time-equivalent staff (compared to the 2004 third quarter). Retention of existing staff averaged 88 percent. --AseraCare Hospice/Home Health revenues increased 51 percent ($9.8 million) compared to the 2004 third quarter, including an increase of $3.6 million from the opening of 17 new hospice hospice, program of humane and supportive care for the terminally ill and their families; the term also applies to a professional facility that provides care to dying patients who can no longer be cared for at home. locations. --AseraCare achieved substantial increases in both EBITDA and EBITDA margin. --Average daily hospice census was 2,620, up 46 percent from the 2004 third-quarter level - reflecting a same-location increase in ADC (1) See A/D converter. (2) (Apple Display Connector) A peripheral connector from Apple that combines digital video display, USB and power in one cable. of 25 percent and a 21 percent increase due to the opening of 17 new hospice locations during the past 12 months. --AseraCare also opened three home health agencies during the quarter. BEI shareholders may listen to a discussion this morning by senior management of the company's performance at 8:30 a.m. ET by dialing 1-888-208-1812 or 1-719-457-2654 and entering reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 6347931. A recording of this conference call will be available from 11:30 a.m. ET today until midnight November November: see month. 17. Shareholders may dial 1-888-203-1112 or 1-719-457-0820 and enter reservation number 6347931 to access the recording. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. The statements in this document relating to matters that are not historical facts are forward-looking statements based on management's beliefs and assumptions using currently available information and expectations as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, including the risks and uncertainties detailed from time to time in BEI's filings with the Securities and Exchange Commission. In particular, statements regarding the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the merger with North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Senior Care are subject to risks that the conditions to the transaction will not be satisfied, including the risk that regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals will not be obtained. In addition, our results of operations, financial condition and cash flows may be adversely impacted by the recently concluded auction process and the announcement of the proposed transaction with North American Senior Care, which may impact our ability to attract and retain customers, management and employees. We have incurred and will continue to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. advisory fees and other expenses relating to the auction process and the transaction with North American Senior Care. Although BEI believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. BEI assumes no duty to publicly update or revise such statements, whether as a result of new information, future events or otherwise. Beverly Enterprises, Inc. and its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. are leading providers of healthcare services to the elderly in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . At September September: see month. 30, 2005, it operated 345 skilled nursing facilities, as well as 18 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. centers, and 66 hospice/home care centers. Through Aegis Therapies, the company offers rehabilitative re·ha·bil·i·tate tr.v. re·ha·bil·i·tat·ed, re·ha·bil·i·tat·ing, re·ha·bil·i·tates 1. To restore to good health or useful life, as through therapy and education. 2. services on a contract basis to nursing facilities operated by other care providers.
BEVERLY ENTERPRISES, INC.
SUPPLEMENTARY INFORMATION
Quarter Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Number of Nursing Home
Facilities:
Owned 263 264 263 264
Leased 82 91 82 91
---------- ---------- ---------- ----------
Total 345 355 345 355
========== ========== ========== ==========
Number of Beds:
Owned 27,079 27,327 27,079 27,327
Leased 9,110 10,004 9,110 10,004
---------- ---------- ---------- ----------
Total 36,189 37,331 36,189 37,331
========== ========== ========== ==========
Assisted Living Centers 18 18 18 18
Hospice/Home Care Centers 66 45 66 45
Outpatient Clinics - 10 - 10
Continuing Operations:
Nursing Patient Days 2,947,000 2,944,000 8,715,000 8,770,000
Nursing Home Occupancy
(based on operational
beds) 90.49% 89.43% 89.78% 88.98%
Operational beds 35,423 35,776 35,423 35,776
Patient Mix (based on
patient days):
Medicaid 71.15% 72.08% 70.66% 71.34%
Medicare 12.52% 11.21% 12.97% 11.93%
Private & Other 16.33% 16.71% 16.37% 16.73%
Sources of Revenue (based
on $):(1)
Medicaid 49.26% 51.52% 48.92% 51.07%
Medicare 29.77% 27.33% 30.18% 27.82%
Private & Other 20.97% 21.15% 20.90% 21.11%
Nursing Average per diem rate
(including ancillaries) $172.27 $159.68 $172.24 $158.94
Hospice Average Daily
Census 2,620 1,792 2,436 1,293
Aegis Outside Contracts 627 592 627 592
Wages and related expenses
as a % of revenues 56.71% 59.42% 55.13% 57.86%
(1) Excludes the retroactive Medicaid rate adjustments in Indiana,
Pennsylvania and California.
