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COMMUNITY PSYCHIATRIC CENTERS ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

 LAGUNA HILLS, Calif., Jan. 28 /PRNewswire/ -- Community Psychiatric Centers (NYSE: CMY) today announced that earnings per share for the fourth quarter of fiscal 1992 ended Nov. 30 totaled $0.03, compared with a loss of $0.06 per share for the comparable period of 1991. The 1991 fourth quarter loss reflected the impact of charges totalling $0.21 per share for additions to the provision for bad debts and acquisition-related expenses. Net operating revenues for the 1992 fourth quarter rose 2 percent to $86,268,000 from $84,585,000 the previous year, the first quarterly revenue increase recorded by the company since the quarter ended May 31, 1991. Net earnings for the 1992 fourth quarter totaled $1,152,000, compared with a loss of $3,003,000 the prior year.
 For fiscal 1992, earnings per share totaled $0.52, compared with $0.98 for fiscal 1991. The 1992 results include a one-time benefit of $0.06 per share resulting from a payment by the Ontario (Canada) Health Insurance Plan in the second quarter. Earnings per share for 1991 were reduced by special charges totaling $0.53, including $0.51 for additions to the provision for bad debts and $0.02 in acquisition-related costs. Net revenues for fiscal 1992 totaled $347,707,000, down from $396,611,000 in 1991. Net earnings for 1992 was $23,137,000, compared with $45,289,000 a year ago.
 Same-store admissions and patient days increased in the fourth quarter by 11.7 percent and 4.5 percent, respectively, over the prior year. This marks the first time since the first half of 1991 that the company has achieved year-over-year patient day growth. Same- store admissions for the full year grew 3.4 percent, while same-store patient days in 1992 fell 7.9 percent. This patient day decline reflects a drop in the average length of stay to 18.1 from 20.1 days, which is largely because of the growth in the number of patients covered by managed care plans which place limitations on length of stay.
 Further affecting the company's 1992 results was a 5 percent decline in the average net revenue per patient day to $479.95 from $504.96 the year before. The average for the fourth quarter was $468.08, down from $479.40 the prior year. This pressure on pricing has resulted from the increase in managed care contracts which negotiate discounted rates; other efforts by payors to control health care costs, such as requiring day treatment over inpatient care and tighter utilization review; and overcapacity in the industry.
 The company also attributed lower earnings to higher hospital staffing costs incurred to broaden its scope of services in response to payor needs, strengthen marketing and business office functions, and improve quality. General and administrative costs, excluding the special charges for additions to the provision for bad debts in 1991, were also up in 1992 as the company bolstered its management team and managed care division, and launched a new subsidiary to enter the transitional hospital market.
 "As we have previously reported, the costs associated with our efforts to rebuild the company to better compete in a tougher industry environment over the long term are adversely affecting our current financial performance," said Richard L. Conte, chairman and chief executive officer. "However, the increases in admissions and patient days we have been achieving since September 1992 are signs that the changes we are making are beginning to have a positive impact. We are confident that further improvements can be achieved as we enhance our marketing and service to managed care clients, as the industry consolidates and we capture greater market share, and as we make progress in our diversification into transitional health care, launched near the close of 1992."
 Conte added, "Also, our recent voluntary agreement with the Texas Attorney General has given our rebuilding effort a significant boost as we enter 1993. CPC emerged from an investigation of the state's four major psychiatric providers as the only company not sued and required to settle with the state at considerable cost. Moreover, industry reforms in Texas should help restore the public's confidence in psychiatric treatment that is so vital to our future growth."
 Under the company's stock repurchase program authorized by the board of directors in November 1991, approximately 3.5 million shares have been bought back through January 1993. Average shares outstanding for the year were 44,668,000, down 3.8 percent from the previous year. For the 1992 fourth quarter, average shares outstanding totaled 43,327,000, down 6.7 percent from the same period a year ago.
 Community Psychiatric Centers delivers psychiatric services through 51 facilities in the United States, Puerto Rico, and the United Kingdom. The company's Transitional Hospitals Corp. subsidiary operates transitional or long-term acute care in two of CPC's U.S. facilities. The company's stock trades on the New York, Boston, Midwest and Pacific exchanges.
 COMMUNITY PSYCHIATRIC CENTERS
 Consolidated Statement of Earnings
 Jan. 28, 1993
 Year ended Nov. 30: 1992 1991
 Revenues
 Operating revenues $344,274,000 $392,873,000
 Other income 3,433,000 3,738,000
 Total Revenues 347,707,000 396,611,000
 Costs and expenses:
 Operating 172,280,000 162,759,000
 General & administrative 124,436,000 149,688,000
 Depreciation 12,631,000 11,941,000
 Interest 1,607,000 1,067,000
 Total costs and expenses 310,954,000 325,455,000
 Earnings before taxes 36,753,000 71,156,000
 Income Taxes 13,616,000 25,867,000
 Net earnings $23,137,000 $45,289,000
 Earnings per share $0.52 $.98
 Average shares outstanding 44,668,000 46,445,000
 Quarter Ended November 30: 1992 1991
 Revenues
 Operating revenues $86,268,000 $84,585,000
 Other income 630,000 869,000
 Total Revenues 86,898,000 85,454,000
 Costs and expenses:
 Operating 46,670,000 38,079,000
 General & administrative 34,846,000 48,978,000
 Depreciation 3,176,000 3,058,000
 Interest 354,000 403,000
 Total costs and expenses 85,046,000 90,518,000
 Earnings (loss) before taxes 1,852,000 (5,064,000)
 Income Taxes 700,000 (2,061,000)
 Net earnings (loss) $1,152,000 ($3,003,000)
 Earnings (loss) per share $0.03 ($0.06)
 Average shares outstanding 43,327,000 46,447,000
 Year Ended Nov. 30: 1992 1991
 Total:
 Patient days 717,308 778,028
 Admissions 39,712 38,629
 Acute patient revenue $344,274,000 $392,873,000
 Net revenue per patient day $479.95 $504.96
 Number of hospitals 51 50
 Average beds in service 5,044 5,057
 Average length of stay 18.1 20.1
 Same-facility:
 Patient days 712,522 773,464
 Admissions 39,512 38,211
 Acute patient revenue $341,493,000 $390,751,000
 Quarter Ended Nov. 30: 1992 1991
 Total and Same-Facility:
 Patient days 184,301 176,439
 Admissions 10,424 9,331
 Acute patient revenue $86,268,000 $84,585,000
 Net revenue per patient day $468.08 $479.40
 Number of hospitals 50 50
 Average beds in service 5,044 5,044
 Average length of stay 17.7 18.9
 -0- 1/28/93
 /CONTACT: Suzanne Hovdey of Community Psychiatric Centers, 714-831-1166/
 (CMY)


CO: Community Psychiatric Centers ST: California IN: HEA SU: ERN

MS-LS -- LA009 -- 0073 01/28/93 09:05 EST
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