CENTENNIAL HEALTHCARE CORPORATION ANNOUNCES THIRD QUARTER RESULTS; THIRD QUARTER EARNINGS UP 29% OVER SECOND QUARTER.ATLANTA--(BUSINESS WIRE)--Nov. 4, 1997--Centennial HealthCare Corporation (Nasdaq/NM:CTEN CTEN Commission to Every Nation CTEN Combined Thermal and Epithermal Neutron CTEN Carboxy-Terminated-Butadiene-Acrylonitrile Rubber ) announced today results for the three months and nine months ended September 30, 1997. J. Stephen Eaton Stephen Eaton (born 15 September 1975, Toowoomba) is an Australian athlete from Queensland who competes at the national and international level in discus throwing and shot put at events such as the Paralympic Games, and International Paralympic Committee World Championships. , president and chief executive officer of Centennial HealthCare, said, "We are pleased with the Company's financial and operating performance during the third quarter. The Company achieved strong operating results and revenues increased substantially over second quarter, reflecting the contribution from recent acquisitions and continued internal growth. We believe that the Company is well positioned for positive operating results for the remainder of the year." For the quarter ended September 30, 1997, net revenues were $81.9 million, up 40% over $58.3 million in the third quarter of last year. For the quarter, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income, which assumes the Company's initial public offering occurred as of the beginning of each period, was $3.5 million, or $0.30 per share, compared with proforma Proforma A financial projection based on assumptions. net income of $1.6 million, or $0.14 per share, in the prior year period, representing increases of 123% and 114%, respectively. Following the Company's initial public offering, which closed during the third quarter, the Company reduced its debt, and redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. a portion of its preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , converting the remaining preferred stock to common stock. This change in the Company's capital structure resulted in an extraordinary charge to earnings and the recording of cash dividends and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the to preferred stockholders. The resulting net loss applicable to common stock, including the extraordinary loss of approximately $537,000 and the cash dividends and accretion on preferred stock of $4.7 million relating primarily to the Company's initial public offering and the conversion of stock, was $1.8 million, or $0.16 per share, for the quarter ended September 30, 1997. Net income applicable to common stock was approximately $96,000, or $0.02 per share, for the third quarter of 1996. On a sequential quarter-to-quarter basis, third quarter net revenues were up 14% over net revenues of $71.9 million in the second quarter of 1997. Third quarter proforma net income was up 29% over second quarter 1997 proforma net income of $2.8 million, or 0.23 per share. For the nine months ended September 30, 1997, net revenues were $218.1 million, up 28% from $170.6 million in the same period of last year. For the nine-month period, proforma net income, which assumes the Company's initial public offering occurred as of the beginning of each period, was $6.7 million, or $0.56 per share, compared with proforma net income of $4.2 million, or $0.37 per share, representing increases of 59% and 51%, respectively. Net income applicable to common stock, including the extraordinary loss of approximately $537,000 and the cash dividends and accretion on preferred stock of $5.9 million relating primarily to the Company's initial public offering and the conversion of stock, was approximately $97,000, or $0.01 per share for the nine months ended September 30, 1997. Net income applicable to common stock was approximately $81,000, or $0.02 per share, for the nine months ended September 30, 1996. During the third quarter, occupancy at the Company's owned and leased facilities remained stable, with an average occupancy percentage of 91.5%. The Company's quality mix percentage of revenues increased to 64.5% of total revenues compared with 57.4% of total revenues for the same quarter in the previous year and 62.4% for the second quarter of 1997. Additionally, for the quarter ended September 30, 1997, revenues generated by the Company's delivery of specialty healthcare services were 46.3% of total revenues compared with 30.7% in the previous year, and 40.5% for the second quarter of 1997. A significant portion of the increase in specialty healthcare services revenues was a result of the Company's acquisition in May 1997 of Total Care Consolidated, Inc. (Total Care) and in August 1997 of Complex Care, Inc. Total Care is a home healthcare services provider with 25 home health offices, primarily located