Webster Clothes Inc.
This Rosedale-based men's clothing chain announced flat sales and increased operating losses for the second quarter, which ended Aug. 4.
During the third quarter, Webster, which specializes in upscalclothing, entered into an agreement to be acquired by a subsidiary of St. Louis-based Edison Brothers Stores Inc. for $6 a share. The deal is expected to close in early October.
Edison reported strong growth in its second-quarter earnings announcement last week.
For the latest quarter, total sales increased to $16 million Comparable store sales increased 1.9 percent during the second quarter this year as compared to the same quarter last year. Sales for the first six months this year were $31.2 million, a 4.6 percent increase.
Manor Care Inc.
This Silver Spring-based lodging company reported an earnings increase of nearly 30 percent during its first fiscal quarter, as operating profits from its nursing home division improved and the company's lodging franchise continued to expand.
For the three months that ended Aug. 31, Manor Care reported income of $8.47 million, or 22 cents a share, up from $6.64 million, or 17 cents a share, for the same period a year ago.
The bulk of the earnings increase came from the company's health-care unit, which operates 164 nursing homes and accounts for 81 percent of Manor Care's revenue. Though the profit margin at the unit remained steady during the period, a 12 percent increase in revenues resulted in a $3.7 million increase in operating income.
The lodging division, which operates more than 2,000 hotels, contributed a 14 percent increase in revenues and a $1.4 million increase in operating profits.
Manor Care's hotel division, called Choice Hotels International, operates under the brand names Clarion, Quality, Comfort and Sleep Inns. In addition, the company purchased the 150-unit Rodeway hotel franchise during its first quarter and the 615-unit Econo Lodge and the 85-unit Friendship Inns franchise earlier this month.
The company said the new lodging chains will generate more than $35 million in revenue over the next 12 months but that the impact on net income will be "negligible" while the absorption of the new units into the subsidiary takes place.