EXHIBIT 99.2
Beverly Third Quarter EPS from Continuing Operations Totaled 19 Cents;
Revenues Up 10%, EBITDA Up 21%
FORT SMITH, Ark.--(BUSINESS WIRE)--Nov. 8, 2004--Beverly
Enterprises, Inc. (NYSE:BEV) today announced that net income from
continuing operations totaled $21.2 million (19 cents per share
diluted) in the third quarter of 2004, compared to $8.1 million (7
cents per share diluted) in the 2003 third quarter. Revenues from
continuing operations for the 2004 third quarter totaled $508.2
million, an increase of more than 10 percent from the comparable
period in 2003.
"Double-digit revenue increases and continued contributions from
on-going cost-control initiatives contributed to a 21 percent increase
in EBITDA(a) and a gain of 80 basis points in our overall EBITDA
margin to 9.4 percent for the 2004 third quarter, compared to the
year-earlier period," said William R. Floyd, Beverly Chairman and
Chief Executive Officer. "We generated robust cash flow from
operations during the quarter totaling nearly $60 million that,
combined with our strong cash position, enabled us to acquire Hospice
USA for cash - and, at the same time, invest $16 million primarily to
further improve our skilled nursing facilities."
Floyd added: "We believe there is upside potential in the 2004
EBITDA range from continuing operations that we had previously
targeted at $180 million to $185 million. This range, for example,
does not include the impact of pending provider tax plans in Indiana
and Pennsylvania, which are expected to increase EBITDA by $12 million
to $14 million. We believe these plans will be implemented during the
fourth quarter, but approval could slip into 2005.
"The $180 million to $185 million EBITDA range also does not
include operating results from assets held for sale or from
discontinued operations, and excludes the refinancing charge we
recorded earlier this year. However, it does reflect EBITDA
contributions from our recent acquisition of Hospice USA. We're on
track with the integration of the 18 new hospice operations in
Tennessee, Mississippi and Alabama. This acquisition is expected to
contribute nearly $2 million in EBITDA for 2004."
(a) EBITDA is earnings before interest, taxes, depreciation and
amortization; EBITDA margin is EBITDA as a percentage of total
revenues.
Financial and Operating Highlights
Income
-- 163% increase in 2004 third-quarter net income from continuing
operations primarily reflects revenue gains and margin
improvement in Skilled Nursing Facilities - as well as revenue
increases of 88% in AseraCare Hospice (comparisons based on
2003 third quarter). The increased income also reflects a
reduction of $4.9 million (31%) in interest expense.
-- Net income of $24.4 million (22 cents per share diluted)
reflects net income from discontinued operations of $3.2
million (3 cents per share diluted). Net income in the 2003
third quarter of $10 million (9 cents per share diluted)
included $1.9 million (2 cents per share diluted) of income
from discontinued operations.
Skilled Nursing Facilities
-- 45% increase in EBITDA and 239 basis-point increase in EBITDA
margin primarily reflect higher revenues, growth in Medicare
patient mix and reduced bad debt expense resulting from
increased patient collection rates.
-- Occupancy at the 331 facilities in continuing operations
averaged 89% vs. 88.3% for 2003 third quarter - an increase of
70 basis points.
-- Medicare patients as a share of total patient days rose to
11.4% - the 19th consecutive increase in these higher-acuity,
higher-revenue patients from year-earlier periods.
-- Medicare revenues rose 8.9% - reflecting a 6.26% increase in
Medicare rates (effective October 1, 2003), treatment of
higher-acuity patients and increased Medicare census.
-- Medicaid per diem rates - excluding the impact of prior-year
adjustments - increased 5.3% (4.8% net of the cost of provider
taxes) and private/managed-care rates were up 5.7% (compared
to the 2003 third quarter).
-- The weighted-average wage rate rose less than 3.8%, compared
to the 2003 third quarter. The increase was less than
projected because of more efficient facility staffing
resulting from the labor management system implemented in
early 2004.
-- Nursing patient receivables at the end of the 2004 third
quarter totaled $180.6 million (35 days sales outstanding),
compared to $254.8 million (44 days) for the year-earlier
period.
Aegis Therapies / AseraCare Hospice
-- Increase of 60% in Aegis Therapies third-party revenues over
2003 third quarter results primarily reflects net addition of
82 new customers during the last nine months and continued
development of business from its existing customer base.
