CBL MEDICAL INC. REPORTS RESULTS
CBL MEDICAL INC. REPORTS RESULTS LOS ANGELES, April 14 /PRNewswire/ -- CBL Medical Inc.
(NASDAQ: CBLM; Warrants: CBLMW) reports year-end results.
Revenues for 1991 were $8,332,264, compared to $6,288,250 for 1990. Net income amounted to $616,515 for 1991, compared to $802,806 for 1990. Earnings per share on a primary basis for 1991 was $.23 per share on 2,949,721 shares. On a fully diluted basis, earnings per share for 1991 was $.21 per share on 3,825,240 shares. For 1990, earnings per share on a primary and fully diluted basis was $.46 per share on 1,849,209 shares. Robert Mishkin, president and chairman of the board, stated, "During 1991, we experienced a steady and predictable increase in new patients at the medical centers and a resulting increase in revenue, both total and per patient. The latter is the result of our emphasis on attracting patients who are in need of rehabilitation services rather than those who require only forensic services. Because the collection rate differs between these two types of patients, this change in patient mix necessitated an increase in the allowance for doubtful accounts. In the fourth quarter of 1991, we increased the allowance for uncollected billings of patient receivables from 10 percent to 13.5 percent, an adjustment of approximately $700,000. We will continue to provide for an allowance which reflects our patient mix. The increase in the allowance was a primary cause of the losses at the medical centers for 1991. Accordingly, in the fourth quarter, CBL provided an allowance of approximately $900,000 against management fees owed by the Physician Groups. Also certain start-up expenses associated with Work Simulation Centers were expensed in 1991 and our effective income tax rate increased from 44 percent to 48 percent. These factors reduced CBL's net income approximately $575,000." Mishkin went on to state, "Although the results for 1991 were disappointing to management, we believe with the 'adjustments' behind us, 1992 should be a return to growth and improved profits." In January of 1992, CBL entered into a new management agreement with the Physician Groups, which provides, in part, a bonus for performance, assumption of premise leases, extension of the management agreement terms and increased control and responsibility over Physician Group expenses. Commencing with the first quarter of 1992, CBL will be presenting financial statements which combine the results of operations of the Physician Groups with CBL. These combined statements are similar in presentation to other public companies providing health care services. Mishkin also stated, "In early 1992, we entered into a joint venture with FMG Inc. forming Centers for Vocational Rehabilitation Services. These centers specialize in the performance of vocational assessment and job placement services for workers who, because of injuries, are unable to return to their pre-injury occupation. With our emphasis on physical rehabilitation, Work Simulation Centers and Centers for Vocational Rehabilitation Services Inc., CBL is moving forward in the delivery of complete health care services to the injured worker. We look forward to reporting improved earnings commencing with the first quarter of 1992." CBL Medical Inc. operates nine medical centers in California, specializing in forensic reporting and the treatment of patients with employment-related injuries, and manages four Work Simulation Centers and one Center for Vocational Rehabilitation Services. CBL MEDICAL INC. Condensed Statements of Income Year Ended Dec. 31, 1991 1990 Revenues $8,332,264 $6,288,250 Net income 616,515 802,806 Net income per share: Primary $0.23 $0.46 Fully diluted $0.21 --- Average number of shares outstanding: Primary 2,949,721 1,849,209 Fully diluted 3,825,240 --- As of Dec. 31, 1991, there were 2,573,309 shares actually issued and outstanding. -0- 4/14/92 /CONTACT: Daryl L. Salrin of CBL Medical Inc., 310-788-5845/ (CBLM) CO: CBL Medical Inc. ST: California IN: MTC SU: ERN
DM-AL -- LA031 -- 8278 04/14/92 15:55 EDT
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|Date:||Apr 14, 1992|
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