Advocat Inc. reported unaudited consolidated earnings results for the third quarter and first nine months ended September 30, 2009. For the period, the company reported net income of $1.13 million or $0.18 per diluted share compared to net income of $670,000 or $0.10 per diluted share for the same period previous year. Net income from continuing operations for the period was $1.13 million or $0.18 per diluted share compared to net income from continuing operations of $674,000 or $0.10 per diluted share for the same period previous year. Net income from continuing operations before income tax was $1.86 million and operating income was $2.31 million compared to net income from continuing operations before income tax of $1.15 million and operating income was $1.88 million for the same period previous year. Revenues increased to $77.1 million in 2009 from $72.2 million in 2008, an increase of $4.9 million, or 6.7%. This increase is primarily due to increased Medicaid rates in certain states, increased Medicaid census, and Medicare rate increases. Funds provided by operations were $3.0 million in 2009 compared to $2.3 million in the third quarter of 2008. This improvement resulted primarily from the company's operating income and revenue increases as a result of increased occupancy and average daily rate. Net cash provided by operating activities of continuing operations for the period was $2.52 million in 2009 compared to $4.42 million for the same period in 2008. For the period, the company reported net income of $2.42 million or $0.38 per diluted share compared to net income of $4.44 million or $0.71 per diluted share for the same period previous year. Net income from continuing operations before income tax was $0.395 million and operating income was $4.48 million compared to net income from continuing operations before income tax of $6.93 million and operating income was $9.08 million for the same period previous year. Income from continuing operations before income taxes was $4.0 million for nine months ended September 30, 2009 compared to $6.9 million for the same period in 2008. The major difference was attributable to professional liability expense which was $7.1 million in 2009 compared to $636,000 in 2008. The diluted income per common share from continuing operations was $0.38 and $0.71 for 2009 and 2008, respectively. Revenue increased to $226.9 million in 2009 from $214.5 million in 2008, an increase of $12.4 million, or 5.8%. This increase is primarily due to increased Medicaid rates in certain states, Medicare rate increases, and increased Medicaid census, partially offset by the effects of lower Medicare census. Funds provided by operations were $11.73 million in 2009 compared to $9.3 million in the third quarter of 2008. Net cash provided by operating activities of continuing operations for the period was $9.55 million in 2009 compared to $8.90 million for the same period in 2008. The company announced fourth quarter dividend of $0.05 per share was declared on November 3, 2009 and will be paid in January 2010 to shareholders of record on December 31, 2009.

Advocat Inc. expected to Report Fiscal Year 2009 Results on March 8, 2010. This event was calculated by Capital IQ (Created on November 9, 2009).

To discuss the company's operations