Anyone else following this--
DENVER, Nov. 12 /PRNewswire/ -- Coram Healthcare (NYSE: CRH - news)
today reported net revenues of $119.5 million for the quarter ended
September 30, 1997, compared to $118.1 million for the quarter ended
June 30, 1997. Net income for the quarter was $2.3 million or $0.04 per
share, compared to net income of $156.8 million or $2.99 per share for
the second quarter of 1997. The second quarter results included
approximately $157.0 million of income from settlement of the Caremark
litigation. Gross profit as a percentage of net revenue increased from
29.7% in the second quarter of 1997 to 30.6% in the third quarter of
this year.
''Showing our first sequential quarter-over-quarter growth in net
revenues since the inception of Coram Healthcare is a significant
achievement,'' stated Donald J. Amaral, Coram's Chairman, CEO and
President. ''Keeping our focus on the core alternate site infusion
therapy business, that grew by approximately $2.0 million from the
second quarter -- and divesting non-core business has been critical to
this achievement.''
Coram announced completion of the sale of its Lithotripsy Division to
Integrated Health Services (NYSE: IHS - news) on October 6, 1997 for
approximately $126.6 million. The results of operations for second and
third quarter reported by the Company include the results of the
Lithotripsy Division. Substantially all of the cash proceeds from the
sale of the Lithotripsy Division will be used to reduce the Company's
obligations under its credit arrangements. ''The divestiture of our
Lithotripsy Division was a critical step in our balance sheet
improvement program,'' said Mr. Amaral. ''After application of proceeds
from this sale, Coram has a debt to equity ratio that approximates 1.5
to 1.0,'' concluded Mr. Amaral.
NEW BUSINESS ACTIVITIES
PRUDENTIAL HEALTHCARE, EASTERN STATES
Prudential Healthcare, Eastern States, has signed a 3 year, exclusive
Asthma Program contract with Coram Healthcare. Coram's Program provides
Asthma management via telephonic and in-home evaluation and follow-up.
This program will give Prudential the ability to impact this high-cost
disease while providing quality care to its members.
''Coram is pleased to have been chosen by Prudential Healthcare, Eastern
States,'' said Joseph Smith, Coram's COO for the East. ''Our Asthma
Program will help patients better manage their disease. Recent program
data shows this program significantly decreasing the number of days
missed from work and school by members enrolled in our Asthma Program.
We have shown that we can significantly improve the quality of life for
asthmatics and decrease emergency room and unscheduled doctor visits.''
VETERANS ADMINISTRATION HOSPITAL
''We have an exciting opportunity in Denver, Colorado, with the Veterans
Administration Hospital,'' stated Christopher York, Coram's COO, West.
''Coram has signed an exclusive contract to provide home infusion
services in the 13 counties that the Denver VA serves. Up to this time,
the VA has provided infusion services primarily in the hospital and its
long term care facility. This will be their first experience with
exclusive contracting of home infusion services in this part of the
country.''
This release contains forward-looking statements that involve risks and
uncertainties. Coram's operations involve the risks of intense
competition and changing market forces. Readers are referred to the
documents filed by Coram with the SEC, specifically the last reports on
Forms 10-K and 10-Q, which identify additional important risk factors
for Coram.
Coram Healthcare, headquartered in Denver, Colorado, is a leading
provider of home intravenous therapy. Coram's mission is to work with
patients, physicians, managed care and other healthcare providers to
develop better models of care for those with serious or chronic medical
conditions. |
