One week after ignoring Horizon Healthcare Corp.'s revised $31-per-share buyout offer, embattled nursing home chain Hillhaven Corp. released less-than-impressive third-quarter and nine-month earnings.
Hillhaven's net income for the third quarter ended Feb. 28 decreased 4% to $11.3 million, or 31 cents per share, compared with $11.9 million, or 32 cents per share, in theLong-term care
year-ago quarter. Revenues climbed 6% to $396 million.
For the nine months, Hillhaven's net income dropped 14% to $38.8 million, or $1.06 per share, compared with $45.2 million, or $1.31 per share, in the year-ago period. Revenues rose 6% to $1.2 billion.
Despite the unexceptional earnings, Bruce Busby, Hillhaven's chairman and chief executive officer, said he was pleased with the company's growth. "The company is on the right strategic course to achieve record operating earnings and revenues in fiscal 1995 and the years ahead," he said.
He cited the company's expansion in subacute care, as well as Hillhaven's recent purchase of Indianapolis-based long-term-care chain Na-tionwide Care for $120 million.
Nonetheless, Hillhaven recently hired investment banking firm Merrill Lynch to explore the possibility of selling the company to an outside party, as well as other alternatives.
Since February, the Tacoma, Wash.-based nursing home chain's shareholders have been pressuring it to accept an optimum purchase offer. But Busby and Hillhaven's board were intent until recently on remaining independent.
Hillhaven rejected Horizon's initial buyout proposal of $28 per share, or $1.4 billion, in February and ignored Horizon's revised $31-per-share, $1.8 billion offer last month.
Albuquerque, N.M.-based Horizon, meanwhile, said it has no immediate plans to continue pursuing Hillhaven.