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COMMUNITY PSYCHIATRIC CENTERS ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

 COMMUNITY PSYCHIATRIC CENTERS ANNOUNCES
 FOURTH QUARTER AND YEAR-END RESULTS
 LAGUNA HILLS, Calif., Feb. 3 /PRNewswire/ -- Community Psychiatric Centers (NYSE: CMY) today announced that earnings per share for the year ended Nov. 30, 1991, were $0.98, compared with $1.80 per share for the previous fiscal year. The 1991 total reflects the negative impact of special charges amounting to $0.53 per share, including $0.51 for additions to reserves for accounts receivable and $0.02 for acquisition- related expenses. Total revenues and net earnings for 1991 were $396,611,000 and $45,289,000, respectively; compared with $381,791,000 and $83,211,000 for the prior year. Average shares outstanding for 1991 were 46,445,000 vs. 46,355,000 for 1990.
 For the fourth quarter ended Nov. 30, 1991, the company recorded a loss of $0.06 per share, reflecting the impact of charges totalling $0.21 per share ($0.19 for additions to accounts receivable reserves and $0.02 for costs related to acquisition attempts which were terminated in the fourth quarter). This compares with earnings per share for the 1990 fourth quarter of $0.45. Total revenues for the fourth quarter of 1991 were $85,454,000, down from $99,610,000 for the same period of 1990. A net loss of $3,003,000 for the final quarter of 1991, which reflects nearly $16 million in special charges, compares with net earnings of $20,735,000 for the 1990 fourth quarter. Average shares outstanding were 46,447,000 in the 1991 fourth quarter vs. 46,366,000 a year earlier.
 As previously announced, the company and its independent auditors conducted separate, detailed reviews of accounts receivable in October 1991 as a result of the increase in accounts receivable during the third quarter which led to a $23-million charge against third quarter earnings for additions to reserves. This review pointed to the need for the additional charge in the fourth quarter of $14 million, bringing the accounts receivable balance at the close of 1991 to $86.1 million and the average days of revenue in accounts receivable to 93. The company does not anticipate the need for further special additions to accounts receivable reserves, and continues to focus on improving receivables collection as it implements improvements in business office and utilization review functions and undertakes a major conversion of its financial and accounting systems beginning in 1992.
 The company attributes weak year-over-year operating comparisons in the fourth quarter primarily to declines in patient days and admissions resulting from the continuing growth of managed care business, which now accounts for about 35 percent of net revenues; to the effects of the recession; and to negative publicity regarding the private psychiatric hospital industry, particularly in Texas. The company has not been charged in the investigation being conducted in Texas, which has focused primarily on a competing chain, and is unaware of being targeted in any other state investigations.
 "Community Psychiatric Centers is in the process of developing and implementing a new strategic direction to better compete in an industry undergoing dramatic change," said James W. Conte, chairman and chief executive officer. "As third-party cost containment efforts necessitate alternatives to inpatient care and limit length of stay, the goal we must pursue is our evolution from an acute hospital company to a psychiatric services company. While continuing our long-standing efforts to control costs, we are strengthening existing services and developing new programs to drive patient volume, with particular emphasis on partial hospitalization and other outpatient services in the mental health field."
 The board of directors has authorized the company to spend up to $50 million to purchase shares of its own stock from time to time on the open market. Since the company first announced the approval of a stock buyback program last November, 549,800 shares have been purchased.
 The company continues to make key changes in managerial assignments and to fill new positions. President Richard L. Conte assumed additional responsibility for CPC's California hospital operations in November and Steven S. Weis was appointed chief financial officer in December. New clinical positions have been created to focus on building partial hospitalization and chemical dependency programs. In California, vice president reassignments have been made to improve operations in the company's most competitive market.
 The Managed Care Division, formed in 1991 to enhance the development and marketing of products and services for the managed market, has become profitable as a separate profit center as patients began being admitted under the innovative CPC Care case rate product in November. Three case rate contracts have been signed and additional pilot programs are underway, while a number of other new products have also been developed.
