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COMMUNITY PSYCHIATRIC CENTERS RETURNS TO PROFITABILITY IN SECOND QUARTER

 LAGUNA HILLS, Calif., June 29 /PRNewswire/ -- Community Psychiatric Centers (NYSE: CMY) today reported earnings of $.08 per share for the second quarter ended May 31, 1993, reversing a first quarter loss. The second quarter results compare to earnings per share of $0.29 for the corresponding period of 1992, which included a one-time benefit of $0.06 resulting from a payment by the Ontario Health Insurance Plan of Canada.
 Results for the 1993 second quarter do not reflect the operations of facilities which were slated for sale or closure when the company took a $34.9 million after-tax restructuring charge in the first quarter of 1993. Second quarter earnings also were affected by start-up losses incurred by the company's new long-term acute care division, Transitional Hospitals Corp. (THC), which reduced earnings from the psychiatric division by $0.03 per share.
 Net revenues for the second quarter of 1993 declined to $86,149,000 from $94,696,000 a year ago, primarily because of the deletion of the restructured facilities from operating results. Revenues from psychiatric hospital operations totaled $83,118,000, while the three THC hospitals in operation generated net revenues of $3,031,000. The restructured psychiatric hospitals generated net revenues of $7,714,000 in the 1992 second quarter. Net earnings declined to $3,490,000 from $12,946,000 last year.
 Revenue and profit declines in the psychiatric division continue to reflect the negative impact of the growing proportion of managed care business in the overall payor mix. Partially offsetting the year-over- year decline in average net revenue per patient day to $450 from $488 was an 11.0 percent increase in same-store admissions and a 4.9 percent rise in patient days. The average length of a patient's stay fell to 15.7 days from 16.6 days a year earlier.
 Richard L. Conte, CPC chairman and chief executive officer, said: "We are encouraged by our return to profitability in the second quarter, as well as the year-over-year increases in both admissions and patient days we generated for the third consecutive quarter. These increases underscore the continuing demand for psychiatric care and CPC's ability to meet payors' needs for a broad spectrum of quality, cost-effective services.
 "We are also pleased with the successful start-up of our first two THC units in New Orleans and Arlington, Texas," Conte continued. "They are now completing the six-month waiting period for Medicare certification as special long-term hospitals, which should allow them to turn a profit in the third quarter and help offset the start-up costs of our Tampa acquisition and the new facilities THC will add over the second half of the year."
 One new THC facility is expected to be added in a matter of days. The company has reached an agreement in principle to acquire a 70-bed hospital in Albuquerque, N.M.
 Conte added, "The continuing pressure on the psychiatric division by managed care payors to lower costs and lengths of stay and to increase partial
hospitalization treatment means there is still much work to be done. Our focus on cost-control will be all the more critical as we enter the typically slow summer season, when patient volume seasonally declines in the psychiatric business."
 For the six months ended May 31, 1993, net income exclusive of the restructuring charge totaled $461,000, or $0.01 per share. Including the first quarter charge, the loss for the six months amounted to $34,445,000, or ($0.80) per share. This compares with earnings per share of $0.44 for the first half of 1992, including the $0.06 per share one-time benefit, on net earnings of $19,887,000. Revenues for the first six months of 1993 reached $170,838,000, compared with $179,147,000 in the year-earlier period, reflecting the omission of the discontinued hospitals.
 Community Psychiatric Centers' continuing base of operations comprises 47 facilities in the United States, Puerto Rico and the United Kingdom, of which 44 are freestanding psychiatric hospitals, two are freestanding long-term acute care hospitals operated by THC, and one combines both services. A third freestanding THC facility has not yet opened and the acquisition of a fourth is pending. 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)
 (In thousands, except per share amounts)
 Three months ended Six months ended
 May 31, May 31,
 1993 1992 1993 1992
 Revenues
 Operating revenues $85,798 $93,851 $169,461 $177,406
 Other income 351 845 1,377 1,741
 Total revenues 86,149 94,696 170,838 179,147
 Costs and Expenses:
 Operating 43,384 40,702 88,889 79,693
 General/admin. 33,228 29,905 73,284 60,882
 Depreciation 3,200 3,146 6,595 6,258
 Interest 520 394 1,137 748
 Restructuring charge --- --- 54,950 ---
 Total costs and
 expenses 80,332 74,147 224,855 147,581
 Earnings (loss)
 before taxes 5,817 20,549 (54,017) 31,566
 Income taxes
 (benefit) 2,327 7,603 (19,572) 11,679
 Net earnings (loss) $3,490 $12,946 ($34,445) $19,887
 Earnings per share $0.08 $0.29 ($0.80) $0.44
 Average shares
 outstanding 42,938 45,082 42,955 45,502
 Community Psychiatric Centers -- Selected Statistics
 Quarter Ended May 31: 1993 1992
 Psychiatric Hospitals
 Total:(a)
 Patient days 184,133 192,183
 Admissions 10,096 10,395
 Patient revenue $82,767,000 $93,851,000
 Net revenue per patient day $449.50 $488.34
 Number of hospitals 44 50
 Average licensed beds 4,295 5,044
 Average length of stay 15.7 16.6
 Same-facility:
 Patient days 184,133 175,573
 Admissions 10,096 9,098
 Average licensed beds 4,295 4,365
 Six Months Ended May 31: 1993 1992
 Total:(a)
 Patient days 368,336 361,649
 Admissions 20,755 19,825
 Patient revenue $165,331,000 $177,406,000
 Net revenue per patient day $448.86 $490.55
 Number of hospitals 44 50
 Average licensed beds 4,634 5,044
 Same-facility:
 Patient days 351,321 330,922
 Admissions 19,469 17,418
 Average licensed beds 4,295 4,365
 (a) Second quarter 1993 totals do not include facilities closed or slated for closure or sale; six-month 1993 totals include these facilities for the first three months of the period.
 Transitional Hospitals Corp. (THC)
 Quarter Ended May 31, 1993:
 Number of facilities/beds 3/227
 Admissions 123
 Patient Days 4,893
 Six Months Ended May 31, 1993:
 Number of facilities/beds 3/227
 Admissions 192
 Patient Days 7,030
 -0- 6/29/93
 /CONTACT: Suzanne S. Hovdey of Community Psychiatric Centers, 714-831-1166/
 (CMY)


CO: Community Psychiatric Centers; Transitional Hospitals Corp. ST: California IN: HEA SU: ERN

MF-JL -- LA010 -- 6567 06/29/93 09:02 EDT
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