Nursing home operator
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.