 Community Psychiatric Centers delivers psychiatric services through 50 hospitals in the United States and United Kingdom. The company's stock is traded on the New York, Boston, Midwest and Pacific stock exchanges.
 COMMUNITY PSYCHIATRIC CENTERS
 Consolidated Statement of Earnings
 Year ended November 30: 1991 1990
 REVENUES
 Operating revenues $392,873,000 $371,221,000
 Other income 3,738,000 7,351,000
 Management fees --- 3,219,000
 Total Revenues 396,611,000 381,791,000
 COSTS AND EXPENSES:
 Operating 162,759,000 149,495,000
 General & Administrative 149,688,000 88,839,000
 Depreciation 11,941,000 10,640,000
 Interest 1,067,000 784,000
 Total Costs and Expenses 325,455,000 249,758,000
 EARNINGS BEFORE TAXES 71,156,000 132,033,000
 Income Taxes 25,867,000 48,822,000
 NET EARNINGS $ 45,289,000 $ 83,211,000
 EARNINGS PER SHARE $ 0.98 $ 1.80
 AVERAGE SHARES OUTSTANDING 46,445,000 46,355,000
 COMMUNITY PSYCHIATRIC CENTERS
 Consolidated Statement of Earnings
 Quarter ended November 30: 1991 1990
 REVENUES
 Operating revenues $84,585,000 $ 97,511,000
 Other income 869,000 2,099,000
 Total Revenues 85,454,000 99,610,000
 COSTS AND EXPENSES:
 Operating 38,079,000 40,505,000
 General & Administrative 48,978,000 23,120,000
 Depreciation 3,058,000 2,798,000
 Interest 403,000 223,000
 Total Costs and Expenses 90,518,000 66,646,000
 EARNINGS (LOSS) BEFORE TAXES (5,064,000) 32,964,000
 Income Taxes (2,061,000) 12,229,000
 NET EARNINGS (LOSS) $(3,003,000) $ 20,735,000
 EARNINGS (LOSS) PER SHARE $ (0.06) $ 0.45
 AVERAGE SHARES OUTSTANDING 46,447,000 46,366,000
 COMMUNITY PSYCHIATRIC CENTERS
 YEAR ENDED NOVEMBER 30: 1991 1990
 Total:
 Patient days 778,028 768,795
 Admissions 38,629 35,701
 Acute patient revenue $392,873,000 $369,257,000
 Net revenue per patient day $504.96 $480.31
 Number of hospitals 50 49
 Average beds in service 5,057 4,590
 Average length of stay 20.1 21.5
 Same-facility: (a)
 Patient days 750,057 768,795
 Admissions 36,910 35,701
 Acute patient revenue $376,443,000 $369,257,000
 Net revenue per patient day $501.89 $480.31
 (a) Same-facility figures include 1 hospital which closed 8/31/91.
 Excluding this hospital, same-facility admissions and patient days
 in 1991 were 36,492 and 745,493 vs. 35,034 and 757,115 in 1990.
 QUARTER ENDED NOVEMBER 30: 1991 1990
 Total:
 Patient days 176,439 202,856
 Admissions 9,331 9,798
 Acute patient revenue $84,585,000 $97,511,000
 Net revenue per patient day $479.40 $480.69
 Number of hospitals 50 49
 Average beds in service 5,069 4,821
 Average length of stay 18.9 20.7
 Same-facility:
 Patient days 172,347 202,857
 Admissions 9,129 9,798
 Acute patient revenue $82,134,000 $97,511,000
 Net revenue per patient day $476.56 $480.69
 -0- 2/3/92
 /CONTACT: Suzanne Hovdey of Community Psychiatric Centers, 714-831-1166/
 (CMY) CO: Community Psychatric Centers ST: California IN: HEA SU: ERN


CH -- LA008 -- 6013 02/03/92 09:10 EST
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