Companies in the News
CCSE shareholders approve Landauer merger
Community Care Services’ (CCSE; Mount Vernon, NY) shareholders have approved the merger of the company with a subsidiary of Landauer Hospital Supplies (New York), a supplier of home healthcare products. Pursuant to the merger, each CCSE shareholder will receve $1.20 per CCSE share. As a result of the merger, CCSE’s common stock will no longer be publicly traded, and the company will cease to be subject to the reporting reqirements of the Securities and Exchange Act of 1934.
Continental names investor relations counsel
Continental Home Healthcare (Glendale, CA) named Hume Kieran of Toronto its investor relations counsel. Continental will give Kieran a fixed monthly fee of $3,000 in Canadian dollars and will grant him an option of 100,000 shares of Continental. The company’s investor relations program will focus on investor communications and interaction with the financial community, Continental said.
In other news, Continental reported 3Q99 ended Sept. 30 revenues of $4.7 million, compared to $3.8 million in 3Q98. The company recorded a net income of $7,000, 0 cents per share, compared to a net income in 3Q98 of $284,000, 1 cent per share.
Continental President/CEO Rob Thornton said the company’s acquisition program that started in October 1997 and included thre additional purchases in the subsequent periods, has resulted in a moderate increase in operating expenses for the company.
HAHI to buy back its stock
Help At Home (HAHI; Chicago) said it will buy back up to $50,000 of its common stock at market price over the next two months. HAHI said it expects to begin purchasing the stock as soon as possible. Management instituted the buy-back because it believes the company’s common stock is currently undervalued and does not represent its true value.
HHCA gets approval for new CEO
The U.S. Bankruptcy Court has approved Home Health Corporation of America’s (King of Prussia, PA) appointment of David Geller as its new president/CEO.
Invacare building receives award
The building that holds Invacare’s (Elyria, OH) corporate headquarters won the 1999 AIA Ohio Design Award. The building was designed by van Dijk Pace Architects (Westlake, OH) in 1997, said Invacare.
Lincare new competitive bidding demonstrator
Lincare Holdings (Cleawater, FL) has become a demonstration supplier in the Health Care Financing Administration’s (HCFA; Baltimore) Medicare competitive bidding project in Polk County, FL. Lincare said its acquisition of Home Care Medical Services of Polk County (Lakeland, FL) and its receipt of approval from HCFA gained the company participation in the project.
Manor Care reduces line of credit
Manor Care’s (Toledo, OH) 364-day credit pact with a group of banks was amended in September, decreasing it from $300 million to $200 million, Manor Care said. According to the company’s quarterly report, the pact matured on Sept. 24 and was amended to $200 million. New borrowings under the amended agreement will mature on Sept. 22.
Manor Care CFO Geoffrey Meyers said the company reduced the line of credit because it didn’t need it following the merger of Health Care and Retirement Corp. and Manor Care in September 1998. He said the company has also maintained a separate $200 million revolving credit facility for about a year with Alterra Healthcare (Brookfield, WI), an assisted living provider, for a joint venture to develop and construct specialized assisted living residences.
Manor Care also said early estimates about its 4Q99 results might be too high, saying that information on 4Q99 operating trends indicates this. The company said it expects to report 4Q99 earnings between 28 cents per share and 32 cents per share, instead of a First Call estimate of 35 cents per share.
In addition, Vice President Jeffrey Ferguson exercised options for 64,399 common shares on Nov. 18 and sold them all the same day, according to a filing with the Securities and Exchange Commission (Washington). Ferguson exercised an option for 34,399 shares at $5.35 per share, 7,500 shares at $6.13 per share, 7,500 shares at $9.63 per share, 7,500 shares at $11.58 per share, and 7,500 shares at $18 per share, according to the filing. Ferguson sold the shares on Nov. 18 for $19.94 per share. At the end of the month, Ferguson directly owned 19,866 common shares and indirectly owned an additional 716 shares.
Olsten names new health services unit
Olsten Corp. (Melville, NY), which announced in August plans to merge its staffing and information technology businesses with Adecco S.A. (Switzerland), renamed its Olsten Health Services unit Gentiva Health Services. The unit will be spun off as a stand-alone company as part of the merger agreement with Adecco, Olsten said.
The new health services company will have more than 400 offices, 38 pharmacies, including two national distribution centers and four regional network management locations, and a caregiver staff of more than 50,000 people.