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SALICK HEALTH CARE ACHIEVES RECORD FIRST QUARTER RESULTS; NET INCOME ROSE 15 PERCENT FROM PRIOR YEAR

 LOS ANGELES, Jan. 12 /PRNewswire/ -- Salick Health Care Inc. (NASDAQ: SHCI) today reported record first quarter revenues, operating income and net income in the first fiscal quarter ended Nov. 30, 1993.
 Net revenues for the first quarter, ended Nov. 30, 1993, advanced 9 percent to $29.5 million from $27.0 million in the year-earlier quarter. Operating income and net income rose 8 percent and 15 percent to $3.7 million and $2.4 million, respectively, compared with $3.4 million and $2.1 million a year ago. The company announced primary earnings per share of $0.28 vs. $0.25 and fully diluted earnings per share of $0.26 vs. $0.23 a year earlier.
 Dr. Bernard Salick, chairman and chief executive officer, said, "The first quarter's results confirm that our model for providing quality, disease-specific care continues to be well received by physicians, patients and payors. During the quarter, both our revenues and net income increased from a year ago. Additionally, despite major changes in the health care sector, our operating margins remained strong.
 "Looking further ahead in 1994, our newest center, the Westlake Comprehensive Cancer Center in California, strategically located on the border between Los Angeles and Ventura counties, is building its patient volume and is expected to be a positive contributor to results in the months ahead. Westlake will also be our first center to feature dedicated bone marrow transplantation and stem cell pheresis units scheduled to be operational by mid-1994.
 "We are continuing to expand the range of services offered at our centers. Sterotactic radiosurgery, bone marrow and stem cell transplantation and comprehensive breast centers are being implemented at additional centers in 1994.
 "Salick Health Care is also nearing completion of the previously announced definitive agreement to open our 11th cancer center in affiliation with the prestigious George Washington University Medical Center. Our goal is for the GWU Center to be treating patients by mid- 1994," Salick said.
 "Salick Health Care is committed to providing innovative and cost- effective health care delivery solutions. In Florida, we are introducing SalickNet, a unique managed care product which we have developed. This product, which, we believe, is the first of its kind, features capitated cancer care programs based at our Florida centers and satellite facilities utilizing the specialty physician network we have established in that area. SalickNet, as refined, will later serve as the model at each of our comprehensive cancer centers throughout the country. The product is designed to meet the needs of managed care and health care reform and is being well received in the marketplace."
 Salick Health Care is a leading provider of diagnosis and treatment to patients with catastrophic illness requiring sophisticated, long-term care, principally in the areas of cancer, kidney failure, organ transplantation and certain immunodeficiency diseases. These services are provided at alternate sites including outpatient facilities (hospital-based and freestanding), selected inpatient sites and the patient's home.
 Salick currently operates ten comprehensive cancer centers throughout the country which contribute more than 70 percent of total company revenues. It also operates nine outpatient dialysis centers and provides inpatient dialysis services at 21 hospitals. Through its INFUSX subsidiary, Salick provides various infusion, nutritional and other related services in the patient's home and at specialized facilities.
 For information on Salick Health Care via facsimile at no cost, simply call 800-PRO-INFO and dial company code 131.
 SALICK HEALTH CARE INC.
 Consolidated Statements of Income
 (000s omitted except per share data)
 (Unaudited)
 Three Months Ended Nov. 30,
 1993 1992
 Revenues:
 Operating revenues, net $29,463 $26,964
 Expenses:
 Medical 4,575 4,054
 Salaries and related costs 12,400 11,201
 Other administrative expenses 3,823 3,753
 Contract and occupancy costs 3,044 2,893
 Depreciation and amortization 1,963 1,683
 Total expenses 25,805 23,584
 Operating income 3,658 3,380
 Net interest expense (117) (266)
 Net investment income (expense) 256 285
 Minority interest 0 (6)
 Income before income taxes 3,797 3,393
 Provision for income taxes 1,405 1,306
 Net income $2,392 $2,087
 Earnings per share:
 Primary $0.28 $0.25
 Fully diluted $0.26 $0.23
 Weighted average number of shares used
 in computing earnings per share:
 Primary 8,672 8,507
 Fully diluted 10,525 10,395
 SALICK HEALTH CARE INC.
 Consolidated Balance Sheet
 (000s ommitted)
 (Unaudited)
 Nov. 30, Aug. 31,
 1993 1993
 Cash $300 $2,430
 Marketable securities 44,144 43,500
 Accounts receivable 29,946 28,454
 Inventory 974 933
 Other current assets 6,422 5,803
 Total current assets 81,786 81,120
 PP&E, net 52,304 49,009
 Intangibles (goodwill, net) 5,310 5,315
 Other long-term assets 11,806 10,957
 Total assets $151,206 $146,401
 Accounts payable $10,853 $12,924
 Other current liabilities 7,587 4,693
 Total current liabilities 18,440 17,617
 Capitalized leases 4,559 4,722
 Long-term debt 32,542 32,509
 Minority interest 1,686 122
 Total liabilities 57,227 54,970
 Stockholders' equity 93,979 91,431
 Total liabilities and equity $151,206 $146,401
 Other Balance Sheet Data:
 Working capital $63,346 $63,503
 Current ratio 4.4:1 4.6:1
 Tangible book value/share $10.60 $10.32
 Long-term debt/Total assets 24.5% 25.4%
 -0- 1/12/94
 /CONTACT: Leslie Bell, CFO/Executive VP, 213-966-3410; or Nick Farina (general info), 312-266-7800, or John H. Shaw (general info), 818-783-2400, or Lillian Armstrong (analyst contact), 415-986-1591, all of Financial Relations Board/
 (SHCI)


CO: Salick Health Care Inc. ST: California IN: HEA SU: ERN

JM-LS -- LA018 -- 1289 01/12/94 09:02 EST
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Date:Jan 12, 1994
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