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CHARTER MEDICAL CORPORATION ANNOUNCES IMPROVED THIRD QUARTER FISCAL 1993 OPERATING RESULTS

 MACON, Ga., Aug. 4 /PRNewswire/ -- Charter Medical Corporation (AMEX: CMD) announced improved operating results for its third quarter ended June 30, 1993.
 Operating income for the third quarter of fiscal 1993 was up 4.3 percent to $66.3 million compared with $63.5 million for the third quarter of fiscal 1992. For the nine months ended June 30, 1993, operating income grew by 5.9 percent to $199.9 million compared with $188.8 million for the same period of fiscal 1992. Operating income in the third quarter of fiscal 1993 includes approximately $8 million over the prior year, primarily from the normal settlement of reimbursement issues.
 Net revenue was $325.6 million for the quarter ended June 30, 1993, up 3.1 percent compared with $315.7 million in the year-ago quarter. Net revenue was $974.9 million for the nine months of 1993, up 1.8 percent compared with $957.6 million a year ago.
 For the quarter, same store psychiatric admissions increased 9.0 percent, and equivalent patient days were flat in comparison with the fiscal year 1992 third quarter. Psychiatric net revenue per equivalent patient day was up 2.8 percent to $585 in the third quarter of fiscal 1993, compared with $569 a year ago. Psychiatric gross outpatient revenues grew by 43 percent to $28.2 million.
 Mac Crawford, chief executive officer, said: "We are pleased with our operations and the significant progress made in reducing our debt. Including the recent call of $50 million Senior Secured Notes to be redeemed on August 26, 1993, we have reduced our debt by over $290 million since the plan of reorganization was completed in July 1992."
 Net loss for the third quarter of fiscal 1993 was $5.3 million compared with $12.5 million for the same period last year. Net loss for the first nine months of fiscal 1993 was $32.3 million compared with $69.9 million for the same period last year.
 Charter has three non-operating charges that will continue through 1995: amortization of reorganization value in excess of amounts allocable to identifiable assets, stock option expense and ESOP expense. These charges are related to Charter's financial reorganization completed in July 1992 and to the creation of an ESOP in 1988.
 Excluding the amortization of excess reorganization value, after tax ESOP expense and after tax stock option expense, fully diluted earnings per share would have been $0.83 and $2.50 for the third quarter and nine months ended June 30, 1993, respectively.
 Per share information for fiscal 1992 periods are not meaningful due to the implementation of fresh start accounting and a substantial change in the number of shares outstanding subsequent to consummation of the company's plan of reorganization.
 Charter Medical is an international health care provider and operates 89 psychiatric and general hospitals in the United States and Europe.
 CHARTER MEDICAL CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Unaudited)
 (In thousands, except per share data)
 For the quarter For the nine months
 ended June 30 ended June 30
 1993 1992(a) 1993 1992(a)
 Net revenue $325,555 $315,652 $974,863 $957,645
 Costs and expenses
 Operating expenses 236,551 232,038 705,535 709,293
 Bad debt expense 22,748 20,083 69,412 59,543
 Operating income 66,256 63,531 199,916 188,809
 Depreciation and amortization 9,337 12,592 31,302 42,097
 Amortization of excess
 reorganization value 18,675 --- 56,175 ---
 Interest, net 20,280 46,421 58,664 164,758
 ESOP expense 12,385 14,308 37,347 43,033
 Deferred compensation expense --- 781 --- 3,190
 Stock option plan expense 2,753 --- 34,030 ---
 Total 63,430 74,102 217,518 253,078
 Income (loss) before income
 taxes 2,826 (10,571) (17,602) (64,269)
 Provision for income taxes 8,171 1,096 14,658 5,632
 Net loss (5,345) (12,477) (32,260) (69,901)
 Preferred stock dividend
 requirements --- 4,661 --- 18,214
 Net loss applicable to common
 stock $ (5,345) $(17,138) $(32,260) $(88,115)
 Average number of common
 shares outstanding(a) 24,874 24,853
 Net loss per common share(a) $(0.21) $(1.30)
 (a) Share and per share amounts for prior periods have not been
 presented because they are not meaningful due to the implementation
 of fresh start accounting and the substantial change in the number
 of shares outstanding subsequent to the consummation of the Plan
 of Reorganization in July 1992 (the "Plan"). The 1993 and 1992
 quarters are not comparable since the company successfully completed
 the Plan, thereby impacting items below operating income such as
 the level of interest expense, depreciation and amortization
 expense, amortization of excess reorganization value, stock option
 plan expense and preferred stock dividend requirements.
 Consolidated Selected Statistical Data
 (Unaudited)
 For the quarter For the nine months
 ended June 30 ended June 30
 1993 1992 1993 1992
 Core Psychiatric Hospitals(a)
 No. of psychiatric hospitals 78 78 78 78
 Average licensed beds 7,210 7,174 7,188 7,182
 Licensed bed days 656,106 652,834 1,962,232 1,968,000
 Patient days 346,425 355,608 1,049,304 1,089,010
 Equivalent patient days(b) 376,156 377,401 1,128,690 1,145,660
 Net revenue per equivalent
 patient day(b) $585 $569 $582 $574
 Occupancy 53 pct. 54 pct. 53 pct. 55 pct.
 Admissions 21,954 20,139 64,497 60,071
 Average length of stay 16.0 17.6 16.2 18.2
 Core General Hospitals(a)
 No. of general hospitals 10 10 10 10
 Average licensed beds 1,453 1,463 1,457 1,463
 Licensed bed days 132,223 133,133 397,759 400,862
 Patient days 56,733 64,294 181,555 197,180
 Equivalent patient days(b) 74,768 82,839 236,100 252,144
 Net revenue per equivalent
 patient day(b) $1,275 $1,164 $1,220 $1,139
 Occupancy 43 pct. 48 pct. 46 pct. 49 pct.
 Admissions 10,959 12,490 34,497 37,526
 Average length of stay 5.2 5.2 5.3 5.2
 (a) Core hospitals are those hospitals which the company intends
 to operate as part of its long-term strategic plan. The above
 information does not include hospitals which the company has or
 intends to sell, lease or close.
 (b) Includes an imputed patient day value to the hospital's
 outpatient business.
 -0- 8/4/93
 /CONTACT: Media: Andrew Brimmer for Charter Medical, 212-484-7754; Investors: Nancy Gore of Charter Medical, 912-742-1161/
 (CMD)


CO: Charter Medical Corporation ST: Georgia IN: HEA SU: ERN

BN-RA -- AT001 -- 9201 08/04/93 08:39 EDT
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Date:Aug 4, 1993
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