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QUANTUM HEALTH RESOURCES INC. REPORTS RECORD 1992 REVENUES, EARNINGS

 ORANGE, Calif., Feb. 17 /PRNewswire/ -- Quantum Health Resources Inc. (NASDAQ: QHRI) today reported record revenues and earnings for the year ended Dec. 31, 1992.
 Year-to-date and fourth quarter results for 1992 were reduced by the previously announced settlement, in the fourth quarter, of litigation brought against Quantum and certain of its officers, directors, employees and others by Caremark Inc. ("Caremark") in April 1991. The company's cost of the settlement was $1.85 million, which resulted in an after-tax charge of approximately $1.1 million, or $.08 per share, against net income for the fourth quarter of 1992. Year-to-date and fourth quarter results for 1991 have been restated to account for the April 28, 1992, acquisition of Factor Care Plus Inc. as a pooling of interests.
 Revenues increased 46 percent to $118,258,500 compared to $80,770,000 in 1991. Net income for the year just ended increased to $9,256,200, or $0.67 per share, from $5,526,100, or $0.44 per share, in 1991.
 In the fourth quarter of 1992, revenues increased 48 percent to $34,790,200 from $23,507,900 in the same period last year. Net income was $1,974,500, or $0.14 per share, compared to $1,893,000, also $0.14 per share, in the fourth quarter of 1991.
 Commenting on the year just ended, Douglas H. Stickney stated, "We are extremely proud of our 1992 results. Were it not for the litigation settlement, which we are very pleased to have finally behind us, our 1992 operating income for the year and fourth quarter would have been $15.4 million and $4.7 million, respectively, reflecting gains of 93 percent and 82 percent over the prior year.
 "Quantum's ability to produce consistent quarterly earnings growth is most directly attributable to the broadening acceptance of our Chronicare(TM) service model by physicians who refer patients affected by long-term chronic disorders and by the payors who subsidize the cost of care for those patients," Stickney said. "This model provides Quantum with the means to understand and respond to the special problems facing chronically ill patients, their families and the clinical professionals and payors supporting them.
 "Quantum initially developed its Chronicare model to honor its commitment to people affected by hemophilia. By keeping its promises to these patients, families, providers and payors, Quantum has been able to successfully transfer the model to other chronic disorders, most notably genetic emphysema ( AAT') and primary immunodeficiency diseases ( PIDs')," said Stickney. "In the future, the company will seek other chronic disorders to which the Chronicare service model may be applied."
 Quantum has maintained an extremely strong balance sheet featuring more than $30 million in cash and no debt. At Dec. 31, 1992, the company operated 18 licensed branches and 16 sales and service offices. The company expects to transition several of these offices to licensed branches during 1993.
 Pursuant to its previously announced letter of intent, the company recently executed a Stock Purchase Agreement to acquire The I.V. Clinic Inc. ("IVC") in exchange for approximately 1.4 million shares of Quantum common stock. Consummation of this transaction is pending completion of IVC's financial audit for the year ended Dec. 31, 1992, which is anticipated prior to Feb. 28, 1993. The acquisition will be accounted for as a pooling of interests.
 IVC, founded in 1988, provides a broad array of pediatric and adult home infusion therapies and services to individuals affected by chronic and non-chronic disorders from three licensed pharmacies located in Dallas, Fort Worth and Houston, Texas. IVC's unaudited revenues for the 12 months ended Dec. 31, 1992, were approximately $19 million.
