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GERIATRIC & MEDICAL CENTERS REPORTS FOURTH QUARTER FISCAL YEAR ENDED 1992 RESULTS

 GERIATRIC & MEDICAL CENTERS REPORTS FOURTH QUARTER
 FISCAL YEAR ENDED 1992 RESULTS
 PHILADELPHIA, Sept. 16 /PRNewswire/ -- Geriatric & Medical Centers, Inc. (NASDAQ: GEMC) reported results for its fourth quarter and fiscal year ended May 31, 1992.
 For the fiscal year, net operating revenues were $164,551,000 compared with $144,633,000 in fiscal 1991, an increase of 14 percent from the previous year. Income before extraordinary items amounted to $1,143,000, compared with $2,095,000 in the prior year. Net income for fiscal 1992 included an extraordinary benefit of $66,000 relating to the utilization of net operating loss carryforwards which was offset by an extraordinary charge of $650,000 (net of tax benefit of $290,000) relating to the prepayment of its Bank Group debt. Net income for the year was $559,000 versus net income for 1991 of $3,495,000 which included an extraordinary benefit for net operating loss carryforwards of $1,400,000.
 For the 1992 fiscal year, earnings per share before extraordinary charges were $.08, compared with $.14 in fiscal 1991. After extraordinary charges, net income was $.04 per share compared with $.23 per share for 1991.
 In the fourth quarter, net operating revenues were $42,305,000 versus $37,637,000 in the comparable period of the preceding year. Operating income was $973,000 versus $2,812,000 for the corresponding period last year. Operating income was impacted by a settlement with the Department of Public Welfare. As a result of the settlement, the company will shortly receive a payment of $1,800,000 and was required to write-off $990,000 in receivables in the current fourth quarter, and recorded an additional reserve of $610,000 for the same period, thereby reducing operating income by $1,600,000. Net income for the fourth quarter included a nonoperating provision for loss on sale of accounts receivable of $899,000 and an extraordinary charge of $650,000 (net of tax benefit of $290,000) relating to the prepayment of its Bank Group debt. The fourth quarter of fiscal 1992 reflected a net loss of $2,368,000 or ($.15) per share versus net income of $212,000 or $.01 per share for the fourth quarter of the prior year
 Daniel Veloric, chairman of the board and president stated, "The charge for the settlement of the State's open audit issues and the refinancing of the Bank Group debt (which effected net income by approximately $1,850,000 in the fourth quarter, net of tax) completes our restructuring program and will allow the company to move forward to achieve its growth potential."
 Veloric further stated, "The acceptance of a significant cash payment was in the best interest of the company. While additional reserves have been established, the settlement will not deter the ability of the company to dispute certain issues which remain open for fiscal years 1990, 1991 and 1992, and resolution of these issues should not have a material effect on the financial position of the company. As of 1993, a prospective reimbursement system is anticipated in Pennsylvania which should eliminate much of the reimbursement disputes encountered by the company in the past."
 In addition, Veloric reported, "There is continued progress of management in reducing operating costs and improving operating margins. However, the United Health Care Services Group is still experiencing the effects of reduced reimbursement in Medicare Part B programs although the GeriMed Services Group is recording increased operating earnings from improved reimbursement, census and cost reductions."
 Geriatric & Medical Centers, Inc. is a leading provider of health care products and services to hospitals, HMOs, physician groups and long-term care facilities in the mid-Atlantic region.
 GERIATRIC & MEDICAL CENTERS, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Dollars in thousands, except per share amounts)
 Periods Ended Three months Twelve months
 May 31 1992 1991 1992 1991
 Total operating revenues,
 net $42,305 $37,637 $164,551 $144,633
 Operating income 973 2,812 10,982 10,157
 Interest expense, net (2,409) (2,369) (9,463) (10,096)
 Total (1,436) 443 1,519 61
 Provision for loss on
 sale of accounts receivable (899) -- (2,912) --
 Nonoperating income
 (loss), net (411) 153 2,916(A) 4,048(B)
 Income (loss) before income
 taxes and extraordinary
 credit (2,746) 596 1,523 4,109
 Income tax provision (credit) (1,028) 378 380 2,014
 Income (loss) before
 extraordinary items (1,718) 218 1,143 2,095
 Extraordinary items:
 Utilization of net operating
 loss carryforwards -- (6) 66 1,400
 Extinguishment of debt,
 net of tax benefit of $290 (650) -- (650) --
 Net income (loss) (2,368) 212 559 3,495
 Earnings per common share: (D)
 Income (loss) before
 extraordinary items $ 0.11) $0.01 $0.08 $0.14
 Extraordinary items (0.04) -- (0.04) 0.09
 Net income (loss) (0.15) 0.01 0.04 0.23
 Average shares outstanding
 (D) 15,152,000 15,062,000 15,152,000 15,062,000
 (A) Nonoperating income relates principally to the recognition of deferred income related to assets previously sold.
 (B) Nonoperating income relates principally to the gain on sale of facilities and the recognition of deferred income related to assets previously sold.
 (C) Represents an extraordinary charge due to the early payment of Bank Group debt in the fourth quarter of fiscal year 1992.
 (D) Earnings per common share and average shares outstanding have been restated to reflect a 5-for-4 stock split declared by the board of directors on March 26, 1992.
 -0- 9/15/92
 /CONTACT: James J. O'Malley, vice president and chief financial officer of Geriatric & Medical Centers, Inc., 215-748-8852, or Stan Froelich of Cameron Associates, 212-644-9560, for Geriatric & Medical Centers, Inc./
 (GEMC) CO: Geriatric & Medical Centers, Inc. ST: Pennsylvania IN: HEA SU: ERN


PS-OS -- NY037 -- 0144 09/16/92 12:50 EDT
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Date:Sep 16, 1992
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