Manor Care Inc., the Silver Spring-based nursing home and motel franchiser, said its earnings rose 21 percent in its second quarter, primarily as a result of the opening of several new health-care facilities.
Manor Care's profit in the quarter ended Nov. 30 was $9.2 million (24 cents per share), from $7.6 million (20 cents) in the year-earlier quarter. Sales rose 10 percent to $162.5 million.
The performance of the company's nursing home division, which contributed 80 percent of Manor Care's sales, was boosted by the opening of 12 new facilities. The company completed a $270 million expansion of its nursing home chain and now operates 167 facilities in 28 states. Manor Care also franchises the Quality, Comfort, Clarion, Sleep, Rodeway, Econo Lodge and Friendship Inn motel names. Survival Technology Inc. of Bethesda made a profit of $252,000 in the quarter ended Oct. 31, partially because of its Defense Department contract for nerve gas antidote.
Survival Technology is the only U.S. supplier of nerve gas antidotes that can be self-administered during combat. After Kuwait was invaded by Iraq, which has used chemical weapons in the past, Survival Technology received what is called a "letter contract" from the Pentagon. A letter contract allows a supplier to deliver products to the department while terms are being negotiated.
Under this contract, the company may sell as much as $16.3 million in antidote over the next year, with the possibility of a bigger order if the need arises.
The company's profit in the quarter, the first of its fiscal year, compares with a loss of $1.5 million in the same quarter a year earlier. Revenue was $9.6 million compared with $2.9 million last year. Of that, $3.2 million came from antidote sales.