Tenet Healthcare Corp. reported a 31% increase in income from continuing operations at predecessor companies National Medical Enterprises and American Medical International for the quarter ended Feb. 28.
Santa Monica, Calif.-based Tenet, formerly NME, changed its name when it acquired Dallas-based AMI March 1.
For the quarter, Tenet reported in-Hospital companies
come from continuing operations of $62.4 million, or 30 cents per share, compared with $47.7 million, or 23 cents per share, in the year-ago period. Revenues grew 7% to $1.3 billion.
In its second quarter, before it was acquired, AMI lost $24.8 million, or 32 cents per share, compared with profits of $24.3 million, or 32 cents share, in the year-ago period. The loss was due to a $73.9 million charge from employee stock options, employee benefit costs and professional fees associated with the buyout.
NME, before it changed its name to Tenet, reported profits of $48.9 million, or 29 cents per share, in the third quarter ended Feb. 28, compared with a net loss of $164.3 million, or 99 cents per share, in the year-ago period. The loss was due to a $255 million write-off from discontinued operations. Revenues dropped 8% to $660.5 million. Tenet will report additional costs from the acquisition in its financials for the next quarter, which ends May 31. That also represents the end of Tenet's fiscal year.
As expected, Tenet last week expanded its 10-member board to include three new directors: Robert O'Leary, John Casey and Thomas J. Pritzker. O'Leary, 51, was AMI's former chairman and chief executive officer. He now is president and CEO of American Healthcare Systems, San Di-ego. Casey, 49, was AMI's chief operating officer. He remains with Tenet as a part-time consultant. Pritzker, 44, is president of Hyatt Corp. and is affiliated with GKH Investments, AMI's largest shareholder.
Tenet Healthcare Corp.
3 months ended 2/28 FY1995 FY1994
Revenues (millions) $1,328.4 $1,239.2 Income (millions) $62.4 $47.7
Earnings per share $0.30 $0.23