Staff Builders reports $21 million loss for '98
Staff Builders Inc., one of the nation's largest home health care and staffing providers, recently announced its fiscal year ending Feb. 28, 1998 operating results. The company reported a $21.6 million loss on $519.7 million in revenues. This compares with a $3.8 million gain on $480.4 million in revenues the prior year.
The loss includes a $33.4 million pre-tax nonrecurring charge for a goodwill write down, employee severance arrangements, office consolidations, and other reorganization costs. "While fiscal 1998 was again a record year for revenue growth, we saw a decrease in our earnings as we prepared for changes in Medicare reimbursement regulations," says Stephen Savitsky, chief executive officer. "We believe that fiscal 1999 will be a transitional year for Staff Builders and the entire home health care industry. Accordingly, we are carefully evaluating and managing every aspect of our business in light of expected changes and are positioning the company to operate from a position of strength in a consolidating market," he adds.
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