PRESS RELEASE
Thought I would the release for all to read. I too think they will be bought and for over $2.00 as well. Its good to hear the share buy back is continuing and especially good to see "the compnay was actively pursuing the formation of it's own partial hospitalization programs at sites throughout the Western US". Obtaining the providers is essential as well. Can't help but believe the share should be favorably affected. I am still betting on a sell however and at these prices, a double is VERY likely.
Albert
OptimumCare Has Profitable Second Quarter With High Census, Increased Patient Revenue Collections
LAGUNA NIGUEL, Calif.--(BW HealthWire)--July 28, 1998--
OptimumCare Corp. (OTC/BB:OPMC) Tuesday reported that it
operated profitably in its second quarter ended June 30, 1998, with
high patient census and improved patient revenue collections. The
company reported revenue for the quarter of $2,935,099 compared with
$3,050,876 in the year earlier quarter. Net income for the quarter
totaled $176,516, or $0.03 per share, compared with $268,097, or $0.04
per share, in the 1997 second quarter.
For the six months ended June 30, 1998, revenues increased 4
percent to $6,127,928, compared with $5,881,456 in the same period
last year. Net income was $234,004, or $0.03 per share, down from the
year earlier period's $470,944, or $0.07 per share.
"Our results for the quarter were really quite good," said
OptimumCare Chairman & CEO Ed Johnson. "We operated 12 programs during
the quarter compared with 14 a year earlier, and realized essentially
the same revenue level. Moreover, we are beginning to see the benefits
from the economies of scale resulting from our decision last quarter
to consolidate the programs at Baldwin Park and El Monte, as well as
Sherman Oaks and Glendale, all in California.
"We are operating very efficiently, and had a high daily patient
census through the end of the second quarter," Johnson continued.
"While we continue to seek a host partner for our program in Long
Beach, we're also moving ahead aggressively ourselves in filing the
necessary applications for our own provider numbers, both for the Long
Beach and El Monte programs."
The CEO said OptimumCare's revenues are expected to increase as
planned programs are opened over the next several months. He indicated
that the company was actively pursuing the formation of its own
partial hospitalization programs at sites throughout the Western
United States.
"We continue to believe OptimumCare's current stock price does
not reflect its true valuation," Johnson said. "Accordingly, in the
past four months, since our announcement in late March that we would
repurchase up to 500,000 shares over the next 12 months, we have, in
fact, repurchased approximately 200,000 shares through July 27, 1998
and this buyback will continue going forward.
"We continue to be very excited about OptimumCare's future
because we have made the investments to not only grow but also benefit
from new marketing initiatives. These developments uniquely position
OptimumCare 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)
Second quarter ended Six months ended
6/30/98 6/30/97 6/30/98 6/30/97
Revenue $ 2,935,099 $ 3,050,876 $ 6,127,928 $ 5,881,456
Income before
taxes $ 290,366 $ 453,951 $ 392,674 $ 805,305
Net Income $ 176,516 $ 268,097 $ 234,004 $ 470,944
Earnings per
share $ 0.03 $ 0.04 $ 0.03 $ 0.07
Total Assets: $ 3,872,727 $ 4,364,644 $ 3,872,727 $ 4,364,644
Long Term Debt $ 0 $ 0 $ 0 $ 0
Weighted average
shares
outstanding 6,882,967 6,811,381 6,892,735 6,842,477
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., Laguna Niguel
Ed Johnson, Chairman & CEO
888/448-1848
www.optimumcare.com
or
Financial Marketing Resources
Tom Gavin
949/622-6050 or 800/995-4410
KEYWORD: CALIFORNIA
BW1076 JUL 28,1998
5:14 PACIFIC
08:14 EASTERN
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