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 LAGUNA HILLS, Calif., Sept. 29 /PRNewswire/ -- Community Pyschiatric Centers (NYSE: CMY) today reported that earnings per share rose 80 percent to $0.09 for the 1993 third quarter ended Aug. 31 from $0.05 for the third quarter of 1992.
 Net revenues for the most recent quarter totaled $80,009,000, compared with $81,662,000 for the comparable period a year ago. The revenue decline reflects the elimination of psychiatric hospitals which were slated for sale or closure when the company took a restructuring charge in the first quarter of 1993. Excluding the restructured hospital revenues in the previous year's results, net revenues for the third quarter of 1992 would have totalled $72,055,000.
 Psychiatric operations accounted for $73,740,000 of the 1993 third quarter net revenues; Transitional Hospitals Corp. (THC) contributed $5,833,000. THC was not operational during the third quarter last year.
 Net earnings for the third quarter of 1993 increased to $4,068,000 from $2,098,000 in the year-ago period. Net earnings were reduced by start-up losses from the new THC operations amounting to less than $0.01 per share.
 Results for the psychiatric division were positively impacted by same-store increases in admissions and patient days of 10.0 percent and 7.0 percent, respectively, over the same period last year. The average length of a patient's stay was 16.1 days vs. 16.6 days a year earlier but rose slightly from the 1993 second quarter due to a longer length of stay at the company's U.K. hospitals. Net revenue per patient day for the third quarter declined to $453 from $470 for the prior year but increased slightly from the second quarter average of $450.
 Said Richard L. Conte, chairman and chief executive officer, "CPC continues to benefit from increases in patient volume and significant efforts to streamline our U.S. psychiatric division and reduce costs, which have included the closure of six unprofitable hospitals, the elimination of five regions, and staffing reductions. Operating costs declined by more than 28 percent in the U.S. psychiatric division, and overall expenses were down nearly 7 percent for the quarter.
 "At the same time, we are pleased that the long-term acute care hospitals operated by our THC subsidiary are performing up to our expectations, with the first two facilities turning profitable in the third quarter after six months in operation and the third unit expected to turn profitable in the fourth quarter."
 In addition, two previously announced THC acquisitions in Las Vegas and Albuquerque, N.M., are undergoing renovation and are slated to open before the end of the year. Three partial conversions of CPC psychiatric hospitals in Indianapolis, Houston, and Milwaukee into THC units are also expected to be operational later in the fourth quarter. Additional acquisitions are in various stages of negotiation.
 For the nine months ended Aug. 31, 1993, net income from continuing operations totaled $4,529,000, or $0.10 per share. Including the first quarter restructuring charge, the loss for the nine months amounted to $30,377,000 or ($0.71) per share. This compares with earnings per share of $0.49 for the first nine months of 1992, which included a $0.06 per share one-time benefit. Revenues for the first nine months of 1993 totaled $250,847,000, compared with $260,809,000 in the year-earlier period, reflecting the omission of the discontinued operations.
 Community Psychiatric Centers currently delivers psychiatric and long-term acute care services through a total of 47 hospitals; with 38 psychiatric hospitals in the United States and Puerto Rico, including one that comprises a THC hospital; two freestanding THC hospitals; and seven psychiatric hospitals in the United Kingdom.
 Consolidated Statement of Earnings
 (Unaudited, subject to year-end adjustments)
 Quarter ended Aug. 31: 1993 1992
 Operating revenues $79,573,000 $80,600,000
 Other income 436,000 1,062,000
 Total revenues 80,009,000 81,662,000
 Costs and expenses
 Operating 37,828,000 43,640,000
 General & administrative 31,505,000 30,985,000
 Depreciation 3,039,000 3,197,000
 Interest 703,000 505,000
 Total costs & expenses 73,075,000 78,327,000
 Earnings before taxes 6,934,000 3,335,000
 Income taxes 2,866,000 1,237,000
 Net earnings $4,068,000 $2,098,000
 Earnings per share $0.09 $0.05
 Average shares outstanding 42,941,000 44,337,000
 Nine months ended Aug. 31: 1993 1992
 Operating revenues $294,034,000 $258,006,000
 Other income 1,813,000 2,803,000
 Total revenues 250,847,000 260,809,000
 Cost and expenses
 Operating 126,717,000 125,610,000
 General & administrative 104,789,000 89,590,000
 Depreciation 9,634,000 9,455,000
 Interest 1,840,000 1,253,000
 Restructuring charge 54,950,000 0
 Total costs & expenses 297,930,000 225,908,000
 Earnings (loss) before
 taxes (47,083,000) 34,901,000
 Income taxes (benefit) (16,706,000) 12,916,000
 Net earnings (loss) ($30,377,000) $21,985,000
 Earnings per share ($0.71) $0.49
 Average shares outstanding 42,939,000 45,112,000
 Selected Statistics
 Psychiatric Hospitals
 Quarter ended Aug. 31, 1993 Aug. 31, 1992
 Patient days 162,888 171,358
 Admissions 9,048 9,463
 Patient revenue $73,740,000 $80,600,000
 Net revenue per patient day $452.70 $470.36
 Number of hospitals 44 50
 Average licensed beds 4,289 5,044
 Average length of stay 16.1 16.6
 Patient days 162,888 152,178
 Admissions 9,048 8,223
 Average licensed beds 4,289 4,365
 Nine months ended Aug. 31, 1993 Aug. 31, 1992
 Patient days 531,224 533,007
 Admissions 29,823 29,288
 Patient revenue $239,071,000 $258,006,000
 Net revenue per patient day $450.04 $484.06
 Number of hospitals 44 50
 Average licensed beds 4,404 5,044
 Patient days 514,209 483,100
 Admissions 28,537 25,641
 Average licensed beds 4,289 4,365
 (a) Third quarter 1993 totals do not include facilities closed or slated for closure or sale; nine-month 1993 totals include these facilities for the first three months of the period.
 Quarter Ended Nine Months Ended
 Aug. 31, 1993 Aug. 31, 1993
 Number of facilities/beds 3/220 3/220
 Admissions 120 312
 Patient days 6,791 13,821
 -0- 9/29/93
 /CONTACT: Suzanne S. Hovdey, 714-831-1166 or 714-831-1255/

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

MF-LS -- LA011 -- 6616 09/29/93 06:01 EDT
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Publication:PR Newswire
Date:Sep 29, 1993

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