CORONA DEL MAR, Calif., Aug. 29, 1996 -- Comprehensive
Care Corporation (NYSE: CMP) (CompCare(R)) today reported a loss of
$4.2 million, or $1.60 loss per share on 2.6 million weighted
average shares outstanding, and revenues of $32.4 million for the
year ended May 31, 1996. Included in this loss is the $2.6 million
tax benefit related to the carryback of fiscal 1995 losses. This
year's results are an improvement of $7.3 million, or $3.51 per
share, compared to the loss of $11.5 million, or $5.11 loss per
share on 2.3 million weighted average shares outstanding, and
revenues of $29.2 million for the same period ended May 31, 1995.
Managed care revenues increased by $10.5 million, or 192%, in fiscal
1996, while freestanding facility revenues declined by $7.5 million,
or 41%. This shift in revenues is in line with the company's
strategy to increase managed care business and to decrease
unprofitable freestanding facility operations.
For the fourth quarter ended May 31, 1996, the company reported
a loss of $2.5 million, or $0.94 loss per share on 2.6 million
weighted average shares outstanding, and revenues of $8.5 million.
This compares to a loss of $3.3 million, or $1.39 loss per share on
2.4 million weighted average shares outstanding, and revenues of
$7.4 million for the same quarter last year. Included in the fourth
quarter of 1996 is a write-off of $0.8 million in goodwill and $0.1
million for restructuring charges related to the closing of the
Cincinnati, Ohio facility, which is scheduled for closure on August
31, 1996, and $0.2 million for the equity in loss of unconsolidated
joint ventures. Also included in the fourth quarter were $0.3
million favorable settlements related to prior year third party
liabilities and $0.3 million gain on sale of one of the company's
facilities.
The independent auditor's report on the company's consolidated
financial statements for the year ended May 31, 1996 by Ernst &
Young LLP continues the explanatory paragraph included in that
firm's report on the company's consolidated financial statements for
fiscal 1995 related to uncertainties that give rise to substantial
doubt about the company's ability to continue as a going concern.
Uncertainties cited include the company's financial position,
history of losses and default of the company's 7 1/2% convertible
subordinated debentures. CompCare is seeking to remedy the default
on the $9.5 million in bonds through an exchange offer that is now
pending with the SEC.
Chriss W. Street, chairman and president of CompCare stated, "We
have made significant progress in fiscal year 1996 in a number of
areas. These accomplishments include:
Our recent contract announcements with Harris Methodist and Blue
Cross Blue Shield of Texas have proven our ability to land
significant contracts. Our managed care business has dramatically
increased with the number of covered lives growing to approximately
1.1 million as of July 31, 1996," Street concluded.
CompCare provides care and care coordination on a contractual or
at-risk ("managed care") basis of chronic and catastrophic diseases
to HMOs, hospitals, the government and corporations throughout the
United States and its protectorates through its Disease State
Management(SM) products.
COMPREHENSIVE CARE CORPORATION AND SUBSIDIARIES
Consolidated Statement of Operations
(Amounts in thousands, except per share amounts)
Audited
Three Months Ended Twelve
Months Ended
May 31, May 31,
1996 1995 1996 1995
Revenues
Operating revenues $8,524 $7,423 $32,488 $29,282
Costs and expenses:
Direct healthcare operating expenses7,715 8,231 29,208 31,497
General and administrative expenses1,807 1,349 7,632 4,331
Provision for doubtful accounts 14 6 934 1,423
Depreciation and amortization 1,116 449 2,099 1,797
Write-down of assets 0 741 0 741
Restructuring expenses 94 0 94 0
Equity in loss of
unconsolidated affiliates 191 0 191 0
Total Costs and expenses 10,937 10,776 40,158 39,789
Loss from operations (2,413) (3,353) (7,670) (10,507)
Other income/(expenses):
Gain on sale of assets 269 817 1,336 836
Loss on sale of assets (38) (354) (82) (354)
Interest income 46 7 210 38
Interest expense (321) (426) (1,374) (1,366)
Non-operating gain 0 0 860 0
Net Loss before income taxes (2,457) (3,309) (6,720) (11,353)
Provision (benefit) for income taxes 28 4 (2,478) 180
Net Loss ($2,485) ($3,313) ($4,242) ($11,533)
Net loss per common share and
common equivalent share ($0.94) ($1.39) ($1.60) ($5.11)
Weighted average common and common
equivalent shares outstanding 2,654 2,390 2,654 2,257
COMPREHENSIVE CARE CORPORATION AND SUBSIDIARIES
Fiscal Year Ended May 31, 1996
Supplemental Information
May 31,
1996 1995
Facility inventory
Psychiatric hospitals/Chemical
dependency treatment facilities 2 4
Adult CareUnits(R) 8 11
Adolescent CareUnits -- --
Adult CarePsych Centers(R) 2 2
Partial Hospitalization 6 3
Eating disorder units 1 1
19 21
Comprehensive Behavioral Covered Lives 1,037,413 442,946
Fourth Quarter Fiscal
Year Ended
May 31
1996 1995 1996 1995
Operations
Patient days
Freestanding facilities 1,803 4,273 9,361 27,774
Comprehensive Care Integration
contracts 2,972 6,230 15,875 29,082
Freestanding facilities
Occupancy rate 29% 18% 19% 25%
Admissions 331 646 1,632 3,329
Average length of stay (days) 5 7 6 8
Comprehensive Care Integration contracts
Average occupied beds per contract 5 5 4 7
Admissions 492 809 2,304 3,634
Average length of stay (days) 6 8 7 8
Total beds available at end of period
Freestanding facilities 58 237 58 237
Comprehensive Care Integration
contracts 105 157 105 157
FORT LAUDERDALE, Fla. -- Aug. 29, 1996 --
Concurrent Computer Corp. (NASDAQ:CCUR) Thursday reported revenues
of $18.7 million for the fourth quarter ended June 30, 1996,
compared to $26.2 million for the quarter ended March 31, 1996 and
$30.5 million for the quarter ended June 30, 1995.
