Kuala Healthcare, Inc. Reports Fiscal 1998 Second Quarter and Six Month Financial Results
ENGLEWOOD CLIFFS, N.J., Feb. 17 /PRNewswire/ -- Kuala Healthcare, Inc. (Nasdaq: KUAL), formerly Continental Health Affiliates, today reported second quarter and six month financial results for the period ended December 31, 1997.
Revenues for the second quarter of fiscal 1998 were $16,304,000, compared with $17,759,000 reported in the same period a year ago. The decrease in revenues reflected the sales of the King David Center and the Oceanside Convalescent Center in June 1997. The net income available to common shareholders for the quarter was $26,000, compared with net loss of $14,000 reported for the comparable quarter of fiscal year 1997. Net income for the quarter includes extraordinary gains of $150,000 compared with $1,175,000 reported in the same period last year.
Revenues for the six month period ended December 31, 1997 were $32,561,000, compared with the $36,522,000 reported in the same period last year. The net income was $45,000, compared with net income of $3,000 reported in the same period in fiscal 1997.
Commenting on the results, Jack Rosen, president and chief executive officer of Kuala Healthcare, Inc., stated, "Revenues for the second quarter include steady demand for the company's home infusion therapy and other medical services through its 58%-owned subsidiary, Infu-Tech. In addition, operating profitability improved significantly due to an overall reduction in staff at the company's long-term care division and the previously mentioned sale of facilities."
"We are working diligently with our investment bankers to develop a strategic capital plan to concentrate our financial and management talent on the development of assisted living facilities while improving the operating performance of our long-term care facilities. We believe the company will be able to leverage its underlying asset base to further our efforts in the assisted living market. We are currently in active discussions with several parties to acquire or lease assisted living properties," said Mr. Rosen.
"We believe our previously announced initiatives to improve operating profitability and our decision to move aggressively on the development of assisted living facilities will enhance shareholder value over the coming years," Mr. Rosen concluded.
Infu-Tech will continue to direct its marketing efforts towards its business base of managed care organizations nationwide. Infu-Tech will continue to add innovative products and services, such as disease management and capitated programs, to its core infusion therapy services to further enhance its appeal among managed care companies. |
