LOUISVILLE, Ky., Aug. 16 /PRNewswire/ -- Caretenders HealthCorp
(Nasdaq: CTND) today reported its financial results for the quarter ended
June 30, 1999.
For the quarter ended June 30, 1999 the Company reported net income of
$112,000 or $0.04 per share excluding a non-recurring item. This compares to
a net loss of ($780,000) or ($0.25) for the first quarter of the prior year
(also excluding non-recurring items). In the quarter ended June 30, 1999 the
Company incurred a non-recurring after-tax loss of ($53,000) or ($0.02) per
share on the sale of a building reducing reported net income to $59,000 or
$0.02 per share. Reported in last year's numbers were one-time charges for:
1) a write-down of goodwill related to changes in Medicare Reimbursement and
2) a change in the method of accounting used for pre-opening costs of new
business units as required by new accounting rules. These non-recurring items
increased 1998 reported net loss to ($5.7 million) or ($1.84) per share.
William B. Yarmuth, Chairman and CEO, said, "In the first quarter we
generated real growth in all our segments on a year over year same store basis
and margins have improved. We are especially pleased with the 40% growth in
our Adult Day Health Services contribution and we remain steadfast in our
belief that adult day health services will be an increasingly important
component of long-term health care services in America. We will continue to
pursue our growth strategy in this area. The visiting nurse segment of our
business continues to face the challenges of operating in a particularly
difficult and uncertain reimbursement environment. While we have made great
strides in improving the financial results of this segment we will continue to
monitor its progress closely and evaluate its contribution to our strategy."
Operating Results:
Quarter Ended June 30,
1999 1998 Change %
Net Revenues $ 24,785,917 $ 23,666,455 $ 1,119,462 4.7%
Net income (loss) from operations
before non-recurring items $ 112,419 $ (780,354) $ 892,773 NM
Non-recurring items, net of tax:
Goodwill write-down -- (4,585,361) 4,585,361
Cumulative effect on prior
years of change in accounting
principle -- (382,515) 382,515
Loss on Sale of Building (53,187) -- (53,187)
Reported Net Income (loss) $ 59,232 $ (5,748,230) $ 5,807,462 NM
Weighted Average Shares 0utstanding
Basic 3,120,413 3,120,413 -- 0.0%
Diluted 3,185,945 3,120,413 65,532 2.1%
Earnings Per Share - Basic and Diluted
Net income (loss) from
operations $ 0.04 $ (0.25) $ 0.29 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
Loss on Sale of Building (0.02) -- (0.02)
Reported Net Income (loss) $ 0.02 $ (1.84) $ 1.86 NM
Caretenders HealthCorp is a $100 million (revenues) adult day health care
service company with locations in Kentucky, Maryland, Alabama, Massachusetts,
Connecticut, Indiana, Ohio, and Florida.
All statements, other than statements of historical facts, included in
this news release, including the objectives and expectations of management for
future operating results, are forward-looking statements. These
forward-looking statements are based on the Company's current expectations.
Although the Company believes that the expectations with respect to the future
of adult day and home health services reflected in such forward-looking
statements are reasonable, there can be no assurance that such expectations
will prove to be correct.
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 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 fourth-party
payers; 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, 1999, 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.
For more information: William Yarmuth or Steve Guenthner (502) 899-5355.
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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