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New York Health Care Announces Second Quarter Results.

BROOKLYN, N.Y.--(BUSINESS WIRE)--Aug. 13, 1999--

New York Health Care, Inc. (Nasdaq SmallCap Market: NYHC; BSE: NYH), a licensed home health care agency, today announced financial results for the three and six month periods ended June 30, 1999 (see attached table).

The 4.2% revenue gain was primarily due to the ramp up of home health care services to New York City's Medicaid patients under a multi-million contract with the City of New York's Human Resources Administration (the "HRA business"). To a lesser extent, the increase was attributable to higher levels of business in New Jersey related to acquisitions consummated in 1998 and 1999. Excluding the HRA business, New York revenues were down as one hospital customer ceased providing home care services, another experienced regulatory problems (which have since been resolved), and because of decreased hours provided under other contracts.

"After incurring a loss on the HRA component of our business during the first quarter as we built the infrastructure to support the contract from the City of New York, we substantially narrowed the loss on that business in the second quarter. As best as we can now determine, the HRA business will contribute favorably to our bottom-line in the third quarter and beyond," stated Jerry Braun, New York Health Care's President & CEO. "There were several issues that we confronted in the second quarter that accounted for most of the net loss, specifically the slowdown in non-HRA New York revenues, higher direct cost of professional care, and excess staffing at the branches experiencing reduced volume. Wherever possible, we have and will continue to reduce professional care costs and streamline branch operations. We believe that this along with our increased marketing efforts will have a positive impact on New York Health Care's performance in the second half of the year."

Separately, the Company reported that at the end of July 1999, it converted $100,000 of its note payable to Heart to Heart Health Care Services into 110,375 shares of Series A Convertible Preferred Stock. This exchange will have a positive effect on future cash flows and increase the Company's tangible net worth to ensure continued trading on the Nasdaq Small Cap. Mr. Braun noted that the Heart to Heart note holders are officers, directors and large shareholders of New York Health Care. "This action speaks volumes about our confidence in our ability to secure new contracts, consummate and integrate additional acquisitions, and in general achieve growth and prosperity over the quarters and years ahead."

This press release contains forward-looking statements. The words "believe," "expect," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

New York Health Care, a JCAHO accredited provider, is engaged primarily in supplying services of paraprofessionals who provide a broad range of health care support services to patients in their homes. The Company operates in all five boroughs of New York City and the counties of Nassau, Westchester, Rockland, Orange, Dutchess, Ulster, Putnam and Sullivan in New York State. It also services patients in New Jersey's Bergen, Essex, Hudson, Monmouth, Morris, Ocean, Passaic, Sussex, Somerset and Union counties. -0-
 NEW YORK HEALTH CARE, INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)

 For The Three Months
 Ended June 30,

 1999 1998
 ---- ----

Net patient service revenue $ 5,534,358 $ 5,311,400
 ----------- -----------

Expenses:
 Professional care of patients 3,984,693 3,639,736
 General and administrative 1,599,977 1,308,841
 Bad debts expense 43,824 15,000
 Depreciation and amortization 74,118 56,658
 ----------- -----------
 Total operating expenses 5,702,612 5,020,235
 ----------- -----------

Income (loss) from operations (168,254) 291,165
 ----------- -----------

Non-operating income (expenses):
 Interest income --- 12,216
 Other income --- 5,090
 Interest expense (79,579) (96,330)
 ----------- -----------
 Non-operating income
 (expenses), net (79,579) (79,024)
 ----------- -----------
Income (loss) before provision
 (credit) for income taxes (247,833) 212,141
 ----------- -----------
Provision (credit) for income taxes:
 Current (109,000) 93,200
 Deferred (2,000) ---
 ----------- -----------
 (111,000) 93,200
 ----------- -----------

Net income (loss) $ (136,833) $ 118,941
 =========== ===========

Dividends declared on preferred stock --- ---
 =========== ===========

Net income (loss) applicable to
 Common stock $ (136,833) $ 118,941
 =========== ===========

Basic and diluted earnings (loss)
 per share $ (.04) $ .03
 =========== ===========

Weighted average shares outstanding 3,688,230 3,753,104
 =========== ===========

Diluted weighted average
 shares outstanding 3,688,230 3,757,489
 =========== ===========


 For The Six Months
 Ended June 30,

 1999 1998
 ---- ----

Net patient service revenue $10,619,403 $ 9,887,266
 ----------- -----------

Expenses:
 Professional care of patients 7,630,315 6,861,397
 General and administrative 3,079,637 2,414,907
 Bad debts expense 58,824 15,000
 Depreciation and amortization 136,667 94,200
 ----------- -----------
 Total operating expenses 10,905,443 9,385,504
 ----------- -----------

Income (loss) from operations (286,040) 501,762
 ----------- -----------

Non-operating income (expenses):
 Interest income --- 31,770
 Other income --- 14,090
 Interest expense (162,011) (151,437)
 ----------- -----------
 Non-operating income
 (expenses), net (162,011) (105,577)
 ----------- -----------
Income (loss) before provision
 (credit) for income taxes (448,051) 396,185
 ----------- -----------
Provision (credit) for income taxes:
 Current (200,000) 164,000
 Deferred (3,000) ---
 ----------- -----------
 (197,000) 164,000
 ----------- -----------

Net income (loss) $ (251,051) $ 232,185
 =========== ===========

Dividends declared on preferred stock --- 13,500
 =========== ===========

Net income (loss) applicable to
 Common stock $ (264,551) $ 232,185
 =========== ===========

Basic and diluted earnings (loss)
 per share $ (.07) $ .06
 =========== ===========

Weighted average shares outstanding 3,690,235 3,751,177
 =========== ===========

Diluted weighted average
 shares outstanding 3,690,235 3,753,380
 =========== ===========
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