Manor Care Inc.

BY THE NUMBERS

June 30, 1992

This large nursing home and hotel company reported yesterday that its fourth-quarter income more than tripled, to 53 cents a share, compared with the same period of 1991.

The Silver Spring-based company also reported higher-than-expected earnings for the 12 months that ended May 31. The results included a one-time gain from the sale of stock in its pharmacy subsidiary and a loss from the early retirement of long-term debt.

The company said income for the year rose 94.6 percent, to $1.09 a share, largely as the result of increased earnings from health-care operations. Revenues rose 12.4 percent last year, to $916 million.

Manor Care owns 167 nursing homes in 28 states, including six in Maryland, and 2,300 hotels in 22 countries. The hotels operate under the names Quality, Comfort, Clarion, Sleep, Rodeway, Econo Lodge and Friendship inns.

Eugene Melnitchenko, health-care analyst for Legg Mason, a Baltimore investment firm, said income per share was 5 cents higher than expected. He attributed the gain to Manor Care's mix of patients, its effort to boost nursing home occupancy rates with a new television advertising campaign and a reduction in expenses in the hotel side of the business.

Some nursing home competitors get 70 percent to 80 percent o their revenues from federally subsidized patients. Manor Care, however, earns the majority of its revenue from more-profitable facilities that cater to privately paying patients.

According to Manor Care financial analyst Robert Hoffman, 5percent of its nursing home patients pay privately, compared with an industry standard of 40 percent.

The company also reduced interest costs for half of the year b using cash reserves gained by selling its pharmacy unit, Vitalink Pharmacy Services Inc. The company used the proceeds to pay off long-term debt early, reducing interest costs.

At the same time, health-care revenues improved, Mr Melnitchenko said.

Three months ended 5/31/92

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

'92.. .241,834.. .. .. .30,495.. .. .. .. . 0.53

'91.. .218,329.. .. .. ..9,080.. .. .. .. .0.16

% change..+10.8.. .. .. +235.8.. .. .. ...+231.3

Twelve months ended 5/31/92

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

'92.. .916,224.. .. .. .62,452.. .. .. .. .1.09

'91.. .815,469.. .. .. .32,083.. .. .. .. .0.56

% change +12.4.. .. .. . +94.7.. .. .. .. .+94.6

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