Long-term care provider Advocat announced its new CEO along with a third-quarter loss due to a number of one-time charges.
The company saw revenues rise 10.5 percent over the same quarter of last year to $80.6 million. But net income fell, turning to a net loss of 17 cents per share compared to net income of 2 cents per share in the third quarter of 2010.
Included in that net loss was $4.6 million in “professional liability expense,” $1.3 million in severance expense for departing CEO Will Council and a $300,000 “asset impairment charge during the quarter, which contributed significantly to the quarterly operating loss.”
Council resigned his post effective Sept. 30 of this year. Taking his place will be President Kelly Gill, who was also named to the company’s board of directors.
Wallace Olson, chairman of the board, said, "Kelly's extensive experience and success at Advocat and in the nursing home profession will be an asset to the Company and the Board in both these roles."
Shares of Advocat (Ticker: AVCA) climbed more than 10 percent Monday to close at $6.45, near their highest level since late July.
Medical real estate investment trust National Health Investors said it earned $18.8 million in the third quarter, up from $17.3 million last year, as revenues rose 5 percent to $20.5 million.
Normalized funds from operations per diluted share rose to 74 cents from 72 cents, which was a penny better than expected. The quarter included a $1 million gain from the sale of real estate but income from continuing operations rose 3.5 percent to $16.5 million.
Looking to the fourth quarter, the Murfreesboro-based company expected to post normalized FFO of between 76 and 78 cents. The high end of its full-year guidance of $2.87 to $2.89 per share is a bit lower than three months ago but includes higher net income as well as the cost of a recently replaced credit facility.
NHI shares (Ticker: NHI) ended Monday trading up slightly at $43.53. Year to date, they’re down 3 percent.
Auto insurer First Acceptance lost $3.7 million in its fiscal first quarter, reversing a small profit in the year-ago period.
Revenues at the Green Hills-based company fell to $50.0 million from $53.1 million as the number of policies in force fell 6 percent from a year ago to about 141,000. On top of that, extra losses from past cases pushed First Acceptance’s loss ratio above 80 percent.
First Acceptance shares (Ticker: FAC) fell more than 7 percent Monday and have lost about 26 percent of their value this year.