BEVERLY ENTERPRISES, INC.
SUPPLEMENTARY INFORMATION
ANALYSIS OF REVENUES
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -----------------------
2005 2004 2005 2004
--------- --------- ----------- -----------
REVENUES (In thousands)
--------
NURSING FACILITIES:
MEDICAID $290,586 $270,632 $ 894,287 $ 786,532
MEDICARE 125,051 108,149 383,829 338,759
PRIVATE & OTHER 97,630 94,181 286,235 276,255
--------- --------- ----------- -----------
SUBTOTAL 513,267 472,962 1,564,351 1,401,546
AEGIS THERAPIES 39,864 31,975 113,068 89,023
ASERACARE 28,876 19,062 79,225 42,214
OTHER 1,935 843 4,911 4,013
--------- --------- ----------- -----------
TOTALS $583,942 $524,842 $1,761,555 $1,536,796
========= ========= =========== ===========
NURSING PATIENT DAYS (In thousands)
--------------------
MEDICAID 2,097 2,122 6,158 6,257
MEDICARE 369 330 1,130 1,046
PRIVATE & OTHER 481 492 1,427 1,467
--------- --------- ----------- -----------
TOTALS 2,947 2,944 8,715 8,770
========= ========= =========== ===========
NURSING PER DIEM RATES (Including Ancillaries)
----------------------
MEDICAID(1) $ 136.14 $ 126.04 $ 135.01 $ 124.38
MEDICARE - PART A 339.00 327.58 339.64 323.82
PRIVATE & OTHER 162.51 156.82 162.73 155.48
--------- --------- ----------- -----------
TOTALS(2) $ 172.27 $ 159.68 $ 172.24 $ 158.94
========= ========= =========== ===========
(1) Excludes the retroactive Medicaid rate adjustments in Indiana,
Pennsylvania and California.
(2 ) Weighted average rates
BEVERLY ENTERPRISES, INC.
SUPPLEMENTARY INFORMATION
ANALYSIS OF OTHER OPERATING AND ADMINISTRATIVE EXPENSES
(In thousands)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
SUPPLIES $31,635 $29,062 $93,663 $87,231
FOOD 10,226 10,014 30,161 30,332
UTILITIES 14,668 13,206 44,344 42,176
OTHER CONTROLLABLES 60,346 55,356 175,010 162,014
REAL ESTATE RENTAL 8,958 8,457 26,408 25,150
EQUIPMENT RENTAL 5,516 4,801 15,872 13,524
OTHER NONCONTROLLABLES (1) 25,178 14,066 110,048 41,609
--------- --------- --------- ---------
TOTALS $156,527 $134,962 $495,506 $402,036
========= ========= ========= =========
(1) 2005 increases primarily relate to additional provider tax
expense.