-- EBITDA and margins were reduced by higher labor costs, the
result of a tightening market for therapists. However, margins
remain at attractive levels relative to other major providers
of therapy services and to Beverly's skilled nursing
operations.
-- Third-party revenues from the Aegis "same-customer" base were
up 19% during the first nine months of 2004, compared to the
year-earlier period.
-- Aegis provides physical, occupational and speech therapy to
nearly 590 outside clients - as well as to the Beverly system
of nursing facilities.
-- The 88% increase in AseraCare Hospice revenues (compared to
2003 third quarter) reflects 33% increase in existing hospice
programs, as well as incremental revenue of $5.5 million from
the July 30 acquisition of Hospice USA.
-- Average daily census - excluding the Hospice USA acquisition -
was 1,222 for the 2004 third quarter, an increase of 28% from
the year-earlier period and 11% from the 2004 second quarter.
Including the acquisition, average daily census for the 2004
third quarter was 1,792, which makes AseraCare the sixth
largest hospice provider in the nation. At September 30,
AseraCare Hospice operated a total of 44 locations in 14
states.
-- The smooth integration of the former Hospice USA locations
into AseraCare reflects a comprehensive plan that already was
in place when the initial purchase agreement was signed.
Operational and information technology systems already are
fully integrated, and the expanded hospice unit is being
operated as a single business.
Beverly shareholders may listen to a discussion by senior
management of the Company's performance at 8:30 a.m. ET tomorrow,
Tuesday, November 9, by dialing 1-800-263-8506 or 1-719-457-2681 and
entering reservation number 938269. A recording of this conference
call will be available from 11:30 a.m. ET tomorrow until midnight
Friday, November 19. Shareholders may dial 1-888-203-1112 or
1-719-457-0820 and enter reservation number 938269 to access the
recording. In addition, CEO William R. Floyd will make a presentation
at 11:00 a.m. ET tomorrow, Tuesday, November 9, at the CIBC World
Markets Healthcare Conference. His presentation will be webcast live
and can be accessed in the Investor Relations section of Beverly's Web
site at www.beverlycorp.com. A replay of the webcast will be available
at the same location for 30 days.
The statements in this press release relating to matters that are
not historical facts are forward-looking statements based on
management's beliefs and assumptions using currently available
information and expectations as of the date hereof. Forward-looking
statements are not guarantees of future performance and involve
certain risks and uncertainties including the risks and uncertainties
detailed from time to time in Beverly's filings with the Securities
and Exchange Commission. Although Beverly believes that the
expectations reflected in such forward-looking statements are
reasonable, it cannot give any assurances that these expectations will
prove to be correct. Beverly assumes no duty to publicly update or
revise such statements, whether as a result of new information, future
events or otherwise.
Beverly Enterprises, Inc. and its operating subsidiaries are
leading providers of healthcare services to the elderly in the United
States. Beverly currently operates 354 skilled nursing facilities, as
well as 18 assisted living centers, and 45 hospice and home care
centers. Through Aegis Therapies, Beverly also offers rehabilitative
services on a contract basis to facilities operated by other care
providers.
