Company Press Release
What do you guys think our prospects are with OPMC??? Any opinions would be appreciated.
Albert
OptimumCare Reports Third Quarter Results
LAGUNA NIGUEL, Calif.--(BW HealthWire)--Oct. 27, 1998--
OptimumCare Corporation (OTC\BB: OPMC) today reported that it
operated profitably in its third quarter ended September 30, 1998. The
company reported revenue for the quarter of $2,821,533, compared with
$3,076,658 in the year earlier quarter. Net income for the quarter
totaled $166,005, or $.03 per share, compared with $253,896, or $.04
per share, in the 1997 third quarter.
For the nine months ended September 30, 1998, revenues totaled
$8,949,461, compared with $8,958,114 in the same period last year. Net
income was $400,104, or $.06 per share, down from the year earlier
period's $724,840, or $.10 per share.
"Our third quarter results reflect three fewer programs than last
year," said OptimumCare Chairman & CEO Ed Johnson. "We operated 10
programs during the quarter compared with 13 a year earlier. While
this resulted in lower quarterly revenues, for the nine-month period
we were able to essentially match 1997's revenue level since we
continued to experience increased patient revenue collections.
Moreover, the economies of scale resulting from our consolidating the
programs at Baldwin Park and El Monte, as well as Sherman Oaks and
Glendale, all in California, have also been quite favorable, generally
resulting in improved operating budgets at each combined facility.
"We continue to operate very efficiently, and had a high daily
patient census through the end of the third quarter," Johnson
continued. The CEO said that the company, as part of its overall
growth strategy, was actively pursuing the formation of partial
hospitalization programs at sites throughout the Western United
States.
During the quarter, the company completed the buyback of 500,000
shares of its own stock, and OptimumCare's board authorized the
repurchase of an additional half million shares. By the end of the
calendar year, it is anticipated that a total of 1 million shares will
have been repurchased.
Johnson noted that the company had also recently become a
corporate member of the National Association of Investors Corporation
(NAIC). He said that OptimumCare has begun to take advantage of NAIC's
programs designed to help increase awareness among its membership
comprised of more than 700,000 investors nationwide.
"This is a process," said Johnson. "In this very challenging
stock market, we're continuing to reach out to both current and
potential investors to make them aware of the merits of OptimumCare as
an investment for the longer term. We are on the right track, and
we're clearly very motivated to make OptimumCare a solid investment
for the future. As we better tell our story, and bring new programs on
line and add to the bottom line, I have every confidence these
positive steps will be reflected in the valuation that investors give
us. I continue to believe we have a unique opportunity to maximize
shareholder value going forward," he concluded.
Created in 1987 to respond to opportunities presented by
increasing utilization of behavioral health services, OptimumCare
Corporation today provides a wide range of inpatient and outpatient
behavioral health services through a network of affiliated hospitals,
medical centers and community health centers.
SELECTED FINANCIAL RESULTS
(unaudited)
Three months ended Nine months ended
9/30/98 9/30/97 9/30/98 9/30/97
Revenue $ 2,821,533 $ 3,076,658 $ 8,949,461 $ 8,958,114
Income before
taxes $ 245,305 $ 388,469 $ 638,074 $ 1,193,774
Net
Income $ 166,005 $ 253,896 $ 400,104 $ 724,840
Diluted
EPS $ 0.03 $ 0.04 $ 0.06 $ 0.10
Total
Assets: $ 3,290,487 $ 4,507,411 $ 3,290,487 $ 4,507,411
Long Term
Debt $ 0 $ 0 $ 0 $ 0
Diluted average shares out-
standing 6,624,359 7,158,420 6,940,227 7,214,615
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, Laguna Niguel
Ed Johnson, Chairman & CEO, 888/448-1848
www.optimumcare.com
or
Financial Marketing Resources Inc.
Tom Gavin or Cathy Davis, Media and Investor Relations
800/995-4410 or 949/622-6050
tomgavin@fmrinc.com
KEYWORD: CALIFORNIA
BW1156 OCT 27,1998
6:25 PACIFIC
09:25 EASTERN
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