NU-MED INC. REPORTS RESULTS
NU-MED INC. REPORTS RESULTS ENCINO, Calif., Sept. 14 /PRNewswire/ -- Nu-Med Inc.
(NASDAQ: NUMS) today reported net income of $9,000 for the first fiscal quarter ended July 31, 1992. The results included a gain of $5,216,000 from the sale of three psychiatric hospitals on May 29, 1992. For the corresponding prior-year period, the company had reported a net loss of $770,000 after an extraordinary gain of $846,000 from the repurchase of debentures. On a per share basis, the loss for the current first quarter was $.01 vs. a loss of $.19 for the prior-year period.
Net revenues for the latest reporting period declined to $17,986,000 from $30,946,000 last year, primarily resulting from the aforementioned sale of the psychiatric facilities. The company said losses at Medical Center of La Mirada, which was closed on May 15, 1992, approximated those of the first quarter of last year, because of costs related to the closing. The company added that it expected a substantial reduction in the loss at Medical Center of La Mirada in the second quarter. Subsequent to the close of the first quarter, Nu-Med completed payment of its obligations under certain stock price guarantees with proceeds from the collection of a long-term note. As a result, collateral for the stock price guarantees of 766,431 common shares, and $3,230,000 in face value of debentures, will be returned and retired. The retirement of the debentures will result in a pre-tax extraordinary gain of approximately $1.2 million to be reported in the second quarter. Nu-Med stated that it continues to experience substantial difficulty in meeting obligations to its creditors, including trade creditors, lessors and lenders. It said further that it does not presently have the funds to make interest payments on its debentures due in September 1992. The company has engaged advisers to identify and assist in implementation of possible modifications of its indebtedness. Such modifications would be subject to negotiations with debenture holders and other approvals. Nu-Med Inc. is a nationwide health care services company. NU-MED INC. AND SUBSIDIARIES Selected Financial Data (Unaudited) Quarter Ended July 31, 1992 1991 Net revenues $17,986,000 $30,946,000 Earnings (loss) before extraordinary items $9,000 ($1,616,000) Net earnings (loss) $9,000 ($770,000) Earnings (loss) per share before extraordinary items: Primary ($0.01) ($0.19) Fully diluted ($0.01) ($0.19) Net earnings (loss) per share: Primary ($0.01) ($0.09) Fully diluted ($0.01) ($0.09) -0- 9/14/92 /CONTACT: Kenneth E. Rappoport, vice chairman of Nu-Med, 818-990-2000; or Melvyn S. Rifkind of Melvyn S. Rifkind Inc., 818-783-8323/ (NUMS) CO: Nu-Med Inc. ST: California IN: HEA SU: ERN
JL-LS -- LA008 -- 8946 09/14/92 09:16 EDT
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|Date:||Sep 14, 1992|
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