ald J. Amaral Reduces His Role at Coram Healthcare; Will Remain Chairman of the Board
DENVER--(BW HealthWire)--April 26, 1999--Coram Healthcare Corporation (NYSE:CRH) announced today that Donald J. Amaral has turned over his duties as chief executive officer to the company's president, Richard M. Smith, effective April 23, 1999 at the close of business.
Amaral will remain Coram's chairman of the board. Smith has been named chief executive officer and will assume the responsibilities previously performed by Amaral in that position. Smith will also be a member of the company's board of directors.
Amaral, a healthcare turnaround specialist, joined Coram in 1995 when the company was in serious financial condition. As chief executive officer, he assembled a top quality management team, restructured the company and refocused its business strategy. During his tenure, the company's reported Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) improved from a negative
($245.8) million in 1995 to positive EBITDA of $35.8 million in 1998.
As chief executive officer, Amaral also settled shareholder class action and derivative lawsuits against the company, resolved the dispute with Caremark International, Inc. and Caremark, Inc. for $165.0 million, sold the lithotripsy division for approximately $126.6 million and reduced debt by half.
"Although I will miss my day-to-day involvement with the Company, I am looking forward to my continuing role as Chairman," Amaral said. "I have worked closely with Rick Smith over the last three years and I have every confidence that he will be an excellent Chief Executive Officer. I also have great confidence in our management team's ability to continue to grow the Company. Our business plan remains the same -- to expand the Company's home infusion, prescription, network management, and clinical research services and to capitalize on complementary Internet-based opportunities. The demographics and cost effectiveness of home care continue to be in our favor and I am enthusiastic about the management team's ability to build on past successes." |
