Continental Health affiliates reports year end results; revenues rise 25% for the year.ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. CLIFFS, N.J.--(BUSINESS WIRE)--Sept. 30, 1996-- Continental Health Affiliates Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CTHL), today reported results for the year ended June 30, 1996. Net income for the year was $786,000 or $0.09 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , versus a loss of $1,027,000 or $0.13 cents per share for the prior fiscal year. Net income included 8 cents per share attributable to gains recorded by selling the operating assets Operating Assets Another term for working capital. of a long term care facility while retaining the property. Fiscal 1996 revenues increased 25% to $69,880,000 from $56,044,000 last year. The company's revenues include the results of a nursing home facility acquired in October 1995, which contributed $7.4 million to consolidated revenues for the year. Commenting on the results, Jack Rosen, chief executive officer, said "Our profitability is being propelled by our successful strategy of building multi-layered relationships with managed care organizations. For example, as Infu-Tech (our 59% owned home 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. subsidiary) adds managed care contracts to form a nationwide network, we benefit in three ways: by the addition of the revenue from the contracts themselves, through the impetus Impetus is a stimulus or impulse, a moving force that sparks momentum. Impetus may also refer to:
"In addition," said Rosen, "as government-funded health care programs such as 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. turn their operations over to managed care, the potential for growth in revenues from our existing managed care relationships is tremendous. This development will present Continental Health with a significant number of potential new customers without the need to engage in significant additional marketing or sales efforts since we already have the managed care relationships in place." Rosen added that the company remains committed to meeting the rising demand for long-term care facilities long-term care facility n. See skilled nursing facility. , including the trend to 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. . "We believe assisted living is the future 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. , and we are pursuing opportunities to participate more fully in that healthcare segment. In May 1996, we sold the operating assets of our long term care facility in Pine Brook, N.J., but retained the property to build an assisted living facility on the site." Continental Health Affiliates Inc. is a leading integrated alternative health care provider. The company owns and operates seven 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. health care facilities and two retirement living communities, located in New Jersey, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York and Florida, and owns a majority of the stock of Infu-Tech Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :INFU), a leading provider of infusion therapy and other medical products and services to patients in their homes and in long-term care facilities. -0-
Continental Health Affiliates, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands except per share numbers)
Year Ended June 30,
1996 1995
Revenues $ 69,880 $ 66,044
Income (loss) from operations $ 4,116 $ (1,527)
Income (loss) before income taxes and $ 349 $ (958)
extraordinary items
Provision for income taxes $ 270 $ ---
Extraordinary gains $ 777 $ ---
Net income (loss) $ 856 $ (958)
Preferred dividends $ (70) $ (69)
Net income (loss) applicable to common
shareholders $ 786 $ (1,027)
Earnings (loss) per share:
Net income (loss) applicable to common
shareholders
Before extraordinary items $ 0.00 $ (0.13)
Extraordinary items $ 0.09 $ ---
After Extraordinary items $ 0.09 $ (0.13)
Weighted average number of common and common equivalent shares outstanding 8,418,358 7,824,747
Consolidated Balance Sheets
June 30,
1996 1995
Cash and cash equivalents $ 2,900 $ 546
Working capital (deficit) $ 45 $ (6,060)
Total assets $ 75,572 $ 29,675
Total liabilities $ 71,347 $ 28,119
Total stockholders' equity $ 2,196 $ 32
CONTACT: Continental Health Affiliates S.C. Neill, 201/567-4600 or Porter, LeVay & Rose Inc. Michael Polyviou, 212/564-4700 |
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