Shawn, are these the results you expect to push the stock
hopefully to $4. The news has drawn little activity
as of yet 1000 shares. Here is the report. I hope
the activity picks up, anybody have any projections?
Tim J.
Thursday February 6 9:56 AM EDT
NextHealth, Inc. Announces Shareholder Approval of Equity
and Debt Transaction
Financial Results for Fiscal Year Ended December 31, 1996
TUCSON, Ariz., Feb. 6 /PRNewswire/ -- NextHealth, Inc. (Nasdaq: NEXT) today announced that
over 90% of voting stockholders approved the issuance of additional voting Preferred Stock to an
affiliate of Apollo Real Estate Advisers, L.P. ("Apollo") at the Special Meeting held January 29, 1997.
On November 15, 1996, NextHealth completed separate equity and debt transactions with Apollo that
resulted in NextHealth's receipt of approximately $12,340,000 in cash and, subject to compliance with
certain conditions, a $5,000,000 standby loan commitment. The transactions included the sale of two
series of Preferred Stock (Series A and Series B) for an aggregate purchase price of $4,250,000. The
Series A Preferred Stock possesses voting rights while the Series B does not. As a result of the
stockholder approval, the Series B Preferred Stock was converted into Series A Preferred Stock.
Apollo's total Series A Preferred Stock holdings, which are convertible into 4,606,500 shares of
Common Stock, carry a commensurate number of votes at stockholder meetings and represent
approximately 35% of the outstanding voting power of the Company.
The Company also announced its operating results for the fiscal year ended December 31, 1996. Total
revenue for fiscal year ended December 31, 1996 increased $3.6 million to $18.5 million, an increase
of 24% when compared to fiscal year 1995. Total revenue for the quarter ended December 31, 1996
increased $848,000 to $4.6 million, an increase of 22% when compared to the same period of 1995.
These results reflect a full year of operations for Miraval.
The net loss for the year ended 1996 was $14.7 million, or $1.72 per share compared to a loss of $12.0
million or $1.40 per share in 1995. This year's loss was due primarily to costs incurred by Miraval as
it builds awareness in the marketplace, as well as costs associated with a restructuring of management
and the disposition of Onsite.
William T. O'Donnell, Jr., President and CEO, stated, "Although we are disappointed in year-end
results, we believe that our significant management restructuring in combination with the experience
and resources resulting from our strategic alliance with Apollo Real Estate Advisors has the Company
well- positioned to meet our primary objective of returning to profitability.
By divesting two smaller lines of business and making significant reductions in corporate overhead,
we are now entirely focused on reaching a broad range of consumers with our unique wellness
products and services."
New York-based Apollo is one of the nation's most active and successful real estate investment firms.
NextHealth is a leading provider of wellness health care services with two primary lines of business,
Miraval and Sierra Tucson, Inc. Miraval offers guests a unique, life balancing vacation experience
combining stress management, self discovery and recreational activities in a luxury resort
environment. Sierra Tucson provides intensive inpatient treatment for substance abuse and a broad
range of mental health disorders. SOURCE NextHealth, Inc. |
