Continucare Corporation Reports Results For The First Quarter Fiscal 2003.Business Editors/Health & Medical Writers MIAMI--(BUSINESS WIRE)--Nov. 12, 2002 Continucare Corporation (AMEX AMEX See: American Stock Exchange :CNU CNU Christopher Newport University CNU Chungnam National University (Korea) CNU Congress for the New Urbanism CNU Chonnam National University (Korea) CNU Consiglio Nazionale degli Utenti ), a provider of outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. healthcare and home health services health services Managed care The benefits covered under a health contract through managed care, Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. direct and fee for service arrangements, in the Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and market, reported a net loss for the quarter ended September September: see month. 30, 2002 of ($691,636), or a loss of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. ($.02) per share, compared with a net loss of ($1,569,670) for the quarter ended September 30, 2001, or a loss of approximately ($.04) per share. Loss from operations for the quarter ended September 30, 2002 was ($303,307) compared with a loss from operations for the quarter ended September 30, 2001 of ($1,198,539). Total revenue for the quarter ended September 30, 2002 was approximately $26.9 million compared to approximately $23.7 million for the quarter ended September 30, 2001. Spencer Spencer, city (1990 pop. 11,066), seat of Clay co., NW Iowa, on the Little Sioux River; inc. 1880. The city lies in a fertile farm area. Beef is processed, and Spencer's manufactures include work clothes, machinery, prefabricated buildings, and metal products. Angel, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Continucare, commented, "Although business conditions continue to be challenging, we were able to reduce our medical services expense for the quarter ended September 30, 2002 to 88.4% of medical services revenue from 91.4% of medical services revenue for the quarter ended September 30, 2001. We continue to focus on the metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. of providing quality care in a cost effective manner." Continucare Corporation, headquartered in Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. , is a holding company with subsidiaries engaged in the business of providing outpatient physician care and home healthcare services. Except for historical matters contained herein, statements made in this press release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and are made pursuant to 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 and others are cautioned that 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. include risks and uncertainties, which may affect our business and prospects and cause actual results to differ materially from those set forth in the forward-looking statements. These factors include, without limitation, our ability to service our indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and respond to capital needs, pricing pressures exerted on us by managed care organizations, the level of payment we receive from governmental programs and other third party payors, future legislation and changes in governmental regulations, general economic conditions and uncertainties generally associated with the health care business. These and other applicable risks, cautionary statements and factors that could cause actual results to differ from the Company's forward-looking statements are included in the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended June June: see month. 30, 2002 and other filings with the SEC. We undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" .
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS September 30, June 30,
2002 2002
------------ ------------
(Unaudited)
Current assets
Cash and cash equivalents $463,623 $344,276
Accounts receivable, net of allowance for
doubtful accounts of $4,832,000 and
$4,807,000, respectively 150,754 94,967
Other receivables 930,519 834,227
Due from HMOs, net of a liability for
incurred but not reported medical claims
expense of approximately $13,075,000 and
$13,013,000, respectively 1,657,855 1,431,379
Prepaid expenses and other current assets 472,542 548,322
------------ ------------
Total current assets 3,675,293 3,253,171
Equipment, furniture and leasehold
improvements, net 555,863 584,372
Goodwill, net of accumulated amortization of
approximately $3,661,000 at September 30,
2002 and June 30, 2002 14,663,392 14,663,392
Managed care contracts, net of accumulated
amortization of approximately $1,452,000
and $1,364,000, respectively 2,058,040 2,146,243
Cost in excess of intangible assets
acquired, net of accumulated amortization
of approximately $4,014,000 and $4,012,000,
respectively 14,097 15,788
Deferred financing costs, net of accumulated
amortization of approximately $3,306,000
and $2,985,000, respectively 114,469 435,375
Other assets, net 92,348 81,372
