For-profit kidney dialysis chains REN Corp. and Renal Treatment Centers appear to be heading in different directions, according to their year-end earnings reports.
REN Corp., the nation's fourth-largest provider of kidney dialysis services, reported net income of $1 million, or 6 cents per share, for the fourth quarter ended Dec. 31, 1993, compared with net income of $1.8 million, or 10 cents per share, in the year-ago period. Revenues rose 33% to $31 million.
For the year, REN reported a net loss of $3.8 million, or 20 cents per share, compared with net income of $5.3 million, or 38 cents per share, in the previous year. Revenues climbed 30% to $106 million.
REN executives attributed the fiscal 1993 losses to a third-quarter charge of $7.2 million, which reflected increased funding for doubtful accounts, money designated for the closure of a dialysis center and a drop in the value of a corporate aircraft.
The company also has announced the layoffs of 50 corporate employees.
Meanwhile, Renal Treatment Centers, the fifth-largest provider of outpatient dialysis treatment, reported a 200% increase in net income for the fourth quarter ended Dec. 31, 1993, to $1.2 million, or 20 cents per share, from net income of $413,700, or 12 cents per share, in the year-ago period. Revenues rose 57% to $13.6 million.
For the year, RTC's net income more than tripled to $3.4 million, or 71 cents per share, from net income of $825,800, or 23 cents per share, in 1992. Revenues rose 49% to $47 million.
Robert L. Mayer Jr., RTC's chairman and chief executive officer, attributed the results to increased demands for outpatient dialysis services within its markets.
Nashville, Tenn.-based REN Corp. operates 49 dialysis centers in 14 states. Berwyn, Pa.-based RTC operates 31 dialysis centers in nine states.