1993 earnings of Integrated soar 69 percent

February 25, 1994|By Patricia Meisol | Patricia Meisol,Sun Staff Writer

Integrated Health Services Inc. continued its fast-track growth yesterday as it reported 1993 earnings jumped 69 percent to a record $15.4 million.

The Owings Mills long-term care company, which has transformed the nursing home industry by outfitting its facilities with mini-hospitals and competing with hospitals, said revenues for the year ended Dec. 31 rose 44.5 percent to $282 million.

The revenue reflects part of an acquisition spree in 1993 that more than doubled its size. Robert N. Elkins, chairman and chief executive officer, who founded the company in 1986, said Integrated is projecting revenues of $580 million a year from now as a result of growth in 1993.

The company specializes in "subacute" care -- usually medical wings inside nursing homes -- for patients recovering after hospitalization at 30 percent to 60 percent below the cost of a continued hospital stay.

Earnings for the fourth quarter ended Dec. 31 also were a record at $3.1 million. Revenues rose 61 percent to $89 million, the result of a management contract with 23 facilities in Northern California and the $182 million acquisition of facilities owned by Central Park Lodges Inc.

The company met or slightly exceeded many analysts' projections, and continues to be hotly favored by those who say its dominance in the $4 billion industry is secure for some time into the future.

"Elkins is king," said P. Christian Hester, health care analyst for Smith Barney Shearson in New York.

Smith Barney gave Integrated its only "buy" rating among long-term health care companies that include Manor Care Inc., of Silver Spring; Beverly Enterprises Inc., and Hillhaven Corp., giants of the industry.

Mr. Hester projects the stock price to hit $42 a share in a year. The stock gained 12.5 cents to close at $32.25 yesterday in trading on the New York Stock Exchange.

IHS operates 146 facilities in 27 states throughout the United States, with more than 19,000 beds. Its subacute beds total 2,400, a figure expected to nearly double next year.

Revenues from these high-margin specialty medical service units and other special products, including institutional pharmacy, increased 80 percent to $146.6 million in 1993.

Integrated has focused on the key states of Florida, Texas, and California, where it is building networks to deliver a full range of care to the elderly and chronically ill.

Integrated Health .. .. .. .. .. Ticker .. ... .. .. Yesterdays

Services Inc .. .. .. ... .. ... Symbol .. .. .. ... Cls ... Chg.

.. .. .. .. .. .. .. .. .. .. .. IHS .. .. .. .. ... 32 1/4 +

Period ended

Dec. 31 .. .. .. .. .. 4th qtr ... .. .. Year ago .. .. .. Chg.

Revenue .. .. .. .. .. $89,467 ... .. .. $55,569 ... .. .. +61.0%

Net Income ... ... ... $3,072 .. ... ... $2,938 .. ... ... +4.6%

Fully Diluted EPS .. .. $0.23 ... ... .. $0.24 ... ... ... -4.2%

.. .. .. .. .. .. .. .. 12 mos ... .. .. Year ago .. .. .. Chg.

Revenue .. .. .. ... .. $282,160 ... ... $195,262 .. .. .. +44.5%

Net Income .. .. .. ... $15,471 .. .. .. $9,141 ... ... .. +69.2%

Fully Diluted EPS .. .. $1.19 ... ... .. $0.80 .. .. .. .. +48.7%

Figures in thousands (except per share data.)

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.