DRCA MEDICAL CORPORATION ANNOUNCES THIRD QUARTER RESULTS
HOUSTON, Nov. 14 /PRNewswire/ -- DRCA Medical Corporation (AMEX: DRC) today announced the results of its operations for the third quarter and nine months ended Sept. 30, 1991. "Although revenues increased by approximately 19 percent, we continue to feel the effects of reduced workers' compensation fees chargeable in Texas," said Jose Kauachi, president. "Our recently announced letter of intent to acquire a network of four medical clinics in an adjacent Southern state will reduce the impact of regulatory actions in Texas on DRCA's operations," he said, "and also represents the cornerstone of our initial managed care occupational medicine cluster. However, Texas will remain a very important part of our plans, and we will continue to expand in Texas as well as in other states."
Quarterly and year-to-date results of operations are as follows:
DRCA MEDICAL CORPORATION
Periods ended Three Months Nine Months
Sept. 30 1991 1990 1991 1990
Revenues $2,293,000 $1,931,000 $6,957,000 $5,796,000
costs 1,212,000 727,000 3,398,000 2,344,000
accounts) 793,000 561,000 2,344,000 1,711,000
Operating income 288,000 643,000 1,215,000 1,741,000
Net income 101,000 447,000 423,000 1,110,000
Earnings per share
(primary and fully
diluted) 0.02 0.09 0.08 0.22
Increased revenues in the third quarter from the company's imaging operation were offset by declines in work hardening revenues in Texas. This occurred despite significant increases in patient volumes and the opening in 1991 in Texas of a third work hardening facility. "Work hardening remains a profitable business activity in 1991," said Kauachi, "but not to the degree experienced last year."
Selling, general and administrative expenses reflect increases in compensation costs, added operations management and marketing personnel, and higher professional fees, principally as a result of certain litigation.
DRCA's financial position remains stable:
DRCA MEDICAL CORPORATION
(Balance Sheet Data)
Total assets $6,123,000 $6,350,000
Working capital 2,573,000 2,367,000
Stockholders' equity 3,425,000 2,934,000
DRCA Medical Corporation is a managed care company, providing occupational health care to industrial employees in the company's physical therapy, work hardening and MRI centers.
/CONTACT: Jose Kauachi, president and CEO of DRCA Medical, 713-439-7511/
(DRC) CO: DRCA Medical Corporation ST: Texas IN: HEA SU: ERN SM -- NY101 -- 1244 11/14/91 17:21 EST