Centennial Reports Second Quarter Results.ATLANTA--(BW HealthWire)--Aug. 5, 1999-- Centennial HealthCare Corporation (Nasdaq/NM:CTEN CTEN Commission to Every Nation CTEN Combined Thermal and Epithermal Neutron CTEN Carboxy-Terminated-Butadiene-Acrylonitrile Rubber ) today announced earnings, prior to nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". , of $0.12 and $0.20 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. ) for the second quarter and six months ended June 30, 1999, respectively. In commenting on the Company's second quarter performance, 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, "I am pleased with the Company's performance during the second quarter. Our facilities have maintained stable census levels and cost controls while keeping the delivery of quality care to our residents as their number one priority. Additionally, our facilities have experienced increases in average lengths of stay as well as 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. reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates. As a result of the dedicated staff and strong management team at Paragon, our therapy business is profitable for the quarter as well as year to date. Paragon continues to produce consistent monthly increases in productivity during a period of reductions in direct costs and overhead." For the quarter ended June 30, 1999, the Company reported net revenues of $99.9 million, up 14% over $87.9 million in the second quarter of last year. Net income, prior to nonrecurring charges, was $1.4 million, or $0.12 per share (diluted), compared with $3.8 million, or $0.32 per share (diluted), for the second quarter of 1998. The Company recorded nonrecurring charges during the second quarter of $14.5 million, or $8.9 million net of taxes, related to the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of long-term assets Long-Term Assets 1. Reported on the balance sheet, it's the value of a company's property, equipment and other capital assets, less depreciation. 2. A stock, bond or other asset that you plan on holding in your portfolio for a lengthy period of time. resulting primarily from the implementation of the prospective payment system (PPS (Packets Per Second) The measurement of activity in a local area network (LAN). In LANs such as Ethernet, Token Ring and FDDI, as well as the Internet, data is broken up and transmitted in packets (frames), each with a source and destination address. ) of reimbursement for Medicare. These charges were within the range previously presented by the Company early in the second quarter. During the second full quarter under PPS, the Company's performance continued to improve in line with expectations. Occupancy at the Company's owned and leased facilities is currently 88.6%, the same level as at the end of the first quarter. Average Medicare revenue per patient day and average lengths of stay increased slightly during the quarter. Paragon Rehabilitation rehabilitation: see physical therapy. , Inc. (Paragon) produced increasing operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. during the quarter by reducing overhead costs overhead costs see fixed costs. and direct labor while achieving improvements in productivity. Paragon generated operating profits for the quarter and six months ended June 30, 1999. For the six months ended June 30, 1999, net revenues were $197.9 million, up 13% over $175.0 million in the first six months of 1998. Net income for the six months ended June 30, 1999, prior to the nonrecurring charges, was $2.4 million, or $0.20 per share (diluted), compared with $7.7 million, or $0.63 per share (diluted), for the same six months in 1998. Mr. Eaton added, "In an environment full of challenges, the Company is performing well as it successfully transitions to PPS." 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-Q Form 10-Q See 10-Q. ), 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 operates 107 owned, leased and managed 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 approximately 11,554 licensed available beds in 21 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 and home health services health services Managed care The benefits covered under a health contract . 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 Six Months Ended
June 30, June 30,
------------------ ----------------
1999 1998 1999 1998
------ ------- ------ ------
Revenues:
Net patient service revenues $97,712 $84,042 $193,364 $167,421
Management fees and
other revenues 2,147 3,858 4,540 7,551
------- ------- -------- --------
Total revenues 99,859 87,900 197,904 174,972
------- ------- -------- --------
Expenses (exclusive of
nonrecurring charges):
Facility operating expense 77,536 66,629 155,077 132,899
Lease expense 8,222 5,746 16,067 11,155
Corporate administrative
expense 5,975 5,247 11,921 10,190
Depreciation and amortization 3,118 2,379 6,035 4,662
Interest expense, net 2,480 1,516 4,505 3,308
Other expense 98 98 232 201
------- ------- -------- --------
Total expenses 97,429 81,615 193,837 162,415
------- ------- -------- --------
Income before income taxes
and nonrecurring charges 2,430 6,285 4,067 12,557
Income tax expense 996 2,451 1,667 4,897
------- ------- -------- --------
Net income excluding
nonrecurring charges $ 1,434 $ 3,834 $ 2,400 $ 7,660
======= ======= ======== ========
Net income before nonrecurring
charges per common and common
equivalent shares:
Basic $ 0.12 $ 0.32 $ 0.20 $ 0.64
======= ======= ======== ========
Diluted $ 0.12 $ 0.32 $ 0.20 $ 0.63
======= ======= ======== ========
Income before income taxes
and nonrecurring charges $ 2,430 $ 6,285 4,067 12,557
Nonrecurring charges:
Provision for asset
revaluation 14,530 -- 14,530 --
Terminated merger
transaction costs -- -- 600 --
------- ------- -------- --------
Income (loss) before
income taxes (12,100) 6,285 (11,063) 12,557
Income tax expense (benefit) (4,527) 2,451 (4,102) 4,897
------- ------- -------- --------
Net income (loss) $(7,573) $ 3,834 $ (6,961) $ 7,660
======= ======= ======== ========
Net income per common and
common equivalent share:
Basic $ (0.64) $ 0.32 $ (0.58) $ 0.64
======= ======= ======== ========
Diluted $ (0.64) $ 0.32 $ (0.58) $ 0.63
======= ======= ======== ========
Weighted average number
of common stock and
common stock equivalents
outstanding:
Basic 11,924 11,910 11,924 11,888
======= ======= ======== ========
Diluted 11,924 12,215 11,940 12,213
======= ======= ======== ========
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