Citing overly ambitious expansion of its dental clinic chain, Safeguard Health Enterprises Inc. last week reported net losses for the final quarter and full year ended Dec. 31
The losses contrast sharply with strong year-earlier net earnings.
The Anaheim-based prepaid dental care company, said it had a 1986 net loss of $1 million, compared to net earnings of $3.4 million a year earlier. By contrast, 1986 revenues increased 24% to $61.8 million from $49.9 million a year earlier.
Safeguard, which recently announced plans to cut up to one-third of the 40 dental clinics it operates, said it took a $2.8-million write-down during the fourth quarter in anticipation of that cut.
Losses at the dental centers, coupled with the write-down, resulted in a fourth-quarter net loss of $2.4 million. A year earlier, Safeguard had net earnings of $970,000 in the quarter.