BEVERLY ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2005 2004
------------- -------------
(Unaudited) (Note)
ASSETS
Current assets:
Cash and cash equivalents $217,843 $215,665
Accounts receivable - less allowance
for doubtful accounts: 2005 - $24,119;
2004 - $26,320 270,396 235,477
Notes receivable, less allowance for
doubtful notes: 2005 - $2,717; 2004 -
$1,686 4,729 2,786
Operating supplies 9,308 9,660
Assets held for sale - 3,542
Prepaid expenses and other 44,984 37,266
------------- -------------
Total current assets 547,260 504,396
Property and equipment, net 672,583 664,311
Other assets:
Goodwill, net 122,090 124,066
Other, less allowance for doubtful
accounts and notes: 2005 - $1,027;
2004 - $1,538 69,614 68,612
------------- -------------
Total other assets 191,704 192,678
------------- -------------
$1,411,547 $1,361,385
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $66,541 $67,778
Accrued wages and related liabilities 93,617 104,037
Accrued interest 8,787 3,602
General and professional liabilities 58,187 54,216
Federal government settlement
obligations 15,386 14,359
Liabilities held for sale - 676
Other accrued liabilities 105,341 83,097
Current portion of long-term debt 8,158 12,240
------------- -------------
Total current liabilities 356,017 340,005
Long-term debt 536,544 545,943
Other liabilities and deferred items 153,366 203,024
Commitments and contingencies
Stockholders' equity:
Preferred stock, shares authorized:
25,000,000 - -
Common stock, shares issued: 2005 -
117,812,924; 2004 - 116,621,715 11,781 11,662
Additional paid-in capital 912,400 902,053
Accumulated deficit (450,063) (532,804)
Treasury stock, at cost: 8,283,316 (108,498) (108,498)
------------- -------------
Total stockholders' equity 365,620 272,413
------------- -------------
$1,411,547 $1,361,385
============= =============
Note: The balance sheet at December 31, 2004 has been derived from the
audited consolidated financial statements at that date but does not
include all of the information and footnotes required by accounting
principles generally accepted in the United States for complete
financial statements.
BEVERLY ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Nine Months Ended
September 30,
---------------------
2005 2004
---------- ----------
Cash flows from operating activities:
Net income $82,741 $21,916
Adjustments to reconcile net income to net
cash provided by (used for) operating
activities, including discontinued
operations:
Depreciation and amortization 53,973 47,656
Provision for reserves on accounts, notes
and other receivables, net 6,530 10,772
Amortization of deferred financing costs 2,072 2,107
Asset impairments, workforce reductions
and other unusual items 479 3,799
Costs related to early extinguishments of
debt - 40,430
Costs related to the sales process of the
Company 36,566 -
Gains on dispositions of facilities and
other assets, net (2,493) (455)
Insurance related accounts (49,455) (12,833)
Changes in operating assets and
liabilities, net of acquisitions and
dispositions:
Accounts receivable (45,161) (53,955)
Prepaid expenses and other
receivables 933 8,139
Accounts payable and other accrued
expenses (20,034) (23,140)
Income taxes payable 3,081 (2,497)
Other, net 1,872 (4,219)
---------- ----------
Total adjustments (11,637) 15,804
---------- ----------
Net cash provided by operating
activities 71,104 37,720
Cash flows from investing activities:
Capital expenditures (68,194) (37,964)
Payments for acquisitions, net of cash
acquired - (71,479)
Proceeds from dispositions of facilities
and other assets, net 14,158 22,346
Collections on notes receivable 63 32,268
Payments for designated funds, net (185) (958)
Proceeds from Beverly Funding Corporation
investment - 28,956
Other, net (6,409) (24,316)
---------- ----------
Net cash used for investing
activities (60,567) (51,147)
Cash flows from financing activities:
Proceeds from issuance of new debt 5,200 211,384
Repayments of long-term debt (18,681) (207,479)
Proceeds from exercise of stock options 5,428 1,399
Deferred financing costs paid (306) (43,332)
---------- ----------
Net cash used for financing
activities (8,359) (38,028)
---------- ----------
Net increase (decrease) in cash and cash
equivalents 2,178 (51,455)
Cash and cash equivalents at beginning of period 215,665 258,815
---------- ----------
Cash and cash equivalents at end of period $217,843 $207,360
========== ==========
Supplemental schedule of cash flow information:
Cash paid (received) during the year for:
Interest, net of amounts capitalized $24,834 $30,969
Income tax payments (refunds), net (1,831) 5,821
Beverly Enterprises, Inc.
