Two Living Centers of America stockholders said they will offer to sell 2.6 million shares, according to a registration statement filed with the Securities and Exchange Commission late last month. The company won't receive any proceeds from the offering. Donald Beaver is offering 2.5 million shares, and the Don W. Wortley Trust is offering 75,000 shares. Beaver withdrew a previous offer to sell the shares last November, citing stock market conditions. He has served as vice chairman and a director of Houston-based Living Centers since July 31, 1995, when Living Centers acquired Hickory, N.C.-based Brian Center Management Corp. for approximately $209 million in stock. Beaver had been chairman, chief executive officer, president and treasurer at Brian Center, a long-term-care provider. After completion of the offer, Beaver will continue to own about 4 million shares of common stock, or 19.6% of the outstanding stock, compared with 38.8% before the offering. For the first quarter of fiscal 1996 ended Dec. 31, 1995, Living Centers reported a 64% increase in net income, to $10.9 million, or 54 cents per share, compared with $6.6 million, or 39 cents per share, in the year-ago quarter. Revenues grew 34% to $270.4 million. Living Centers, the nation's fourth-largest operator of long-term-care facilities, has 294 centers with more than 26,000 licensed beds in 13 states. The company also operates 171 outpatient rehabilitation centers in 21 states.
Ramsay Health Care, a New Orleans psychiatric hospital chain, reported a 109% increase in earnings for its second quarter ended Dec. 31, 1995. The company reported net income of $835,000, or 9 cents per share, compared with $399,000, or 4 cents per share, in the year-ago quarter. Revenues slid 1% to $31.8 million. For the six-month period, the company reported a 52% drop in net income to $444,000, or 5 cents per share, compared with $925,000, or 10 cents per share, in the year-ago period. Revenues decreased 6% to $60.9 million. Revenues dropped because of changes in Louisiana's Medicaid disproportionate-share funding, company officials said. That funding source accounted for $3.7 million in revenues for the previous year's six-month period.