NextHealth, Inc. Announces First Quarter Results; Growth in Earnings Continues

Apr 19, 2001, 01:00 ET from NextHealth, Inc.

    TUCSON, Ariz., April 19 /PRNewswire/ -- NextHealth, Inc. (Nasdaq: NEXT)
 (The Company) today announced its unaudited results of operations for the
 first quarter ended March 31, 2001.
     The Company reported that total revenues for the quarter increased
 approximately 11.8% to $12.0 million, compared with $10.8 million in the first
 quarter of 2000.  Operating expenses increased 8.6% to $8.9 million, resulting
 in income from operations for the quarter of $3.2 million compared to
 $2.6 million in the comparable period of 2000; a 21.9% improvement.  Included
 in operating expenses are expenses related to exploration of strategic
 alternatives for the Company as directed by the special committee appointed by
 the Company's board of directors.  The Company realized a loss on investments
 of $288,000, resulting in net income for the quarter of $2.8 million compared
 to $2.6 million in first quarter 2000; an 8.6% improvement.  Earnings per
 diluted share for the quarter were $0.19 versus $0.18 in the comparable period
 of 2000.  Cash flow from operations for the quarter was $2.2 million compared
 to $3.9 million in first quarter 2000.  Cash flow was affected by payment of a
 deposit of $1.6 million for preliminary settlement of the 1994 IRS Audit.
     First quarter revenues at Miraval increased 8.5% to $6.1 million, an
 improvement of $479,000 when compared to first quarter 2000.  Operating
 expenses were held to a 2.0% increase resulting in income from operations of
 $1.3 million compared to $934,000 in the corresponding quarter of 2000; a
 41.3% improvement.
     Sierra Tucson's revenue increased 15.9% to $5.9 million compared with
 $5.1 million in first quarter 2000.  Operating expenses increased 11.9%
 resulting in income from operations of $2.3 million compared to $1.9 million
 in first quarter 2000; a 22.6% improvement.
     Loree Thompson, Chief Financial Officer said, "We are pleased that revenue
 growth remained strong during the quarter and that both entities contributed
 significantly to income from operations resulting in a 21.9% improvement.
 Management and staff at Sierra Tucson and Miraval have contributed
 considerable effort toward our sustained positive performance."
 
     NextHealth is a leading provider of wellness health care services.
 Miraval offers guests a unique, life balancing vacation experience combining
 stress management, self-discovery and recreational activities in a luxury
 resort environment.  Sierra Tucson provides intensive inpatient treatment for
 substance abuse and a broad range of mental health disorders.
 
     This press release (including Ms. Thompson's comments) contains historical
 information and forward-looking statements.  Statements looking forward in
 time are included in this press release pursuant to the "safe harbor"
 provision of the Private Securities Litigation Reform Act of 1995.  These
 statements are based on management's current expectations or beliefs and are
 subject to a number of factors and uncertainties that could cause actual
 results to differ materially from those described in the forward-looking
 statements.  The factors that could cause actual results to differ materially
 from those described in the forward-looking statements include competition
 from other resort hotel/spas and/or behavioral health facilities; lack of
 operating history at Miraval; an economic downturn that could limit leisure
 activity spending.  Further, the Company operates in an industry sector where
 securities values may be volatile and may be influenced by economic and other
 factors beyond the Company's control.  In the context of the forward-looking
 information provided in this press release and in other reports, please refer
 to the discussions of Factors That May Affect Future Results detailed in the
 Management's Discussion and Analysis of Financial Condition and Results of
 Operations included in the Company's annual report on Form 10-K for the year
 ended December 31, 2000, and the current report on Form 8-K dated April 18,
 2001.
 
     For Information Contact: Bertha Kenny, Investor Relations, 520-818-5800
     Visit our web site at WWW.NEXTHEALTH.COM
 
 
                         NEXTHEALTH, INC. AND SUBSIDIARIES
                          SUMMARY CONSOLIDATED STATEMENTS
                             OF OPERATIONS (Unaudited)
                             FOR THE THREE MONTHS ENDED
                              March 31, 2001 and 2000
                     (000s, except share and per share amounts)
 
                                                       Three months ended
                                                            March 31
                                                       2001           2000
 
      Total net revenue                               $12,044        $10,770
 
      Total operating expenses                          8,882          8,176
 
      Net income from operations                        3,162          2,594
 
      Non-recurring loss on investments                   288             --
 
      Net income before income tax                      2,874          2,594
 
      Provision for income tax                             56             --
 
      Net income                                       $2,818         $2,594
 
      Basic net income per share                        $0.33          $0.30
 
      Diluted net income per share                      $0.19          $0.18
 
      Shares used in basic
       per share calculation                        8,636,263      8,586,238
 
      Shares used in diluted
       per share calculation                       14,503,821     14,297,892
 
 
     Diluted earnings per share for the three-month periods ending March 31,
     2001 and 2000 includes any dilutive effects of options, warrants and
     convertible securities.
 