BEVERLY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
September 30, 2004
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Revenues $508,169 $461,201 $1,486,304 $1,345,030
Costs and expenses:
Wages and related 300,734 275,922 856,406 807,289
Provision for
insurance and
related items 29,407 27,892 90,381 82,165
Other operating
and
administrative 131,560 116,498 391,449 346,869
Depreciation and
amortization 15,918 14,783 46,241 43,634
Adjustment related
to California
investigation
settlement - - - (925)
Asset impairments,
workforce
reductions and
other unusual
items (613) 1,343 1,188 2,672
--------- --------- ----------- -----------
Total costs
and expenses 477,006 436,438 1,385,665 1,281,704
--------- --------- ----------- -----------
Income before other income
(expenses) 31,163 24,763 100,639 63,326
Other income
(expenses):
Interest expense (11,122) (16,029) (35,068) (47,761)
Costs related to
early
extinguishment of
debt (176) - (40,430) -
Interest income 1,246 1,170 4,089 3,554
Net gains on
dispositions 582 2 614 399
--------- --------- ----------- -----------
Total other
expenses,
net (9,470) (14,857) (70,795) (43,808)
--------- --------- ----------- -----------
Income before provision
for income taxes and
discontinued operations 21,693 9,906 29,844 19,518
Provision for income taxes 536 1,853 3,038 4,290
--------- --------- ----------- -----------
Income before discontinued
operations 21,157 8,053 26,806 15,228
Discontinued operations,
net of taxes: for the
quarters 2004 - $(59)
and 2003 - $0; for the
nine months 2004 - $286
and 2003 - $0 3,243 1,930 (4,890) 24,434
--------- --------- ----------- -----------
Net income $24,400 $9,983 $21,916 $39,662
========= ========= =========== ===========
Net income (loss) per
share of common stock:
Basic:
Before
discontinued
operations $0.20 $0.08 $0.25 $0.14
Discontinued
operations 0.03 0.01 (0.05) 0.23
--------- --------- ----------- -----------
Net income per
share of common
stock $0.23 $0.09 $0.20 $0.37
========= ========= =========== ===========
Shares used to
compute basic net
income (loss) per
share 108,039 107,142 107,613 106,356
========= ========= =========== ===========
Diluted:
Before
discontinued
operations $0.19 $0.07 $0.25 $0.14
Discontinued
operations 0.03 0.02 (0.05) 0.23
--------- --------- ----------- -----------
Net income per
share of common
stock $0.22 $0.09 $0.20 $0.37
========= ========= =========== ===========
Shares used to
compute diluted
net income (loss)
per share 109,061 107,600 108,673 106,510
========= ========= =========== ===========
BEVERLY ENTERPRISES, INC.
SUPPLEMENTARY INFORMATION
Three Months Ended Nine Months Ended
September 30, September 30,
---------- ---------- ---------- ----------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Number of Nursing Home
Facilities:
Owned 264 294 264 294
Leased 91 114 91 114
---------- ---------- ---------- ----------
Total 355(1) 408 355(1) 408
========== ========== ========== ==========
Number of Beds:
Owned 27,327 31,071 27,327 31,071
Leased 10,004 12,489 10,004 12,489
---------- ---------- ---------- ----------
Total 37,331(1) 43,560 37,331(1) 43,560
========== ========== ========== ==========
Assisted Living Centers 18 21 18 21
Home Care Centers 45 22 45 22
Outpatient Clinics 10(1) 10 10(1) 10
Nursing Patient Days 2,828,000 2,852,000 8,428,000 8,462,000
Nursing Home Occupancy -
Continuing Ops (based on
operational beds) 89.00% 88.33% 88.58% 88.03%
Operational beds 34,395 35,036 34,395 35,036
Patient Mix (based on
patient days):
Medicaid 71.56% 71.08% 70.83% 70.53%
Medicare 11.42% 11.31% 12.13% 11.77%
Private & Other 17.02% 17.61% 17.04% 17.70%
Sources of Revenue (based
on $):
Medicaid 50.84% 53.45% 50.41% 52.19%
Medicare 27.61% 25.59% 28.05% 26.50%
Private & Other 21.55% 20.96% 21.54% 21.31%
Nursing Average per diem
rate (including
ancillaries) $160.66 $149.88 $159.58 $147.89
Hospice Average Daily
Census 1,792 952 1,293 863
Aegis Outside Contracts 592 480 592 480
Wages and related expenses
as a % of revenues 59.18% 59.83% 57.62% 60.02%
(1) 24 Nursing Home Facilities and 10 Outpatient Clinics are held for
sale as of September 30, 2004.
BEVERLY ENTERPRISES, INC.
