Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Coram (CRH)--has the turnaround begun -- Ignore unavailable to you. Want to Upgrade?

To: leigh aulper who wrote (9)	3/30/1998 8:24:00 AM
From: leigh aulper	Read Replies (1) \| Respond to of 85

Anyone else out there-- year end results Coram Healthcare Reports 1997 Year-End Results And Receives Extension Of Cash Payment Of Debt DENVER, March 30 /PRNewswire/ -- Coram Healthcare (NYSE: CRH) today reported results for its fiscal year ended December 31, 1997, and announced that the payment of accrued interest and fees related to the Company's rollover notes has been deferred until September 30, 1998, subject to certain terms and conditions. For the fiscal year ended December 31, 1997, net revenue was $464.4 million compared with $522.0 million in 1996. Net income for the year increased to $125.3 million, or $2.64 per share, versus a net loss of $85.0 million, or ($2.05) per share for 1996. Coram's 1997 results include $156.8 million of income from the settlement of the Caremark litigation (net of related expenses), and a $26.7 million gain on the sale of the Company's Lithotripsy Division. Operations of the Lithotripsy Division are included in 1997 results through September 30, 1997. "Coram has made tremendous progress in 1997. Most recently, we completed the divestiture of non-core assets, settled the Caremark litigation for $165.0 million, paid down $169.7 million in debt, restored positive stockholders' equity to $125.0 million, and reported $66.0 million in cash flow from operations. At the same time, all Coram branches are JCAHO accredited, with approximately 40% of those that have been re-surveyed receiving 'accreditation with commendation' - the highest accreditation level possible. Our immediate objectives are to focus on increasing profitable sales, continue to improve operations and work closely with the holders of the rollover notes to secure more permanent financing. Ultimately, our goal is to negotiate more favorable financing and terms that reflect current market rates and conditions. To date, the holders have been very supportive of Coram," stated Donald J. Amaral, Coram's Chairman and Chief Executive Officer. "Additionally, we are in discussions with several commercial banks to provide Coram with a line of credit to be used primarily for acquisitions. We have identified entities in key geographic markets that we believe would enhance our strong core infusion business. We also believe that there are many opportunities currently available throughout the home care industry. As these opportunities continue to present themselves, and upon securing an acceptable line of credit, Coram intends to be well positioned to capitalize on these potential acquisitions. These include expanding our existing product offerings as well as entering new geographic markets," stated Mr. Amaral. Coram President Richard M. Smith also commented on the Company's operations and plans: "Coram has always remained dedicated to the delivery of quality care, and our patients and referral sources value this commitment. As a result, our current patient base reflects the return of referrals from several previous customers, many of who are expanding the patient base of their existing contracts. We have maintained a strong patient base for three consecutive quarters, despite the fact that there is a significant product shortage of one of our key therapies - IVIG (a blood product). In fact, through year end, new patients grew by 4.7% from the first quarter, and we are seeing an increase in those who have been using Coram for multiple services." Mr. Smith continued, "While patient retention and expansion of our customer base is a priority for 1998, we remain extremely focused on our clinical operations as we seek ways to grow the existing infusion business. We are executing a plan to expand our integrated home care offering through our Resource Network division and through acquisitions." As stated above, the Company has received a six-month extension of the payment of deferred accrued interest and fees related to the rollover notes, provided that the Company and the holders of the rollover notes reach an agreement in principle for their restructuring by April 13, 1998. Current terms would have required Coram to pay all previously deferred amounts, and begin paying interest in cash on the principal amount of the notes as of March 31, 1998. Any restructuring will be subject to the parties entering into definitive agreements and the satisfaction of any conditions to consummation set forth herein. There is no assurance that any restructuring will be consummated.