Caretenders HealthCorp Reports 2nd Quarter Earnings Up 40%

LOUISVILLE, Ky., Nov. 13 /PRNewswire/ -- Caretenders HealthCorp (Nasdaq: CTND) today reported net income per share for the quarter ended September 30, 1997 of $0.13 as compared to $0.09 in the same quarter of the prior year, excluding a non-recurring credit to tax expense in 1996. Results for 1997 included $99,622 or $0.03 per share of operating losses related to geographic expansion of adult day health centers and home health care operations. Results for 1996 included $128,224 or $0.04 per share of such losses on a fully taxed basis. Total revenues for the quarter grew 19% from $19,157,759 in 1996 to $22,833,566 in 1997.

Net income from recurring operations was $514,287 or $0.16 per share versus $424,121 or $0.13 per share on a fully taxed basis for the same period last year for an increase of 21%. Reported earnings in 1996 of $0.15 per share included a non-recurring credit to tax expense resulting from technical accounting rules for net deferred tax assets which increased earnings per share by $0.06 in that period.

For the six-month period ended September 30, 1997, the Company reported per share net income of $0.22 as compared to $0.17 in 1996 on a fully taxed basis for an increase of 33%. Net income from recurring operations was $1,086,273 or $0.34 per share versus $811,417 or $0.26 per share on a fully taxed basis for the same period last year.

"We continue to be extremely pleased with the financial success of our operating units," said William B. Yarmuth, Chairman and CEO. "Accomplishing an increase in quarterly net income of 40% overall and 21% on recurring operations speaks well of the strategy we have employed. Our new adult day care operations are providing encouraging growth in both top and bottom line performance."

The Company recently announced the opening of its newest adult day care center, located in Columbus, Ohio, which raises the total number of centers now in operation to 20. The Company has opened or acquired 7 new adult day care centers in the last 18 months and plans to continue its development activities adding up to 5 new adult day care centers by the end of the fiscal year. The Company is also continuing to seek acquisitions of home and community based health care operations in existing and new service territories.

Caretenders HealthCorp provides home and community based health care services in Kentucky, Maryland, Alabama, Massachusetts, Connecticut, Indiana, Ohio, Virginia and Florida.

The statements in this release concerning expansion of the Company are forward looking statements and are qualified by certain risks detailed in Caretenders Form 10K filed with the Securities and Exchange Commission on June 30, 1997, including risks of delays in its development program.

                          Caretenders HealthCorp
                             Quarter Ended               Six-Months Ended
      As Reported    9/30/97    9/30/96  %Change   9/30/97    9/30/96  %Change

Net Revenues

Recurring

      Operations  $21,173,514  $18,936,100  12%  $41,510,828 $36,575,768   13%

Start-up

      Operations(1) 1,660,052      221,659 649%    2,843,988     299,026 851%
     Total         22,833,566   19,157,759  19%   44,354,816  36,874,794  20%

Pre-tax Income

Recurring

      Operations     $875,379     $721,907  21%   $1,848,974  $1,389,806  33%

Start-up

      Operations     (169,570)    (218,254)(22%)    (645,175)   (478,551) 35%
     Total            705,809      503,654  40%    1,203,799     911,256  32%

Net Income As reported

Recurring

      Operations     $514,287     $666,008 (23%)  $1,086,273  $1,270,845 (15%)

Start-up

      Operations      (99,622)    (201,354)(51%)    (379,040)   (437,589)(13%)
     Total            414,664      464,654 (11%)     707,233     833,256 (15%)

Weighted Primary

    Shares          3,162,676    3,150,163         3,162,676   3,150,163

Net income Per Share as reported

Recurring

      Operations        $0.16        $0.21 (23%)       $0.34       $0.40 (15%)

Start-up

      Operations       $(0.03)      $(0.06)(51%)      $(0.12)     $(0.14)(14%)
     Total              $0.13        $0.15 (13%)       $0.22      $ 0.26 (14%)

As Adjusted for Comparable Tax Provision

Net Income as

     reported        $414,664    $464,654  (11%)    $707,233    $833,256 (15%)

1996 Non-recurring

credit to tax

      expense (2)          --    (168,757)(100%)          --   (302,987)(100%)

Net Income as

      adjusted       $414,664    $295,897   40%     $707,233   $530,269   33%

Net Income as adjusted

Recurring

      Operations    $514,287     $424,121   21%   $1,086,273   $811,417   34%

Start-up

      Operations     (99,622)    (128,224) (22%)    (379,040)  (281,149)  35%
     Total           414,664      295,897   40%      707,233    530,269   33%

Net income Per Share as adjusted

Recurring

      Operations       $0.16        $0.13   21%        $0.34      $0.26   33%

Start-up

      Operations      $(0.03)      $(0.04) (22%)      $(0.12)    $(0.09)  34%
     Total             $0.13       $ 0.09   40%       $ 0.22     $ 0.17   33%

(1) Start-up operations include those businesses started by the Company that have not been in operation for the entirety of both comparable periods.

(2) Reduction of previously recorded valuation allowance related to net deferred tax assets ($.06 per share for the quarter ended and $0.09 ytd).

SOURCE Caretenders HealthCorp

    -0-                             11/13/97

/CONTACT: William Yarmuth or Steve Guenthner, Caretenders HealthCorp, 502-899-5355/

(CTND)

CO: Caretenders HealthCorp ST: Kentucky IN: HEA SU: ERN

TL -- CHTH004 -- 3420 11/13/97 09:54 EST http://www.prnewswire.com