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HALLMARK HEALTHCARE CORPORATION REPORTS NET INCOME FOR FISCAL 1992 AND FOURTH QUARTER

 HALLMARK HEALTHCARE CORPORATION REPORTS NET INCOME
 FOR FISCAL 1992 AND FOURTH QUARTER
 ATLANTA, Sept. 3 /PRNewswire/ -- Hallmark Healthcare Corporation reported net income of $6.8 million or 40 cents per share for the fiscal year ended June 30, compared to net income of $13.9 million, or 82 cents per share, in the prior fiscal year.
 The change in net income was primarily attributable to the level of extraordinary gains in 1991 associated with the company's financial restructuring transactions.
 Net income for fiscal 1992 included extraordinary gains of $2.8 million or 16 cents per share from the utilization of tax loss carryforwards and restructure of a portion of the company's 14-1/2 percent Subordinated Debentures. Net income before extraordinary gains and income taxes in 1992 also included a credit of $2.1 million related to certain reimbursement items provided in fiscal 1989 in connection with the company's financial restructuring. In comparison, net income for fiscal 1991 included extraordinary gains of $12.5 million or 73 cents per share from the restructure of a portion of the company's 14.5 percent Subordinated Debentures and from the utilization of tax loss carryforwards.
 Net revenues increased 5.4 percent to $170.0 million in fiscal 1992, from $161.3 million in the prior fiscal year, primarily as a result of new or expanded services and rate increases in the company's hospitals. In the 1992 fiscal year, operating earnings before interest, taxes, extraordinary items and the $2.1 million credit for restructuring items, were $10.5 million compared to $12.0 million for the same period a year earlier. The decrease was primarily due to the reduction of inpatient days over the prior fiscal year and was offset in part by an increase in outpatient revenues.
 Operating expenses increased 7.1 percent from the comparable period ended June 30, 1991, primarily as a result of salary and benefit increases, and increased fees paid to medical specialists, and consultants in connection with additional or expanded hospital services. The increase in operating expenses in 1992 was offset in part by a reduction in the company's general and professional liability reserves of $1.5 million compared to a reduction of $673,000 in 1991.
 Interest expense decreased $3.2 million in the fiscal year ended June 30, primarily due to (i) reductions of the company's bank debt, (ii) the amortization of $6.2 million of deferred debt restructuring credits, and (iii) the restructuring in previous fiscal years of certain of the company's 14.5 percent debentures.
 For the fourth quarter of fiscal 1992, the company reported net income of $2.3 million or 13 cents per share as compared to $10.2 million or 60 cents per share a year earlier, and net revenues of $41.3 million as compared to $40.6 million in the fourth quarter of the previous year. Net income for the quarter ended June 30 included an extraordinary gain of $911,000 or 5 cents per share from utilization of tax loss carryforwards. Net income for the quarter ended June 30, 1991 included extraordinary items of $9.9 million or 59 cents per share from the restructure of debt and utilization of tax loss carryforwards. Operating earnings before interest, taxes and extraordinary items, but including reductions in general and professional liability reserves of $673,000 in 1991, were $1.7 million and $2.9 million in the fourth quarters of fiscal 1992 and 1991, respectively.
 Hallmark Healthcare Corporation is an Atlanta-based corporation which provides healthcare services to communities through ownership or management of general acute care hospitals and related healthcare services. The company operates 18 hospital facilities in nine states.
 Financial Highlights
 (In thousands, except per share data)
 Quarter ended Year ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Total revenues $41,346 $40,561 $170,005 $161,268
 Net income before
 extraord. items 1,347 237 4,005 1,488
 Extaordinary items:
 Gain on restructure
 of debt --- 6,144 82 7,294
 Credit from tax loss
 utilization 911 3,771 2,682 5,166
 Net income $ 2,258 $10,152 $ 6,769 $ 13,948
 Net inc. per common
 and common equiv. share:
 Net income before
 extraord. items $ 0.08 $ 0.01 $ 0.24 $ 0.09
 Extraordinary items 0.05 0.59 0.16 0.73
 Net inc. per common and
 common equiv. share $ 0.13 $ 0.60 $ 0.40 $ 0.82
 Wtd. avg. common and
 common equiv. shares
 outstanding 16,806 16,943 16,792 16,933
 -0- 9/3/92
 /CONTACT: Robert M. Thornton Jr., executive vice president and chief financial officer of Hallmark Healthcare, 404-933-5500/ CO: Hallmark Healthcare Corporation ST: Georgia IN: HEA SU: ERN


BR-EA -- AT004 -- 6303 09/03/92 10:04 EDT
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Publication:PR Newswire
Date:Sep 3, 1992
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