T. Rowe PriceT. Rowe Price Associates Inc. reported...


April 29, 1992

T. Rowe Price

T. Rowe Price Associates Inc. reported yesterday its best first-quarter earnings since going public in 1986, as investors moved into the stock and bond markets because of low interest rates.

The Baltimore mutual fund company said it earned $7.4 million, or 49 cents a share, 32 percent more than in the same period of 1991.

"We had record cash flows in the first quarter because of a combination of low interest rates that have encouraged investors to look for bond funds that offer higher yields and also a strong interest in retirement investing," said spokesman Steven E. Norwitz.

Ira Malis, an analyst who follows T. Rowe Price for Alex. Brown & Sons Inc. in Baltimore, said the earnings were slightly below the 53 cents a share he had expected. He attributed the difference to heavy advertising spending, which T. Rowe said doubled compared with the first quarter of 1991.

But Mr. Malis said the advertising spending will pay off soon.

"There should be follow-on revenue" in the rest of the year, he said. "The advertising money tends to be well spent." Mr. Malis said still estimates that T. Rowe will earn $2.35 a share this year.

Mr. Norwitz said the ad campaign has focused on international investing, retirement planning and adjustable-rate, mortgage-backed security funds that, he said, offer higher returns than bank deposits and pose less risk than securities backed by fixed-rate loans.

Three months ended 3/31/92

.. .. Revenue .. .. .. Net .. .. .. .. .. Share

'92 .. 58,548,000 .. 7,441,000 .. .. .. 0.49

'91 .. 45,550,000 .. 5,618,000 .. .. .. 0.38

% change .. +28.5 .. .. +32.4 .. .. .. .. ..+28.9

Integrated Health Services

This Hunt Valley operator of geriatric and subacute-care facilities reported record earnings yesterday.

The company, which has expanded rapidly its strategy of transforming nursing homes into long-term-care facilities, reported earnings of $2.1 million, or 22 cents a share, for the quarter that ended March 31, up 158 percent from $798,000, or 20 cents a share, for the first quarter of 1991. The quarter's per-share figure was based on 9.4 million shares outstanding, up from 3.9 million a year ago.

Last year's first quarter included an 18-cent-a-share gain from tax loss carry-forwards. Per-share earnings from continuing operations in this year's quarter were 57 percent higher than they were a year ago excluding the carry-forwards.

Integrated Health specializes in upgrading sections of nursing homes into medical-care facilities. Revenue from that part of its operation nearly doubled, to $16.6 million from $8.4 million a year ago, accounting for 39 percent of total revenue.

Marc B. Levin, vice president for investor relations, attributed the growth to the increasing popularity of non-hospital-based programs for people who need rehabilitative care. "The secret is we are cheaper than a hospital -- 30 percent to 60 percent cheaper than a hospital," he said.

Integrated Health operates 45 geriatric facilities, including 20 specialty units, in 15 states. The company recently was named one of the 100 fastest-growing public companies by Inc. magazine.

Three months ended 3/31/92

.. .. .. Revenue .. .. .. Net .. .. .. .. Share

'92 .. 43,044,000 .. 2,059,000 .. .. .. 0.22

'91 .. 31,148,000 .. .. 798,000 .. .. .. 0.20

% change .. +38.1 .. .. .. +158.0 .. .. ..+10.0

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