Acquisitions Help Regency Health Services Post Hefty Profit

NEWPORT BEACH —  Regency Health Services Inc., an operator of nursing and rehabilitative centers, said Monday that a spate of acquisitions in 1992 helped the company post hefty profit and revenue increases for the first six months of its fiscal year.

The company, based in Newport Beach, took over 13 pharmaceutical and nursing facilities in 1992. Also, its core business of nursing centers across California did well.

“If you look at the nursing home industry in general, the trend has been pretty good,” Chief Executive Cecil Mays said.

The company operates 35 facilities with a total of 3,219 beds.

For the three months ended Dec. 31, profit was $1.4 million, or 20 cents a share, compared to earnings of $593,000, or 13 cents a share, for the company’s second fiscal quarter a year earlier. Revenue was $28 million, up 76% from $15.9 million.

For the latest six months, Regency Health Services posted a profit of $2.5 million, or 38 cents a share, compared to earnings of $1.1 million, or 26 cents a share, for the same period a year earlier. Six-month revenue was $54.5 million, up 73% from $31.4 million.

The company also has filed with the Securities and Exchange Commission to sell $40 million in convertible subordinated debentures, due in 2003. Britain’s National Westminster Bank PLC will underwrite the offering.

Proceeds will be used to repay debt and boost working capital. The company said it will also put aside an unspecified amount for future acquisitions.

Regency Health Services’ stock gained 12.5 cents a share to close at $13 in Monday’s trading on the American Stock Exchange.