Renal Care Group, a kidney dialysis services provider based in Nashville, Tenn., has received Securities and Exchange Commission approval for a public offering of 2.5 million shares of common stock at $32 per share. The company is offering 1.1 million shares and the rest are being offered by certain shareholders, which include former owners of the companies that founded Renal Care Group. The company said it will use the $31.8 million in net proceeds to fund working capital and general corporate purposes, including future acquisitions and development of additional dialysis centers. Managing underwriters for the offering are Equitable Securities Corp., Hambrecht & Quist, Morgan Keegan & Co., and Needham & Co. They have the option of purchasing an additional 375,000 shares of common stock within 30 days of the offering. Renal Care Group provides dialysis and ancillary services through 86 owned and managed outpatient dialysis centers in 15 states. The company reported combined pro forma net revenues of $53 million in 1995.
Living Centers of America, a Houston-based post-acute services provider, reported a 3% rise in net income to $10.9 million, or 55 cents per share, for its fourth quarter ended Sept. 30, from $10.6 million, or 53 cents per share, in the year-ago quarter. Revenues rose 6% to $285 million. For the year, the company posted a 79% increase in net income to $43 million, or $2.13 per share, from $24 million, or $1.27 per share, in the previous year. Revenues grew 23% to $1.1 billion. The company said its earnings were affected by
$1.8 million in charges related to accounting changes, to the closure of a small medical supply and furniture distribution business, and to the divestiture of DevCon, a division that provided rehabilitation services to the developmentally disabled.