CliniCorp announces second quarter results, sale of subsidiary, and 16 new integration consulting contracts.WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 17, 1996--CliniCorp Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CLNI) reported net income of $702,000, or $.13 per common share, on net revenues of $2.9 million for the quarter ended Nov. 30, 1995 compared to net income of $659,000, or $.30 per share, on net revenues of $3.7 million for the quarter ended Nov. 30, 1994. For the six months ended Nov. 30, 1995, net income increased to $385,000, or $.10 per common share, on net revenues of $6.4 million, compared to net income of $326,000, or $.15 per common share, on net revenues of $7.6 million for the same period last year. There were 6,927,894 shares outstanding as of Nov. 30, 1995. Weighted average shares outstanding were 5,425,172 and 3,916,697 for the quarter and six months ended Nov. 30, 1995 compared to 2,202,251 and 2,167,853 for the quarter and six months ended Nov. 30, 1994. As a result of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. , the company did not incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. any income tax expense for the periods reported. Net income for the quarter and six months ended Nov. 30, 1995 includes $1.3 million of other income resulting primarily due to net gains from liability reduction related to the Financial Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Plan completed in the Fall of 1995. Net income for the quarter and six months ended Nov. 30, 1994 includes other income from the settlement of an arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the dispute in the amounts of $1,050,000 and $1,150,000, respectively. In addition, as previously reported, CliniCorp sold CliniCorp Managed Healthcare Inc. ("CMHC CMHC community mental health center. "), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , on Dec. 21, 1995 for $1,130,000 plus the assumption of $572,000 of liabilities. The company anticipates reporting a gain on the transaction of approximately $350,000-$400,000, or $.05-$.06 per common share outstanding in the third quarter ended Feb. 29, 1996. As a result of the sale of CMHC and combined with the capital provided through the Financial Restructuring Plan, the company's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma working capital at Nov. 30, 1995 has improved $4.2 million and total debt has declined $5.3 million since May 31, 1995. The company's pro forma working capital improved to $2.2 million at Nov. 30, 1995 from a negative $2 million at May 31, 1995. Total debt decreased to $4.2 million at Nov. 30, 1995 from $9.5 million at May 31, 1995. Pro forma amounts assume the Dec. 21, 1995 sale of CMHC had occurred at Nov. 30, 1995. The company announced the signing of 16 new Integration Healthcare Center ("IHC IHC Immunohistochemistry IHC Intermountain Health Care IHC Inner Hair Cells IHC International Harvester Company IHC Internet Healthcare Coalition IHC Indian Head Cent IHC Interactive Health Communication IHC International Hurricane Center ") consulting contracts primarily in New Jersey and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and 38 letters of interest. The consulting contracts call for the company to integrate chiropractic chiropractic (kīrəprăk`tĭk) [Gr.,=doing by hand], medical practice based on the theory that all disease results from a disruption of the functions of the nerves. clinics with medical, physical therapy and rehabilitation rehabilitation: see physical therapy. services. The company earns 20% of the increased management fees for two years and 15% thereafter for the five year term of the contract. The company is soliciting additional consulting contracts in an effort to create statewide networks of IHCs primarily in eight eastern states Eastern States can refer to several locations:
The company's Chairman, Dr. Lawrence T. Markson, stated: "The financial restructuring is substantially behind us, and management can now focus on the company's rollout strategy plans. With limited marketing efforts to date, the company has profiled and accepted 16 consulting clients and has received 38 letters of interest to form integrated healthcare centers. "The IHC strategy of clustering multidisciplinary mul·ti·dis·ci·pli·nar·y adj. Of, relating to, or making use of several disciplines at once: a multidisciplinary approach to teaching. professional offices is an untapped source of expansion for existing chiropractic offices. Properly structured and managed, IHCs can become the low-cost provider to managed care for back and neck injuries." CliniCorp is a clinic owner and management company listed on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. (symbol:CLNI) with corporate headquarters located at 1601 Belvedere Belvedere (bĕl`vədēr, Ital. bālvādĕ`rā), court of the Vatican named after a villa built (1485–87) for Innocent VIII. Road, West Palm Beach, FL 33406. Telephone 407/684-2225. -0-
CLINICORP INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
Quarter Ended Six Months Ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1995 1994 1995 1994
Net Revenue $ 2,940 $ 3,694 $ 6,441 $ 7,635 Costs of Operations Cost of clinic operations, consulting and other 2,621 3,033 5,665 6,354 Selling, general and administrative expenses 841 840 1,473 1,763 Bad debt expense 2 102 52 209 Total cost of operations 3,464 3,975 7,190 8,326 Loss from operations (524) (281) (749) (691) Other income and (expense) 1,226 940 1,134 1,017 Net income before taxes 702 659 385 326 Income taxes -- -- -- -- Net income $ 702 $ 659 $ 385 $ 326 Income per common share $0.13 $0.30 $0.10 $0.15 Weighted average shares outstanding 5,425,172 2,202,251 3,916,697 2,167,855
CLINICORP INC. AND SUBSIDIARIES
Condensed Balance Sheet
(In thousands)
Nov. 30, Nov. 30, May 31,
1995 1994 1995
Assets
------
Current assets $ 5,507 $ 7,235 $ 5,013
Property and equipment, net 1,610 2,795 1,905
Goodwill 6,581 13,329 7,471
Other assets 207 244 206
Total assets $13,905 $23,603 $14,595
Liabilities and Stockholders' Equity ------------------------------------ Current liabilities 4,407 5,564 6,996 Long-term liabilities 583 2,902 2,486 Obligations to issue Common Stock 422 -- 2,390 Redeemable Preferred Stock 717 -- -- Stockholders' equity 7,776 15,137 2,723 Total liabilities and stockholders' equity $13,905 $23,603 $14,595 CONTACT: CliniCorp Inc., West Palm Beach Gerard A. Herlihy, 407/684-2225 |
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