[ Business | US Market | Industry | IPO | S&P | International | PRNews | BizWire | Finance Home
]
Friday April 17, 8:01 am Eastern Time
Company Press Release
OptimumCare Begins Stock Repurchase Program
Chief Executive Also Increases Holdings
LAGUNA NIGUEL, Calif.--(BUSINESS WIRE)--April 17, 1998-- OptimumCare Corp.
(OTCBB:OPMC - news) Friday said it began repurchasing shares of its common stock yesterday
in open-market transactions as part of the stock buyback program it announced last month.
In addition, the company said, its President and Chief Executive Officer Edward A. Johnson, has
also increased his ownership of OptimumCare shares in recent months, making several purchases,
all in open-market transactions.
OptimumCare announced on March 23, 1998 that it was launching a stock buyback program. The
company said it would repurchase up to 500,000 shares in the open market at prevailing prices
over the next 12 months, commencing on or after April 1, 1998.
''Today's purchases underscore our strong conviction that OptimumCare has an outstanding future,
and is a 'buy' at current trading prices,'' Johnson said.
''The intent of our Board of Directors in authorizing this repurchase program,'' the CEO said, ''was
to reemphasize that we are making an investment in our future, and that the fundamentals of our
company are far stronger than current trading prices would indicate.''
Johnson noted that the company is still awaiting the outcome of an audit of former healthcare
partner Galaxy Health Care. He said that billing for services rendered by OptimumCare at Galaxy's
Long Beach, Calif. behavioral healthcare program must await conclusion of the Galaxy audit.
Pending that reimbursement, he continued, results for the 1998 first quarter will produce only a
modest profit. When, and if, the secured funds are reimbursed they will be treated as income, he
advised.
''Meanwhile,'' Johnson said, ''as part of our overall program focused on the 'new' OptimumCare,
we are making significant progress in enhancing our operating performance on existing contracts.
We'll be reporting on one of these developments in the next several days.''
Created in 1987 to respond to opportunities presented by increasing utilization of behavioral health
services, OptimumCare Corp. provides a wide range of inpatient and outpatient behavioral health
services through a growing network of affiliated hospitals, medical centers and community health
centers.
Certain of the statements made herein constitute forward looking statements that involve risks and
uncertainties, including the risks associated with plans, the effects of changing economic and
competitive conditions, government regulation which may affect facilities, licensing, healthcare
reform which may affect payment amounts and timing, availability of sufficient working capital,
program development efforts and timing, and market acceptance of new programs which may
affect future sales growth and/or costs of operations. Additional information may be obtained by
reviewing the company's reports filed from time to time with the SEC.
Contact:
OptimumCare Corp.
Ed Johnson, President & CEO
888/448-1848
or
Financial Marketing Resources
800/995-4410 or 714/622-6050
More Quotes and News:
Optimumcare Corp (OTC BB:OPMC - news)
Related News Categories: health care, medical/pharmaceutical
Help
Copyright c 1998 Business Wire. All rights reserved. All the news releases provided by Business Wire are
copyrighted. Any forms of copying other than an individual user's personal reference without express written
permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to,
posting, emailing, faxing, archiving ina public database, redistributing via a computer network or in a printed
form.
See our Important Disclaimers and Legal Information.
Questions or Comments? |
