Manor Care Inc.'s net income shot up 16.7 percent in the first quarter on the strength of high occupancy in its nursing homes and hotels, the company reported yesterday.
The Silver Spring-based health care and lodging company reported profits of $28.4 million, or 45 cents per share, in the quarter ending Aug. 31.
Revenue increased 16.2 percent, from $321.4 million to $373.4 million.
Scott Mackesy, a vice president of Dean Witter Reynolds Inc., had nothing but praise for Manor Care.
"Another strong quarter in both of the company's operating units," he said.
"On the health care side the company continues to do a good job expanding the array of products and services that it offers."
"Expect more of the same, a little acquisition activity and" improved results at existing facilities, Mr. Mackesy said.
Manor Care recently announced it will acquire six retirement projects from Beverly Enterprises Inc., adding 1,140 assisted living and independent living units and 373 skilled nursing beds.
The company has not disclosed the price of the transaction, which is expected to close next month.
Manor Care's assisted-living business grew by 112 beds at its Arden Courts facilities.
They serve residents with early to mid-stage Alzheimer's disease.
The company, headed by chairman Stewart Bainum Jr., also bought three more hotels in the last quarter, increasing the company's total to 65 hotels.
Manor Care runs 182 health care facilities in 28 states and owns, manages or franchises more than 3,500 hotels.
The company also owns 82 percent of Vitalink Pharmacy Services.
The stock closed yesterday at $34.75, down 62.5 cents.