Improving Health, Health Care and Quality of Life
Business Editors/Health & Medical Writers
TORRANCE, Calif.--(BUSINESS WIRE)--April 1, 1999--Total Renal Care Holdings, Inc. (NYSE:TRL) today announced that in yesterday's filing of its Form 10-K with the SEC, the Company reduced its 1998 merger and related expense from its acquisition of Renal Treatment Centers by $14.6 million. The expense reduction is comprised of a reclassification of $10.9 million into operating expenses and a reversal of certain accruals in the aggregate amount of $3.7 million. The reclassification and reversal of accruals were made in response to certain comments received from the SEC in connection with its continuing review of the Company's registration statement with respect to resales of TRL's $345 million 7% Convertible Subordinated Notes.
-- A $1.7 million reclassification of one-time inventory write-offs into facilities expense -- A $3.3 million reclassification of one-time deferred merger bonus into general and administrative expense -- A $5.9 million reclassification of the remaining book value of incompatible and duplicative software costs into depreciation and amortization In addition, the following accruals were reversed from merger and related expenses, thereby increasing the TRL's pre-tax income by $3.7 million: -- A $2.5 million reversal of accrued potential sales and use tax liability -- A $1.2 million reversal of an over accrual for merger expenses
--30--crd/sf* CONTACT: AT THE COMPANY RICH LESTER, VP - INVESTOR RELATIONS 212/794-9348 OR JOHN E. KING, CFO 310/792-2600 OR AT THE FINANCIAL RELATIONS BOARD HARIS TAJYAR, GENERAL INFORMATION MOIRA CONLON, INVESTOR CONTACT MARJORIE ORNSTON, MEDIA CONTACT 310/442-0599 KATHY BRUNSON, INVESTOR CONTACT 312/266-7800 KEYWORD: CALIFORNIA INDUSTRY KEYWORD: MEDICINE