NU-MED INC. REPORTS RESULTS
NU-MED INC. REPORTS RESULTS ENCINO, Calif., July 29 /PRNewswire/ -- Nu-Med Inc.
(NASDAQ: NUMS) today reported a net loss of $12,285,000, or $1.34 a share, for the fourth fiscal quarter ended April 30, 1992. These results included non-recurring charges totaling $8,180,000, of which $7,323,000 represented the writedown of three psychiatric hospital projects which the company no longer has the financial resources to develop.
Net income for the fourth quarter of the prior year of $28,246,000 ($3.06 primary and $2.67 fully diluted earnings per share), included a pre-tax gain of $31,228,000 from the sale of three hospitals, an extraordinary gain of $8,310,000 from the repurchase and retirement of debentures and a tax benefit from the utilization of net operating losses. Net revenues for the current fourth quarter declined to $34,176,000 from $54,296,000 due primarily to the sale of the three hospitals last year. For the fiscal year ended April 30, 1992, the company sustained a net loss of $37,579,000, or $4.18 per share, primarily as the result of a $19 million restructuring charge reported in the third quarter, the losses of approximately $9 million from one acute care hospital which was closed subsequent to year end and the factors previously noted with respect to the fourth quarter performance. Nu-Med recorded net income in fiscal 1991 of $22,381,000 ($2.39 primary and $2.12 fully diluted earnings per share), primarily attributable to the gains on asset sales, debenture repurchases and utilization of tax benefits. Net revenues for fiscal 1992 declined to $123,899,000 from $247,722,000, mainly reflecting the prior year's hospital sales. Interest expense for fiscal 1992 declined $15 million, or 44 percent, attributable to the use of proceeds from the aforementioned asset sales to repay indebtedness. Subsequent to year end, Nu-Med closed Medical Center of La Mirada and placed its license in suspense. The company reported that it has reached a tentative agreement with the lessor, Medical Properties Inc. ("MPI"), subject to MPI lender and stockholder approval, under which the leases on the hospital and its associated medical office building would be terminated in exchange for a secured note of approximately $4.4 million representing one year's rent. Another subsequent event was the announcement on June 1, 1992, of the completion of the sale by a wholly owned subsidiary of three psychiatric hospitals aggregating 259 beds to a wholly owned subsidiary of The Cooper Companies Inc. The company indicated that it expected the transaction to result in a pretax gain of approximately $6 million, which will be included in its first fiscal quarter ending July 31, 1992. The company stated that it continues to experience problems in meeting its obligations to trade creditors. Although proceeds from the sale of the psychiatric hospitals were used to further reduce long-term indebtedness, the company anticipates substantial difficulty in meeting scheduled payments of principal and interest on its long-term debt and debentures during the current year. The company has engaged advisers to identify and assist in the implementation of possible modifications of the company's indebtedness. However, such modifications will be subject to negotiations with debenture holders and other creditors and will require approval from others. As a result, there can be no assurance that any such transactions will be consummated. As a result of the company's operating losses, net stockholders' capital deficiency and its difficulty in generating sufficient cash flow to meet its future obligations, the company's independent auditors, Deloitte & Touche, have questioned the company's ability to continue as a going concern. The auditor's report also contains an uncertainty concerning the outcome of certain litigation involving the company. Nu-Med Inc. is a nationwide health care services company. NU-MED INC. AND SUBSIDIARIES Selected Financial Data Year ended April 30, Quarter ended April 30, 1992 1991 1992 1991 (Unaudited) Net revenues $123,899,000 $247,722,000 $34,176,000 $54,296,000 Earnings (loss) before extraordinary items ($40,194,000) $12,832,000 ($13,332,000) $19,936,000 Net earnings (loss) ($37,579,000) $22,381,000 ($12,285,000) $28,246,000 Earnings (loss) per share before extraordinary items: Primary ($4.46) $1.36 ($1.48) $2.16 Fully diluted ($4.46) $1.21 ($1.48) $1.88 Net earnings (loss) per share: Primary ($4.18) $2.39 ($1.34) $3.06 Fully diluted ($4.18) $2.12 ($1.34) $2.67 -0- 7/29/92 /CONTACT: Kenneth E. Rappoport, vice chairman of Nu-Med, 818-990-2000; or Melvyn S. Rifkind of Melvyn S. Rifkind Inc., 818-783-8323, for Nu-Med/ (NUMS) CO: Nu-Med Inc. ST: California IN: HEA SU: ERN
LS-JL -- LA004 -- 4437 07/29/92 09:01 EDT
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|Date:||Jul 29, 1992|
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