Westworld’s Profit Rises by 34% in Quarter

Westworld Community Healthcare Inc. said Friday that net earnings during the first quarter rose 34% to $1.2 million from $892,000 during the year ago quarter. Revenues for the quarter totaled $51.7 million, up 120% from $23.5 million in 1985.

Speaking at the annual shareholders’ meeting Friday, Westworld Chairman Michael Dunn said that while the company posted improved results for the quarter, net earnings will be off for the second quarter because of a shortfall in Medicare reimbursements.

Earlier this week, the company confirmed that it is advising securities analysts to lower their 1986 earnings estimates by 15 cents a share as a result of the anticipated fall in second quarter earnings. Most projections had been in the 70 cents to 75 cents a share range.

Last year, net earnings were 48 cents a share, or $3.5 million. Based on Westworld’s 8.1 million outstanding common shares, and the lowered estimates, 1986 earnings should total between $4.4 million and $4.8 million.

On Friday, Westworld shareholders authorized company directors to increase the number of common shares from 10 million to 25 million shares. However, company officials said they have no plans during the near term to increase the number of Westworld shares in public hands.