FOR IMMEDIATE RELEASE
October 17, 1996; 8:00 am EST
Contact: Stephen R. Baker
Executive Vice President, Chief Operating Officer
(201) 525-5955
MULTICARE REPORTS STRONG THIRD QUARTER RESULTS
HACKENSACK, NJ, October 17, 1996 -- The Multicare Companies, Inc. (NYSE: MUL)
today announced revenues for the third quarter ended September 30, 1996
increased 48.4% to $134.9 million from $90.9 million in the same period of 1995.
Income from operations rose 39.5% to $18.8 million from $13.4 million in the
comparable period of 1995. Net income increased to $7.4 million or $.26 per
share on a fully diluted basis as compared with $5.8 million or $.22 per share
for the same quarter a year ago.
Revenues for the nine month period increased 49.8% to $386.9 million from $258.3
million during the corresponding period of 1995. Income from operations rose
34.9% to $51.8 million from $38.4 million, while income before extraordinary
item increased to $20.4 million or $.71 per share on a fully diluted basis
compared with $16.1 million or $.61 per share in the similar period last year.
Specialty medical service revenues accounted for 39% of net revenues in the
third quarter of 1996 compared to 41% of net revenues in the comparable period
of 1995. Specialty medical services include pharmacy operations, subacute care,
rehabilitative therapies, medical supplies and other ancillary businesses. The
Company's quality mix of non-Medicaid patient revenues was 64% in the third
quarter of 1996 compared to 68 % in the similar period last year. The 1996
percentages reflect the impact of certain of the Company's recent acquisitions
which historically have generated lower revenues in these areas. Occupancy
rates remained stable at 92% for the third quarters of 1996 and 1995.
Multicare, founded in 1984, is a leading provider of high quality long-term care
and specialty medical services. Upon completion of the pending ADS acquisition,
Multicare will own, lease or manage over 150 long-term care facilities with more
than 15,000 beds in 11 states. Multicare also owns and operates a number of
ancillary health care businesses, including a significant institutional pharmacy
business. The Company's long-term care services include skilled nursing care,
subacute care, assisted living, home health care and related support activities
traditionally provided in long-term care facilities.
Certain of the matters discussed in this press release contain forward-looking
statements that involve risk and uncertainties. Although Multicare believes
that the assumptions accompanying such forward-looking statements are
reasonable, it cannot give any assurance that expected results will occur. A
significant variation between actual results and any of such assumptions may
cause actual results to differ materially from expectations. Reference should
be made to Multicare's Form 10-K for the year ended December 31, 1995 for more
specific information concerning such risks and assumptions.
THE MULTICARE COMPANIES, INC.
AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
1995 1996 1995 1996
Net revenues $ 90,948 134,944 258,253 386,890
Expenses:
Operating expenses 69,534 104,130 197,230 300,368
Corporate, general and administrative 4,451 6,214 12,713 18,627
Depreciation and amortization 3,520 5,841 9,865 16,048
Total expenses 77,505 116,185 219,808 335,043
Income from operations 13,443 18,759 38,445 51,847
Other income (expense):
Investment income 824 212 1,749 425
Interest expense (4,879) (7,075) (14,000) (19,372)
Total other income (expense) (4,055) (6,863) (12,251) (18,947)
Income before income taxes
and extraordinary item 9,388 11,896 26,194 32,900
Income tax expense 3,608 4,478 10,056 12,505
Income before extraordinary item 5,780 7,418 16,138 20,395
Extraordinary item - loss on
extinguishment of debt, net
of tax benefit --- --- --- 1,481
Net income $ 5,780 7,418 16,138 18,914
Income per common share assuming full dilution:
Income before extraordinary item $ .22 .26 .61 .71
Net income $ .22 .26 .61 .67
Weighted average number of
common shares outstanding
assuming full dilution 26,515 32,774 26,511 32,748