Hanger Orthopedic, the nation's largest maker of prosthetic and orthotic devices and an operator of patient care centers, reported a loss of $34.9 million ($1.68 a share) for the three months ended Sept. 30, compared with a profit of $8.7 million (32 cents) for the same period a year earlier.
Executives with the Bethesda-based company said the quarter would have been profitable if not for a $45.8 million adjustment for "non-cash goodwill impairment." The charge reflects the impact of allegations of improper billing at a West Hempstead, N.Y., patient care center. In August, Hanger restated expenses for the past three years, cutting earnings for that period by $2 million. An outside firm hired by Hanger to investigate the billing allegations concluded in August that any billing problems were isolated at the West Hempstead unit.
The U.S. attorney's office for the Eastern District of New York in June subpoenaed Hanger officials for information regarding 14 patient care centers in downstate New York, including the West Hempstead office. During a conference call yesterday, Hanger officials said the U.S. attorney has amended the subpoenas to cover only the West Hempstead location. The company said it has turned over requested information.
Hanger reported $146.1 million in revenue for the quarter, up 4 percent from $140 million for the same period in 2003. Shares closed yesterday at $6.31, up 67 cents, or 12 percent.
* AES Corp., an Arlington-based global power company, reported a third-quarter profit of $140 million (21 cents a share), 84 percent above earnings of $76 million (12 cents) in 2003's third quarter. Revenue for the quarter ended Sept. 30 increased 9 percent, to $2.4 billion from $2.2 billion.
Nine-month earnings rose to $226 million (35 cents) on $6.94 billion of revenue from $40 million (7 cents) on $6.13 billion of revenue during the same period a year ago.
Shares closed yesterday at $10.66, down 72 cents.
* Strayer Education Inc., which operates for-profit universities, reported third-quarter earnings of $5.1 million (34 cents) on revenue of $38 million, a 5 percent increase from $4.9 million (32 cents) on revenue of $30 million for the same quarter a year ago.
The company attributed its performance in the quarter ended Sept. 30 to a 17 percent increase in enrollment for the fall term -- to a total of 23,539 student on its campuses and online -- as well as the opening of new campuses and the sale of a former campus building in the District. For the first nine months of the year, earnings increased to $28 million ($1.85) on $130.9 million in revenue, from $22.6 million ($1.53) on $103.7 million in revenue in the same period last year. Shares closed at $100.43, down $5.39.
* Highland Hospitality Corp. of McLean reported earnings of $600,000 (1 cent) on revenue of $36 million for the third quarter ended Sept. 30. Funds from operations, a measurement used by real estate investment trusts such as Highlands, were $3.8 million (10 cents). There are no prior-year results for comparison because the REIT, which specializes in lodging properties, went public in December. Shares closed at $11.54, down 16 cents.
* CapitalSource Inc. said continued growth in its loan portfolio drove up profit in the third quarter.
The Chevy Chase commercial finance company earned $34.3 million (29 cents a share) in the three months ended Sept. 30, compared with $31.3 million (28 cents) in the same period last year.
A 14 percent year-over-year increase in net loans drove up net interest and fee income -- the company's equivalent of revenue -- to $82.6 million, from $48.5 million in the third quarter of 2003. But higher operating expenses kept bottom-line growth in check.
For the first nine months of the year, CapitalSource earned $86.1 million (73 cents), compared with $78.2 million (75 cents) in the same period of 2003. The company's loan portfolio, made up of loans to support corporate buyouts and other special commercial finance products, was $3.8 billion on Sept. 30. Shares closed at $22.50, up 35 cents.
* Collegiate Funding Services Inc., a Fredericksburg-based student loan company, said a 7 percent increase in loans drove up third-quarter earnings that were somewhat dampened by one-time expenses from its initial stock offering during the quarter.
Collegiate earned $8.2 million during the quarter, compared with net income of $1.2 million in the same period of 2003. After the effect of dividends on its preferred stock, Collegiate's net income to common shareholders was $7.6 million (25 cents), compared with a loss of $386,000 (2 cents) in the third quarter of 2003. The company's net revenue -- net interest and fee income less its loan-loss provision -- was $59.1 million in the most recent quarter, compared with $29.3 million a year earlier. Total assets on Sept. 30 were $4.5 billion, compared with $3.2 billion a year earlier.
For the first nine months of the year, Collegiate earned $15.7 million, compared with a loss of $4.4 million in the same period of 2003. After preferred dividends, the company earned $10.9 million (43 cents), compared with a loss of $8.7 million (61 cents) a year earlier. Shares closed at $12.43, down 12 cents.
* CarrAmerica Realty Corp., a District-based real estate investment trust, said profit for the third quarter was $37.6 million (61 cents), up 57 percent from $24 million (37 cents) in the same quarter a year earlier. Earnings were boosted by a gain of $19.8 million from the sale of its portfolio of office buildings in Atlanta.
Revenue for the quarter ended Sept. 30 was $124.4 million, up from $119.9 million in the same period last year. Funds from operations were $51.2 million, up from $46.3 million. Shares closed at $32.60, down 28 cents.
* The Advisory Board Company, a Washington-based health care industry advisory firm, reported fiscal second-quarter earnings of $5.9 million (31 cents a share), up 25 percent from $4.7 million (25 cents) a year earlier. Revenue increased 16 percent year-to-year to $34.7 million from $30 million. Fiscal first-half earnings rose 26 percent, to $11.5 million (60 cents) from $9.1 million (49 cents) as revenue increased 16 percent to $67.7 million from $58.4 million. Shares closed 7 cents lower yesterday at $31.72.
* Choice Hotels International of Silver Spring reported third-quarter earnings of $24.9 million (73 cents a share), up 2 percent from $24.3 million (66 cents) for the same quarter last year. Revenue rose nearly 6 percent, to$127.5 million from $105.9 million. Nine-month earnings rose 6 percent year-to-year, to $54 million ($1.55) from $51 million ($1.38) as revenue jumped 11 percent, to $321.9 million from $290.9 million. Shares closed 99 cents higher at $59.69 yesterday.