Community Care Services Announces Second Quarter Results.MT. VERNON, N.Y.--(BUSINESS WIRE)--Nov. 16, 1998--Community Care Services, Inc. (Nasdaq SmallCap Issues:CCSE CCSE Check Point Certified Security Expert CCSE Checkpoint Certified Security Engineer CCSE College of Computer Sciences and Engineering (Saudi Arabia) CCSE Center for Computational Science and Engineering ) ("Community Care") today announced financial results for the three and six month periods ended September 30, 1998 (see attached table). Revenues for the fiscal 1999 second quarter were $4,433,000 versus $5,005,000 for the same period one year ago. For the six months ended September 30, 1998, revenues were $8,865,000 as compared to revenues of $9,238,000 for the comparable period in fiscal 1998. The decrease in revenues for these periods is primarily the result of reductions in oxygen reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates as a result of the Balanced Budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. Act of 1997; reductions in reimbursement rates by certain third party payers; and a reduction in referral based business. The Company has established several sales initiatives to restore prior sales levels from existing and new referrals. The Company has also increased prices in certain segments of its business. The results of these initiatives will not be seen until fiscal year 2000, beginning April 1, 1999. Selling, general and administrative expenses as a percentage of revenue in the fiscal 1998 second quarter and six month periods decreased, respectively, to 49.3% and 48.5% from 55.7% and 54.4% reported for the comparable prior year periods. These decreases were due primarily to the economies of scale achieved via the consolidation and centralization cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. of the operations and personnel of Metropolitan Respirator respirator /res·pi·ra·tor/ (res´pi-ra?ter) ventilator (2). cuirass respirator see under ventilator. Service to Community Care's expanded administrative and warehouse facilities in Mount Vernon Mount Vernon, estate, United States Mount Vernon, NE Va., overlooking the Potomac River near Alexandria, S of Washington, D.C.; home of George Washington from 1747 until his death in 1799. . The Company reported net income of $24,000, or less than $0.01 per share, versus net income of $28,000, or less than $0.01 per share, for the same period last year. For the six months ended September 30, 1998, the Company reported net income $69,000, or $0.01 per share, versus a net loss of $145,000, or $0.02 per share, for the comparable period in the prior year. This press release contains 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. which involve numerous risks and uncertainties. Actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission. Community Care Services, Inc. is a leading provider of a wide variety of home healthcare products and services in the New York Metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. . A JCAHO JCAHO Joint Commission on Accreditation of Healthcare Organizations, see there accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. provider with commendation COMMENDATION. The act of recommending, praising. A merchant who merely commends goods he offers for sale, does not by that act warrant them, unless there is some fraud: simplex commendatio non obligat. , the Company services the home healthcare market by coordinating with various health care workers and payor payor (payer) n. The one who must make payment on a promissory note. case managers to determine the home health needs of patients. -0-
COMMUNITY CARE SERVICES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-Unaudited-
For The For The
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
Net Revenues $ 4,433,000 $ 5,005,000 $ 8,865,000 $ 9,238,000
Costs and expenses:
Cost of net revenues
Product and supply
costs 1,629,000 1,433,000 3,218,000 3,350,000
Rental equipment
depreciation 154,000 373,000 401,000 465,000
Cost of net
revenues 1,783,000 1,806,000 3,619,000 3,815,000
Selling, general and
administrative
expenses 2,185,000 2,787,000 4,296,000 5,021,000
Provision for doubtful
accounts 217,000 101,000 430,000 278,000
Amortization of
intangible assets 100,000 114,000 199,000 205,000
Total cost and
expenses 4,285,000 4,808,000 8,544,000 9,319,000
Operating income
(loss) 148,000 197,000 321,000 (81,000)
Interest expense, net 106,000 147,000 214,000 179,000
Income (loss) before
provision for
income taxes 42,000 50,000 107,000 (260,000)
Provision (benefit)
for income taxes 18,000 22,000 38,000 (115,000)
NET INCOME (LOSS) 24,000 28,000 69,000 (145,000)
Per share data:
Net income (loss)
per common share:
Basic and diluted $ 0.00 $ 0.00 $ 0.01 $ (0.02)
Weighted average
number of shares
outstanding
Basic and diluted 7,145,049 7,421,900 7,145,049 7,166,823
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