Integrated Health Services Inc. yesterday announced it will pay an annual dividend on its common stock, the first since converting to a publicly traded concern in April 1991.
The Owings Mills-based health care provider and nursing home operator said the 2-cents-per-share dividend will be paid Jan. 10 to shareholders of record as of Dec. 30. It is expected to cost the company $380,000, based on its number of common shares outstanding.
"This return will provide another factor for investors to consider when evaluating the company, and opens us up to additional investors who may either want or need returns from dividends," said Marc B. Levin, Integrated's senior vice president and director of investor relations.
The dividend is expected to attract additional institutional investors such as pension funds and insurance companies, many of which are required to purchase stocks only from companies which provide even nominal dividends.
Mr. Levin added the announcement is not linked to a planned future stock sale.
The announcement of a dividend caps a year of extraordinary growth for the company, in which Integrated Health increased its managed facilities by 67 percent and expanded its operations from 25 to 30 states.
At the same time, Integrated Health's financial results continued to skyrocket, part of Chairman and Chief Executive Robert N. Elkins' ambitious plan to diversify into a full-service, discount health care provider.
Dr. Elkins began the firm in 1986 primarily as a nursing home operator, and has since expanded into institutional pharmacies, managed care centers, and rehabilitation and respiratory therapy outlets.
To finance the company's ambitious expansion, Integrated last quarter obtained an increase in its revolving credit line to $250 million, and in July raised $196 million through the sale of 3.5 million additional shares of stock and new debt.
Through the first nine months of this year, Integrated Health reported net income of $18.75 million, $1.12 per share, on revenues of $448.2 million. The net earnings were up 51 percent from the year before, while revenues more than doubled from the comparable period in 1993. As of Sept. 30, the company's assets totaled $1.02 billion.