Another Strong Quarter for Advocat

Advocat (AVCA), an operator of nursing homes and the second
largest holding in the portfolio, reported another strong quarterly
report in this past week due to strong top-line and bottom-line growth
along with higher acuity levels among their patients.<!----> The EPS figure
came in at 50 cents per share, easily surpassing the sole analyst's
expectations of 22 cents, with top-line also beating estimates.

In the
company's conference call,they mentioned that they anticipate some
carry forward in revenues from the prior quarter due to the continued
improved acuity mix and the longer flu season this year. Medicare
revenues increased to nearly 12% due to the higher acuity
levels where increased emphasis on pain management and improving the
experience of patients has helped fuel growth.