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GERIATRIC & MEDICAL CENTERS REPORTS SIX MONTHS RESULTS, RECORD REVENUES AND A 57.6 PERCENT INCREASE IN NET INCOME

 GERIATRIC & MEDICAL CENTERS REPORTS SIX MONTHS RESULTS,
 RECORD REVENUES AND A 57.6 PERCENT INCREASE IN NET INCOME
 PHILADELPHIA, Jan. 15 /PRNewswire/ -- Geriatric & Medical Centers, Inc. (NASDAQ: GEMC) today reported record revenues and a continued trend of profitability and improved financial strength.
 Net revenues for the second quarter of fiscal 1992, ended Nov. 30, 1991, increased 16.4 percent to $41,088,000 compared with $35,314,000 reported last year. Net income was $2,015,000, or $.16 per share, compared with prior year net income of $2,239,000 or $.18 per share, which included an extraordinary gain of $655,000 or $.05 per share. Net income for fiscal 1992 second quarter included non-operating income of $3,080,000 and nonrecurring expenses of $922,000. Net income for fiscal 1991 second quarter included non-operating income of $2,227,000. Operating income after interest expense for the second quarter of fiscal 1992 was $1,200,000 compared with $12,000 for the same period last year.
 Net revenues for the six months ended Nov. 30, 1991 increased 13.3 percent to $81,187,000 compared with $71,682,000 for the same period last year. Net income for the six months increased 57.6 percent to $2,559,000 or $.21 per share compared with $1,624,000 or $.13 per share for the corresponding period last year. Net income for the first half of fiscal 1992 included net non-operating income of $3,122,000 and nonrecurring expenses of $922,000. Net income for the first half of fiscal 1991 included non-operating income of $2,407,000 and an extraordinary gain of $655,000 or $.05 per share. Operating income after interest expense for the first six months of fiscal 1992 was $1,954,000 compared with a loss of $783,000 for the same period last year.
 Daniel Veloric, chairman of the board and president, stated, "Despite a weak economy, we benefited from reduced interest costs and improved revenues as we diversified the core business." He added, "As previously announced, effective Nov. 30, 1991, the company entered into an agreement with a financial institution to sell, on a continuing basis, up to $25 million of certain qualifying accounts receivable. The agreement provides the company with additional working capital to support the growth of its service companies and was instrumental in meeting a reduction in bank group debt that was due Dec. 31, 1991." He further added, "It is anticipated that future reductions agreed to in a two-year bank group agreement signed Aug. 30, 1991, will be made either by selling or refinancing certain assets. To assist the company, investment advisors have been retained, but there is no assurance that a restructuring of bank group debt can be completed as required."
 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
 (Unaudited -- in thousands, except per share amounts)
 Three Months Six Months
 Periods ended Nov. 30; 1991 1990(A) 1991 1990(A)
 Operating revenues, net $41,088 $35,314 $81,187 $71,682
 Operating income 3,600 2,551 6,880 4,540
 Interest expense, net (2,400) (2,539) (4,926) (5,323)
 Operating income (loss)
 after interest 1,200 12 1,954 (783)
 Provision for sale
 of accounts receivable (922)(B) -- (922)(B) --(D)
 Non-operating income, net 3,080(C) 2,227(D) 3,122(C) 2,407(D)
 Income before taxes &
 extraordinary item 3,358 2,239 4,154 1,624
 Deferred income
 tax provision 1,343 655 1,661 655
 Income before
 extraordinary item 2,015 1,584 2,493 969
 Extraordinary item -
 utilization of net
 operating loss
 carryforwards -- 655 66 655
 Net income 2,015 2,239 2,559 1,624
 Earnings Per Common Share:
 Income before
 extraordinary item $.16 $.13 $.20 $.08
 Extraordinary item -- .05 .01 .05
 Net income .16 .18 .21 .13
 Average common
 shares outstanding 12,062 12,051 12,062 12,051
 (A) -- Reclassified for comparative purposes. Per common share and
 average common shares outstanding data was retroactively restated
 for the five-for-four stock split issued May 20, 1991.
 (B) -- Includes interest expense, servicing costs, attorney fees and
 other administrative costs.
 (C) -- Principally, recognition of deferred income related to assets
 previously sold.
 (D) -- Principally, gain on sale of a nursing home facility.
 -0- 1/15/92
 /CONTACT: Robert F. Carfagno, chief financial officer of Geriatric & Medical Centers, 215-748-8868; or Stan Froelich of Cameron Associates, 212-644-9560, for Geriatric & Medical Centers/
 (GEMC) CO: Geriatric & Medical Centers, Inc. ST: Pennsylvania IN: HEA SU: ERN


SM-JT -- NY042 -- 9974 01/15/92 12:01 EST
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