Continucare Reports Positive Cashflow From Operations for the Second Quarter Fiscal 2002.Business Editors/Health & Medical Writers MIAMI--(BUSINESS WIRE)--Feb. 14, 2002 Continucare Corp. (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 leader in the fields of third party management of medical risk and home healthcare services 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, today reported that revenues for the three months ended Dec. 31, 2001 decreased to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $26.3 million from approximately $29.9 million for the three months ended Dec. 31, 2000. Revenue for the six months ended Dec. 31, 2001 decreased to approximately $50.0 million from approximately $59.6 million for the six months ended Dec. 31, 2000. The decrease in revenue was primarily due to the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of unprofitable businesses. Loss from operations for the three months ended Dec. 31, 2001 was $171,497 as compared to a loss from operations of approximately $3.3 million for the three months ended Dec. 31, 2000. Loss from operations for the six months ended Dec. 31, 2001 was approximately $1.4 million as compared to a loss from operations of approximately $4.9 million for the six months ended Dec. 31, 2000. Net loss for the three months ended Dec. 31, 2001 was $586,460 or a loss of $.01 per share on approximately 39.5 million weighted average shares outstanding, as compared to a net loss of $3.7 million or a loss of $.11 per share on 33.2 million weighted average shares outstanding for the three months ended Dec. 31, 2000. Net loss for the six months ended Dec. 31, 2001 was approximately $2.2 million or a loss of $.05 per share on 39.5 million weighted average shares outstanding, as compared to a net loss of $5.8 million or a loss of $.17 per share on 33.2 million weighted average shares outstanding for the six months ended Dec. 31, 2000. Net cash provided by operating activities for the six months ended Dec. 31, 2001 was $500,568, as compared to net cash used in operating activities of $862,254 in the six months ended Dec. 31, 2000. "During the last six months we have implemented the creative changes in benefit packages that have been designed by our HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, partners to help control negative medical cost trends as well as strategically controlling the growth of our staff model clinic network. We have also continued to focus attention on the diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our revenue sources. These changes have helped to offset some of the market imbalances that have occurred due to the rapid increase in medical costs without counterbalancing increases in premium revenue," 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. "As we continue to increase our member base by providing quality health care and build upon our reputation as a premier third party manager of medical risk and provider of home healthcare services in the Florida market, we believe that we will be able to sustain the current positive trends." 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 third party management of medical risk by providing 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 services through managed care arrangements and home healthcare services. 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 that 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.
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS December 31, 2001 June 30, 2001
(Unaudited)
Current assets
Cash and cash equivalents $ 581,925 $ 525,482
Accounts receivable, net of
allowance for doubtful accounts
of $5,839,000 at Dec. 31, 2001
and $5,802,000 at June 30, 2001 137,534 81,132
Other receivables 672,945 763,637
Prepaid expenses and other
current assets 255,515 306,261
---------- ----------
Total current assets 1,647,919 1,676,512
Equipment, furniture and
leasehold improvements, net 634,076 703,494
Goodwill, net of accumulated
amortization of approximately
$3,661,000 at Dec. 31, 2001 and
June 30, 2001 14,663,392 14,663,392
Intangible assets, net of
accumulated amortization of
approximately $5,197,000 at
Dec. 31, 2001 and approximately
$4,685,000 at June 30, 2001 2,341,820 2,853,359
Deferred financing costs, net
of accumulated amortization of
approximately $2,347,000 at
Dec. 31, 2001 and $1,706,000
at June 30, 2001 1,058,438 1,698,750
Other assets, net 76,247 74,731
---------- ----------
Total assets $20,421,892 $21,670,238
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 674,633 $ 739,506
Accrued expenses 1,905,022 2,270,695
Accrued salaries and benefits 591,077 579,805
Due to (from) HMOs, net 780,121 (622,666)
Credit Facility 900,000 500,000
Advances from HMO 150,000 450,000
Due to Medicare, net 728,404 500,045
Current portion of convertible
subordinated notes payable 273,896 273,896
Current portion of long term debt 5,036,180 4,952,076
Current portion of related party
notes payable 63,854 53,211
Accrued interest payable 5,226 17,703
Current portion of capital lease
obligations 164,389 149,915
---------- ----------
Total current liabilities 11,272,802 9,864,186
