Concentra Operating Corporation Reports Third Quarter Results.Business Editors ADDISON Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. , Texas--(BUSINESS WIRE)--Nov. 1, 2000 Concentra Operating Corporation ("Concentra") today announced financial results for the third quarter and nine-month period ended September September: see month. 30, 2000. Due primarily to a strong performance by the Company's Health Services health services Managed care The benefits covered under a health contract division, Concentra reported $33,104,000 in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become which represented an increase of 18% over the results reported for the third quarter of the prior year. Revenues for the third quarter rose 9% to $192,764,000 from $176,658,000 in the same period last year. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $22,515,000 compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $36,048,000 in the third quarter of 1999. Net income for the third quarter totaled $1,417,000 versus a net loss of $42,070,000 in the year-earlier quarter. Revenues for the nine months of 2000 rose 11% to $564,208,000 from $506,157,000 in the same period last year. Operating income was $62,100,000 compared with $2,096,000 in the first nine months of 1999. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net income for the first nine months of 2000 totaled $4,046,000 versus a net loss of $24,476,000 in the year-earlier period. The Company's prior-year results reflected a non-recurring charge of $54,419,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Concentra's August 1999 recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. . Excluding this non-recurring charge, operating income and net income were $18,371,000 and $3,814,000, respectively, in the third quarter of 1999 and $56,515,000 and $21,408,000, respectively, for the first nine months of 1999. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Commenting on the results, Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. J. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , President and Chief Executive Officer of Concentra, said, "Our health services business, which set another record mark for quarterly revenues and EBITDA in the third quarter, continues to perform in an excellent manner and has contributed greatly to our overall growth. When combining this performance with the ongoing stability of our cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and case management services, we have been able to sustain the momentum that we have been building in our operations throughout 2000." Detailing the Company's progress in the third quarter, Thomas noted that Concentra's Health Services division continued to post solid internal growth in the third quarter, as revenues in this business approached $106 million and increased to 55% of the Company's total revenue base. "Same-market revenues in health services have trended higher all year, rising 11% in the third quarter and 9.6% for the year to date," Thomas added. "Importantly, these gains have been primarily driven by an increase in patient visits. We are pleased by the same-market visit growth in both our injury care and non-injury related services. We continue to view non-injury care as a very positive and profitable means of attracting new business which often times leads to a broader relationship involving a more comprehensive service offering." During the third quarter, 52% of the total visits to Concentra's occupational healthcare centers related to non-injury care, unchanged from the second quarter of 2000 and up from 51% in the third quarter last year. As of September 30, 2000, Concentra had 216 centers located in 63 markets in 32 states. Thomas also noted that although he was pleased with achieving a stable performance in the Company's Specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. Cost Containment services and Field Case Management lines of business, Concentra has set firm goals for increasing the growth rate in these businesses. "As we've we've Contraction of we have. we've have discussed in past quarters, our primary objective for our non-Health Services businesses as we approach 2001 is to achieve meaningful sales growth in our new service areas and to expand the base of accounts who rely upon our traditional service offerings," said Thomas. At September 30, 2000, Concentra had $19,500,000 drawn on its $100,000,000 revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. A listen-only simulcast and replay of Concentra's third quarter conference call can be accessed at www.streetevents.com. The simulcast will begin at approximately 8:00 a.m. Central Time tomorrow; a replay of this call will be available at approximately noon Central Time tomorrow and may be accessed until December December: see month. 2, 2000. Concentra Operating Corporation, the successor to and a wholly-owned subsidiary of Concentra Managed Care, Inc., is the comprehensive outsource solution for containing healthcare and disability costs. Serving the occupational, auto, and group healthcare markets, Concentra provides employers, insurers and payors with a series of integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. which include employment-related injury and occupational health care, in-network and out-of-network out-of-network Managed care adjective Referring to a provider/service that is not part of an MCO's network of contracted providers/services. See Managed care organization. medical claims review and re-pricing, access to specialized preferred provider organizations pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. , first notice of loss services, case management and other cost containment services. This press release contains certain 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 the Company is making in reliance on the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and that the Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the potential adverse impact of governmental regulation on the Company's operations, interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in its data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a capabilities, operational financing and strategic risks related to the Company's capital structure and growth strategy, possible fluctuations in quarterly and annual operations, possible legal liability for adverse medical consequences, competitive pressures, adverse changes in market conditions for the Company's services, and dependence on key management personnel. Additional factors include those described in the Company's filings with the Securities and Exchange Commission.
CONCENTRA OPERATING CORPORATION
a wholly-owned subsidiary of
CONCENTRA MANAGED CARE, INC.
Unaudited Consolidated Statements of Operations
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
REVENUE: 2000 1999 2000 1999
Health services $ 105,696 $ 89,857 $ 302,960 $ 242,421
Specialized cost
containment 51,578 50,718 154,753 151,630
Field case management 35,490 36,083 106,495 112,106
--------- --------- --------- ---------
Total revenue 192,764 176,658 564,208 506,157
COST OF SERVICES:
Health services 82,299 71,371 239,407 191,757
Specialized cost
containment 36,503 33,989 107,338 101,559
Field case management 31,609 33,628 95,136 99,613
--------- --------- --------- ---------
Total cost of services 150,411 138,988 441,881 392,929
--------- --------- --------- ---------
Gross profit 42,353 37,670 122,327 113,228
General and administrative
expenses 16,149 15,957 49,314 47,218
Amortization of
intangibles 3,689 3,342 10,913 9,495
Non-recurring charge -- 54,419 -- 54,419
--------- --------- --------- ---------
Operating income (loss) 22,515 (36,048) 62,100 2,096
Interest expense 17,857 10,223 52,004 19,614
Interest income (104) (598) (515) (2,724)
Other expense
(income), net (140) (427) (263) (147)
--------- --------- --------- ---------
Income before income
taxes 4,902 (45,246) 10,874 (14,647)
Provision (benefit)
for income taxes 3,485 (3,176) 6,828 9,829
--------- --------- --------- ---------
Net income (loss) $ 1,417 $ (42,070) $ 4,046 $ (24,476)
========= ========= ========= =========
The consolidated statements of operations above include the
post-recapitalization transaction operating results of Concentra
Operating Corporation, a wholly-owned subsidiary of Concentra Managed
Care, Inc. and the pre-recapitalization transaction operating results
of Concentra Managed Care, Inc. The recapitalization transaction was
completed on August 17, 1999.
CONCENTRA OPERATING CORPORATION
a wholly-owned subsidiary of
CONCENTRA MANAGED CARE, INC.
Consolidated Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
2000 1999
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 5,355 $ 14,371
Accounts receivable, net 172,604 156,239
Prepaid expenses and other current assets 28,209 28,674
--------- ---------
Total current assets 206,168 199,284
PROPERTY AND EQUIPMENT, NET 107,933 104,068
GOODWILL AND OTHER INTANGIBLE ASSETS, NET 327,926 324,984
OTHER ASSETS 26,231 25,768
--------- ---------
$ 668,258 $ 654,104
========= =========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES:
Revolving credit facility $ 19,500 $ 4,000
Current portion of long-term debt 4,031 3,805
Accounts payable and accrued expenses 79,879 89,109
--------- ---------
Total current liabilities 103,410 96,914
LONG-TERM DEBT, NET 557,891 559,942
DEFERRED INCOME TAXES AND OTHER LIABILITIES 41,584 36,521
STOCKHOLDER'S EQUITY (DEFICIT) (34,627) (39,273)
--------- ---------
$ 668,258 $ 654,104
========= =========
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