2005 and 2004 Continuing Operations EBITDA (as adjusted)
Reconciliation
(In millions)
Quarter Ended
September 30,
-------------------
2005 2004
---------- --------
Revenues $583.9 $524.8
Less: Retroactive California revenue adjustment 5.0 -
---------- --------
Revenues, as adjusted $578.9 $524.8
EBITDA, as adjusted $57.1 $49.5
Less:
Depreciation and amortization (19.4) (15.6)
Interest expense, net (8.3) (9.8)
Costs related to early extinguishment of debt - (0.2)
Costs related to the sales process of the Company (11.5) -
Add back:
Retroactive California adjustment, net 2.9 -
---------- --------
Pre-tax income $20.8 $23.9
========== ========
Beverly Enterprises, Inc.
2005 and 2004 Nursing EBITDA (as adjusted)
Reconciliation
(In millions)
Quarter Ended
September 30,
-------------------
2005 2004
--------- ---------
Revenues $513.3 $473.0
Less: Retroactive California revenue adjustment 5.0 -
--------- ---------
Revenues, as adjusted $508.3 $473.0
EBITDA, as adjusted $51.4 $43.1
Less:
Depreciation and amortization (16.9) (13.2)
Interest expense, net (1.2) (1.3)
Add back:
Retroactive California adjustment, net 2.9 -
--------- ---------
Pre-tax income $36.2 $28.6
========= =========
BEVERLY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------- -----------------------
2005 2004 2005 2004
--------- --------- ----------- -----------
Revenues $583,942 $524,842 $1,761,555 $1,536,796
Costs and expenses:
Wages and related 331,126 311,850 971,216 889,193
Provision for insurance
and related items 35,807 29,590 97,416 94,225
Other operating and
administrative 156,527 134,962 495,506 402,036
Depreciation and
amortization 19,355 15,624 53,621 45,863
Asset impairments,
workforce reductions
and other unusual items 504 (473) 479 1,122
--------- --------- ----------- -----------
Total costs and
expenses 543,319 491,553 1,618,238 1,432,439
--------- --------- ----------- -----------
Income before other income
(expenses) 40,623 33,289 143,317 104,357
Other income (expenses):
Interest expense (10,704) (11,089) (32,051) (34,965)
Costs related to early
extinguishment of debt - (176) - (40,430)
Costs related to the
sales process of the
Company (11,514) - (36,566) -
Interest income 2,407 1,246 6,434 4,090
Net gains on
dispositions 44 582 667 614
--------- --------- ----------- -----------
Total other
expenses, net (19,767) (9,437) (61,516) (70,691)
--------- --------- ----------- -----------
Income before provision for
(benefit from) income
taxes and discontinued
operations 20,856 23,852 81,801 33,666
Provision for (benefit
from) income taxes (590) 536 2,688 3,038
--------- --------- ----------- -----------
Income before discontinued
operations 21,446 23,316 79,113 30,628
Discontinued operations,
net of taxes: for the
quarters 2005 - $(80) and
2004 - $(59); for the nine
months 2005 - $(1,438) and
2004 - $286 520 1,084 3,628 (8,712)
Net income $21,966 $24,400 $82,741 $21,916
========= ========= =========== ===========
Net income (loss) per
share of common stock:
Basic:
Before discontinued
operations $0.20 $0.22 $0.72 $0.28
Discontinued operations - 0.01 0.04 (0.08)
--------- --------- ----------- -----------
Net income per share of
common stock $0.20 $0.23 $0.76 $0.20
========= ========= =========== ===========
Shares used to compute
basic net income (loss)
per share 109,506 108,039 109,246 107,613
========= ========= =========== ===========
Diluted:
Before discontinued
operations $0.18 $0.19 $0.64 $0.27
Discontinued operations - 0.01 0.03 (0.07)
--------- --------- ----------- -----------
Net income per share of
common stock $0.18 $0.20 $0.67 $0.20
========= ========= =========== ===========
Shares used to compute
diluted net income
(loss) per share 127,184 124,493 126,862 124,105
========= ========= =========== ===========
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