GRANCARE REPORTS HIGHER 1991 REVENUES AND NET EARNINGS
GRANCARE REPORTS HIGHER 1991 REVENUES AND NET EARNINGS CULVER CITY, Calif., March 2 /PRNewswire/ -- GranCare Inc.
(NASDAQ: GRNC) today reported higher revenues and net earnings for the fourth quarter and year ended Dec. 31, 1991.
Net income for the 1991 12 months was $3.8 million, or $.69 per share, compared with a net loss of $14.1 million, in 1990. Revenues advanced to $174.8 million, a five-fold increase from $35.3 million in the prior year. For the three months ended Dec. 31, 1991, GranCare reported net income of $2.0 million, or $.30 per share, compared with $59,000 for the prior year fourth quarter. Revenues for the period increased to $63.8 million from $7.5 million in the fourth quarter of 1990. Prior year comparisons are not meaningful, since the company's historical financial results are not indicative of ongoing operations. Included in the 1991 fourth quarter results is an $892,000 reduction of interest expense resulting from forgiveness of certain accrued interest. Gene E. Burleson, president and chief executive officer, stated, "Results for 1991, particularly the fourth quarter, are a successful beginning and significant representation of GranCare as we know it today." "The contributions of our last two acquisitions underscore our capabilities to strategically grow the business and enhance profitability. Additionally, the market demand for quality long-term health care facilities is extremely strong and the demographics are in favor of this trend. We expect another excellent year ahead, exclusive of acquisition opportunities that may provide an additional growth stimulus," Burleson added. Per share earnings figures for the year ended Dec. 31, 1991 are based on approximately 5.5 million shares of common stock and common stock equivalents outstanding, which reflects the weighting of the 2.7 million shares issued by the company in connection with its initial public offering from the date of issuance, Oct. 31, 1991. The offering of 3.1 million shares -- 2.7 million of which were sold by the company,including shares subject to the underwriters' overallotment option -- resulted in net proceeds to GranCare of approximately $26 million. GranCare operates 59 long-term health care facilities located in California, Wisconsin, Colorado, Arizona and Illinois, as well as four pharmacies. GRANCARE INC. Condensed Consolidated Results of Operations(a) (In thousands, except per share data) Three months ended Year ended Dec. 31, Dec. 31, 1991 1990 1991 1990 Net revenues $63,762 $7,497 $174,762 $35,307 Income (loss) before income taxes 3,643 59 6,347 (14,122) Income taxes 1,647 --- 2,539 --- Net income (loss) $1,996 $59 $3,808 ($14,122) Net income per common share (primary and fully diluted) $.30 --- $.69 --- Average number of primary common and equivalent shares outstanding 6,685 --- 5,496 --- (a) Prior-year comparisons are not meaningful since the company's historical financial results are not indicative of ongoing operations. The company completed two significant acquisitions in December 1990 and September 1991. -0- 3/2/92 /CONTACT: Gene E. Burleson, president and CEO of GranCare, 310-645-1555; or Craig A. Parsons or Kim P. Feazle of Rifkind Pondel & Parsons, 310-207-9300, for GranCare/ (GRNC) CO: GranCare Inc. ST: California IN: HEA SU: ERN
KJ-JL -- LA005 -- 4048 03/02/92 14:17 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 2, 1992|
|Previous Article:||SPRINT SIGNS AGREEMENT TO ASSIST NEW YORK|
|Next Article:||R.R. DONNELLEY AND G.A. PINDAR FORM FINANCIAL PRINTING JOINT VENTURE IN THE UNITED KINGDOM|