Advocat Reports Higher Revenues And Net Income For Second Quarter

Advocat Reports Higher Revenues And Net Income For Second Quarter

BRENTWOOD, Tenn.–(BUSINESS WIRE)–August 11, 1995–Advocat Inc. (NYSE:AVC) today announced record revenues and net income for the second quarter and six months ended June 30, 1995.

“Advocat’s revenues increased 36% to $33.5 million in the second quarter, and net income rose 24% to $1.17 million,” stated Dr. Charles W. Birkett, chairman and chief executive officer of Advocat. “Our record results were due to improved same facility revenues and the contribution of 1,323 net new nursing home and retirement beds added since last year.”

Revenues for the second quarter of 1995 included a 38% increase in patient revenues to $32.6 million from 23.7 million and a 5% increase in management fee revenues to $885,000 from $839,000. Total revenues for the second quarter of 1995 were $33.5 million compared with pro forma revenues of $24.6 million recorded in the prior year. Net income for the second quarter of 1995 was $1,173,000, or $0.22 per share, compared with pro forma net income of $948,000, or $0.18 per share, in the second quarter of 1994. Pro forma earnings per share is based on the 5.25 million shares outstanding effective with the initial public offering.

The results for 1994 are on a pro forma basis to reflect the conversion of certain owned facilities to leasehold interests coincident with Advocat’s initial public offering. The pro forma results include the estimated additional corporate, administrative and public financial reporting expenses which would have been incurred by Advocat if it had operated as a separate entity effective January 1, 1994.

“Our same facility revenues increased 12% from the second quarter of 1994,” continued Dr. Birkett. “The strong performance of our core facilities was due primarily to continued improvement in our revenue payor mix, the contribution of ancillary services and to rate increases in certain states. Our ancillary revenues increased by 94% in the second quarter of 1995 compared with the prior year. New facility revenues accounted for approximately 67% of the total increase in revenues during the second quarter of 1995.

“We continue to work on building our revenue base at existing facilities. As of the end of the second quarter, all of our homes are certified to accept patients under the Medicare program. During the past year, six homes received this certification. We are continuing to review the addition of certain ancillary services that we could provide throughout our system,” concluded Dr. Birkett.

Advocat Inc. operates 86 long-term care facilities, including 66 nursing homes containing 7,425 licensed beds and 20 retirement centers containing 2,335 units at June 30, 1995. The Company’s common stock is traded on The New York Stock Exchange under the symbol AVC. -0-

ADVOCAT INC.

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