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COMPREHENSIVE CARE CORP. REPORTS FIRST QUARTER RESULTS

 COMPREHENSIVE CARE CORP. REPORTS FIRST QUARTER RESULTS
 ST. LOUIS, Oct. 20 /PRNewswire/ -- Comprehensive Care Corp. (NYSE: CMP) today reported earnings of $245,000 before taxes and the previously announced restructuring charge and write down of assets of $6,682,000 and $2,940,000 respectively, which combined result in a net loss of $9,437,000, or $0.43 per common share, for the first quarter of fiscal 1993 compared to net earnings of $14,639,000, or $0.67 per common share, in the same period last year. The prior year's first quarter results included a net gain of $17,683,000 from the sale of 1,700,000 shares of the company's former subsidiary, RehabCare Corp., in an initial public offering.
 Richard W. Wolfe, CompCare's president and chief executive officer, said, "In regard to operating costs, general and administrative expenses were reduced to $494,000 this quarter compared to $3,237,000, for the same quarter last year. Also, interest expense was reduced to $664,000 compared to $1,118,000 for the quarter last year. The planned restructuring of the organization was necessary to align company assets and resources with the new strategic direction of the company. On Sept. 30, 1992, the company completed the sale of 1,875,000 shares of RehabCare which resulted in a net gain of $10,725,000. The sale of RehabCare shares and restructuring have enabled CompCare to reduce the current maturities of its outstanding debt by $9,805,000 and are expected to increase cash flow by almost $4,000,000 per year. In short, we have improved liquidity and paid off substantially all of our senior secured debt. We believe all things considered, the prospects for the company's long-term success are improving, however earnings will remain under pressure through the second and third quarters as the company continues to absorb start-up costs associated with the conversion of company facilities to provide psychiatric services."
 St. Louis-based Comprehensive Care Corp. is a leading national provider of behavioral medicine services.
 COMPREHENSIVE CARE CORP.
 Condensed Consolidated Statements of Operations
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Three months ended
 Aug. 31, Aug. 31,
 1992 1991
 Revenues and gains:
 Operating revenues $16,233 $17,774
 Gain on sale of
 RehabCare stock --- 17,683
 Interest income 16 125
 Equity in earnings of
 unconsolidated affiliates 384 6
 Other 376 ---
 Total 17,009 35,588
 Costs and expenses:
 Operating expenses 13,092 13,170
 General and
 administrative expenses 494 3,237
 Provision for
 doubtful accounts 1,767 1,529
 Depreciation and
 amortization 747 672
 Interest expense 664 1,118
 Loss on writedown of assets 2,940 ---
 Other restructuring
 non-recurring expenses 6,682 1,128
 Total 26,386 20,889
 Earnings (loss) before
 income taxes (9,377) 14,689
 Provision for income taxes 60 5,044
 Earnings (loss) before
 extraordinary item (9,437) 9,645
 Extraordinary item-
 utilization of net operating
 loss carryforwards --- 4,994
 Net earnings (loss) ($9,437) $14,639
 Earnings per common and
 common equivalent share:
 Earnings (loss) before
 extraordinary item ($0.43) $0.44
 Extraordinary item-
 utilization of net
 operating loss
 carryforwards --- 0.23
 Net earnings (loss) ($0.43) $0.67
 COMPREHENSIVE CARE CORP.
 For the Three Months Ended Aug. 31, 1992
 Supplemental Information
 Three months ended
 Facility Inventory Aug. 31, May 31, Aug. 31
 1992 1992 1991
 Psychiatric/Chemical
 dependency treatment
 facilities 12 12 13
 Long-term care facility 0 0 1
 Behavioral medicine
 contracts 19 23 27
 Publications 1 1 1
 Total 32 36 42
 Three months ended
 Operations Aug. 31, May 31, Aug. 31,
 1992 1992 1991
 Patient days:
 Freestanding
 facilities 26,157 28,485 32,847
 Behavioral medicine
 contracts 15,180 19,023 27,329
 Freestanding facilities:
 Occupancy rate 34 pct. 41 pct. 37 pct.
 Admissions 2,097 2,140 2,407
 Average length of
 stay (days) 13 13 14
 Behavioral medicine contracts:
 Average occupied beds per
 contract 9 10 11
 Admissions 1,417 1,662 2,308
 Average length of
 stay (days) 11 11 12
 Total beds available at
 end of period:
 Freestanding facilities 827 748 1,184
 Behavioral medicine
 contracts 435 479 668
 -0- 10/20/92
 /CONTACT: Richard W. Wolfe, president and CEO of CompCare, 314-537-1288/
 (CMP) CO: Comprehensive Care Corp. ST: Missouri IN: MTC SU: ERN


BP-EH -- LA028 -- 2366 10/20/92 13:51 EDT
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Date:Oct 20, 1992
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