Nu-Med Reports Loss of $3.1 Million
Nu-Med reported a $3.1-million loss for its fiscal second quarter, against a year-earlier profit of $2.5 million, or 22 cents a share. Revenue for the quarter that ended Oct. 31 rose to $110 million from $93.6 million.
The Encino-based operator of hospitals and other health-care facilities blamed the loss on higher costs, including increased borrowing expenses and start-up expenses for two psychiatric hospitals.
Nu-Med’s interest and refinancing costs soared 63% from a year ago, to $13.7 million from $8.4 million. Two months ago Nu-Med replaced $74.3 million of bank debt with $86 million in long-term financing provided by two insurance companies.
For the first half of its fiscal year, Nu-Med lost $1.1 million contrasted with net income of $4.8 million, or 44 cents a share, a year earlier. Six-month revenue climbed to $220 million from $184.4 million.
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