Birman Managed Care Reports Financial Results for the Second Quarter and First Half of its Fiscal Year; Responds to Nasdaq Listing Inquiry.COOKEVILLE Cookeville, city (1990 pop. 21,744), seat of Putnam co., N central Tenn.; inc. 1854. It is a farm trade center that also produces transportation equipment, construction materials, clothing, and metal products. Tennessee Technological Univ. is there. , Tenn.--(BUSINESS WIRE)--March 11, 1999--Birman Managed Care Inc. (Nasdaq:BMAN BMAN - Broadband Metropolitan Area Network ), a physician-driven health care consulting and management company, announced a net loss for the second quarter ended Dec. 31, 1998 of $298,821, equal to 4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with a net loss of $630,468, or 8 cents per share, in the corresponding quarter of the prior year. Second quarter revenues totaled $1,923,640, versus $2,295,402 one year ago. For the six months ended Dec. 31, 1998, the company reported a net loss of $748,254, or 9 cents per share, compared with $754,768, also equal to 9 cents per share, one year earlier. First half revenues were $3,901,107, compared with $5,026,823 in the like period last year. The company noted that results for the second quarter and first six months of 1998 included an extraordinary gain of $221,005 (3 cents per share) for the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. related to certain notes. In addition, the current fiscal year periods include a gain on disposal of the company's former Care3 health plan of $75,000 (1 cent per share). Results for the second quarter and fist half of the previous fiscal year include losses, net of tax, from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $179,386 (2 cents per share) and $367,605 (4 cents per share) related to Care3. General and administrative expenses for the current second quarter decreased 23%, or $478,024, from the comparable quarter a year earlier, and for the six months were reduced $726,454, or 20%, versus the prior fiscal year. Last month, the company continued its aggressive cost reduction program, decreasing operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and overhead by $200,000 monthly. Birman Birman a longhaired breed of cat with blue eyes and a light body with darker points (ears, face, legs and tail) in colors similar to the Siamese. The paws are white ('gloves'). Called also Sacred Cat of Burma. The breed is affected by an inherited polyneuropathy. Managed Care was notified by Nasdaq on Feb. 23, 1999 that it no longer meets the minimum net worth requirement of $4 million for continued listing on Nasdaq's National Market. For the quarter ended Dec. 31, 1998, Birman reported net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". of approximately $3.87 million. Birman was given until March 9, 1999 to provide a plan to meet this requirement. Birman responded on March 8, 1999 by informing Nasdaq that it anticipates an aggregate shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. of approximately $300,000 by the end of the current fiscal quarter and would promptly complete a $400,000 equity private placement of which at least $200,000 would be purchased by Birman's Chairman, David N. Birman, M.D. Birman notified Nasdaq that management expects profitable continued operations for the fourth fiscal quarter and thereafter. The company believes that its plan will result in compliance with Nasdaq's requirements for continued listing on its National Market system. David N. Birman, chairman, president and chief executive officer, said: "The planned private placement reflects our faith and confidence in the company's future. We have implemented tough cost cutting measures and stepped up sales and marketing of our core business lines. Our primary objectives are to increase revenues and return the company to profitability as quickly as possible." Birman Managed Care is a health care consulting company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a with a physician-focused core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
n. A process for monitoring the use, delivery, and cost-effectiveness of services, especially those provided by medical professionals. services to self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. and insurers. The information contained herein includes "forward looking statements" as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Statements such as "Birman expects," "management expects" or "the company expects" as well as statements by Dr. Birman addressing future operations are considered to be "forward looking" for purposes of the Act. Investors are cautioned that forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve risks and uncertainties, including general economic conditions, delays and risks associated with the performance of contracts, consumer and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. acceptance and regulatory risks. -0-
Birman Managed Care Inc. & Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three months Six months
ended Dec. 31, ended Dec. 31,
1998 1997 1998 1997
Consulting
revenues $ 1,923,640 $ 2,295,402 $ 3,901,107 $ 5,026,823
Cost of
revenue 993,616 1,006,718 2,013,795 2,093,579
Gross profit 930,024 1,288,684 1,887,312 2,933,244
General and
administrative
expenses 1,560,081 2,038,105 2,985,241 3,711,695
Loss from
continuing
operations (630,057) (749,421) (1,097,929) (778,451)
Other income
(expense):
Interest and
other income 19,600 93,592 46,838 206,167
Interest expense (3,994) (11,253) (8,401) (12,506)
Loss on disposal
of assets -- (4,505) -- (4,355)
15,606 77,834 38,437 189,306
Loss from continuing
operations before
provision for
income taxes and
extraordinary
gain (614,451) (671,587) (1,059,492) (589,145)
Provision for
income tax
benefit 19,625 220,505 15,233 201,982
Loss from continuing
operations before
extraordinary
gain (594,826) (451,082) (1,044,259) (387,163)
Net loss from
discontinued
operations of
health plan,
net of tax -- (179,386) -- (367,605)
Gain on disposal
of health plan,
net of tax 75,000 -- 75,000 --
Net loss before
extraordinary
gain (519,826) (630,468) (969,259) (754,768)
Extraordinary gain
on debt
extinguishment,
less
applicable
income taxes of
S O 221,005 -- 221,005 --
Net loss $ (298,821) $ (630,468) $ (748,254) $ (754,768)
Loss per
common share
-- basic:
Loss from
continuing
operations
before
extraordinary
gain $ (0.08) $ (0.06) $ (0.13) $ (0.05)
Loss from
discontinued
operations
of health
plan, net
of tax -- (0.02) -- (0.04)
Gain on
disposal of
health plan,
net of tax 0.01 -- 0.01 --
Extraordinary
gain on debt
extinguishment,
net of tax 0.03 -- 0.03 --
Net loss $ (0.04) $ (0.08) $ (0.09) $ (0.09)
Loss per
common share
-- assuming
dilution:
Loss from
continuing
operations
before
extraordinary
gain $ (0.08) $ (0.06) $ (0.13) $ (0.05)
Loss from
discontinued
operations
of health
plan, net
of tax -- (0.02) -- (0.04)
Gain on
disposal of
health plan,
net of tax 0.01 -- 0.01 --
Extraordinary
gain on debt
extinguishment,
net of tax 0.03 -- 0.03 --
Net loss $ (0.04) $ (0.08) $ (0.09) $ (0.09)
Basic weighted
average
common stock
shares
outstanding 8,089,588 8,089,588 8,089,588 8,089,588
Weighted
average
diluted
common stock
shares
oustanding 8,089,588 8,089,588 8,089,588 8,089,588
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