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PROVIDENCE HEALTH CARE HAS IMPROVED OPERATING RESULTS ON 14-PERCENT REVENUE GAIN; WRITE-OFF OF LOAN FEES CAUSES NET LOSS

 PROVIDENCE HEALTH CARE HAS IMPROVED OPERATING RESULTS
 ON 14-PERCENT REVENUE GAIN; WRITE-OFF OF LOAN FEES CAUSES NET LOSS
 BEREA, Ohio, May 15 /PRNewswire/ -- Providence Health Care, Inc. (NASDAQ: PHCI) reported improved operating results for the first quarter ended March 31, 1992, on a 14-percent increase in patient service revenues. After an extraordinary charge of $315,690 incurred from a write-off of loan fees in its debt restructuring, the net loss for the first quarter was $170,078 compared with a loss of $142,614 for the first quarter of 1991, it was announced today by Lawrence B. Cummings, president and chief executive officer.
 Net patient service revenue was $6,697,888, a 14-percent increase over the $5,873,403 reported in the comparable period of 1991.
 Income before taxes and extraordinary item was $293,021 compared to a loss of $142,614 in the comparable period of 1991.
 Operating expenses increased during the first quarter, primarily reflecting an increase in the total patient census. During the quarter an average of 91.5 percent of total beds were filled, as compared with an average of 89.6 percent bed utilization during first quarter 1991.
 During the quarter ended March 31, 1992, Providence Health Care successfully concluded an initial public offering of 2,870,000 shares of its common stock, including 370,000 shares as the underwriters' over- allotment. This resulted in net proceeds of $11,870,000 to the company.
 Proceeds from the underwriting were used to repay approximately $9.1 million of indebtedness and certain debt-restructuring costs. Reflecting this reduction in debt, interest expense for the quarter was $375,709 less than in the first quarter of 1991.
 Cummings, in commenting on the company's results, said: "We are encouraged by our improved first-quarter results and would expect to benefit further during 1992 from strong demographics in our Ohio marketing area, increasing occupancy rates, a strengthened balance sheet which gives us flexibility for strategic acquisitions, as well as the potential to move into higher margin special units, such as sub-acute care and rehabilitation."
 Providence Health Care is a provider of long-term nursing care, principally in the State of Ohio. The company operates, through its subsidiary, Northwestern Service Corporation, 13 long-term nursing care facilities in Ohio and one in the State of Vermont, with an aggregate of 1,081 beds.
 PROVIDENCE HEALTH CARE, INC.
 Consolidated Statements of Operations
 (Unaudited)
 Three months ended March 31 1992(A) 1991 Pct.
 Change
 Patient service revenue, net $6,702,572 $5,874,910 14.1
 Expenses:
 Operating:
 Salaries, wages and benefits 3,051,232 2,795,322 9.2
 Other 1,248,166 905,454 37.8
 Total 4,299,398 3,700,776 16.2
 General and administrative 996,564 841,190 18.5
 Depreciation and amortization 329,296 312,434 5.4
 Total 5,625,258 4,854,400 15.9
 Income before interest, income taxes
 and extraordinary item 1,077,314 1,020,510 5.6
 Interest expense (807,641) (1,183,350) (31.7)
 Interest income and other 23,348 20,226 15.4
 Income (loss) before income taxes
 and extraordinary item 293,021 (142,614) N/M
 Provision for income taxes 147,409 -- --
 Income (loss) before extraordinary item 145,612 (142,614) N/M
 Extraordinary item, net of tax
 benefit of $210,460 (315,690) -- --
 Net loss $ (170,078) $ (142,614) 19.3
 Net loss per common share $(0.08) $(0.13) (38.5)
 Average common shares outstanding 2,660,719 1,365,854 94.8
 (A) -- During the first quarter of 1992, Providence Health Care completed a public offering of 2,870,000 additional common shares.
 Other Selected Consolidated Data
 3/31/92 12/31/91 Pct.
 Change
Cash and cash equivalents $ 3,547,863 $ 597,382 493.9
Accounts/settlements receivable, net 2,544,240 2,212,491 15.0
Other current assets 348,096 561,758 (38.0)
Total current assets 6,440,199 3,371,631 91.0
Total property and equipment, net 28,784,050 28,796,039 --
Investments and other assets 1,538,437 1,640,636 (6.2)
Total assets 36,762,686 33,808,306 8.7
Total current liabilities 3,937,758 3,579,793 10.0
Long-term debt 19,438,905 29,375,488 (33.8)
Other long-term obligations 802,581 969,601 (17.2)
Total stockholders' equity (deficit) $12,583,442 $ (116,576) N/M
 -0- 5/15/92
 /CONTACT: Lawrence B. Cummings, chairman, president and CEO, of Providence Health Care, 216-243-4732/
 (PHCI) CO: Providence Health Care, Inc. ST: Ohio IN: HEA SU: ERN


GK-OS -- NY022 -- 0638 05/15/92 10:03 EDT
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Date:May 15, 1992
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