Revenue for fiscal year 1996 was $95.8 million compared to $140
million for fiscal year 1995. Loss for the quarter ended June 30,
1996 was $34.1 million and $39.7 million for the year. The loss
included a $29 million charge for restructuring and the write down
of inventory and other assets in conjunction with the purchase of
the real-time business of Harris Computer Systems Corp. which was
completed on June 27, 1996.
"The fourth quarter results were not unexpected. The quarter
was a very challenging time for both Concurrent Computer Corporation
and Harris Computer Systems Corporation due to the prolonged nature
of the transaction. Concurrent is looking forward to the future and
believes that with our new products and markets and an integrated
employee base we are well positioned to meet our goals, and based on
shipments and backlog as of this date we are enthusiastic about the
future of the business," said E. Courtney Siegel, president and
chief executive officer of Concurrent.
"The Company is currently working on merging the two
organizations and expects the integration to be largely completed by
September 30, 1996. The Company rolled out its new product concept,
which combines the most advanced features of both company s
products, to our sales force during a worldwide sales meeting held
in Fort Lauderdale in mid-July. The integration of Sales, Marketing
and Development has been completed and has been well received by our
customers and employees," Siegel explained.
"The telecommunications market and interactive real-time (which
includes video-on-demand and wagering and gaming) market provides us
with real opportunities for growth. These markets, as well as our
solid core business of real-time, offer potential benefits for our
customers and shareholders," Siegel concluded.
Concurrent Computer Corp., headquartered in Fort Lauderdale, is
the leading supplier of high-performance real-time computer systems,
software and solutions to commercial and government markets. The
company focuses on five distinct business areas: simulation; data
acquisition; instrumentation & process control; telecommunications;
and interactive real-time which includes video-on-demand and
wagering & gaming. Operating in 22 countries worldwide, they
provide sales and support from offices throughout North America,
Europe, and Asia, as well as through authorized distributors,
resellers and representatives.
CONSOLIDATED STATEMENTS OF OPERATIONS - CONCURRENT COMPUTER CORP.
(Dollars in thousands except earnings per share)
Three Months Ended Twelve Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
Net Sales
Computer systems $ 6,734 $14,202 $42,430 $72,074
Service and other 11,958 16,304 53,370 68,070
Total sales 18,692 30,506 95,800 140,144
Cost of sales
Computer systems 7,358 8,219 27,487 38,639
Service and other 8,751 9,067 33,048 40,838
Total cost of sales 16,109 17,286 60,535 79,477
Gross margin 2,583 13,220 35,265 60,667
Other operating expense
Research and development 3,974 4,009 13,837 19,464
Selling, general and
administrative 7,881 7,972 29,818 36,921
Provision for
restructuring 23,180 500 24,480 3,200
Sales and use tax credit 0 0 0 (1,000)
Total other
operating expenses 35,035 12,481 68,135 58,585
Operating income (loss) (32,452) 739 (32,870) 2,082
Interest expense (465) (529) (2,316) (2,638)
Interest income 33 101 226 513
Other non-recurring
charge 0 0 (1,700) (1,000)
Other income
(expense) - net (1,022) 254 (1,502) 737
Total income/
(expense) (1,454) (174) (5,292) (2,388)
Income (loss) before
provision for
income taxes (33,906) 565 (38,162) (306)
Provision for
income taxes 150 300 1,550 1,700
Net income (loss) ($34,056) $265 ($39,712) ($2,006)
Net income (loss)
per share ($1.10) $0.01 ($1.30) ($0.07)