Staff Builders completes spin-off of its home healthcare division
By MEREDITH BONNER
HHBR Editor
Staff Builders (Lake Success, NY) completed last week the spin-off of its home healthcare division into a separate publicly traded company, Tender Loving Care Health Services (TLC).
The spin-off is the culmination of the plan announced last spring by Staff Builders to separate its home healthcare business, which as of last week will be conducted by TLC. The supplemental staffing business will remain with Staff Builders and will be operated as ATC Health Care Services.
The company distributed to Staff Builders’ stockholders of record on Oct. 12 all of the outstanding common stock of TLC. Staff Builders instructed American Stock Transfer & Trust Company, its transfer and distribution agent, to deliver stock certificates for shares of TLC common stock to Staff Builders’ stockholders. One share of TLC common stock was delivered for every two shares of Staff Builders class A and class B common stock outstanding. Staff Builders said it expects the TLC common stock to be quoted soon on the OTC Bulletin Board under the symbol TLCS.
Stephen Savitsky, who remains chairman/CEO of both TLC and Staff Builders, said in a written statement that the spin-off will "enable financial analysts and institutional investors to better understand and evaluate the intricacies of each of our two businesses: home healthcare and supplemental staffing." Savitsky was unavailable for further comment at HHBR presstime.
Staff Builders reported 2Q00 revenues of $103.5 million, compared to 1Q99 revenues of $111.7 million. The company posted a net loss in 2Q00 of $2.6 million, 11 cents per share, compared to a 2Q99 net income of $135,000, 1 cent per share.
Savitsky said in the statement that he expects ATC to continue to be a healthcare niche market leader. The company showed growth in revenue in 2Q00, he said, adding, "The $72 billion staffing services industry, which continues to grow, offers a wealth of opportunity for our staffing business."
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