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HALLMARK HEALTHCARE REPORTS FIRST QUARTER EARNINGS UP OVER PREVIOUS YEAR

HALLMARK HEALTHCARE REPORTS FIRST QUARTER EARNINGS UP OVER PREVIOUS YEAR
    ATLANTA, Nov. 14 /PRNewswire/ -- Hallmark Healthcare Corporation (formerly National Healthcare, Inc.) reported net income of $354,000 or $.02 per share for the first fiscal quarter ended Sept. 30, compared to net income of $242,000 or $.01 per share for the first quarter of the prior fiscal year.
    The quarter ended Sept. 30 included extraordinary credits of $194,000 or $.01 per share resulting from the utilization of tax net operating loss carryforwards, compared to extraordinary credits of $155,000 or $.01 per share for the comparable period a year earlier.
    The company said operating earnings were approximately $1.8 million and $2.6 million in the quarters ended Sept. 30, 1991 and 1990, respectively.  This decrease was due primarily to a decline in patient days and an increase in operating expenses.
    Patient revenues net of contractual allowances were $39.2 million in the quarter ended Sept. 30 compared to $37.6 million in the same quarter a year earlier.  This increase resulted primarily from the addition of new services and price increases at the company's hospitals.
    The increase in net patient revenues was partially offset by contractual allowances which, as a percent of gross operating revenues, increased from 31 percent for the quarter ended Sept. 30, 1990, to 32 percent for the quarter ended Sept. 30, 1991.  The increase in contractuals was primarily attributable to price increases which were greater than the increase in reimbursement rates from the Medicare program in the company's operating hospitals.  The provision for uncollectible accounts as a percent of net patient service revenues increased from 6.5 percent for the quarter ended Sept. 30, 1990, to 8.4 percent for the quarter ended Sept. 30, 1991, largely due to economic conditions in the communities in which the company operates.
    Interest expense decreased approximately $837,000 or 37.9 percent in the quarter ended Sept. 30.  The decrease was primarily attributable to a reduction in the company's bank debt, the amortization of $1.6 million of deferred debt restructuring credits in the quarter ended Sept. 30, compared to $981,000 for the quarter ended Sept. 30, 1990, and the company's restructuring of $6,231,000 principal amount of its old debentures during fiscal 1991.
    Operating expenses, excluding interest, increased approximately $2.5 million or 7 percent from the prior year due to the addition of new services and fees paid to outside medical specialists at the company's hospitals.  The increase was partially offset by an approximately $350,000 reduction in the company's general liability reserves.
    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 19 facilities in nine states.
                    HALLMARK HEALTHCARE CORPORATION
                   (in thousands, except per share)
       Quarter ended Sept. 30             1991           1990
    Net patient service revenues        $39,214        $37,624
    Other revenues                        1,300          1,135
    Total revenues                       40,514         38,759
    Operating expenses                   38,733         36,194
    Interest                              1,370          2,207
    Income before taxes and
     extraordinary item                     411            358
    Provision for income taxes              251            271
    Net income before extraord. item        160             87
    Extraordinary credit resulting from
     utilization of net operating loss
     carryforward                           194            155
    Net income                          $   354        $   242
       Net income per common
        and common equivalent
        share:
    Income before
     extraordinary item                 $  0.01        $  0.00
    Extraordinary item                     0.01           0.01
    Net income per common
     and common equiv. share            $  0.02        $  0.01
    Weighted average common and common
     equivalent shares
     outstanding                          16,824        16,594
    -0-                            11/14/91
    /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-BN -- AT012 -- 4549 11/14/91 16:08 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 14, 1991
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