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 MONTEREY, Calif., Oct. 13 /PRNewswire/ -- Helian Health Group Inc. (NASDAQ-NMS: HHGR) reported today that, principally due to the one-time charges connected with the previously announced closing of Recovery Inn of Los Gatos (approximately $3.2 million) and other restructuring charges (approximately $2.3 million), the company lost $3.7 million (68 cents loss per share) in its third fiscal quarter of 1993. The third quarter loss compares with a profit of $595,000 in the similar quarter of fiscal 1992.
 Third quarter revenue increased 17 percent and first nine-months 1993 revenue increased 19 percent while the nine-month net loss was $3.3 million compared with income of $1.6 million last year.
 Excluding the one-time charges mentioned above, Helian's third quarter and nine-month results were reduced by significant operating losses from the Recovery Inn of Los Gatos and costs associated with the company's start-up facilities.
 The Recovery Inn of Los Gatos had been operating for 15 months and had sustained substantial losses. The company believes that the losses sustained by the Recovery Inn of Los Gatos resulted from causes unique to that facility and its local market, and that its closure will not impact Helian's other surgery operations.
 Lastly, in July of this year, Helian announced an agreement in which the largest hospital in the Salinas, area became the company's partner in the Salinas Surgery Center. The center opened and began serving patients in July.
 Helian Health Group Inc. is a progressive medical services company that concentrates on specialty surgical centers and occupational health care.
 Helian is dedicated to finding ways to lower the high cost of medical services. Its surgical and occupational health operations provide high quality medical services at affordable prices.
 Surgery Operations
 Helian operates four surgical facilities in California: Surgecenter of Palo Alto, the Northridge Surgery Center, the Salinas Surgery Center, and a surgical specialty hospital -- the Recovery Inn(SM) of Menlo Park.
 Occupational Health Care
 Helian is the dominate provider of occupational health care in Tuscson, Ariz.; Fresno, Calif.; and Alanta, Ga. The company has more than 10,000 employer clients and attends to more than 250,000 patient visits per year.
 Helian Health Group Inc.
 Financial Highlights (Unaudited)
 Three MonE?nded Aug. 31
 1993 1992 Change
 Revenue $8,782,000 $7,519,000 + 17 percent
 Operating income
 (loss) $(5,918,000) 970,000 NM
 Net income (loss) $(3,720,000) $595,000 NM
 Earnings (loss)
 per share $(0.68) $0.11 NM
 Cash flow(A) $(2,847,000) $1,105,000 NM
 Share equivalents 5,451,760 5,421,481 + 1 percent
 Patients visits 75,702 66,013 15 percent
 Nine Months Ended Aug. 31
 1993 1992 Change
 Revenue $24,642,000 $20,660,000 19 percent
 Operating income
 (loss) $(5,296,000) $2,670,000 NM
 Net income (loss) $(3,315,000) $1,616,000 NM
 Earnings (loss)
 per share $(0.62) $0.30 NM
 Cash flow(A) $(850,336) $3,086,000 NM
 Share equivalents 5,382,908 5,424,969 + 0 percent
 Patients visits 204,000 180,188 + 13 percent
 (A) Cash flow is defined as net income plus Depreciation
 -0- 10/13/93
 /CONTACT: J. Spencer Davis, vice president, Investor and Media Relations of Helian Health Group, 408-646-9000/

CO: Helian Health Group Inc. ST: California IN: HEA SU: ERN

RB-JH -- SE010 -- 1920 10/13/93 17:58 EDT
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Publication:PR Newswire
Date:Oct 13, 1993

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