Officials of American Medical International last week touted the company's third-quarter profits but remained mum on persistent takeover rumors that have buoyed the stock price of the 37-hospital chain.
In a conference call with stock analysts to announce the company's quarterly results, AMI Chairman Robert O'Leary said he had previously declined comment on the rumors, and would continue that policy. Mr. O'Leary said he wanted to "focus on the real issues without getting caught up in the rumor mill" before opening up the conference call to questions from the analysts.
For several months, analysts have cited AMI as a possible takeover target. Rumors, which include National Medical Enterprises buying Dallas-based AMI, pushed the stock to $26.63, its 52-week high, early last month, and AMI stock continues to trade in the mid-$20s on the New York Stock Exchange.
AMI's third-quarter results were skewed slightly by a $69 million windfall from the sale of its Epic Healthcare Group stock. AMI held a 26% stake in Epic, the Dallas-based hospital company that was acquired in May by Nashville, Tenn.-based Healthtrust-The Hospital Co. AMI's after-tax gain was $43.4 million, or 56 cents per share.
For the quarter ended May 31, AMI reported a 359% increase in net income to $69.4 million, or 90 cents per share, from net income of $15.1 million, or 19 cents per share, in the year-ago period. Revenues grew 6% to $602 million. Excluding the profit on Epic stock and a $1.9 million loss on early retirement of debt, AMI reported a 28.6% increase in net income to $27.9 million.
For the nine-month period, AMI reported a 151% increase in net income to $110.2 million, or $1.43 per share, from net income of $44 million, or 57 cents per share, in the year-ago period. Revenues rose 4% to $1.7 billion.