News out. Future success, eh?
I hope so.
What about tomorrow? Will SBLI slump. I hope they use the stock buy back to keep the price up. Or is this intended to get the price back down so that Savitsky can get some shares on the cheap? 13 to 14 cents before write offs is a slight decrease form the 16 cents for last year!
Well, we'll see whether the street likes it or pans it.
What happened to that software acquisition?
............
Staff Builders Reports Write-Off for FY'98
Positions Company for Future Success
LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--April 1, 1998--Staff Builders Inc. (NASDAQ:SBLI - news), one of the nation's
largest home health care and staffing providers, has moved proactively to positively position the Company under the newly enacted
Medicare Interim Payment System (IPS). As a result of the new regulations, which increase administrative costs and lower cost
limits to the 1993 level, management has implemented a corporate-wide restructuring and cost-cutting program to reduce
operating costs.
During the fourth quarter FY 1998, the Company, along with its franchisees, moved aggressively to react to the change in
environment. The Company will record a one-time pre-tax charge during the fiscal 1998 fourth quarter of $30.4 million related to
the write down of goodwill ($22.0 million), employee severance arrangements, office consolidations and other reorganization costs
($8.4 million). Final results of operations for the fourth quarter and year ended 2/28/98 will be reported the week of April 20,
1998. The Company anticipates that the net income for the year ended 2/28/98 will be in the range of $3.1 to $3.4 million, or
$0.13 to $0.14 EPS before the one-time charge. Changes in administration and operations are expected to positively position the
Company for the future. Reduced amortization of goodwill should have a positive impact on future earnings.
''We believe that our proactive approach in preparing for regulatory changes in the home health care portion of our business will
prospectively enhance Staff Builders' market position, allowing for a better return to our shareholders,'' said Stephen Savitsky,
CEO. |
