Centennial HealthCare Corporation Announces First Quarter Results.ATLANTA--(BUSINESS WIRE)--May 5, 1998--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 first quarter ended March 31, 1998. 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, "Last year was an excellent year for Centennial HealthCare, and I am pleased to report that our momentum is continuing. The number of complementary transactions completed in 1997 should make an increasing contribution to the Company's profitability in 1998 as we manage the integration process to enhance underlying values. That process is well underway as is reflected in our first quarter performance. During the first quarter, the Company continued to focus on the basics: efficient facility operation and strategic growth. Our facilities continued to reflect strong operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Since the first of the year, the Company has added nine new management contracts. In addition, Paragon Rehabilitation rehabilitation: see physical therapy. , Inc., the Companys subsidiary providing therapy services, continued to add contracts." For the quarter ended March 31, 1998, net revenues were $87.1 million, up 36% over $64.2 million in the first quarter of last year. Net income applicable to common stock for the quarter was $3.8 million, or $0.32 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. ), on 12.2 million average shares outstanding (diluted). Net income applicable to common stock for the same period in the prior year was approximately $454,000, or $0.09 per share (diluted), on 4.8 million average shares outstanding (diluted). During the first quarter, the Company entered into long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. management contracts for six 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. , with a total of 836 licensed available beds, located in the eastern portion of 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. . Under the terms of the five-year management contracts, the Company will receive a management fee on each facility of 6.5% of revenues. In addition, the Company entered into a management agreement for a 59-bed rural hospital in northern Florida where the Company currently provides home health services health services Managed care The benefits covered under a health contract and operates both a nursing home and two other rural hospitals. Subsequent to quarter's end, the Company entered into management agreements for two skilled nursing facilities located in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , totaling 174 licensed available beds. In closing, Mr. Eaton added, "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the remainder of the year. The Company's strong balance sheet and recently expanded line of credit should allow us to take advantage of opportunities we are currently evaluating. The Company's management team, existing operations, capital structure and sophisticated information systems should leave the Company well positioned to succeed in the changing health care arena." Certain statements in this press release constitute "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. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include statements regarding the intent, belief or current expectations of Centennial HealthCare and members of its management team. Management cautions that a variety of factors could cause Centennial HealthCare's actual results to differ materially from the anticipated results expressed in such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements are set forth in Centennial HealthCare's Cautionary Statements regarding Forward-looking Statements (exhibit 99.1 to the most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. ), which statements are incorporated into this press release by reference. Centennial HealthCare Corporation, headquartered in Atlanta, Georgia, provides a broad range of 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. services to meet the medical needs of elderly and post-acute patients. The Company currently operates 91 owned, leased and managed skilled nursing facilities with approximately 9,800 licensed 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 services to Company-owned and third party nursing facilities pursuant to 124 contracts as well as home health services through 30 licensed home health offices. For additional information about the Company, visit Centennial's web site: http://www.centennialhc.com -0-
CENTENNIAL HEALTHCARE CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
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1998 1997
Revenues: ------- -------
Net patient service revenues $83,379 $62,372
Management fees and other revenues 3,693 1,863
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Total revenues 87,072 64,235
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Expenses:
Facility operating expense 66,270 49,671
Lease expense 5,409 5,083
Corporate administrative expense 4,943 3,368
Depreciation and amortization 2,283 1,521
Interest expense, net 1,791 2,480
Other expense 104 121
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Total expenses 80,800 62,244
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Income before income taxes 6,272 1,991
Income taxes 2,446 751
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Net income 3,826 1,240
Dividends and accretion on preferred stock -- 786
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Income applicable to common stock $ 3,826 $ 454
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Net income per common and
common equivalent share:
Basic $ 0.32 $ 0.09
Diluted $ 0.32 $ 0.09
Weighted average number of common stock
and common stock equivalents outstanding:
Basic 11,866 4,789
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Diluted 12,202 4,827
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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 http://www.centennialhc.com |
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