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 MACON, Ga., Nov. 23 /PRNewswire/ -- Charter Medical Corporation (AMEX: CMD) announced improved operating results for its fiscal year ended Sept. 30.
 Operating income from continuing operations for the year ended Sept. 30 was up 3 percent to $189.8 million compared with $184.3 million for 1992. Net revenue decreased to $897.9 million in fiscal 1993 compared with $920.7 million for the prior fiscal year. Continuing operations exclude the general hospitals and the company's minority interest in Beech Street of California, Inc. that were sold during fiscal 1993. Operating income from continuing operations in fiscal 1993 includes approximately $8 million more than the prior year from the normal settlement of reimbursement issues. For fiscal 1993, operating income and net revenue for discontinued operations were $63.7 million and $372.4 million respectively.
 Psychiatric inpatient admissions grew by 8.4 percent in 1993. Net revenue per equivalent patient day decreased slightly from $579 in 1992 to $576 in 1993. Psychiatric gross outpatient revenue grew by 52.8 percent, to $100.4 million.
 Mac Crawford, chairman and chief executive officer, said: "We are proud to report another year of solid operating results. We have demonstrated our ability to keep costs down while continuing to build new business. During the past year, our debt was reduced by approximately $520 million to a level with which we are comfortable, and one that gives us greatly enhanced financial flexibility. Having accomplished the sale of the general hospitals, we are now ready to begin implementing new strategies to assist us in both meeting future challenges and taking advantage of market opportunities."
 The company reported a net loss for fiscal 1993 of $52.2 million which includes a loss of $4.0 million from discontinued operations and a loss of $8.6 million from the early retirement of debt. Net loss from continuing operations in fiscal year 1993 was $39.6 million compared with $89.8 million in 1992.
 Charter has three non-operating charges that will continue through 1995: amortization of reorganization value in excess of amounts applicable to identifiable assets, stock option expense and ESOP expense. These charges are primarily related to Charter's financial reorganization completed in July 1992 and the creation of an ESOP in 1988. Excluding the three non-operating charges, and reducing interest expense for the interest incurred on debt paid from the proceeds generated by the sale of the general hospitals, fully diluted per share earnings from continuing operations would have been $2.64 for fiscal 1993. Excluding the three non-operating charges, fully diluted per share earnings from both continuing and discontinued operations would have been $3.09.
 Per share information for fiscal 1992 is not meaningful due to the implementation of fresh start accounting and a substantial change in the number of shares outstanding subsequent to consummation of the company's plan of reorganization.
 Charter Medical is an international behavioral health care provider and operates 75 psychiatric hospitals in the United States and Europe.
 Consolidated Statements of Operations
 (In thousands, except per share amounts)
 Year 2 mos. 10 mos.
 ended ended ended
 9/30/93 9/30/92 7/31/92
 Net revenue $897,907 $142,850 $777,855
 Costs and expenses
 Operating expenses 640,847 107,608 563,600
 Bad debt expense 67,300 14,804 50,403
 Operating income 189,760 20,438 163,852
 Depreciation and amortization 26,382 3,631 35,126
 Amortization of reorganization value in
 excess of amounts allocable to
 identifiable assets 42,678 7,167 ---
 Interest, net 74,156 12,690 169,244
 ESOP expense 45,874 4,811 33,714
 Deferred compensation expense --- --- 3,190
 Stock option expense (credit) 38,416 (789) ---
 Total 227,506 27,510 241,274
 Loss from continuing operations, before
 prov. for income taxes, reorganization
 items and extraordinary item (37,746) (7,072) (77,422)
 Provision for income taxes 1,874 1,054 4,259
 Loss from continuing operations before
 reorgan. items and extraord. item (39,620) (8,126) (81,681)
 Discontinued operations:
 Income (loss) from discont. opers. (14,703) 930 24,211
 Gain on disposal of discont. opers. 10,657 --- ---
 Total (4,046) 930 24,211
 Loss before reorganization items and
 extraordinary item (43,666) (7,196) (57,470)
 Reorganization items --- --- 74,848
 Extraord. item - gain (loss) on debt
 extinguishment or discharge (8,561) --- 730,589
 Net income (loss) (52,227) (7,196) 747,967
 Preferred stock dividend
 requirements --- --- 18,224
 Net income (loss) applicable to common
 stock $(52,227) $ (7,196) $729,743
 Average number of common
 shares outstanding(a) 24,875
 Loss per common share and common share equivalent(a):
 Loss from cont. opers. before reorgan.
 items and extraord. item $ (1.59)
 Loss from discont. operations (.16)
 Loss before reorgan. items and before
 extraord. item (1.75)
 Extraord. loss on early extinguishment
 of debt (.35)
 Net loss $ (2.10)
 (a) Share and per share amounts for the prior periods have not been
 presented because they are not meaningful due to the implementation
 of fresh start accounting and the substantial change in the number
 of shares outstanding subsequent to the consummation of the Plan.
 Selected Statistical Information
 Fiscal Year Ended Sept. 30
 1993 Pct. chg. 1992 Pct. chg.
 No. of psychiatric hosps.(a) 74 --- 74 ---
 Average licensed beds 6,938 --- 6,936 ---
 Net patient revenue (000s)(b) $838,775 (1) $847,349 5
 Total patient days(c) 1,350,835 (3) 1,388,915 (4)
 Total equiv. patient days(d) 1,457,098 (1) 1,464,260 (2)
 Net revenue/equivalent
 patient day(b)(d) $ 576 (1) $ 579 7
 Admissions 85,158 8 78,597 11
 Average length of stay (days) 15.8 (11) 17.8 (13)
 (a) Same store for hospitals in operation at Sept. 30, 1993.
 (b) Includes inpatient and outpatient revenue.
 (c) Provision of care to one patient for one day.
 (d) Represents inpatient days adjusted to reflect outpatient
 charges, computed by dividing patient charges by inpatient
 charges per day.
 -0- 11/23/93
 /CONTACT: Investors: Nancy Gore of Charter Medical, 912-742-1161, or Media: Andrew Brimmer for Charter Medical, 212-484-7754/

CO: Charter Medical Corporation ST: Georgia IN: HEA SU: ERN

BN-BR -- AT002 -- 7119 11/23/93 08:24 EST
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Publication:PR Newswire
Date:Nov 23, 1993

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