Manor Care net income up sharply Sale of pharmacy service inflates 3rd-quarter result

March 27, 1997|By M. William Salganik | M. William Salganik,SUN STAFF

Manor Care Inc., the Gaithersburg operator of long-term care and assisted-living facilities, yesterday reported earnings of $61.4 million for the third quarter, including $37.1 million from the sale of part of its interest in Vitalink Pharmacy Services.

Without the Vitalink proceeds, Manor Care earned $24.3 million, or 38 cents a share, up 16.3 percent from $20.9 million, or 33 cents a share, in the same quarter a year earlier.

Earnings were 1 cent a share less than the average projected by nine analysts surveyed by I/B/E/S International.

Revenue for the quarter ended Feb. 28 was $354.2 million, compared with $334.4 million in the same period last year. The most recent quarter included two months of Vitalink revenue, compared with three last year.

In February, Manor Care's ownership of Vitalink, which provides prescription services to Manor Care and other facilities, dropped from 82 percent to 45 percent as part of a merger with Atlanta-based TeamCare, the institutional pharmacy unit of another long-term care company, GranCare.

During the quarter, Manor Care reported, it added two skilled nursing centers and four assisted living complexes, including three Arden Courts facilities designed for residents in the middle stages of Alzheimer's disease. It now operates 206 facilities with 27,383 beds in 28 states.

Manor Care stock closed yesterday at $25.50 a share, up 12.5 cents for the day.

Pub Date: 3/27/97

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