Westworld Reports $3.1-Million Loss

Despite hefty increases in revenues compared with last year, Westworld Community Healthcare Inc. Friday reported its first loss ever.

The Lake Forest-based provider of rural hospital care and other health care services posted a second-quarter net loss of $3.1 million, compared with net earnings of $782,000 a year earlier.

Michael Dunn, Westworld’s chairman, had said earlier that the company expected a second-quarter loss, but he had not indicated how big it would be. He said Friday that $2.4 million of the loss stemmed from write-offs and losses incurred in closing down and scaling back hospital facilities.

Revenue for the period rose 61% to $47.9 million from $29.8 million. Dunn attributed the growth to increased business at Westworld’s non-hospital operations.

For the half, Westworld reported a net loss of $1.8 million, compared with net earnings of $1.6 million.

Revenue for the first half totaled $99.6 million, up 86% from $53.4 million.

Because of the restructuring done during the second quarter, Dunn predicted a return to profitability during the final half of the year. However, because Westworld doesn’t want to “raise anybody’s expectations,” Dunn declined to project how much the company will earn for the year.