Custodial care provider shows earnings growth
Star Multi Care Services, a Hicksville, NY-based proprietary provider of custodial and high-tech home health care and staffing to hospitals and other medical facilities, reported an increase in revenues for the second quarter and six months ending Nov. 30, 1996.
Second quarter net revenues rose 12% to $13,274,633 from $11,845,200 for the corresponding period last year. Income from operations increased 28% to $846,174 from $658,881 for the same period in 1995. Net income climbed 27% to $479,244 compared with $376,710 in the year-ago quarter. Earnings per share were 12 cents as compared to 9 cents.
For the first six months, net revenue rose 10% to $25,837,793 from $23,459,086 for the comparable period last year. Income from operations was $1,531,879, an increase of 90% over the $806,913 reported in the same period of 1995. Earnings before interest, income taxes, depreciation and amortization, and non-recurring acquisition costs increased 53% to $1,848,793 from $1,204,869 for the same period in 1995. Results for the first half of fiscal 1995 and 1996 reflect the consolidation of Amserv Healthcare, acquired in August 1996, which has been accounted for as a pooling of interests.
Star incurred a one-time charge of $2.8 million in the first quarter for acquisition costs, legal fees, and restructuring expenses associated with the acquisition of Amserv, which contributed to a net loss for the first six months of $799,437 or 19 cents per share, compared with net income of $408,842 or 10 cents per share for the same period last year. More than 50% of Star’s business is made up of insurance companies, hospitals, HMOs, Medicaid, and private payers.
Star Multi Care Services is pleased with the progress it has made in both sales and earnings growth, says Stephen Sternbach, president and CEO. "This quarter’s results greatly benefited from the inclusion of Amserv."
Star Multi Care Services provides care throughout the New York metropolitan area, upstate New York, New Jersey, southeastern Florida, and Ohio.
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