SUPPLEMENTARY INFORMATION
ANALYSIS OF REVENUES
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ----------------------
2004 2003 2004 2003
-------- -------- ---------- ----------
REVENUES (In thousands)
- -----------------------
NURSING FACILITIES:
MEDICAID $258,577 $247,784 $ 750,864 $ 704,138
MEDICARE 104,220 95,716 329,350 293,678
PRIVATE & OTHER 92,887 85,582 268,946 259,255
-------- -------- ---------- ----------
SUBTOTAL 455,684 429,082 1,349,160 1,257,071
AEGIS THERAPIES 31,975 20,044 89,023 55,444
HOSPICE/HOME CARE 19,247 10,369 42,399 27,757
OTHER 1,263 1,706 5,722 4,758
-------- -------- ---------- ----------
TOTALS $508,169 $461,201 $1,486,304 $1,345,030
======== ======== ========== ==========
NURSING PATIENT DAYS
(In thousands)
- --------------------
MEDICAID 2,024 2,027 5,970 5,968
MEDICARE 323 322 1,022 996
PRIVATE & OTHER 481 503 1,436 1,498
-------- -------- ---------- ----------
TOTALS 2,828 2,852 8,428 8,462
======== ======== ========== ==========
NURSING PER DIEM RATES
(Including Ancillaries)
- ------------------------
MEDICAID $ 126.26 $ 119.95 $ 124.34 $ 116.87
MEDICARE - PART A 326.04 296.88 322.16 294.78
PRIVATE & OTHER 158.96 150.37 157.09 148.89
-------- -------- ---------- ----------
TOTALS(1) $ 160.66 $ 149.88 $ 159.58 $ 147.89
======== ======== ========== ==========
(1) Weighted Average Rates
BEVERLY ENTERPRISES, INC.
SUPPLEMENTARY INFORMATION
ANALYSIS OF OTHER OPERATING AND ADMINISTRATIVE EXPENSES
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
SUPPLIES $ 28,425 $ 27,376 $ 85,257 $ 80,028
FOOD 9,594 10,387 29,038 31,767
UTILITIES 12,702 12,387 40,938 39,121
OTHER CONTROLLABLES 53,725 41,768 156,527 125,535
REAL ESTATE RENTAL 8,066 7,970 24,018 24,562
EQUIPMENT RENTAL 4,728 3,956 13,353 12,308
OTHER NONCONTROLLABLES 14,320 12,654 42,318 33,548
--------- --------- --------- ---------
TOTALS $131,560 $116,498 $391,449 $346,869
========= ========= ========= =========
BEVERLY ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
2003
---------------------------------------------------
1st qtr 2nd qtr 3rd qtr 4th qtr YTD
--------- --------- --------- --------- -----------
Revenues $437,598 $446,231 $461,201 $475,116 $1,820,146
Costs and
expenses:
Wages and related 263,197 268,170 275,922 279,914 1,087,203
Provision for
insurance and
related items 24,492 29,781 27,892 29,300 111,465
Other operating
and
administrative 116,079 114,292 116,498 123,200 470,069
Depreciation and
amortization 14,287 14,564 14,783 15,514 59,148
Adjustment
related to
California
investigation
settlement - (925) - - (925)
Asset
impairments,
workforce
reductions and
other unusual
items 1,187 142 1,343 1,153 3,825
--------- --------- --------- --------- -----------
Total costs and
expenses 419,242 426,024 436,438 449,081 1,730,785
--------- --------- --------- --------- -----------
Income before
other income
(expenses) 18,356 20,207 24,763 26,035 89,361
Other income
(expenses):
Interest expense (15,996) (15,736) (16,029) (15,553) (63,314)
Costs related to
early
extinguishment
of debt - - - (6,634) (6,634)
Interest income 1,211 1,173 1,170 1,809 5,363
Net gains
(losses) on
dispositions (194) 591 2 23 422
Gain on sale of
equity
investment - - - 6,686 6,686
--------- --------- --------- --------- -----------
Total other
expenses, net (14,979) (13,972) (14,857) (13,669) (57,477)
--------- --------- --------- --------- -----------
Income before
provision for
income taxes and
discontinued
operations 3,377 6,235 9,906 12,366 31,884
Provision for
income taxes 1,236 1,201 1,853 779 5,069
--------- --------- --------- --------- -----------
Income before
discontinued
operations 2,141 5,034 8,053 11,587 26,815
Discontinued
operations, net
of taxes of
$3,378 10,047 12,457 1,930 29,219 53,653
--------- --------- --------- --------- -----------
Net income $12,188 $17,491 $9,983 $40,806 $80,468
========= ========= ========= ========= ===========
Net income per
share of common
stock:
Basic:
Before
discontinued
operations $0.02 $0.05 $0.08 $0.11 $0.25
Discontinued
operations 0.10 0.11 0.01 0.27 0.50
--------- --------- --------- --------- -----------
Net income per
share of
common stock $0.12 $0.16 $0.09 $0.38 $0.75
========= ========= ========= ========= ===========
Shares used to
compute basic
net income per
share 104,743 107,156 107,142 107,201 106,582
========= ========= ========= ========= ===========
Diluted:
Before
discontinued
operations $0.02 $0.05 $0.07 $0.11 $0.25
Discontinued
operations 0.10 0.11 0.02 0.27 0.50
--------- --------- --------- --------- -----------
Net income loss
per share of
common stock $0.12 $0.16 $0.09 $0.38 $0.75
========= ========= ========= ========= ===========
Shares used to
compute
diluted net
income per
share 104,743 107,161 107,600 108,089 106,920
========= ========= ========= ========= ===========
For all periods presented, amounts have been adjusted to exclude
discontinued operations as of September 30, 2004.
