Coram Sets Earnings Release Date, Updates Anticipated Charges
DENVER - February 10, 2000 - Coram Healthcare Corporation (NYSE:CRH) today announced that it expects to release 1999 fourth quarter and annual results on Thursday, March 9, 2000 after the market closing.
?On December 21, 1999, the Company announced a strategic repositioning of Coram under new leadership,? said Coram Chairman, President and Chief Executive Officer Daniel D. Crowley, who joined the Company November 30. ?Since that time we have seen a corporate commitment to changing the mix to increase our percentage of nutrition, hemophilia and transplant therapies, collecting accounts receivable and reducing overhead and operating costs while maintaining and enhancing quality.
?We have been rapidly putting in place the management tools to drive the changes we believe are necessary to give the Company the opportunity to turn the operations around,? said Mr. Crowley. ?While we cannot predict the outcome, and many real risks remain, we believe that the operating results for January and February 2000 will begin to show some of the positive effects of the change, discipline and focus we have driven into the fabric of the organization.
?During my brief tenure, we have quickly come to know the organization better,? Mr. Crowley added. ?It has become clear that the originally contemplated 1999 fourth quarter
charge of $25 to $30 million does not fully reflect the condition of the Company and the changes necessary to reposition it. As a result, we currently expect, subject to review by
our outside auditors, to record charges of approximately $20 million for expenses related to the liquidation of the Resource Network Division (R-Net) and ongoing litigation, and approximately $25 million to $35 million related to the strategic repositioning, including associated severance costs, the write-down of impaired assets and various balance sheet adjustments.? |
