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 VALLEY FORGE, Pa., Aug. 9 /PRNewswire/ -- NovaCare, Inc. (NYSE: NOV) today announced record results for the fourth quarter and fiscal year ended June 30, 1993. Net income for the quarter totaled $14.5 million, or $.29 per share, which compared to $11.5 million or $.23 for the fourth quarter of fiscal 1992. Net income for the year was a record $46.8 million or $.93 per share, compared to $37.5 million or $.75 per share for fiscal 1992.
 For the fourth quarter, net revenues totaled $152.9 million, a 41 percent increase over the fourth quarter of fiscal 1992. Income from operations was $25.6 million, which compared to $17.3 million for the comparable quarter in 1992.
 For fiscal 1993, net revenues increased 40 percent to $539.1 million. Income from operations increased 37 percent to $79 million. Both years included nonrecurring charges. Income from operations in fiscal 1993 reflected a $5.7 million nonrecurring charge for restructuring expenses, and fiscal 1992 results reflected $4.7 million of merger and other nonrecurring expenses. Fiscal 1993 net income before nonrecurring expenses totaled $1 per share, compared to net income before nonrecurring expenses of $.83 per share in fiscal 1992.
 "Each of our business contributed to the record fourth quarter performance," said John H. Foster, chairman and chief executive officer. "The aging population, advances in medical technology and the need for cost effective quality patient care services continue to fuel the demand for NovaCare's rehabilitation services. We look forward to another strong year in fiscal 1994."
 The company reported that in the fourth quarter a record 777 full- time equivalent therapists were hired in contract services, the company's largest business. Full-time equivalent therapists increased 46 percent over the course of the year and totaled more than 4,600 at June 30, 1993. Therapist turnover was 26 percent for the quarter, compared to 24 percent in the same period in 1992.
 Occupancy in NovaCare's seven acute rehabilitation hospitals increased to 62 percent in the fourth quarter from 60 percent a year earlier, and average revenue per patient day also increased as a result of the successful expansion of specialty programs and outpatient business. The volume of patient visits to the company's orthotic and prosthetic patient care centers increased substantially from third quarter levels. Fourth quarter patient visits were essentially even with the near record level in the same period a year ago.
 "Our 1993 performance is particularly noteworthy because we were able to grow net income by 25 percent while making important investments in management, technology, new programs and training," said Mr. Foster. "These investments are focused on ensuring that NovaCare is a winner in the evolving health care delivery system. We believe that to be a winner, you must have clinical leadership, be the low cost provider of a continuum of services and command significant local market presence. Our strategies are focused on these keys to success."
 The company's performance also improved on a consecutive quarter basis. Compared with the third quarter (adjusted for nonrecurring expenses), net revenues and income from operations for the fourth quarter increased 10 percent and 23 percent, respectively. Net income for the fourth quarter of $.29 per share compared to an adjusted $.22 per share in the third quarter.
 NovaCare, Inc. is the nation's largest provider of rehabilitation therapy services on a contract basis to health care institutions and is the leading provider of orthotic and prosthetic patient care services in the United States. The company operates seven acute rehabilitation hospitals and six community integrated programs and, following the expected completion of the previously announced acquisition of Rehabilitation Hospital Corporation of America, will operate an additional five rehabilitation hospitals and four freestanding outpatient facilities. NovaCare's employees treat more than 25,000 per day.
 Condensed Consolidated Statements of Operations
 (Unaudited, in thousands except share related data)
 Three Months Ended Fiscal Year Ended
 June 30 March 31 June 30
 1993 1992(A) 1993(A) 1993(A) 1992(A)
 Net revenues $152,907 $108,807 $139,325 $539,072 $385,099
 Cost of services 102,583 72,967 95,556 367,224 261,955
 Gross profit 50,324 35,840 43,769 171,848 123,144
 SG&A expenses 24,768 17,832 23,067 87,136 60,558
 Merger and other non-
 recurring expenses --- 741 5,727 5,727 4,730
 Income from opers. 25,556 17,267 14,975 78,985 57,856
 Other income
 (expense), net (2,299) (148) (2,014) (4,980) (1,009)
 Income before income
 taxes 23,257 17,119 12,961 74,005 56,847
 Income taxes 8,737 5,595 5,458 27,230 19,353
 Net income 14,520 11,524 7,503 46,775 37,494
 Net income per share 0.29 0.23 0.15 0.93 0.75
 Weighted average
 number of shares
 outstng. 50,174,347 50,131,595 50,533,454 50,443,241 50,249,638
 (A) Reclassified to conform to fourth quarter presentation.
 -0- 8/9/93
 /CONTACT: Susan J. Campbell, director - investor relations, of NovaCare, 215-992-7425, or Anthony J. Russo, Ph.D., of Noonan/Russo Communications, Inc., 212-696-4455/

CO: NovaCare, Inc. ST: Pennsylvania IN: HEA SU: ERN

MP-LG -- NY020 -- 0677 08/09/93 10:32 EDT
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Publication:PR Newswire
Date:Aug 9, 1993

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