Manor Care 1Q profits decrease 24% on higher revenues

Manor Care Inc., one of the three biggest U.S. nursing home chains, said its profits fell 24% in the first quarter as its revenues expanded by 10%. Results of operations included an "unusually high" $18 million of restricted stock compensation expense. First-quarter earnings totaled $31 million, compared with $41 million in the first quarter last year. Revenues rose to $879 million from $797 million in 2004.

First-quarter occupancy totaled more than 89% in the company's skilled nursing centers, remaining at a level near its five-year high. Skilled nursing Medicare revenues increased by nearly 9% in the quarter compared with the fourth quarter 2004. This increase drove the company's mix of Medicare, private pay and managed care/insurance revenues to a high of 71%.

Manor Care completed three nursing home expansions in the 2005 first quarter, and 15 nursing home expansions are ongoing. The fill-rate at two newly opened skilled nursing centers is occurring at "an accelerated rate," the company said.