Genesis Health earnings up 39% in its 3rd quarter

August 04, 1994|By Patricia Meisol | Patricia Meisol,Sun Staff Writer

Genesis Health Ventures Inc., said its revenues for the quarter ended June 30 jumped 90 percent to $105 million over the same period a year ago, largely as the result of its acquisition of the Towson-based Meridian Healthcare nursing home chain. Earnings rose 39 percent to $4.5 million as Genesis expanded its services into the Maryland facilities.

The Blue Bell, Pa., firm, which specializes in setting up a full range of health care services for the elderly in selected markets, is now the largest nursing home operator in Maryland and is showcasing its strategy in the state. In May, it joined a group of Maryland hospitals to purchase the Visiting Nurse Association of Baltimore, which provides home health care around the state.

Also in the third quarter, Genesis raised $51.7 million from a new public offering of stock that was used to pay off debt associated with the purchase of the Meridian chain. The company then restructured its debt, which increases its ability to borrow for further acquisitions.

In a conference call with analysts, company Chairman Michael R. Walker said revenues from specialty medical services alone -- pharmacy and rehabilitation, for instance -- grew 73 percent largely as the result of integrating those services into Meridian facilities.

However, patient census remains flat, at about 92 percent occupancy, Mr. Walker said, because of shorter patient stays. "When you are trying to grow discharges, you have to grow admissions as well," he said. He said it would be several years before Genesis could return to its previous occupancy rate of 95 percent.

Genesis Health Ventures Inc.

Ticker .. .. .. Yesterday's Symbol .. .. .. Cls. .. .. Chg.

GHV .. .. .. .. 24 3/4 ..unchg

Period ended

June 30 . .. .. .. 3rd qtr. .. .. Year ago .. .. Chg.

Revenue . .. .. .. $105,361 .. .. $55,594 ... .. +89.5%

Net Income . .. .. . $4,550 .. ... $3,280 ... .. +38.7%

EPS (diluted) . .. .. $0.33 .. .. . $0.26 ... .. +26.9%

.. .. .. .. ... .. 9 mos. . .. .. Year ago .. .. Chg.

Revenue ... ... .. $275,914 .. .. $161,187 .. .. +71.2%

Net Income . .. ... $11,188 .. .. . $7,993 .. .. +40.0%

EPS (diluted) . .. .. $0.85 .. .. .. $0.68 .. .. +25.0%

Figures in thousands (except per share data.)

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