HELIAN HEALTH GROUP INC. TO ACCOUNT FOR ITS AUSTIN OPERATION AS AN ASSET HELD FOR SALE
HELIAN HEALTH GROUP INC. TO ACCOUNT FOR ITS
AUSTIN OPERATION AS AN ASSET HELD FOR SALE
MONTEREY, Calif., Nov. 13 /PRNewswire/ -- Helian Health Group Inc. (NASDAQ: HHGR) announced today that it will, for accounting purposes, treat its Austin occupational health care operation as an asset held for sale. This decision will cause a one-time pre-tax charge against earnings of approximately $300,000 ($180,000 after tax) to be posted in the company's report of its fourth quarter and Fiscal 1991 results.
Thomas D. Wilson, president of Helian said, "Today's action was taken in order to align our accounting with the reality of our Austin operation's situation. We previously announced our intention to remove this operation from our business portfolio -- and today's action confirms that commitment."
Addressing the one-time charge to earnings, Wilson said, "This charge is expected to reduce our fourth quarter earnings to 2 to 3 cents per share. However, by taking this charge now, we will not have to continue to distort reports of our operational results and thereby cloud the good job our other operations are doing. We believe that this charge will allow us to complete the work to sell our facilities in Austin with little probability of having to 'write off' additional amounts next year."
Helian Health Group Inc. specializes in two modern methods of providing health care:
Surgery Centers: Helian operates one ambulatory surgical center (Palo Alto, Calif.) and is developing another in Northridge, Calif. The company is also developing two Recovery Inns(SM) (Los Gatos and Menlo Park, Calif.) that will enable patients to undergo surgery and to recuperate in a hotel-like setting.
Occupational Health Care Centers: With this change, Helian will operate 11 occupational health care centers in three states (Ariz., Calif., and Ga.) -- and is beginning operations at its new MRI unit in Atlanta.
Helian Health Group Inc. constantly searches for innovative ways to provide cost-effective health care services.
/CONTACT: J. Spencer Davis of Helian Health Group Inc., 408-646-9000/
(HHGR) CO: Helian Health Care Group Inc. ST: California IN: HEA SU: RM -- SJ002 -- 3774 11/13/91 09:03 EST