Kuala Healthcare, Inc. Reports Fiscal 1999 Second Quarter and Six Months Results
ENGLEWOOD CLIFFS, N.J.--(BUSINESS WIRE)--Feb. 23, 1999--Kuala
Healthcare, Inc. (NASDAQ:KUAL), today reported fiscal 1999 second
quarter and six-month financial results for the period ended Dec. 31,
1998.
Revenues for the second quarter ended December 31, 1998 were
$16.5 million, compared with $16.3 million reported in the same period
a year ago. The increase in revenues was attributable primarily to an
increase in revenue at the company's Bach's Institutional Pharmacy
subsidiary, partially offset by a decline in revenue at the Infu-Tech
subsidiary. Net loss for the quarter was $839,000, or 25 cents per
share compared with net income of $26,000 or $0.00 per share reported
for the comparable quarter of fiscal 1998. Net income for the fiscal
1998 quarter includes a $150,000 extraordinary gain from the sale of
certain assets.
For the six months ended Dec. 31, 1998, the company reported
revenues of $31.9 million, compared with $32.6 million for the prior
year. Net loss available to common shareholders for the period ended
December 31, 1998 was $1.19 million compared with net income of
$45,000 reported in the same period of the prior year. Net income
available to common shareholders includes an extraordinary gain of
$150,000 for the six-month period ended December 31, 1997.
Jack Rosen, president and chief executive officer of Kuala
Healthcare, said, "During the second quarter we continued to advance
our development efforts on several assisted living projects. Our
Midland Park, New Jersey facility remains on schedule to be completed
in the Fall of this year. We are also confident that we will be able
to move more aggressively to obtain final site plan approval on our
120-unit facility in Montville, NJ, given the local township's recent
acceptance of an easement from a neighboring site.
"We are looking at additional sites within the region which meet
our demographic criteria and can enable us to obtain the operating and
marketing efficiencies of clustering facilities within a region. We
are also working aggressively to develop Wellness programs with our
subsidiary Infu-Tech which will enable us to offer a comprehensive
level of services which we believe are necessary to accommodate the
growing medical needs of assisted living residents. We are confident
that through resident-specific wellness care programs, Kuala will be
able to improve patient care and in turn increase length of stay,
improve census and reduce overall operating costs to a facility,"
Rosen stated.
Rosen continued, "During fiscal 1999, we have encountered a very
challenging market both in the skilled nursing and home healthcare
markets. Changing reimbursement policies by government and
non-government payors has had a near-term impact on the way in which
Kuala needs to manage its business. We have implemented and continue
to implement operational changes in all of our operations to more
efficiently manage the business in this environment. We are confident
that we will be successful as we move into the second half of our
fiscal year. Our Infu-Tech subsidiary has already seen signs of
improvement in its core business which has returned to profitability
after making several key changes over the past two quarters."
"Lastly, our Bach's Institutional Pharmacy business continues to
grow as we service additional long-term care beds," Rosen concluded. |
