CoreCare Systems Reports Profitable Third Quarter.WAYNE, Pa.--(BUSINESS WIRE)--Nov. 12, 1997--CoreCare Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on BULLETIN BOARD: CRCS CRCS Canadian Red Cross Society CRCS Clinical Record Cover Sheet CRCS Coalition to Reduce Class Size CRCS Coordinator of Reserve Component Support CRCS Centralized Routing and Centralized Scheduling ), a regional provider of mental healthcare services which recently purchased the Institute of Pennsylvania Hospital, reported a profit for the third quarter ended Sept. 30, 1997, the company's first profitable quarter since going public in January 1995. CoreCare Systems today reported third-quarter sales of $4,587,140, reflecting an annual run rate of $18,345,560. Net income for the third quarter 1997 was $480,012, which if annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. would approximate $1,920,048. Earnings per share were 4 cents in the third quarter of 1997. Sales for the year ended Dec. 31, 1996 were $7,024,304. Net earnings for the twelve months of 1996 were ($3,555,645). The third quarter results show a dramatic turn around from the company's position at December 31, 1996 showing year to date annualized revenue increase of 161% with a commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. improvement in operating results. Thomas T. Fleming, chairman, indicated that "The third quarter numbers are the result of strong revenue growth at the Kirkbride Hospital, accelerated development of the property, and corporate wide consolidation of financial and administrative overhead at the new corporate headquarters in Wayne, Pa. It is anticipated that this growth of revenues and earnings should continue through 1998." In February, CoreCare Systems acquired from the Institute of Pennsylvania Hospital 27 acres and approximately 420,000 square feet of space for $4.5 million. The hospital and real estate, are anticipated to generate revenues of $25 million and be appraised in excess of $20 million. CoreCare operates a 120-bed psychiatric hospital psychiatric hospital n. A hospital for the care and treatment of patients affected with acute or chronic mental illness. Also called mental hospital. and related step-down beds and outpatient services outpatient services Hospital-based services Managed care Medical and other services provided, to a nonadmitted Pt, by a hospital or other qualified facility–eg, mental health clinic, rural health clinic, mobile X-ray unit, free-standing dialysis unit Examples on the properties. The company is developing the remaining property into a medical campus that will include a specialized adolescent facility, resident treatment programs, multi-specialty medical group professional center and other ancillary healthcare services. "The Kirkbride rental program includes Doctors offices, a behavioral school, and will soon include two major medical services providers. This has increased the intricate economic value of the Kirkbride property and has already begun to enhance CoreCare's revenue growth," Fleming said. Other important events during the past nine months include a letter of intent to joint venture with HZI Research Center Inc. to establish a brain research center. The joint venture, Neuro - Core Research Center, is located at the Kirkbride Center. The research center is expected to attract federal and pharmaceutical grant money for phase I, II, III and IV clinical trials of drugs for the prevention and treatment of Alzheimer's disease Alzheimer's disease (ăls`hī'mərz, ôls–), degenerative disease of nerve cells in the cerebral cortex that leads to atrophy of the brain and senile dementia. and other memory disorders There are several different types of memory disorders which occur in the human mind. Among these are less severe disorders including minor short term memory loss, and the eventually incapacitating Alzheimer's Disease. . Also in July, CoreCare Systems completed the acquisition of Quantum/Managed Health Systems Inc., a nationwide network of approximately 3,000 clinical psychologists This list includes notable Clinical Psychologists and contributors to Clinical psychology, some of whom may not have thought of themselves primarily as Clinical psychologists but are included here because of their important contributions to the discipline. who are providers of employee assistance programs to managed care companies. CoreCare systems plans to develop Quantum sites into Management Service Organizations (MSOs) for behavioral services and research activity. "The market for behavioral drug research is evolving away from academic providers toward contract providers who can deliver results faster and at a lower cost," Fleming said. "Through our behavioral healthcare delivery network, our newly established brain research center and the Quantum network The idea of a quantum network emerged after successful experiments on quantum teleportation. When two companies (one from Switzerland, 'idQuantique', and another from the USA, 'MagiQTech') released practical communication devices based upon the rules of quantum mechanics, the need , CoreCare is uniquely positioned to attract pharmaceutical and government drug research grant funding." Certain of the statements contained in this press release may be deemed 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. . Such statements, and other matters addressed in this press release, involved a number of risks and uncertainties that could cause actual results to differ materially from these statements. CoreCare systems is a regional behavioral healthcare delivery network providing vertically integrated treatment services in eastern Pennsylvania and New Jersey with annual revenues in excess of $20 million. The company is the region's newest major Behavioral Healthcare Delivery Network. CONTACT: CoreCare Systems Inc. Thomas T. Fleming, 215/471-2002 |
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