BEVERLY ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, December 31,
2004 2003
------------- ------------
(Unaudited) (Note)
ASSETS
Current assets:
Cash and cash equivalents $207,360 $258,815
Accounts receivable, less allowance for
doubtful accounts: 2004 - $33,326; 2003 -
$31,615 215,338 164,635
Notes receivable, less allowance for
doubtful notes: 2004 - $2,300; 2003 -
$3,336 6,499 13,724
Operating supplies 9,250 10,425
Assets held for sale 15,128 3,498
Investment in Beverly Funding Corporation - 31,342
Prepaid expenses and other 39,135 33,377
------------- ------------
Total current assets 492,710 515,816
Property and equipment, net 646,860 694,220
Other assets:
Goodwill, net 124,467 57,102
Other, less allowance for doubtful
accounts and notes: 2004 - $1,462; 2003 -
$2,120 70,635 79,283
------------- ------------
Total other assets 195,102 136,385
------------- ------------
$1,334,672 $1,346,421
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $59,081 $67,572
Accrued wages and related liabilities 95,478 116,717
Accrued interest 9,066 6,896
General and professional liabilities 63,422 93,736
Federal government settlement obligations 14,064 13,125
Liabilities held for sale 622 672
Other accrued liabilities 87,143 102,289
Current portion of long-term debt 11,644 13,354
------------- ------------
Total current liabilities 340,520 414,361
Long-term debt 558,488 552,873
Other liabilities and deferred items 173,971 141,001
Commitments and contingencies
Stockholders' equity:
Preferred stock, shares authorized:
25,000,000 - -
Common stock, shares issued: 2004 -
116,241,478; 2003 - 115,594,806 11,624 11,559
Additional paid-in capital 897,476 895,950
Accumulated deficit (538,909) (560,825)
Treasury stock, at cost: 8,283,316 (108,498) (108,498)
------------- ------------
Total stockholders' equity 261,693 238,186
------------- ------------
$1,334,672 $1,346,421
============= ============
Note: The balance sheet at December 31, 2003 has been derived from
the audited consolidated financial statements at that date but does
not include all of the information and footnotes required by generally
accepted accounting principles in the United States for complete
financial statements.
BEVERLY ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Nine Months Ended
September 30,
-------------------
2004 2003
--------- ---------
Cash flows from operating activities:
Net income $21,916 $39,662
Adjustments to reconcile net income to net
cash provided by (used for) operating
activities, including discontinued
operations:
Depreciation and amortization 47,656 52,845
Provision for reserves on accounts, notes
and other receivables, net 10,772 22,670
Amortization of deferred financing costs 2,107 3,655
Costs related to early extinguishments of
debt 40,430 -
Asset impairments, workforce reductions
and other unusual items 3,799 5,224
Gains on dispositions of facilities and
other assets, net (455) (47,254)
Adjustment related to California
investigation settlement - (925)
Insurance related accounts (12,833) 4,189
Changes in operating assets and
liabilities, net of acquisitions and
dispositions:
Accounts receivable (53,955) (20,153)
Prepaid expenses 8,139 (6,635)
Accounts payable and other accrued
expenses (23,140) 2,501
Income taxes (2,497) 2,337
Other, net (4,219) (4,689)
--------- ---------
Total adjustments 15,804 13,765
--------- ---------
Net cash provided by operating
activities 37,720 53,427
Cash flows from investing activities:
Capital expenditures (37,964) (29,054)
Payments for acquisitions, net of cash
acquired (71,479) (404)
Proceeds from dispositions of facilities
and other assets, net 22,346 173,102
Proceeds from Beverly Funding Corporation
investment 28,956 -
Collections on notes receivable 32,268 510
Payments for designated funds, net (958) (5,320)
Other, net (24,316) (9,010)
--------- ---------
Net cash (used for) provided by
investing activities (51,147) 129,824
Cash flows from financing activities:
Repayments of long-term debt (207,479) (58,212)
Repayments of off-balance sheet financing - (69,456)
Proceeds from issuance of new debt 211,384 -
Proceeds from exercise of stock options 1,399 98
Deferred financing and other costs (43,332) (2,409)
--------- ---------
Net cash used for financing activities (38,028) (129,979)
--------- ---------
Net increase (decrease) in cash and cash
equivalents (51,455) 53,272
Cash and cash equivalents at beginning of period 258,815 115,445
--------- ---------
Cash and cash equivalents at end of period $207,360 $168,717
========= =========
Supplemental schedule of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized $30,969 $45,799
Income tax payments, net 5,821 1,953
BEVERLY ENTERPRISES, INC.
