$24 million profit posted by Manor Care 2nd-quarter report is 1st since spinning off hotels

December 19, 1996|By M. William Salganik | M. William Salganik,SUN STAFF

Manor Care Inc. reported yesterday that it made $24 million in its core health business during its second quarter ended Nov. 30, 16.3 percent more than the $20.7 million it posted in the corresponding quarter last year.

Revenues were $351.6 million, 17 percent more than the $299.7 million in the year-ago quarter. On a per-share basis, earnings were 38 cents compared with 33 cents a year ago.

The earnings report was the first posted by the Gaithersburg company since it spun off its Choice hotel business Nov. 1. Including two months of income from hotel operations, Manor Care earned $32.4 million, or 51 cents a share, for the quarter.

In the corresponding quarter last year, which included three months of lodging income, it earned $18.8 million, or 46 cents a share.

The results were generally in line with analysts' expections. Nine analysts surveyed by I/B/E/S International had projected earnings of 36 cents to 38 cents from the health business, with 37 cents as the average.

Manor Care operates 202 nursing homes, rehabilitation centers and assisted-living facilities with 26,899 beds in 28 states. It also owns controlling interests in an institutional pharmacy and a home health company.

For the six months ended Nov. 30, the company reported net income excluding its lodging business of $44.3 million, or 70 cents a share, up 16.1 percent from $38.2 million in 1995. Including five months of lodging earnings, the company had net income of $56.1 million for six months, compared with $57.2 million for the same period last year, which included six months of lodging earnings.

Revenues from its health business were $688.1 million, up 19.9 percent from $573.7 last year.

Manor Care opened several assisted-living and nursing facilities in the quarter, including a skilled nursing home in Roland Park.

Pub Date: 12/19/96

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.