Caretenders Returns to Operating Profitability After Q1 Loss.- Net Income of $0.05 Per Share Excluding Non-Recurring Items - Revenues Climbed 7% - Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Reduces Operating Costs operating costs npl → gastos mpl operacionales By $7 Million Annually LOUISVILLE, Ky., Nov. 12 /PRNewswire/ -- Caretenders HealthCorp (Nasdaq: CTND) today reported its financial results for the quarter ended September 30, 1998 which improved substantially from the June quarter. Second Quarter Results Positive For the quarter ended September 30, 1998 the Company reported net income from operations (excluding one-time items) of $166,992 or $0.05 per share versus net income of $414,663 or $0.13 per share in the prior year. Including restructuring charges of $323,000 net loss per share was $0.05 These lower results were principally due to the impact of the Interim Payment System for 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. home health services health services Managed care The benefits covered under a health contract legislated by the 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. Act of 1997. As previously announced, the Company implemented a restructuring plan on July 31, 1998 including work force reduction, branch closings and changes in compensation programs. The actions are expected to reduce operating costs by an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. amount of approximately $7 million ($4.9 million of which is expected to be realized in the current fiscal year). Revenues rose 7% to $24,524,299 over the same period last year. "As we have said in our last several releases the new Medicare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rules have presented daunting daunt tr.v. daunt·ed, daunt·ing, daunts To abate the courage of; discourage. See Synonyms at dismay. [Middle English daunten, from Old French danter, from Latin challenges for the industry." said William B. Yarmuth, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We believe our restructuring actions have positioned us to operate within the new system as evidenced by the results for this quarter. We remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the balance of the fiscal year and still anticipate profitable operation in the third and fourth quarters." Congress Makes Small Reforms The recent Federal budget package, passed on the last day of the session, included a small relief package for home care providers. The primary changes included a small increase in reimbursement limits and a one-year postponement of the deadline for implementing a prospective payment system or imposing a further 15% reduction in cost limits. The impact of these changes on the Company is expected to be insignificant. Caretenders HealthCorp Quarter Ended September 30,
1998 1997 Change %
Net Revenues $24,524,299 $22,833,566 $ 1,690,733 7.4%
Net income (loss) from
operations from non-
recurring items $ 166,992 $ 414,663 $ (247,671) NM
Non-recurring items:
Goodwill write-down, net
of tax - - -
Cumulative effect on prior
years of change in
accounting principle,
net of tax - - -
Restructuring Charge,
net of tax (323,125) - (323,125)
Reported Net Income
(loss) $ (156,133) $ 414,663 $ (570,796) NM
Weighted Average Shares
Outstanding
Basic 3,120,413 3,119,436 977 0.0%
Diluted 3,120,413 3,143,945 (23,532) -0.7%
Earnings Per Share - Basic
Net income (loss) from
operations $ 0.05 $ 0.13 $ (0.08) NM
Goodwill write-down,
net of tax - - -
Cumulative effect on
prior years of change in
accounting principle
(net of tax) - - - 0.0%
Restructuring Charge (0.10) - (0.10) 0.0%
Reported Net Income
(loss) $ (0.05) $ 0.13 $ (0.18) NM
Six-Months Ended September 30,
1998 1997 Change %
Net Revenues $ 48,190,754 $ 44,354,816 $ 3,835,938 8.6%
Net Income (loss) from operations
before non-recurring
items $ (613,362) $ 707,232 $(1,320,594) NM
Non-Recurring items:
Goodwill write-down,
net of tax (4,585,361) - (4,585,361)
Cumulative effect on
prior years of change
in accounting
principle, net of tax (382,515) - (382,515)
Restructuring Charge,
net of tax (323,125) - (323,125)
Reported Net Income
(loss) $ (5,904,363) $ 707,232 $(6,611,596) NM
Weighted Average Shares
Outstanding:
Basic 3,120,413 3,119,436 977 0.0%
Diluted 3,120,413 3,143,945 (23,532) -0.7%
Earnings Per Share - Basic
Net income (loss) from
operations $ (0.20) $ 0.23 $ (0.42) NM
Goodwill write-down,
net of tax (1.47) - (1.47)
Cumulative effect on prior
years of change in accounting
principle (net of tax) (0.12) - (0.12) 0.0%
Restructuring Charge (0.10) - (0.10) 0.0%
Reported Net Income
(loss) $ (1.89) $ 0.23 $ (2.12) NM
NM = not meaningful
Caretenders HealthCorp provides home and community based health care services in Kentucky, Maryland, Alabama, Massachusetts, Connecticut, Indiana, Ohio, Virginia and Florida. All statements, other than statements of historical facts, included in this news release, including the Company's ability to maintain operating costs at levels below reimbursements and the objectives and expectations of management for future operating results, are forward-looking statements. These forward-looking statements are based on the Company's current expectations. Although the Company believes that the expectations with respect to internal matters reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, the Company's actual results could differ materially. The potential risks and uncertainties which could cause actual results to differ materially could include the Company's ability to achieve cost savings without negatively impacting operations; the impact of further changes in the Medicare reimbursement system, including the ultimate implementation of a prospective payment system; government regulation; health care reform; pricing pressures from third-party payors; and changes in laws and interpretations of laws relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the healthcare industry. For a more complete discussion regarding these and other factors which could affect the Company's financial performance, refer to the Company's Securities and Exchange Commission filing on Form 10-K for the year ended March 31, 1998, in particular information under the headings "Business" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations." The Company disclaims any intent or obligation to update its forward-looking statements. |
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