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COMMUNITY PSYCHIATRIC CENTERS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS

COMMUNITY PSYCHIATRIC CENTERS ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
 LAGUNA HILLS, Calif., Sept. 30 /PRNewswire/ -- Community Psychiatric Centers (NYSE: CMY) today reported earnings of $0.05 per share for the third quarter ended Aug. 31, 1992, compared with $0.01 per share for the same period a year ago. Earnings per share for the prior year's third quarter include a charge of $0.32 for additions to the provision for bad debts.
 Revenues in the third quarter of 1992 declined to $81,662,000 from $90,347,000 in the third quarter of 1991. Net income totalled $2,098,000, compared to $435,000 in 1991, when pre-tax earnings were reduced by approximately $23 million due to the above-mentioned charge. Average shares outstanding for the 1992 second quarter were 44,337,000, down from 46,462,000 due to the continuation of the company's stock repurchase program initiated in November 1991.
 Although same-store admissions during the 1992 third quarter increased 2.4 percent over the prior year, same-store patient days declined 6.5 percent, reflecting shorter lengths of stay. Average net revenue per day decreased 3.0 percent. Both of these decreases reflect the growing impact of managed care on the company's business.
 Said Richard L. Conte, chairman and chief executive officer: "While we began to see improving year-over-year admission trends in the third quarter and have seen further improvement in both admissions and patient days early in the fourth quarter, we cannot foresee any immediate turnaround in the decline in our average net revenue per patient day. We also are incurring costs to position CPC to achieve growth over the longer-term, building partial hospitalization, outpatient, residential treatment and addiction medicine services; enhancing the quality of existing hospital services; investing in conversions of excess psychiatric beds to transitional health care units; implementing a new computer system designed to better meet the increasing complexities of our reimbursement environment; and strengthening our marketing and managed care expertise.
 "The costs associated with our efforts to rebuild for our future are adversely affecting our current financial performance, and we have yet to
benefit from the increased revenues we expect them to generate. Assuming there is continued downward pressure on pricing due mainly to increasing competition for managed care business and overcapacity in the industry, we expect fourth quarter earnings to be somewhat similar to the third quarter."
 Conte added, "We are confident that the improvements we are making throughout the company, combined with our strong balance sheet and virtually non-existent advertising costs which enable us to keep prices competitive, clearly position CPC to survive the industrywide shakeout which has already begun to drive competing hospitals out of the marketplace, as evidenced by the recent announcements of some of our competitors."
 For the nine months ended Aug. 31, 1992, earnings per share totalled $0.49, compared with $1.04 for the comparable period of 1991. The current year total includes the benefit of a $0.06 per share one-time payment by the Ontario (Canada) Health Insurance Plan in the second quarter. Total revenues and net earnings for the first nine months of 1992 were $260,809,000 and $21,985,000, compared to $311,157,000 and $48,292,000, respectively, in the year-ago period. Average shares outstanding for the 1992 first nine months were 45,112,000, compared to 46,444,000 for the first nine months of 1991.
 Community Psychiatric Centers delivers psychiatric services through 50 hospitals in the United States, Puerto Rico 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
 (Unaudited, subject to year-end adjustments)
 Quarter ended Aug. 31: 1992 1991
 Revenues
 Operating revenues $80,600,000 $89,312,000
 Other income 1,062,000 1,035,000
 Total Revenues 81,662,000 90,347,000
 Costs and expenses:
 Operating 43,640,000 39,499,000
 General & Administrative 30,985,000 46,829,000
 Depreciation 3,197,000 2,999,000
 Interest 505,000 341,000
 Total Costs and Expenses 78,327,000 89,668,000
 Earnings before taxes 3,335,000 679,000
 Income Taxes 1,237,000 244,000
 Net earnings $2,098,000 $435,000
 Earnings per share $0.05 $0.01
 Average shares outstanding 44,337,000 46,462,000
 Nine months ended Aug. 31: 1992 1991
 Revenues
 Operating revenues $258,006,000 $308,288,000
 Other income 2,803,000 2,869,000
 Total Revenues 260,809,000 311,157,000
 Costs and expenses:
 Operating 125,610,000 124,680,000
 General & Administrative 89,590,000 100,710,000
 Depreciation 9,455,000 8,883,000
 Interest 1,253,000 664,000
 Total Costs and Expenses 225,908,000 234,937,000
 Earnings before taxes 34,901,000 76,220,000
 Income Taxes 12,916,000 27,928,000
 Net earnings $21,985,000 $48,292,000
 Earnings per share $0.49 $1.04
 Average shares outstanding 45,112,000 46,444,000
 COMMUNITY PSYCHIATRIC CENTERS
 Selected Statistics (Unaudited)
 Quarter ended Aug. 31: 1992 1991
 Total:
 Patient days 171,358 184,314
 Admissions 9,463 9,326
 Acute patient revenue $80,600,000 $89,312,000
 Net revenue per patient day $470.36 $484.56
 Number of hospitals 50 51
 Average beds in service 5,044 5,139
 Average length of stay 18.1 19.8
 Same-facility:
 Patient days 171,358 183,196
 Admissions 9,463 9,240
 Acute patient revenue $80,599,000 $88,786,000
 Net revenue per patient day $470.35 $484.65
 Nine months ended Aug. 31: 1992 1991
 Total:
 Patient days 533,007 601,589
 Admissions 29,288 29,298
 Acute patient revenue $258,006,000 $308,288,000
 Net revenue per patient day $484.06 $512.46
 Number of hospitals 50 51
 Average beds in service 5,044 5,057
 Average length of stay 18.2 20.5
 Same-facility:
 Patient days 528,221 597,025
 Admissions 29,088 28,880
 Acute patient revenue $255,225,000 $306,533,000
 Net revenue per patient day $483.18 $513.43
 -0- 09/30/92
 CONTACT: Suzanne S. Hovdey of Community Psychiatric Centers, 714-831-1166
 (CMY) CO: COMMUNITY PSYCHIATRIC CENTERS IN: HEA SU: ERN ST: CA -- LA008 -- X304 09/30/92
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