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GRANCARE POSTS RECORD FIRST QUARTER REVENUES; NET INCOME UP 67 PERCENT

 CULVER CITY, Calif., April 29 /PRNewswire/ -- GranCare Inc. (NASDAQ: GRNC) today reported record revenues and sharply higher net income for its first quarter ended March 31, 1993, compared with a year ago. Revenues for the period, seasonally the slowest of the year, rose to $103.3 million, up 67 percent from $62.0 million a year earlier. The company achieved first quarter net income of $3.0 million, up 67 percent from $1.8 million in the first quarter last year.
 Per share results of $.29, both on a primary and fully diluted basis, were up 32 percent, compared with the $.22 per share results for the first quarter of 1992. This earnings per share increase was achieved even though in the current quarter there were 26 percent more shares outstanding on a primary basis and 44 percent more shares outstanding on a fully diluted basis. The share increases reflect a secondary public offering of 1.4 million shares by the company completed in May 1992, and the issuance of 712,551 shares in connection with an October 1992 acquisition, as well as the effect (on a fully diluted basis) of a $60 million convertible debenture offering completed in January 1993.
 "Results for the quarter indicate the continued success of our operating strategy," said Gene E. Burleson, president and chief executive officer. "We now operate 44 percent more beds than a year ago and provide a significantly greater array of services to patients at Grancare and other long-term care facilities. We intend to continue implementing this strategy in the months and years ahead."
 The company announced last week that it completed four acquisitions with an aggregate value of approximately $13 million. These included two long-term care facilities and two therapy service companies. In addition, Grancare is in various stages of negotiation, regarding the acquisition of 10 facilities in the Midwest, as well as a large institutional pharmacy business in the eastern United States.
 The company operates 83 long-term health care facilities located in California, Michigan, Wisconsin, Colorado, Arizona and South Dakota; four institutional pharmacies; home health care operations; and a range of rehabilitation services.
 GRANCARE INC.
 Condensed Consolidated Results of Operations
 (In thousands, except per share data)
 (Unaudited)
 Three months ended
 March 31,
 1993 1992
 Net revenues $103,271 $62,016
 Income before
 income taxes 4,831 3,004
 Income taxes 1,836 1,190
 Net income $2,995 $1,814
 Net income per
 common share
 (primary and
 fully diluted) $.29 $.22
 Average number of
 common and common
 equivalent shares
 outstanding
 Primary 10,364 8,232
 Fully diluted 11,894 8,265
 -0- 4/29/93
 /CONTACT: Gene E. Burleson, president and CEO, or Catherine I. Greany, of GranCare, 310-645-1555; or Cecilia A. Wilkinson or Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for GranCare/
 (GRNC)


CO: GranCare Inc. ST: California IN: HEA SU: ERN

BP-JL -- LA015 -- 2464 04/29/93 09:00 EDT
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Publication:PR Newswire
Date:Apr 29, 1993
Words:484
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