in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , where the Company operates 23 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. . Complex Care, Inc. is a privately owned provider of physical, occupational and speech therapy services through approximately 45 contracts with long-term care facilities long-term care facility n. See skilled nursing facility. in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. . In closing, Mr. Eaton said, "We believe that our emergence as a public company has occurred at a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. time. The forces of managed care and prospective payment have heightened cost consciousness and have created opportunities for companies providing cost-effective long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. and specialty services. Our sophisticated information systems allow us to closely monitor and control expenses, while we work to expand the Company through acquisitions and internal growth. We now have in place a stable healthcare services platform consisting of 84 facilities with over 9,000 beds, which is capable of generating continued growth in the future. This platform, combined with our new capital structure, existing ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. businesses and our capacity to continue to expand these businesses in house, positions us well in this changing healthcare environment." "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 defined in 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, may be included in this news release. A variety of factors could cause Centennial HealthCare's actual results to differ from the anticipated results expressed in such forward-looking statements. Investors are referred to Centennial's Cautionary Statements regarding Forward-looking Statements (exhibit 99.1 to the Company's most recent Form 10-Q Form 10-Q See 10-Q. ), which statements are incorporated into this news release by reference. Centennial HealthCare Corporation, headquartered in Atlanta, Georgia, provides a broad range of long-term care services to meet the medical needs of elderly and post-acute patients. The Company currently operates 84 owned, leased and managed skilled nursing facilities with 9,000 available beds in 19 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). . In addition, through its subsidiaries, the Company provides comprehensive rehabilitation rehabilitation: see physical therapy. services to Company-owned and third party nursing facilities pursuant to 120 contracts as well as home health services health services Managed care The benefits covered under a health contract through 30 licensed home health offices. -0-
CENTENNIAL HEALTHCARE CORPORATION
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Revenues:
Net patient service revenues $ 79,964 $ 56,837 $212,537 $166,490
Management service revenues 1,982 1,504 5,583 4,131
Total revenues 81,946 58,341 218,120 170,621
Expenses:
Facility operating expense 62,971 45,950 168,104 135,000
Lease expense 5,770 4,738 16,122 13,886
Corporate administrative expense 4,122 2,765 11,336 8,436
Depreciation and amortization 1,811 1,207 4,945 3,571
Interest expense 1,599 2,373 6,571 6,719
Other expense 127 80 374 155
Total expenses 76,400 57,113 207,452 167,767
Income before income taxes 5,546 1,228 10,668 2,854
Income taxes 2,163 484 4,161 1,181
Income before extraordinary loss 3,383 744 6,507 1,673
Extraordinary loss on extinguishment
of debt, net of income
tax benefit(1) (537) - (537) -
Net income 2,846 744 5,970 1,673
Dividends and accretion
on preferred stock(2) 4,654 648 5,873 1,592
Income (loss) applicable
to common stock $(1,808) $ 96 $ 97 $ 81
Net income per common and
common equivalent share:
Proforma net income(3) $ 0.30 $ 0.14 $ 0.56 $ 0.37
Primary:
Income (loss) applicable to common
stock before extraordinary loss $ (0.11) $ 0.02 $ 0.09 $ 0.02
Extraordinary loss on
extinguishment of debt (0.05) - (0.08) -
Income (loss) applicable
to common stock $ (0.16) $ 0.02 $ 0.01 $ 0.02
Weighted average number of common
stock and common stock equivalents
outstanding:
Proforma 12,026 11,422 11,856 11,419
Primary 11,745 4,784 7,142 4,781
(1) Represents loss on early pay off of subordinated debt. Debt was
paid off using proceeds from initial public offering.
(2) Represents regular dividends and accretion on preferred stock,
plus catch-up dividends and accretion due to the conversion of the
preferred shares into common shares as a result of the initial
public offering.
(3) Proforma to reflect the results of the initial public offering as
if it had occurred at the beginning of each period presented.
CONTACT: Centennial HealthCare Corp., Atlanta Alan C. Dahl dahl n. 1. See pigeon pea. 2. or dal A thick creamy East Indian stew made with lentils or other legumes, onions, and various spices. , 770/698-9040 |
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