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 Fiscal 1993 Net Income Advances 30 Percent
 From Year Ago On 22 Percent Higher Revenues
 LOS ANGELES, Nov. 23 /PRNewswire/ -- Salick Health Care Inc. (NASDAQ: SHCI) today reported record revenues, operating income and net income for the 1993 fiscal year ended Aug. 31.
 For the fiscal year ended Aug. 31, 1993, net revenues increased 22 percent to a record $116 million from $95 million in the 1992 fiscal year. Operating income and net income rose 23 percent and 30 percent to $14.4 million and $9.0 million, respectively, from the previous year. Fully diluted earnings per share, with 13 percent more shares outstanding, increased 11 percent to $0.98 vs. $0.88 a year ago.
 Net revenues for the fourth quarter 1993, rose 15 percent to $31 million from $27 million in the year-earlier quarter. Operating income and net income rose 9 percent and 11 percent to $3.6 million and $2.3 million, respectively, compared with $3.3 million and $2.1 million a year ago. The company posted fully diluted earnings per share of $0.25 up 9 percent from $0.23 a year earlier.
 Dr. Bernard Salick, chairman and chief executive officer, said, "We are pleased that with another year of record results, we are continuing to solidify our market position as the nation's leading provider of cost-effective, high-quality, disease-specific care to patients with chronic and catastrophic illnesses.
 "Our cancer center operations experienced impressive growth capturing market share as the demand for quality, cost-effective care drives the demand for our services. Same site sales accounted for all of the increase in revenues and earnings, evidencing the acceptance of our programs and services by the community of physicians, payors and patients that we serve on a nationwide basis.
 "Dialysis operations continued to be a contributor to growth in revenues and net income. We recently announced the opening of our ninth dialysis facility in Anaheim, Calif., increasing our number of outpatient dialysis stations to 185.
 "Looking ahead to 1994, we recently announced an agreement in principle to open our 11th Cancer Center with the prestigious George Washington University in Washington, D.C. The GWU Center, like the Westlake Comprehensive Cancer Center we opened in October, will provide a full range of outpatient, inpatient, home and alternate site services to cancer patients. Additionally, the Westlake Center will be the first of our centers, under the direction of Dr. Robert Peter Gale, to institute a comprehensive bone marrow and stem cell transplantation program with a dedicated inpatient unit, which is expected to begin treating patients in 1994.
 "We are in the process of establishing unique, specialty managed care networks which offer a broad range of provider services, initially based on our existing network of facilities. These networks will offer innovative strategies designed to meet the needs of each market in which they function. The network products, targeted to employers and payors alike, include capitated and global rates, case rates and the establishment of practice guidelines and outcomes measures.
 "This past year marked Salick Health Care's 10th anniversary. We are delighted with the positive response we have received to the high- quality, convenient, cost-effective care we provide. We have continued to develop a team of clinical, managed care and marketing experts to position us for the challenges ahead. The past 10 years of growth, to more than $100 million in revenues, has been an exciting period and with a decade of achievement behind us, we are well positioned to pursue the opportunities we see developing," Salick concluded.
 Salick Health Care is a leading provider of diagnosis and treatment to patients with catastrophic illness requiring sophisticated long-term care, principally in the areas of cancer, kidney failure, organ transplantation and certain immunodeficiency diseases. These services are provided at alternate sites including outpatient facilities (hospital-based and freestanding), selected inpatient sites and the patient's home.
 Salick currently operates 10 Comprehensive Cancer Centers throughout the country which contribute more than 70 percent of total company revenues. It also operates nine outpatient dialysis centers and provides inpatient dialysis services at 21 hospitals. Through its INFUSX subsidiary, Salick provides various infusion, nutritional and other related services in the patient's home and at specialized facilities.
 Consolidated Statements of Income
 (000s omitted, except per share data)
 Years Ended Aug. 31,
 1993 1992
 Operating revenues, net $115,893 $95,056
 Medical supplies and services 17,489 13,833
 Salaries and related costs 48,984 39,164
 Other administrative expenses 15,785 13,703
 Contract and occupancy costs 12,082 10,783
 Depreciation and amortization 7,135 5,887
 Total expenses 101,475 83,370
 Operating income 14,418 11,686
 Net interest expense (1,131) (1,279)
 Net investment income (expense) 1,118 891
 Minority interest (18) (46)
 Income before income taxes 14,387 11,252
 Provision for income taxes 5,411 4,332
 Net income $8,976 $6,920
 Earnings per share:
 Primary $1.05 $0.94
 Fully diluted $0.98 $0.88
 Weighted average number of shares
 used in computing earnings
 per share:
 Primary 8,565 7,364
 Fully diluted 10,442 9,215
 Three Months Ended Aug. 31,
 1993 1992
 Operating revenues, net $30,636 $26,724
 Medical supplies and services 4,664 4,129
 Salaries and related costs 13,251 10,789
 Other administrative expenses 4,142 3,817
 Contract and occupancy costs 3,102 2,952
 Depreciation and amortization 1,833 1,705
 Total expenses 26,992 23,392
 Operating income 3,644 3,332
 Net interest expense (327) (340)
 Net investment income (expense) 325 405
 Minority interest (6) (23)
 Income before income taxes 3,636 3,374
 Provision for income taxes 1,345 1,303
 Net income $2,291 $2,071
 Earnings per share:
 Primary $0.27 $0.24
 Fully diluted $0.25 $0.23
 Weighted average number of shares
 used in computing earnings
 per share:
 Primary 8,613 8,483
 Fully diluted 10,484 10,333
 Consolidated Balance Sheet
 (000s omitted)
 Aug. 31, Aug. 31,
 1993 1992
 Cash $2,430 $1,074
 Marketable securities 43,500 40,454
 Accounts receivable 28,454 27,389
 Inventory 933 1,286
 Other current assets 5,803 3,507
 Total current assets 81,120 73,710
 PP&E, net 49,009 43,118
 Intangibles (goodwill, net) 5,315 5,241
 Other long-term assets 10,957 8,949
 Total assets $146,401 $131,018
 Accounts payable $12,924 $10,549
 Other current liabilities 4,693 4,429
 Total current liabilities 17,617 14,978
 Capitalized leases 4,722 5,314
 Long-term debt 32,509 28,362
 Minority interest 122 150
 Total liabilities 54,970 48,804
 Stockholders' equity 91,431 82,214
 Total liabilities and
 equity $146,401 $131,018
 Other Balance Sheet Data:
 Working capital $63,503 $58,732
 Current ratio 4.6:1 4.9:1
 Tangible book value/share $10.32 $9.25
 Long-term debt/total assets 25.4 pct 25.7 pct
 -0- 11/23/93
 /CONTACT: Leslie Bell, CFO/executive VP, of Salick Health Care, 213-966-3410; or Nick Farina (Chicago), 312-266-7800, John H. Shaw (LA), 818-783-2400, or Lillian Armstrong (SF), 415-986-1591, all of The Financial Relations Board/

CO: Salick Health Care Inc. ST: California IN: HEA SU: ERN

LS-JL -- LA008 -- 7139 11/23/93 09:03 EST
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Publication:PR Newswire
Date:Nov 23, 1993

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