Capital lease obligations, less
current portion 67,326 99,774
Convertible subordinated notes
payable, less current portion 4,493,416 4,630,364
Long term debt, less current portion 722,838 1,011,704
Related party notes payable, less
current portion 1,093,113 1,135,683
---------- ----------
Total liabilities 17,649,495 16,741,711
Commitments and contingencies
Shareholders' equity
Common stock; $0.0001 par value;
100,000,000 shares authorized,
42,455,794 shares issued and
39,459,601 shares outstanding
at Dec. 31, 2001 and June 30, 2001 3,946 3,946
Additional paid-in capital 59,511,632 59,511,632
Accumulated deficit (51,318,480) (49,162,350)
Treasury stock (2,996,193 shares) (5,424,701) (5,424,701)
---------- ----------
Total shareholders' equity 2,772,397 4,928,527
---------- ----------
Total liabilities and
shareholders' equity $20,421,892 $21,670,238
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF
THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended December 31,
2001 2000
---------- ----------
Medical services revenue, net $26,263,009 $29,923,561
Expenses:
Medical services:
Medical claims 19,908,092 24,842,256
Other 3,336,405 4,348,772
Payroll and employee benefits 1,417,004 1,505,331
Provision for bad debts 22,946 --
Professional fees 281,141 316,747
General and administrative 1,243,445 1,464,406
Depreciation and amortization 225,473 729,376
---------- ----------
Subtotal 26,434,506 33,206,888
Loss from operations (171,497) (3,283,327)
Other income (expense):
Interest income 9,032 10,542
Interest expense (423,995) (435,087)
---------- ----------
Net loss $ (586,460) $ (3,707,872)
========== ==========
Basic and diluted loss
per common share $ (.01) $ (.11)
========== ==========
Basic and diluted weighted
average number of common
shares outstanding 39,459,601 33,240,090
========== ==========
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended December 31,
2001 2000
---------- ----------
Medical services revenue, net $49,993,303 $59,560,052
Expenses:
Medical services:
Medical claims 38,405,705 48,188,399
Other 6,521,989 8,541,186
Payroll and employee benefits 2,702,661 2,907,691
Provision for bad debts 36,449 --
Professional fees 507,532 594,606
General and administrative 2,505,220 2,819,493
Depreciation and amortization 683,783 1,452,135
---------- ----------
Subtotal 51,363,339 64,503,510
Loss from operations (1,370,036) (4,943,458)
Other income (expense):
Interest income 29,885 24,409
Interest expense (815,979) (832,906)
Other -- 304
---------- ----------
Net loss $(2,156,130) $ (5,751,651)
========== ==========
Basic and diluted loss
per common share $ (.05) $ (.17)
========== ==========
Basic and diluted weighted
average number of common
shares outstanding 39,459,601 33,240,090
========== ==========
CONTINUCARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended December 31,
2001 2000
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(2,156,130) $(5,751,651)
Adjustments to reconcile net
loss to cash provided by
(used in) operating activities:
Depreciation and amortization,
including amortization of
deferred loan costs 1,336,403 2,180,954
Provision for bad debts 36,449 --
Changes in operating assets and
liabilities, excluding the effect
of acquisitions and disposals:
(Increase) decrease in
accounts receivable (92,851) 9,944
Decrease in prepaid expenses
and other current assets 50,746 222,078
Decrease in other receivables 90,692 244,204
Increase in other assets (1,516) (19,008)
Increase in due to/from
HMO's, net 1,402,787 1,473,897
Increase in due to Medicare 265,739 835,784
Decrease in accounts payable
and accrued expenses (419,274) (62,578)
(Decrease) increase in accrued
interest payable (12,477) 4,122
---------- ----------
Net cash provided by (used in)
operating activities 500,568 (862,254)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of equipment -- 1,500
Property and equipment additions (66,573) (165,086)
---------- ----------
Net cash used in investing activities (66,573) (163,586)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on convertible subordinated
notes (136,948) (350,000)
Payments on related party notes (31,927) --
Principal repayments under capital
lease obligation (54,226) (42,629)
Net increase in Credit Facility 400,000 --
Payment on advances from HMOs (300,000) --
Repayments to Medicare per agreement (254,451) (293,596)
Repayments on notes payable -- (120,000)
---------- ----------
Net cash used in financing activities (377,552) (806,225)
---------- ----------
Net increase (decrease) in cash
and cash equivalents 56,443 (1,832,065)
---------- ----------
Cash and cash equivalents at
beginning of period 525,482 2,535,540
---------- ----------
Cash and cash equivalents at
end of period $ 581,925 $ 703,475
========== ==========
SUPPLEMENTAL SCHEDULE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
Note payable issued for refunds due
to Medicare for overpayments $ 37,380 $ 370,622
========== ==========
Purchase of furniture and fixtures
with proceeds of capital lease
obligations $ 36,252 $ 166,621
========== ==========
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