 

SOURCE NextHealth, Inc.
    TUCSON, Ariz., April 19 /PRNewswire/ -- NextHealth, Inc. (Nasdaq: NEXT)
 (The Company) today announced its unaudited results of operations for the
 first quarter ended March 31, 2001.
     The Company reported that total revenues for the quarter increased
 approximately 11.8% to $12.0 million, compared with $10.8 million in the first
 quarter of 2000.  Operating expenses increased 8.6% to $8.9 million, resulting
 in income from operations for the quarter of $3.2 million compared to
 $2.6 million in the comparable period of 2000; a 21.9% improvement.  Included
 in operating expenses are expenses related to exploration of strategic
 alternatives for the Company as directed by the special committee appointed by
 the Company's board of directors.  The Company realized a loss on investments
 of $288,000, resulting in net income for the quarter of $2.8 million compared
 to $2.6 million in first quarter 2000; an 8.6% improvement.  Earnings per
 diluted share for the quarter were $0.19 versus $0.18 in the comparable period
 of 2000.  Cash flow from operations for the quarter was $2.2 million compared
 to $3.9 million in first quarter 2000.  Cash flow was affected by payment of a
 deposit of $1.6 million for preliminary settlement of the 1994 IRS Audit.
     First quarter revenues at Miraval increased 8.5% to $6.1 million, an
 improvement of $479,000 when compared to first quarter 2000.  Operating
 expenses were held to a 2.0% increase resulting in income from operations of
 $1.3 million compared to $934,000 in the corresponding quarter of 2000; a
 41.3% improvement.
     Sierra Tucson's revenue increased 15.9% to $5.9 million compared with
 $5.1 million in first quarter 2000.  Operating expenses increased 11.9%
 resulting in income from operations of $2.3 million compared to $1.9 million
 in first quarter 2000; a 22.6% improvement.
     Loree Thompson, Chief Financial Officer said, "We are pleased that revenue
 growth remained strong during the quarter and that both entities contributed
 significantly to income from operations resulting in a 21.9% improvement.
 Management and staff at Sierra Tucson and Miraval have contributed
 considerable effort toward our sustained positive performance."
 
     NextHealth is a leading provider of wellness health care services.
 Miraval offers guests a unique, life balancing vacation experience combining
 stress management, self-discovery and recreational activities in a luxury
 resort environment.  Sierra Tucson provides intensive inpatient treatment for
 substance abuse and a broad range of mental health disorders.
 
     This press release (including Ms. Thompson's comments) contains historical
 information and forward-looking statements.  Statements looking forward in
 time are included in this press release pursuant to the "safe harbor"
 provision of the Private Securities Litigation Reform Act of 1995.  These
 statements are based on management's current expectations or beliefs and are
 subject to a number of factors and uncertainties that could cause actual
 results to differ materially from those described in the forward-looking
 statements.  The factors that could cause actual results to differ materially
 from those described in the forward-looking statements include competition
 from other resort hotel/spas and/or behavioral health facilities; lack of
 operating history at Miraval; an economic downturn that could limit leisure
 activity spending.  Further, the Company operates in an industry sector where
 securities values may be volatile and may be influenced by economic and other
 factors beyond the Company's control.  In the context of the forward-looking
 information provided in this press release and in other reports, please refer
 to the discussions of Factors That May Affect Future Results detailed in the
 Management's Discussion and Analysis of Financial Condition and Results of
 Operations included in the Company's annual report on Form 10-K for the year
 ended December 31, 2000, and the current report on Form 8-K dated April 18,
 2001.
 
     For Information Contact: Bertha Kenny, Investor Relations, 520-818-5800
     Visit our web site at WWW.NEXTHEALTH.COM
 
 
                         NEXTHEALTH, INC. AND SUBSIDIARIES
                          SUMMARY CONSOLIDATED STATEMENTS
                             OF OPERATIONS (Unaudited)
                             FOR THE THREE MONTHS ENDED
                              March 31, 2001 and 2000
                     (000s, except share and per share amounts)
 
                                                       Three months ended
                                                            March 31
                                                       2001           2000
 
      Total net revenue                               $12,044        $10,770
 
      Total operating expenses                          8,882          8,176
 
      Net income from operations                        3,162          2,594
 
      Non-recurring loss on investments                   288             --
 
      Net income before income tax                      2,874          2,594
 
      Provision for income tax                             56             --
 
      Net income                                       $2,818         $2,594
 
      Basic net income per share                        $0.33          $0.30
 
      Diluted net income per share                      $0.19          $0.18
 
      Shares used in basic
       per share calculation                        8,636,263      8,586,238
 
      Shares used in diluted
       per share calculation                       14,503,821     14,297,892
 
 
     Diluted earnings per share for the three-month periods ending March 31,
     2001 and 2000 includes any dilutive effects of options, warrants and
     convertible securities.
 
 SOURCE  NextHealth, Inc.