 Quantum Health Resources Inc. is a national provider of therapies and support services to individuals affected by chronic disorders requiring lifelong therapy. Quantum's Chronicare service is designed to provide therapies and services that enable patients and their families to manage the patient's condition with greater independence, address psychosocial issues related to the disorder and manage the financial burden of the cost of care.
 QUANTUM HEALTH RESOURCES INC. AND SUBSIDIARIES
 Summary Statement of Income
 Year Ended Three Months Ended
 12/31/92 12/31/91(a) 12/31/92 12/31/91(a)
 Revenues $118,258,500 $80,770,000 $34,790,200 $23,507,900
 Operating
 income(b) 13,578,100 8,007,200 2,861,300 2,594,800
 Net income(b) $9,256,200 $5,526,100 $1,974,500 $1,893,000
 Earnings
 per share(b) $0.67 $0.44 $0.14 $0.14
 Weighted average
 shares
 outstanding 13,833,000 12,537,000 13,934,000 13,650,000
 (a) Restated to account for the April 28, 1992, acquisition of Factor Care Plus Inc. as a pooling of interests.
 (b) Year and quarter ended Dec. 31, 1992, include the company's cost of the settlement of litigation with Caremark, which reduced operating income, net income and earnings per share by $1,850,000, $1,110,000 and $0.08, respectively.
 QUANTUM HEALTH RESOURCES INC. AND SUBSIDIARIES
 Selected Consolidated Financial Data
 (In thousands, except per share data)
 Year Ended
 12/31/92 12/31/91(a)
 Amount Percent Amount Percent
 Consolidated Statement
 of Income Data:
 Revenues:
 Hemophilia $81,623 69.0 pct. $57,787 71.5 pct.
 AAT/PIDs 17,894 15.2 8,708 10.8
 Other disorders 18,742 15.8 14,275 17.7
 Total revenues 118,259 100.0 80,770 100.0
 Less -
 operating costs:
 Cost of
 products sold 60,485 51.1 42,671 52.8
 Branch personnel costs 15,322 13.0 10,687 13.2
 Other branch costs 9,172 7.8 6,711 8.3
 Provision for
 uncollectible accounts 5,825 4.9 4,738 5.9
 Branch contribution
 to earnings 27,455 23.2 15,963 19.7
 Less -
 corporate costs:
 General and
 administrative
 expenses 12,027 10.2 7,956 9.8
 Settlement of
 Caremark litigation 1,850 1.5 --- ---
 Operating income 13,578 11.5 8,007 9.9
 Other, net 1,181 1.0 904 1.1
 Income taxes 5,503 4.7 3,385 4.2
 Net income $9,256 7.8 pct. $5,526 6.8 pct.
 Earnings per share $0.67 $0.44
 Weighted average
 shares outstanding 13,833 12,537
 Three Months Ended
 12/31/92 12/31/91(a)
 Amount Percent Amount Percent
 Consolidated Statement
 of Income Data:
 Revenues:
 Hemophilia $23,769 68.3 pct. $16,276 69.2 pct.
 AAT/PIDs 5,897 16.9 2,932 12.5
 Other disorders 5,124 14.8 4,300 18.3
 Total revenues 34,790 100.0 23,508 100.0
 Less -
 operating costs:
 Costs of
 products sold 18,081 52.0 12,086 51.4
 Branch personnel costs 4,441 12.8 2,961 12.6
 Other branch costs 2,691 7.7 2,117 9.0
 Provision for
 uncollectible accounts 1,521 4.4 1,343 5.7
 Branch contribution
 to earnings 8,056 23.1 5,001 21.3
 Less -
 corporate costs:
 General and
 administrative
 expenses 3,344 9.6 2,406 10.2
 Settlement of
 Caremark litigation 1,850 5.3 --- ---
 Operating income 2,862 8.2 2,595 11.1
 Other, net 285 0.8 352 1.5
 Income taxes 1,172 3.3 1,054 4.5
 Net income $1,975 5.7 pct. $1,893 8.1 pct.
 Earnings per share $0.14 $0.14
 Weighted average
 shares outstanding 13,934 13,650
 12/31/92 12/31/91(a)
 Consolidated Balance Sheet Data:
 Cash and equivalents $30,720 $28,617
 Current assets 82,610 62,952
 Total assets 87,773 65,926
 Liabilities 18,913 13,707
 Stockholders' equity $68,860 $52,219
 (a) Restated to account for the April 28, 1992, acquisition of Factor Care Plus Inc. as a pooling of interests.
 -0- 2/17/93
 /CONTACT: Douglas H. Stickney, chairman, CEO and president, or William James Nicol, senior VP and CFO, of Quantum Health Resources, 714-750-1610; or Gary Strong or Kathy Brunson of The Financial Relations Board, 312-266-7800, for Quantum Health Resources/
 (QHRI)


CO: Quantum Health Resources Inc. ST: California IN: HEA SU: ERN

JB-JL -- LA011 -- 7118 02/17/93 08:06 EST
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