NATIONAL HERITAGE REPORTS FIRST QUARTER RESULTS
NATIONAL HERITAGE REPORTS FIRST QUARTER RESULTS DALLAS, Nov. 13 /PRNewswire/ -- National Heritage, Inc. (NYSE: NHR)
today reported net income of $26,000 for the first fiscal quarter of 1992, vs. a net loss of ($57,000) in the comparable period a year earlier. First quarter revenues totalled $12.5 million compared to $14.1 million in the same period a year ago.
The decrease in revenues was primarily a result of lower management and accounting fees earned in fiscal 1992, as compared to the prior fiscal year, due to a reduction in the number of nursing homes managed. To bring costs in line with reduced revenues, management reduced general and administrative expenses by 24 percent, compared to the first quarter of fiscal 1991. First quarter earnings were adversely affected by an additional provision of $143,000 which primarily related to estimated losses associated with the settlement of the Southmark preference claims. During the latter part of October, the company purchased a 99-bed nursing home in South Des Moines, Iowa. Chairman Robert M. Galecke commented, "We are encouraged by the revenue and profitability potential of this facility." Galecke added, "We believe the company has made important strides in increasing its visibility within the nursing home industry. We will continue to identify and qualify new business opportunities through our concentrated marketing efforts." National Heritage also reported that the company was notified that management contracts for 10 nursing homes will be terminated during the second and third fiscal quarters of 1992. The company has reduced its field operations staff, and is currently assessing its overall cost structure to further adjust operating expenses due to the loss of these revenues. The subject properties accounted for approximately 2 percent of total fee revenue during fiscal 1991. National Heritage, Inc. is one of the nation's leading manager/operators of long term care facilities for the elderly. NATIONAL HERITAGE, INC. Financial Highlights (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended September 30, 1991 1990 Revenues $12,524 $14,141 Earnings (loss) before income tax provision (benefit) 59 (75) Income tax provision (benefit) 33 (18) Net earnings (loss) 26 (57) Earnings (loss) per share of common stock $ -- $ -- Number of shares used in computing per share amounts 16,890 16,890 -0- 11/13/91 /CONTACT: Vicki Bolton of National Heritage, 214-233-3900/ (NHR) CO: National Heritage, Inc. ST: Texas IN: HEA SU: ERN KD -- NY090 -- 4114 11/13/91 16:46 EST
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|Date:||Nov 13, 1991|
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