Continental's earnings drop

Monday, September 30, 2002

GLENDALE, Calif. - Following quarter after quarter of positive financial results and good news, Continental Home Healthcare has hit a bump in the road.

For the second quarter, Continental's revenue dropp-ed, from $5.3 million a year ago to $5 million this year. The company suffered a net loss of $945,000 in the second quarter compared to a gain of $176,000 last year. For the six months ending June 30, Continental recorded a net loss of $960,000 compared to a gain of $350,000 last year.

The company attributed the second loss partially to a one-time charge associated with the closing of its Canadian operations and consolidation of two Las Vegas outlets. Also a factor: cash flow constraints that resulted in lower inventory levels and therefore lower than typical rentals and sales. The company closed on $4 million in additional finance May 23 and resumed regular product shipping. As a result, continental expects to realize in the third quarter revenues it would have book in the second quarter. The company is also continuing its cost reduction plans," said CEO Robert Thornton. HME