Beverly First Quarter Earnings On Plan At Six Cents Per Share Diluted.Business Editors & Health/Medical Writers FORT SMITH, Ark.--(BW HealthWire)--May 2, 2000 Beverly Enterprises, Inc. (NYSE NYSE See: New York Stock Exchange :BEV) today announced that net income for the first quarter of 2000 totaled $6,261,000, up six percent from $5,907,000 reported for the same quarter of 1999. Earnings per share 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. totaled six cents for each period. Revenues totaled $646,927,000 in the 2000 first quarter, compared to $635,029,000 in the year-earlier period. The nearly two percent increase reflects higher nursing home revenues, partially offset by lower revenues for home care and outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. therapy operations. David R. Banks, Chairman and Chief Executive Officer, made the following comments about the company's performance and outlook: -- "We met internal financial objectives for the first quarter, due in large measure to on-target performance by our nursing home operations." -- "The availability and cost of labor continues to be a major challenge for us, and we're focusing on more effective ways to recruit and retain caregivers. Our weighted average wage rate for the 2000 first quarter was up 6.3 percent from the year-earlier period. We are encouraged, however, that the sequential rate of growth has not accelerated." -- Our performance plan for the second quarter of 2000 reflects a modest increase in operating results as compared to the first quarter. This reflects the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact of Medicare rate increases that began April 1, under the provisions of last fall's Balanced Budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. Refinement Act." -- "Nursing home occupancy averaged 87.3 percent for the first quarter, down about 30 basis points from the fourth quarter of 1999. Medicare census for the first quarter of 2000 grew by more than a full percentage point from the fourth quarter of 1999 to 10.4 percent, the highest level in nearly two years." Beverly shareholders may listen today to a 7:30 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT discussion by senior management of the company's performance by dialing 212/346-6400. A recording of this conference call will be available from 9:30 a.m. CDT today until 5:00 p.m. CDT Friday, May 5. Shareholders may dial 800/633-8284 and enter reservation 14941855 and the pound sign to access the recording. This news release and related conference call may contain 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. , including statements related to expected 2000 performance, 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. These risks and uncertainties include: national and local economic conditions; the effect of government regulations and changes in regulations governing the healthcare industry, including the Company's compliance with such regulations; changes in Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. payment levels; liabilities and other claims asserted against the Company, including patient care liabilities as well as the resolution of lawsuits brought about by the announcement of the federal government investigations or the settlements of such investigations; the ability to attract and retain qualified personnel; the availability and terms of capital to fund acquisitions and capital improvements; the competitive environment in which the Company operates; the ability to maintain and increase census levels; demographic changes; 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. . These 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 10-K and 10-Q. Beverly Enterprises 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. comprise a 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. . They operate 560 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 37 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, 179 outpatient therapy clinics, and 63 home care 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. agencies.
BEVERLY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three months ended
March 31,
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2000 1999
---- ----
Net operating revenues $646,102 $633,601
Interest income 825 1,428
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Total revenues 646,927 635,029
Costs and expenses:
Operating and administrative:
Wages and related 400,420 395,669
Other 191,455 183,867
Interest 19,618 16,983
Depreciation and amortization 25,336 24,242
Year 2000 remediation ---- 2,986
Investigation costs ---- 1,905
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Total costs and expenses 636,829 625,652
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Income before provision for income taxes 10,098 9,377
Provision for income taxes 3,837 3,470
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Net income $ 6,261 $ 5,907
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Net income per share of common stock:
Basic & diluted:
Net income per share of common stock $ 0.06 $ 0.06
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Shares used to compute basic net
income per share 102,281 102,480
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Shares used to compute diluted net
income per share 102,402 102,693
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