------------ ------------
Total assets $21,173,502 $21,179,713
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $730,940 $688,061
Accrued expenses 1,965,270 2,004,480
Accrued salaries and benefits 872,284 569,323
Credit Facility 2,765,000 2,315,000
Due to Medicare, net 494,086 350,991
Current portion of convertible subordinated
notes payable 273,896 273,896
Current portion of long term debt 4,375,474 4,456,835
Current portion of related party notes
payable 63,854 63,854
Accrued interest payable 35,000 10,708
Current portion of capital lease
obligations 96,408 107,479
------------ ------------
Total current liabilities 11,672,212 10,840,627
Capital lease obligations, less current
portion 55,576 42,171
Convertible subordinated notes payable, less
current portion 4,287,993 4,356,468
Long term debt, less current portion 3,394,032 3,597,122
Related party notes payable, less current
portion 1,061,186 1,061,186
------------ ------------
Total liabilities 20,470,999 19,897,574
Commitments and contingencies
Shareholders' equity
Common stock; $0.0001 par value;
100,000,000 shares authorized
43,430,794 shares issued and
40,434,601 shares outstanding at
September 30, 2002 and 42,630,794
shares issued and 39,634,601
shares outstanding at June 30, 2002 4,044 3,964
Additional paid-in capital 59,623,534 59,511,614
Accumulated deficit (53,500,374) (52,808,738)
Treasury stock (2,996,193 shares) (5,424,701) (5,424,701)
------------ ------------
Total shareholders' equity 702,503 1,282,139
------------ ------------
Total liabilities and shareholders'
equity $21,173,502 $21,179,713
============ ============
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
September 30,
-------------------------
2002 2001
------------ ------------
Medical services revenue, net $26,859,689 $23,730,294
Expenses:
Medical services:
Medical claims 20,265,852 18,497,613
Other 3,491,468 3,185,584
Payroll and employee benefits 1,573,441 1,285,657
Provision for bad debts 25,376 13,503
Professional fees 259,268 226,391
General and administrative 1,372,377 1,261,775
Depreciation and amortization 175,214 458,310
------------ ------------
Subtotal 27,162,996 24,928,833
Loss from operations (303,307) (1,198,539)
Other income (expense)
Interest income 1,775 20,853
Interest expense (390,104) (391,984)
------------ ------------
Net loss $(691,636) $(1,569,670)
============ ============
Basic and diluted loss per common share $(.02) $(.04)
============ ============
Basic and diluted weighted average number of
common shares outstanding 39,704,166 39,459,601
============ ============
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended
September 30,
-----------------------
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(691,636) $(1,569,670)
Adjustments to reconcile net loss to cash
provided by operating activities:
Depreciation and amortization, including
amortization of deferred loan costs 496,119 788,297
Provision for bad debts 25,376 13,503
Director compensation paid through the
issuance of restricted common stock 112,000 -
Changes in operating assets and liabilities,
excluding the effect of acquisitions and
disposals:
Increase in accounts receivable (81,163) (50,272)
Decrease in prepaid expenses and other
current assets 75,780 59,510
(Increase) decrease in other receivables (96,292) 33,002
Increase in other assets (10,976) (461)
(Increase) decrease in due from HMO's, net (226,476) 835,764
Increase (decrease) in due to/from Medicare 143,095 (113,287)
Increase in accounts payable and accrued
expenses 306,630 22,027
Increase in accrued interest payable 24,292 4,195
---------- ------------
Net cash provided by operating activities 76,749 22,608
---------- ------------
CASH FLOWS FROM INVESTING ACTIVITY
Property and equipment additions (23,793) (33,505)
---------- ------------
Net cash used in investing activity (23,793) (33,505)
---------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on convertible subordinated notes (68,474) (68,474)
Principal repayments under capital lease
obligation (30,684) (25,908)
Net increase in Credit Facility 450,000 400,000
Advances from HMOs 75,000 -
Payment on advances from HMOs (75,000) (150,000)
Repayments on acquisition liability (81,506) -
Repayments to Medicare per agreement (202,945) (172,801)
---------- ------------
Net cash provided by (used in) financing
activities 66,391 (17,183)
---------- ------------
Net increase (decrease) in cash and cash
equivalents 119,347 (28,080)
---------- ------------
Cash and cash equivalents at beginning of
period 344,276 525,482
---------- ------------
Cash and cash equivalents at end of period $463,623 $497,402
========== ============
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES:
Note payable issued for refunds due to Medicare
for overpayments $ - $37,380
========== ============
Purchase of furniture and fixtures with
proceeds of capital lease obligations $33,017 $36,252
========== ============
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