EBITDA Reconciliation
(In thousands, except per share amounts)
Three Months Ended
September 30,
-------------------
2004 2003
--------- ---------
Revenues $508,169 $461,201
Costs and expenses:
Wages and related 300,734 275,922
Provision for insurance and related items 29,407 27,892
Other operating and administrative 131,560 116,498
Asset impairments, workforce reductions
and other unusual items (613) 1,343
Net gains on dispositions (582) (2)
--------- ---------
Total costs and expenses 460,506 421,653
--------- ---------
EBITDA (Continuing operations) 47,663 39,548
Other income (expenses):
Depreciation and amortization (15,918) (14,783)
Interest expense (11,122) (16,029)
Costs related to early extinguishments of
debt (176) -
Interest income 1,246 1,170
Adjustment related to California
investigation settlement - -
--------- ---------
Total other expenses, net (25,970) (29,642)
--------- ---------
Income before provision for income taxes and
discontinued operations 21,693 9,906
Provision for income taxes 536 1,853
--------- ---------
Income before discontinued operations 21,157 8,053
Discontinued operations, net of taxes: 2004 -
$(59); 2003 - $0 3,243 1,930
--------- ---------
Net income $24,400 $9,983
========= =========
Net income (loss) per share of common stock:
Basic:
Before discontinued operations $0.20 $0.08
Discontinued operations, net of taxes 0.03 0.01
--------- ---------
Net income per share of common stock $0.23 $0.09
========= =========
Shares used to compute basic net income
per share 108,039 107,142
========= =========
Diluted:
Before discontinued operations $0.19 $0.07
Discontinued operations, net of taxes 0.03 0.02
--------- ---------
Net income per share of common stock $0.22 $0.09
========= =========
Shares used to compute diluted net income
per share 109,061 107,600
========= =========
Beverly Enterprises, Inc.
Projected 2004 Continuing Operations EBITDA Range Reconciliation
(In millions)
Projected EBITDA $180.0 $185.0
Depreciation and amortization 63.0 63.0
Costs related to early extinguishment of debt 40.4 40.4
Interest expense 46.1 46.1
Interest income (5.2) (5.2)
------- -------
Pre-tax income $ 35.7 $ 40.7
======= =======
Beverly Enterprises, Inc.
Nursing Facility EBITDA
Reconciliation
(In millions)
Three Months Ended
September 30,
-----------------
2004 2003
-------- --------
Revenues $ 455.7 $ 429.1
EBITDA $ 41.2 $ 28.5
Depreciation and amortization 13.5 12.3
Interest expense 1.8 3.1
Interest income (0.5) (0.7)
-------- --------
Pre-tax income $ 26.4 $ 13.8
======== ========
Hospice USA, LLC
Projected 2004 EBITDA
Reconciliation
(In thousands)
Projected EBITDA $2,038
Depreciation and amortization 284
Interest expense -
Interest income -
-------
Pre-tax income $1,754
=======
CONTACT: Beverly Enterprises, Inc.
Investor Relations: James M. Griffith, 479-201-5514
jim_griffith@beverlycorp.com
or
Media: Blair C. Jackson, 479-201-5263
blair_jackson@beverlycorp.com
www.beverlycorp.com