Earnings Fall at Manor Care

But revenue is higher, and the stock is climbing more than 3%.
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Nursing home operator

Manor Care

(HCR) - Get Report

reported a lower second-quarter profit on Friday, but said that revenue rose from the same period a year ago.

In the quarter ended June 30, the company earned $18.9 million, or 21 cents a share, including items. Last year, Manor Care earned $38 million, or 38 cents a share. Revenue was $751 million, up from $728 million last year.

"Cost trends continued to be favorable. Wage rate increases remained below 5%, and agency usage in the first six months of 2003 had a run rate of less than half of what it was last year," Chief Executive Paul A. Ormond said in a press release. "General liability claims activity continued essentially stable with the activity of the past two years."

Manor Care said it's arranging a new three-year, $200 million bank credit facility to replace its expiring credit line. The company also said Friday that it will pay its first cash dividend, 12.5 cents a share, on Aug. 20 to shareholders of record on Aug. 7.

Shares of Manor Care, based in Toledo, Ohio, were rising 87 cents, or 3.3%, to $27.65.