Kuala Healthcare, Inc. Reports Fiscal 1999 Third Quarter and Nine Month Results
ENGLEWOOD CLIFFS, N.J.--(BUSINESS WIRE)--May 17, 1999--Kuala Healthcare, Inc. (NASDAQ: KUAL - news), today reported results for the third quarter and nine months ended March 31, 1999.
Revenues for the third quarter ended March 31, 1999 were $15.4 million, compared with $15.8 million, reported in the same period a year ago. The decline in revenues was primarily attributable to a decrease in revenue in the nursing home services division. Net loss for the quarter was $942,000, or 28 cents per share compared with net loss of $34,000, or one cent per share, reported in the comparable quarter of fiscal year 1998.
For the nine months ended March 31, 1999, the company reported revenues of $47.3 million, compared with the $48.4 million reported in the prior year. Net loss available to common shareholders for the period ended March 31, 1999 was $2.1 million compared with net income of $11,000 reported in the same period of the prior year. Net income was impacted by a decline in revenue at the nursing home services division and an increase in medical and nutritional product costs at Infu-Tech, Inc., in which Kuala holds a majority position. Net income available to common shareholders includes an extraordinary gain of $150,000 in the nine-month period ended March 31, 1998.
Jack Rosen, president and chief executive officer, commented, ''Changes in reimbursement and the increasing competition from assisted living facilities in the region have clearly impacted Kuala's skilled nursing and home health care businesses over the past twelve months. As the long term care and home health care industries continue to be impacted by these changes, Kuala is looking for avenues to create shareholder value by shifting its business mix towards specialty pharmaceuticals and assisted living projects. The company continues to review its operations to reduce cost while ensuring the level of services remains strong.''
Rosen added, ''As previously announced, the company is exploring opportunities to redeploy its assets. In line with this strategy, Kuala completed the sale of Bach's Pharmacy Services, LLC at a significant premium to its original purchase price.''
Rosen concluded, ''To ensure the success of our assisted living development projects, during the quarter we appointed Tracy Schoenfeld to the newly created position of director of assisted living operations and marketing. Tracy's prior experience managing multiple facilities as regional and marketing operations director for Atria Senior Quarters, will add significant value to our efforts going forward.'' |
