Nu-Med Posts 3rd Quarter Loss of $19.1 Million

Nu-Med said it lost $19.1 million, or $2.23 a share, in the third quarter ended Jan. 31, largely because of a $9.2-million loss from the sale of an unprofitable hospital it owned in Florida.

The Encino chain of hospitals added that $2.6 million of the loss was attributable to a write-down of a variety of assets. In a write-down, a company reduces the value of assets on its books.

Nu-Med cited as additional reasons the continuing impact of the tightening in federal payments for Medicare patients and increased interest costs stemming from the refinancing of the company’s debt.

In the year-earlier quarter, Nu-Med earned $1.8 million, or 16 cents a share. In the first nine months of its current fiscal year, it lost $20.2 million, or $2.37 a share, contrasted with a profit of $6.6 million, or 60 cents a share, a year earlier.

Revenue in the latest quarter rose 7% to $107.2 million. For the nine months, revenue rose 15% to $325.9 million.

Nu-Med said it expects that its fourth-quarter results will include a $9-million pretax gain from the previous purchase of its bonds with a face value of $25.4 million.