Continucare Corporation Reports Results for the First Quarter Fiscal 2000.MIAMI--(BUSINESS WIRE)--Nov. 22, 1999-- 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 ), 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. , 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. physician care and home healthcare services, reported that revenues for the quarter ended September September: see month. 30, 1999, decreased to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $28.6 million from approximately $48.7 million in the comparable quarter ended September 30, 1998. Loss before an extraordinary gain on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt for the quarter ended September 30, 1999, was approximately $3.5 million or $(0.24) per share, compared to approximately $2.7 million or $(0.19) per share in the same period of 1998. The Company reported an extraordinary gain on extinguishment of debt of approximately $3.8 million for the quarter ended September 30, 1999 compared to an extraordinary gain of $131,000 in the same period in 1998. These gains resulted from the Company's repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $4.0 million and $1.0 million, respectively, of its convertible subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes payable. Net income for the quarter ended September 30, 1999 was approximately $315,000 compared to a net loss of approximately $2.6 million for the quarter ended September 30, 1999. The Company's medical services revenue decreased approximately $20 million during the first quarter of Fiscal 2000, due to (a) the sale or closing of certain underperforming divisions during Fiscal 1999 which had generated approximately $8.5 million in revenue for the quarter ended September 30, 1998, and (b) a reduction in the number of patients for whom the Company is at risk through its Independent Practice Association, which resulted in a decrease in revenue of approximately $11.8 million. These factors also resulted in medical services expenses decreasing by approximately $14.0 million. However, medical services expenses as a percent of revenue increased from 85% to 96% due to increased average medical claims per patient. "The Company has successfully completed the lions share of its 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). ," said 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. J. Angel, President and Chief Executive Officer of Continucare. "This has certainly been a challenging time for our Company. We have come through this process very well with the cooperation of all parties and the efforts of our employees." Except for the historical matters contained herein, statements 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 Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Investors 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. involve risks and uncertainties which may affect the company's business and prospects, and cause results to differ materially from those set forth in the forward-looking statements. In addition to the factors set forth elsewhere in this release, the economic, competitive, governmental, technological and other factors identified in Continucare's filings with the Securities and Exchange Commission could affect the forward-looking statements contained in this release. -0-
CONTINUCARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended September 30,
1999 1998
Revenue
Medical services, net $ 28,577,934 $ 48,674,972
Management fees 504,559 282,927
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Subtotal 29,082,493 48,957,899
Expenses
Medical services 27,432,190 41,385,623
Payroll and employee benefits 1,869,559 4,026,953
Provision for bad debt -- 250,525
Professional fees 153,368 260,842
General and administrative 1,508,845 3,098,292
Depreciation and amortization 807,534 1,734,576
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Subtotal 31,771,496 50,756,811
Loss from operations (2,689,003) (1,798,912)
Other income (expenses)
Interest income 18,576 53,658
Interest expense (1,071,145) (955,864)
Other 280,000 --
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Loss before extraordinary item (3,461,572) (2,701,118)
Extraordinary gain
on extinguishment of debt 3,776,197 130,977
------------ ------------
Net income (loss) $ 314,625 $ (2,570,141)
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Basic and diluted (loss) earnings
per common share:
Loss before extraordinary item $ (.24) $ (.19)
Extraordinary gain on
extinguishment of debt $ .26 $ .01
------------ ------------
Net income (loss) $ .02 $ (.18)
============ ============
Weighted average shares outstanding
Basic and diluted 14,540,091 14,063,892
CONTINUCARE CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS Sept. 30, 1999 June 30, 1999
(Unaudited)
Current assets
Cash and cash equivalents $ 2,254,549 $ 3,185,077
Accounts receivable, net of
allowance for doubtful accounts of
$5,752,000 at September 30,
1999 and June 30, 1999 6,350 302,166
Other receivables 276,999 266,057
Prepaid expenses and other
current assets 350,383 298,899
------------ ------------
Total current assets 2,888,281 4,052,199
Equipment, furniture and
leasehold improvements, net 977,399 1,098,289
Cost in excess of net tangible
assets acquired, net of accumulated
amortization of $4,162,597 at
September 30, 1999 and $3,837,000
at June 30, 1999 21,700,747 22,346,156
Deferred financing costs, net of
accumulated amortization of
$1,247,122 at September 30, 1999
and $1,208,000 at June 30, 1999 2,151,398 2,551,811
Other assets, net 84,418 69,165
------------ ------------
Total assets $ 27,802,243 $ 30,117,620
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 781,407 $ 842,442
Accrued expenses 2,349,745 2,358,346
Accrued salaries and benefits 1,513,794 1,856,140
Medical claims payable 6,051,770 4,825,081
Convertible subordinated
notes payable 41,000,000 45,000,000
Current portion of long term debt 6,686,129 6,857,946
Accrued interest payable 3,011,342 2,400,022
Current portion of capital
lease obligations 92,249 112,652
------------ ------------
Total current liabilities 61,486,436 64,252,629
Capital lease obligations, less
current portion 139,103 123,436
Long-term debt, less current
portion 1,517,277 1,396,753
------------ ------------
Total liabilities $ 63,142,816 $ 65,772,818
------------ ------------
Commitments and contingencies
Shareholders' equity
Common stock; $0.0001 par value;
100,000,000 shares authorized;
17,536,283 shares issued and
14,540,091 shares outstanding 1,455 1,455
Additional paid-in capital 32,910,465 32,910,465
Retained deficit (62,827,792) (63,142,417)
Treasury stock (2,996,192 shares) (5,424,701) (5,424,701)
------------ ------------
Total shareholders' equity (35,340,573) (35,655,198)
------------
Total liabilities and
shareholders' equity $ 27,802,243 $ 30,117,620
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