Home Health Business Quarterly: Financial Results

Almost Family Inc., of Louisville, KY, announced first-quarter net revenues of $20.5 million, compared with $19.5 million for the previous first quarter.

Net income was $100,318 or 4 cents per basic and 3 cents per diluted share after a nonrecurring after-tax charge of $489,746 or 20 cents per share for costs connected to the company’s investigation of restated financial statements for the years ending March 2001 and 2000. Net income for the first quarter 2001 was $432,618 or 14 cents per basic and diluted shares.

"We are pleased to report these favorable year-over-year results reflecting a 36% increase in net income excluding nonrecurring items. We are happy that our recent reporting difficulties have had no impact on the underlying strength of our operations," said William B. Yarmuth, chairman and CEO.

American Retirement Corp., of Nashville, TN, announced first-quarter revenues of $75.3 million, compared with $60.4 million for the first quarter 2001. Net operating income from consolidated communities was $21.6 million in the first quarter, compared with $17.9 million in last year’s first quarter. EBITDAR was $15.4 million for the quarter, compared with $13.6 million for the same period previously.

The company reported a loss for the quarter of $38.1 million or $2.20 per share, compared with a loss of $2.8 million or 16 cents per share for the prior year period. The loss resulted from actions taken under its refinancing plan, including about $29.7 million in noncash losses related to the sale lease-backs of nine free-standing communities. American Retirement provides senior living and health care services, and currently operates 65 senior living communities (aggregate capacity of 14,300 residents) in 14 states.

Manor Care Inc. in Toledo, OH, announced first-quarter net revenues of $716 million, compared with $638 million for the previous first quarter. Net income was $34 million or 33 cents per diluted share, compared with $25 million or 24 cents per diluted share in the 2001 quarter. Paul A. Ormond, chairman, president, and CEO, attributed revenue growth to improved occupancy and a significant shift in mix, as well as rate increases.

During the quarter, the company sold its Mesquite (TX) Community Hospital to Health Management Associates (HMA) for $80 million and purchased a 20% interest in the HMA entities that now own the hospital and another area hospitals. Net proceeds from these transactions were about $48 million.

Manor Care operates more than 500 long-term care centers, assisted-living facilities, outpatient rehabilitation clinics, and home health care offices.