Loading…
Saturday, September 20, 2014
Current Weather
Loading Current Weather....
HomeNewsLocal
Published: Saturday, 2/23/2002

Manor Care earnings reduced after arbiter's decision

Toledo's Manor Care, Inc., has restated its 2001 fourth-quarter and full-year profits to reflect the recent decision by an arbitrator that it must pay more than $24 million to another company.

One of the nation's largest owners of nursing homes, Manor Care said yesterday it had a profit of $68.5 million, or 66 cents a share, up from $39 million, or 38 cents a share, a year ago. Those numbers compare with the $84 million, or 81 cents a share, it had said on Feb. 1 that it had made last year.

For last year's fourth quarter, the company reported a loss of $18 million, or 18 cents a share, compared with a profit of $22.9 million, or 22 cents a share, for the same period last year. It had reported a net loss of $2.7 million, or 3 cents a share, for the 2001 fourth quarter.

The restatement came as no surprise to principal analyst Jerry Doctrow of Legg Mason Wood Walker, Inc., in Baltimore.

“We view this as a one-time charge,” he said. “It's clearly the premier nursing home company in the country and it's very well-managed.”

Manor Care said it had to revise its 2001 numbers to reflect an arbitration ruling last week that ordered it to pay $24.6 million in damages to the NeighborCare Pharmacy Services subsidiary of Genesis Health Ventures, Inc., of Kennett Square, Pa. Manor Care said its fourth-quarter operating expenses now include $38 million for general liability, $23.6 million to cover the damage award and related expenses, and $1 million in interest expense related to the decision.

NeighborCare said that it lost profits when Manor Care terminated a contract in 1999 made by a predecessor firm. The contract was to run through September, 2004, and an arbitrator decided the pact was valid until then.

Manor Care's stock closed yesterday at $19.40 a share, down 23 cents, in New York Stock Exchange trading.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.






Poll