Long Term Care Report

Vencor to amend DIP financing

Vencor (Louisville, KY) has agreed with its lenders to amend the company’s debtor-in-possession financing. The amendment is primarily to revise a financial covenant regarding its minimum net amount of accounts receivable, Vencor says. As the company reported previously, it was not in compliance with this accounts receivable covenant as of Dec. 31. In the amendment, the lenders also waived all events of default regarding this accounts receivable covenant that occurred prior to the date of the amendment. Vencor and its subsidiaries filed for Chapter 11 bankruptcy protection Sept. 13.

IHS sees loss in 4Q99, FY99

Integrated Health Services (IHS; Sparks, MD) says it saw net revenues for 4Q99 ended Dec. 31 of $654.9 million, a 9% decrease from 4Q98 revenues of $718.9 million. The company reported a net loss in 4Q99 of $409.1 million, $8.46 per share, compared to a 4Q98 net income of $10.8 million, 21 cents per share.

In FY99, IHS says, it saw total revenues of $2.6 billion, down from FY98 revenues of $3 billion. The company posted a net loss in FY99 of $2.2 billion, $44.87 per share, compared to a FY98 net loss of $68 million, $1.40 per share.

IHS says in 4Q99, the company recorded a non-recurring charge of $345.8 million related to loss on impairment of long-lived assets and provision for government claims. IHS in February filed voluntary petitions with the U.S. Bankruptcy Court to restructure its debt obligations, IHS says.

Manor Care loses board member

Manor Care (Toledo, OH) Director Stewart Bainum has retired from the board of directors. He is replaced by John Schwieters, vice chairman of Perseus.

Manor Care reported 1Q00 ended March 31 revenues of $545.7 million, compared to revenues in 1Q99 of $531.8 million. The company posted a net loss of $783,000, 1 cent per share, compared to a 1Q99 net income of $41 million, 37 cents per share.

The company’s board said it will continue to operate Manor Care as an independent, publicly owned company, saying it is in the best interest of the company and its stockholders.

Omnicare reports 1Q00 profit

Omnicare (Covington, KY) says it saw 1Q00 ended March 31 earnings of $14.4 million, 16 cents per share, compared to $27.8 million, 31 cents per share in 1Q99. The company posted sales in 1Q00 of $493 million, up from 1Q99 sales of $445.7 million.

NCS sees 3Q00 loss

NCS HealthCare (Cleveland) says it reported total revenues for 3Q00 ended March 31 of $170.5 million, down from 3Q99 revenues of $184.6 million. The company saw a net loss in the quarter of $22.9 million, $1.03 per share, compared to a 3Q99 net income of $4 million, 20 cents per share.

During 3Q00, NCS says, the company reported restructuring and other related charges of $5.5 million, before taxes, associated with the continuing implementation and execution of its restructuring and consolidation activities and the planned disposition of its non-core assets.