Fountain View Reports Third Quarter Results.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Nov. 16, 1998--Fountain View, Inc., a leading operator of 50 long-term care facilities long-term care facility n. See skilled nursing facility. in California, Texas and Arizona, today announced earnings for the quarter ended September 30, 1998. The results of operations for third quarter reflect the acquisition of Summit Care Corporation on March 27, 1998. For the three months ended September 30, 1998, revenues were $67.1 million, compared to revenues of $70.4 million proforma as if Fountain View and Summit had been combined during the same period last year. The reduction in revenues was primarily a result of the implementation of the Medicare 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. "). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the quarter was $10.1 million, or 15.1% of revenues, up from the second quarter EBITDA of $8.7 million, or 12.7% of revenues. Comparisons of third quarter to second quarter and prior year are attached. Interest expense for the quarter totaled $5.9 million, improving the EBITDA-to-interest ratio to 1.7:1. Debt outstanding at September 30 was $245.6 million, unchanged from the quarter ended June 30, 1998. Bob Snukal commented that "the management team is very pleased by the third quarter results." Fountain View's EBITDA performance reflects the initial success of its integration efforts, as well as the successful implementation of PPS at thirty six of its 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. , and at its therapy and pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. subsidiaries. Fountain View is a leading operator of long-term care facilities and a leading provider of a full continuum Continuum (pl. -tinua or -tinuums) can refer to:
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. facilities. In addition to 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. , the Company provides a variety of high-quality 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. services such as physical, occupational and speech therapy and pharmacy services. This press release may make certain 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 regarding the future earnings and revenues and plans of the company. Any such forward-looking statements are subject to various risks and uncertainties that might cause actual results to vary materially. Such risks are described in the registration statement on Form S-4 on file with the Securities and Exchange Commission. -0-
Fountain View, Inc
(Dollars in Thousands)
2nd Quarter vs. 3rd Quarter 1998
3rd Quarter 2nd Quarter
Net Revenues $ 67,118 $ 68,291
Earnings before rent, depreciation,
interest and the provision for
income taxes, (EBITDAR) 11,844 10,380
Earnings before depreciation,
interest and the provision for
income taxes, (EBITDA) 10,137 8,681
Depreciation and Amortization Expense 3,585 3,410
Interest Expense 5,870 5,368
Earnings before provision for income
taxes 682 (97)
Net Income (loss) $ 410 $ (58)
Debt Outstanding $ 245,626 $ 245,650
Census 86.5% 86.4%
Quality Mix 62.8% 63.5%
Fountain View, Inc
(Dollars in Thousands)
Three months ended September 30
Comparative Statements
1998 1997
Net Revenues $ 67,118 $ 16,970
Earnings before rent, depreciation,
interest, and the provision for
income taxes, (EBITDAR) 11,844 1,851
Earnings before depreciation,
interest and the provision for
income taxes, (EBITDA) 10,137 898
Depreciation and Amortization Expense 3,585 289
Interest Expense 5,870 467
Earnings before provision
for income taxes 682 142
Net Income $ 410 $ (231)
Debt Outstanding $245,626 $ 30,076
Census 86.5% 83.7%
Quality Mix 62.8% 72.9%
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion