Baltimore Sun’s BEST party in 2 weeks

Earnings up 65% for IHS


With earnings up 65 percent in the second quarter, Integrated Health Services Inc. showed yesterday it continues to be the undisputed national leader in post-hospital care.

The Hunt Valley firm, which has built a 27-state network of long-term facilities largely by equity-financed acquisitions and management contracts, reported revenues in the quarter that ended June 30 rose 120 percent, to $138.6 million, over the same period last year. Earnings per share rose 33 percent, to 44 cents.

The company met or exceeded analysts' estimates and remains seemingly immune from the price wars beginning in other segments of the health industry.

"There are no surprises, which is unusual in this business," said William Hicks of the Cowen Co. in Boston.

Noting the firm increased its gross profit margins by more than 60 percent over the first quarter, Mr. Hicks said Integrated is executing its strategy to build subacute units inside its 148 nursing homes on schedule.

"Integrated is absolutely the leader in subacute care," he said.

Integrated Health pioneered the fast-growing field of subacute care, a term used to describe post-hospital care delivered in nursing homes at a third to two-thirds of the cost of keeping patients in the hospital.

The company two weeks ago raised $205 million from a public offering and subordinated notes to refinance short-term debt used in last year's acquisition of Central Park Lodges Inc., a nursing home chain, and for future acquisitions.

In addition to revamping nursing homes, the company is building a complete line of post-hospital health care services -- from rehabilitation to home health -- it hopes to sell to managed-care companies for a pre-set fee in selected markets.

Shares of Integrated stock closed at $29.875 yesterday, up 25 cents.

Integrated Health Services Inc.

Ticker .... Yesterday's

Symbol .... Cls. .. Chg.

IHS ....... 29 7/8 + 1/4

Period ended

June 30 ....... 1st qtr. ... Year ago ... Chg.

Revenue ...... $138,699 ..... $62,967 ... +120.3%

Net Income ..... $6,772 ...... $4,107 ... +64.9%

Primary EPS ..... $0.44 ....... $0.33 ... +33.3%

............... 6 mos. .... Year ago ... Chg.

Revenue ...... $271,022 .... $120,522 ... +124.9%

Net Income .... $13,166 ...... $7,802 .... +68.8%

Primary EPS ..... $0.85 ....... $0.63 .... +34.9%

Figures in thousands (except per share data.)

Copyright © 2019, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad