Net Income Of $0.09 Per Share Excluding Non-Recurring Items
LOUISVILLE, Ky., Jan. 28 /PRNewswire/ -- Caretenders HealthCorp
(Nasdaq: CTND) today reported its financial results for the quarter ended
December 31, 1998 and announced the disposition of certain non-strategic
operations.
For the quarter ended December 31, 1998 the Company reported net income
from operations (excluding one-time items) of $269,744 or $0.09 per share
versus net income of $410,404 or $0.13 per share in the prior year. Including
a one-time gain from settlement of litigation with Columbia/HCA of $793,000,
net income per share was $0.34 The lower operating results were principally
due to the impact of the Interim Payment System for Medicare home health
services legislated by the Balanced Budget Act of 1997. Revenues rose 6% to
$24,821,022 over the same period last year.
William B. Yarmuth, Chairman and CEO, commented: "The positive effects of
our restructuring actions have improved our operating results from the prior
quarter. We continue to focus our efforts in our Home Health business on
operating under the new Interim Payment System and still see room for
improvement in most of our markets."
The Company also announced the sale of its Richmond, Va., nursing
operations and the closing of its Boston, Ma, home medical equipment
operations. The Company expects to report a fourth quarter after-tax charge
not to exceed $1 million related to these dispositions. For the quarter and
nine-months ended December 31, 1998, the effected operations generated
revenues of $1.2 million and $3.7 million and contributed pre-tax losses of
$244,000 and $476,000, respectively.
In other news, the Company announced that it has been notified by Nasdaq
and requested a hearing concerning listing qualifications for the National
Nasdaq market system. The Company currently does not meet the minimum public
float requirement of $5 million. Should the Company be unable to meet the
requirements of Nasdaq its stock would move from the National market system to
the Nasdaq SmallCap Market.
Mr. Yarmuth concluded, "Over the last several months we have been focused
on operating our Company under the new reimbursement environment. We continue
to believe that home healthcare is a vital piece of the health system in this
country. Furthermore, we believe that our Adult Day Care operations will
serve as a model for a new way to address the needs of the senior population.
Our goal will continue to be to offer the quality services we think are
necessary to allow seniors to remain outside of institutionalized care for as
long as possible."
Financial Results for the Quarter and Nine-Months Ended December 31, 1998:
Quarter Ended December 31,
1998 1997 Change %
Net Revenues $ 24,821,022 $23,436,107 $ 1,384,9l5 5.9%
Net income (loss) from
operations before
non-recurring
items $ 269,744 $ 410,404 $ (140,660) NM
Non-recurring items:
Goodwill write-down, net
of tax -- -- --
Cumulative effect on prior
years of change in
accounting principle, net
of tax -- -- --
Restructuring Charge, net
of tax -- -- --
Litigation Settlement Gain,
net of tax 793,125 -- 793,125
Reported Net Income
(loss) $ 1,062,869 $ 410,404 $ 652,465 NM
Weighted Average Shares Outstanding
Basic 3,120,413 3,119,436 977 0.0%
Diluted 3,172,568 3,143,945 28,623 0.9%
Earnings Per Share - Basic
Net income (loss) from
operations $ 0.09 $ 0.13 $ (0.05) NM
Goodwill write-down,
net of tax -- -- --
Cumulative effect on
prior years of change in
accounting principle
(net of tax) -- -- -- 0.0%
Restructuring Charge -- -- -- 0.0%
Litigation Settlement,
net of tax 0.25 -- 0.25 0.0%
Reported Net Income
(loss) $ 0.34 $ 0.13 $ 0.21 NM
Nine-Months Ended December 31,
1998 1997 Change %
Net Revenues $ 73,011,776 $67,790,923 $ 5,220,853 7.7%
Net income (loss) from
operations before
non-recurring
items $ 449,507 $ 1,117,636 $ (668,129) NM
Non-recurring items:
Goodwill write-down, net
of tax (4,585,361) -- (4,585,361)
Cumulative effect on prior
years of change in
accounting principle, net
of tax (382,515) -- (382,515)
Restructuring Charge, net
of tax (323,125) -- (323,125)
Litigation Settlement Gain,
net of tax 793,125 -- 793,125
Reported Net Income
(loss) $ (4,841,494) $ 1,117,636 $ (5,166,005) NM
Weighted Average Shares Outstanding
Basic 3,120,413 3,119,436 977 0.0%
Diluted 3,170,894 3,143,945 26,949 0.9%
Earnings Per Share - Basic
Net income (loss) from
operations $ 0.14 $ 0.36 $ (0.21) NM
Goodwill write-down,
net of tax (1.47) -- (1.47)
Cumulative effect on
prior years of change in
accounting principle
(net of tax) (0.12) -- (0.12) 0.0%
Restructuring Charge (0.10) -- (0.10) 0.0%
Litigation Settlement,
net of tax 0.25 -- 0.25 0.0%
Reported Net Income
(loss) $ (1.55) $ 0.36 $ (1.91) NM
NM = not meaningful
Caretenders HealthCorp provides home and community based health care
services in Kentucky, Maryland, Alabama, Massachusetts, Connecticut, Indiana,
Ohio, and Florida.
This release contains forward looking statements. Because forward-looking
statements involve risks and uncertainties, the Company's actual results could
differ materially. The potential risks and uncertainties which could cause
actual results to differ materially could include the Company's ability to
maintain current cost levels without negatively impacting operations; the
impact of further changes in the Medicare reimbursement system, including the
ultimate implementation of a prospective payment system; government
regulation; health care reform; pricing pressures from third-party payors; and
changes in laws and interpretations of laws relating to the healthcare
industry. For a more complete discussion regarding these and other factors
which could affect the Company's financial performance, refer to the Company's
Securities and Exchange Commission filing on Form 10-K for the year ended
March 31, 1998, in particular information under the headings "Business" and
"Management's Discussion and Analysis of Financial Condition and Results of
Operations." The Company disclaims any intent or obligation to update its
forward-looking statements.
SOURCE Caretenders HealthCorp
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Company News On-Call:
http://www.prnewswire.com/comp/784275.html or fax,
800-758-5804, ext. 784275
CONTACT:
William Yarmuth or Steve Guenthner,
Caretenders HealthCorp, 502-899-5355
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