Care Enterprises said Wednesday that it posted a net loss of $1 million for the third quarter ended Sept. 30 because of a $1.8-million writedown resulting from its early retirement of about $15 million in long-term debt during the period.
Without the one-time charge, the Laguna Hills-based nursing home operator said it had operating earnings of $738,000. For the third quarter of 1985, Care Enterprises posted net earnings of $1.2 million.
Revenues during the three-month period rose 6% to $67.8 million, from $64.2 million for the same period a year earlier.
For the nine months ended Sept. 30, severely affected by the third-quarter write-offs, Care Enterprises had a net loss of $772,000. On an operating basis, Care Enterprises said, it had a profit of $1 million. Last year, the company reported nine-month net earnings of $2.7 million.
Nine-month revenues rose 15% to $197.1 million from $171.8 million in 1985.
Derwin Williams, chief financial officer, blamed increased insurance costs and shortfalls in medical reimbursements for the lower operating earnings. He said, however, that earnings will improve because of lower interest payments. Care Enterprises said those savings will total about $4 million a year.