Manor Care Inc., the Gaithersburg operator of nursing homes and other health facilities, posted earnings yesterday of $28.0 million, or 44 cents a share, for the third quarter of its fiscal year.
That was 16.7 percent higher than the $24.0 million, or 38 cents a share, earned in the third quarter a year earlier before a one-time boost from sale of stock in a pharmacy subsidiary.
Including the proceeds from the pharmacy deal, earnings for the year-earlier period were $61.4 million, or 97 cents a share.
Earnings matched the consensus earnings projections of eight analysts surveyed by IBES International.
"Everything was right in line -- there were no surprises," said Andrew A. Gitkin, an analyst for Salomon Smith Barney. "It was a good quarter."
Revenue for the quarter that ended Feb. 28 was $468.1 million, up 20.4 percent from $388.7 million in the year-earlier period.
Manor Care has announced plans to split itself into two companies, ManorCare Health Services and ManorCare Realty Inc.The split is expected to make it easier to finance the development of new facilities.
In particular, Manor Care is looking to accelerate the growth of its Arden Courts assisted-living facilities for people with Alzheimer's disease. Manor Care opened two during the second quarter, including one in Pikesville, bringing its total to 17.
"Assisted living is a key area of focus for Manor Care," said Stewart Bainum Jr., chairman and chief executive officer. "Through the development of these facilities, we will continue to focus our leadership in the Alzheimer's market."
Overall, Manor Care operates 208 health care facilities in 29 states.
Manor Care stock closed yesterday at $37.50 a share, down 31.25 cents for the day.
Pub Date: 4/08/98
