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CAREMARK REPORTS FOURTH QUARTER, 1992 FINANCIAL RESULTS

 NORTHBROOK, Ill., Jan. 25 /PRNewswire/ -- Caremark International Inc. (NYSE: CK) today said its fourth quarter 1992 sales were $385.7 million, an increase of 21.1 percent from the fourth quarter of 1991. As a result of restructuring charges announced last month, the company reported a fourth quarter net loss of $15.2 million, or $0.22 per share. Exclusive of the restructuring charges, net income for the quarter was $17.8 million, a 2.2 percent increase over the year-earlier quarter.
 Caremark reported 1992 net sales of $1,461.2 million, a 22.4 percent increase over 1991. Net income for the year was $27.3 million, or $0.39 per share, including restructuring charges, certain accounting changes and costs related to the spin-off of Caremark from Baxter International Inc. on Nov. 30, 1992. Exclusive of the special charges, net income for the year was $71.4 million, an increase of 3.5 percent over 1991.
 "We continue to see strong sales growth in our major businesses, as health care payors and providers strive to find the most cost-effective means of delivering quality care," said Lance Piccolo, Caremark's chairman and chief executive officer. "It is likely that alternate site services will become increasingly important under any health care reform program, and Caremark is well positioned with a broad array of alternate site therapies and services."
 Caremark noted that fourth quarter 1992 earnings reflected higher corporate spending necessary to operate as an independent company. Reported earnings also reflected the benefits of a fourth quarter legal settlement with Quantum Health Resources Inc.
 Piccolo said that in 1992 the company increased spending significantly to support new business initiatives with the potential for considerable growth in the future, such as physician practice management services and new oncology care facilities. He said Caremark will continue to develop new business initiatives in 1993, but at a slower pace than in 1992.
 Caremark International Inc. is a leading provider of alternate site health care services, delivering home infusion, HIV/AIDS care, cancer treatments, hemophilia and immune therapies, and physical therapy in non-hospital settings, as well as providing prescription drug delivery, benefits management and physician practice management services.
 CAREMARK INTERNATIONAL INC.
 Consolidated Statements of Income
 (Unaudited, in millions, except per share data)
 Three months ended Dec. 31 1992 1991
 Net revenues $385.7 $318.5
 Cost of goods and services sold 298.3 244.2
 Marketing and administrative expenses 44.2 35.9
 Provision for doubtful accounts 14.0 5.9
 Costs related to distribution and
 restructuring charge 54.3 --
 Minority interests 3.8 3.6
 Income (loss) before sundry and
 income taxes (28.9) 28.9
 Sundry, net (4.3) (0.4)
 Income (loss) before income taxes (24.6) 29.3
 Income tax expense (benefit) (9.4) 11.9
 Net income (loss) $(15.2) $17.4
 Net loss per common share ($0.22)
 Weighted average shares outstanding 69.8
 Year ended Dec. 31 1992 1991
 Net revenues $1,461.2 $1,194.2
 Cost of goods and services sold 1,134.9 901.2
 Marketing and administrative expenses 163.6 122.5
 Provision for doubtful accounts 35.1 43.1
 Costs related to distribution and
 restructuring charge 67.6 --
 Minority interests 12.7 12.9
 Income before sundry and income taxes 47.3 114.5
 Sundry, net (5.5) (1.8)
 Income before income taxes 52.8 116.3
 Income tax expense 25.5 47.3
 Net income $ 27.3 $ 69.0
 Net income per common share $0.39
 Weighted average shares outstanding 69.8
 CAREMARK INTERNATIONAL INC.
 Industry Segment Data
 (Unaudited, in millions)
 Three months ended Dec. 31 1992 1991
 Net revenues:
 Patient Care $246.0 $213.1
 Managed Care 139.7 105.4
 Total net revenues $385.7 $318.5
 Income (loss) before sundry and income taxes:
 Patient Care $ (9.0) $ 23.4
 Managed Care (1.4) 5.7
 General Corporate (18.5) (0.2)
 Income (loss) before sundry and income taxes $(28.9) $ 28.9
 Year ended Dec. 31 1992 1991
 Net revenues:
 Patient Care $934.8 $818.9
 Managed Care 526.4 375.3
 Total net revenues $1,461.2 $1,194.2
 Income before sundry and income taxes:
 Patient Care $ 70.9 $101.4
 Managed Care 12.2 17.5
 General Corporate (35.8) (4.4)
 Income before sundry and income taxes $ 47.3 $114.5
 -0- 1/25/93
 /CONTACT: Les Jacobson, 708-559-4695, or (investors) Nancy Westcott, 708-559-4686, both of Caremark International/
 (CK)


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

TS -- NY026 -- 8368 01/25/93 10:21 EST
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Date:Jan 25, 1993
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