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CAREMARK'S THIRD QUARTER SALES RISE 22.6 PERCENT

 NORTHBROOK, Ill., Oct. 13 /PRNewswire/ -- Caremark International Inc. (NYSE: CK) today reported a 22.6 percent gain in third quarter sales over year-earlier results. Sales for the period reached $455.6 million, a record for any quarter.
 Income before sundry and income taxes for the quarter was $37.5 million, an increase of 18.7 percent over last year's third quarter.
 Net income for the third quarter was $21.2 million, an increase of 11.0 percent over the same period in 1992. The 1993 third quarter includes incremental corporate overhead expenses necessary to operate Caremark as an independent company. Earnings per share for the third quarter were 29 cents. The company did not report earnings per share numbers in the third quarter of 1992, since Caremark shares were not independently traded until last November.
 "Our revenues continue to grow rapidly, especially in the prescription drug benefit, hemophilia service and physician practice management businesses," said C.A. Lance Piccolo, chairman and chief executive officer. "These growth areas, in addition to our expansion in physical therapy services and international operations, have diversified our portfolio of health care services well beyond our traditional strength in home infusion. Today, Caremark's broad range of services can cover a significant portion of health care spending."
 Piccolo said Caremark's rapid revenue growth is coupled with improved operating margins. "For the third straight quarter, we have recorded margin improvement in our business segments by aggressively reducing operating costs," he said.
 Financial results in the third quarter include the company's physician practice management alliance with the Oklahoma City Clinic. Caremark now manages practices that provide prepaid capitated physician services to more than 140,000 HMO members.
 The company also added several new corporate and insurance company accounts to its prescription drug benefit management services, including Martin Marietta, Ralston Purina, PepsiCo and Federal Deposit Insurance Corporation, as well as The Prudential Health Care System and Private Healthcare Systems.
 Additionally, in September Caremark announced an agreement in principle to purchase the assets and manage the business operations of the Regional Kidney Disease Program in Minneapolis, one of the nation's leading kidney disease and organ transplant programs.
 Caremark International Inc. is a leading provider of alternate site health care, marketing a broad range of therapies and services to patients, physicians, providers and payors, including as a partner in managed care delivery systems. The company had 1992 sales of $1.46 billion.
 CAREMARK INTERNATIONAL INC.
 Consolidated Statements of Income
 (Unaudited; in millions, except per-share data)
 Three months ended Sept. 30 1993 1992
 Net revenues $455.6 $371.6
 Cost of goods and services sold 350.9 287.9
 Marketing and administrative
 expenses 51.3 40.4
 Provision for doubtful accounts 11.6 8.4
 Minority interests 4.3 3.3
 Income before sundry and income taxes 37.5 31.6
 Sundry, net 1.3 (0.8)
 Income before income taxes 36.2 32.4
 Income tax expense 15.0 13.3
 Net income $21.2 $19.1
 Net income per common and common
 equivalent share $0.29 --
 Weighted average common and common
 equivalent shares outstanding 73.9 --
 Nine months ended Sept. 30 1993 1992
 Net revenues $1,322.9 $1,075.5
 Cost of goods and services sold 1,023.2 836.6
 Marketing and administrative
 expenses 152.6 119.4
 Provision for doubtful accounts 36.2 21.1
 Costs related to distribution -- 13.3
 Minority interests 14.6 8.9
 Income before sundry and income taxes 96.3 76.2
 Sundry, net 1.3 (1.2)
 Income before income taxes 95.0 77.4
 Income tax expense 39.5 34.9
 Net income $55.5 $42.5
 Net income per common and common
 equivalent share $0.77 --
 Weighted average common and common
 equivalent shares outstanding 72.6 --
 Net Revenues
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 Patient Care $257.1 $239.2 $757.7 $688.8
 Managed Care 198.5 132.4 565.2 386.7
 Net revenues $455.6 $371.6 $1,322.9 $1,075.5
 Income before sundry
 and income taxes
 Patient Care $32.2 $28.1 $87.1 $79.9
 Managed Care 9.3 5.3 23.5 13.6
 General Corporate (4.0) (1.8) (14.3) (17.3)
 Income before sundry and
 income taxes $37.5 $31.6 $96.3 $76.2
 -0- 10/13/93
 /CONTACT: Les Jacobson of Caremark International, 708-559-4695/
 (CK)


CO: Caremark International Inc. ST: Illinois IN: HEA SU: ERN

CK -- NY116 -- 1930 10/13/93 18:32 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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