Beverly Earns 17 Cents Per Share in Second Quarter.FORT SMITH, Ark.--(BUSINESS WIRE)--July 23, 1996--Beverly Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange : BEV) today announced that net income for the second quarter of 1996 totalled $16,995,000 or 17 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. , compared to $14,306,000 or 14 cents per share for the same period in 1995. Results for the 1995 second quarter included an after-tax loss of $2,500,000 or 3 cents per share from the disposition of four Connecticut nursing facilities. Revenues for the second quarter of 1996 totalled $801,808,000, compared to $793,637,000 for the year-earlier period. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the six months ended June 30, Beverly's net income totalled $30,691,000 or 31 cents per share in 1996, roughly equal to the $30,855,000 or 31 cents per share earned in 1995. Revenues for the first half of 1996 were $1,616,315,000, up slightly from $1,592,756,000 in the comparable period in 1995. "Our second quarter operating results primarily reflect gains in pre-tax income and higher margins in our nursing home and pharmacy businesses, as well as the profitable growth of our rehabilitation rehabilitation: see physical therapy. therapy operations," said David R. Banks, Chairman of the Board and Chief Executive Officer. "We're pleased with our continuing progress this year, but recognize that the biggest challenges to a successful 1996 still lie ahead." Nursing home operations achieved a 10 percent increase in operating income compared to the second quarter of 1995, despite a reduction in revenues due to the disposition of 75 facilities during the past year, as well as to a decrease in occupancy levels. "Occupancy remains a challenge for us and for the entire industry. The new sales and marketing program we've just launched should begin to generate increased admissions during the second half of 1996," Banks noted. "At the same time, we're going after a larger share of the patients discharged from our nursing facilities by further developing our 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 outpatient therapy operations." The decline in industry occupancy levels, coupled with fewer Beverly nursing homes, also somewhat restricted the growth of revenues and operating income at Pharmacy Corporation of America (PCA (tool, programming) PCA - A dynamic analyser from DEC giving information on run-time performance and code use. ). PCA nevertheless posted gains in revenues, operating income and margins compared to the second quarter of 1995. "We're confident that PCA's recovery will accelerate under the leadership of Dr. Arnold Renschler," Banks added. "His experience in healthcare and his insights as a skilled business leader should help ensure the continued profitable growth of our pharmacy operations." This news release contains 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. as to sales and marketing and to the recovery of PCA made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks and uncertainties include national and local economic conditions, the effect of government regulation, the competitive environment in which the Company operates, and the availability and cost of labor and materials labor and materials (time and materials) n. what some builders or repair people contract to provide and be paid for, rather than a fixed price or a percentage of the costs. . Those and other risks and uncertainties that could affect future results are addressed in the Company's filings with the Securities and Exchange Commission, including Forms 10K and 10Q. Beverly Enterprises, Inc. is the leading provider of post-acute healthcare 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. . It operates 637 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. , as well as transitional acute care hospitals, institutional and mail-service pharmacies, assisted living centers, outpatient therapy clinics, and 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. and home health centers. Beverly provides medical cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and managed care services in a nationwide network spanning 37 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . -0-
BEVERLY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Net operating revenues $798,333 $790,375 $1,609,380 $1,585,994
Interest income 3,475 3,262 6,935 6,762
Total revenues 801,808 793,637 1,616,315 1,592,756
Costs and expenses:
Operating and
administrative:
Wages and related 444,527 424,979 894,522 842,412
Other 280,006 297,772 573,490 606,313
Interest 22,983 21,725 46,128 42,274
Depreciation and
amortization 25,967 26,087 51,023 51,991
Total costs and
expenses 773,483 770,563 1,565,163 1,542,990
Income before provision for income taxes 28,325 23,074 51,152 49,766 Provision for income taxes 11,330 8,768 20,461 18,911 Net income $ 16,995 $ 14,306 $ 30,691 $ 30,855 Net income applicable to common shares $ 16,995 $ 12,244 $ 30,691 $ 26,730 Net income per share of common stock $ 0.17 $ 0.14 $ 0.31 $ 0.31 Weighted average shares used to compute net income per share 100,079 87,864 100,028 87,593 Nursing facilities: Owned 407 415 Leased 228 293 Managed 2 4 Total 637 712 Pharmacies 53 62 Retirement & Assisted Living Centers 33 40 Transitional Hospitals 11 9 Hospices 18 1 Outpatient Therapy Clinics 8 -- CONTACT: Beverly Enterprises, Inc., Fort Smith Jim Griffith, 501/484-6912 |
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