Allied Nursing Care Reports $706,877 Net Loss for Year
The net loss compares to a net loss of $1.3 million, or 30 cents per share, the previous fiscal year. Revenues for the year totaled $1.76 million, down 32 percent from $2.59 million.
For the fourth quarter of the fiscal year, Allied Nursing reported a net loss of $352,777, or 7 cents per share, compared to a net loss of $677,400, or 15 cents per share. Revenues for the quarter totaled $576,893, down 30.1 percent from $825,600.
Fourth quarter results for the fiscal year include an addition of $66,000 to the company's allowance for doubtful accounts and a write-down of approximately $159,000 in the carrying value of intangible assets from its 1984 acquisition of Hospital Personnel Services Inc. from Medsource Corp. This wirte-down was in addition to a second quarter charge to operations of $75,000 which represented the cost of the negotiated settlement of a stock repurchase option granted Medsource.
The effect of these fourth quarter accounting changes on the results for the fiscal year was approximately 5 cents per share.
In the fourth quarter of the previous fiscal year, the company wrote off certain bad debt expenses and increased its allowance for doubtful accounts by $145,500, with a total effect on results of approximately 6 cents per share.
At March 31, 1986, the allowance for doubtful accounts amounted to $208,000, compared to $68,500 at March 31, 1985.
Results for the fiscal year reflect many of the actions the company has taken over the past two years to restructure its operations in line with current conditions and opportunities in the home health care market, according to Lyle R. Kelsey, president and chief executive officer.
"During the third quarter we sold the assets of our Dallas subsidiary for $65,000 cash, retaining approximately $325,000 in accounts receivable," Kelsey said. "We also sold all outstanding stock ofour Weatherford, Okla., subsidiary, Health Watch Inc. …