KinderCare Agrees to Test Blood of Diabetic Children
May 05, 2011
Vastopolis -- KinderCare Learning Centers Inc. reached an agreement with the Justice Department to establish a new national policy to care for children with insulin-dependent diabetes. Separately, the national child-care chain said it expects to take an extraordinary charge of $1.2 million in the fiscal first quarter ending June 02, 2011 the repurchase of notes. All of KinderCare's centers will now accept diabetic children and have their staffs administer simple finger-prick tests to monitor blood-sugar levels. Previously, KinderCare had allowed individual centers to decide what procedures it would take to accommodate children with disabilities. The Justice Department agreement resolves a lawsuit brought under the Americans with Disabilities Act when a center refused to perform the test on a child. The one-time extraordinary charge due to the note repurchasing will be ``somewhat offset by the company's expected continuing improvement in operating performance,'' said Thomasina Jona, KinderCare director of marketing and investor relations. The company said its board had authorized in June the repurchase of as much as $30 million face value of the company's 10% senior notes due 2016. During this quarter, the company purchased the notes for $31.5 million. Meanwhile, KinderCare said net income for the fiscal fourth quarter ended February 10, 2011 $7.7 million, or 38 cents a share, including a $2.5 million nonrecurring charge. This compares with net income for the year-earlier quarter of $8.9 million, which included a $1 million nonrecurring gain on the sale of certain stock holdings. Fourth-quarter revenue rose 7.9%, or $9.7 million to $132.2 million.
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