Integrated reports large losses for quarter

News follows bankruptcy filing

IHS reports large losses in quarter

Nursing homes

April 15, 2000|By M. William Salganik | M. William Salganik,SUN STAFF

Integrated Health Services Inc., the nursing home operator with headquarters in Sparks, reported substantial losses yesterday for the quarter that ended March 31 -- hardly a surprise, because it filed for bankruptcy reorganization during the quarter.

Any sign of turnaround would be at least one or two quarters away, as the company prepares its reorganization plan and awaits the results of increased Medicare payments. Medicare cuts, which had their greatest impact last year, pushed several other nursing home chains into bankruptcy as well. Congress recently voted to restore part of the funding cut.

Integrated's loss from continuing operations for the quarter, before one-time charges, was $72.5 million, compared with earnings of $10.8 million in the year-earlier period.

FOR THE RECORD - An article in the Business section April 15 attributed an earnings report from Integrated Health Services Inc. to an incorrect period. The report in April was for the quarter and year ending Dec. 31, 1999.
The Sun regrets the error.

During the quarter, the last of its fiscal year, IHS took a $345.8 million charge for impairment of assets and provision for government claims. With those charges, the net loss was $409.1 million.

Revenue for the quarter was $654.9 million, 8.9 percent lower than the $718.9 posted in the year-earlier quarter.

For the year, IHS lost $125.0 million from continuing operations and before one-time charges, compared with earnings of $136.9 million in the previous fiscal year. Including all one-time charges, the net loss was $2.2 billion for the year, compared with a loss of $68 million in fiscal 1998.

Revenue for the year was $2.56 billion, down 13.9 percent from $2.97 billion last year.

Marc B. Levin, executive vice president, said that because of the bankruptcy proceedings, he could not comment on the results.

The company has indicated that it hopes to sell assets to reduce debt as part of its reorganization plan. It filed for Chapter 11 bankruptcy protection Feb. 2.

IHS stock, delisted by the New York Stock Exchange in December but still traded over the counter, closed yesterday at 21 cents a share, down a penny.

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