LAGUNA NIGUEL, Calif., April 15, 2004 (PRIMEZONE) -- OptimumCare Corporation (OTCBB:OPMC), a behavioral healthcare and temporary healthcare staffing services provider, today announced total revenues from continuing operations for the year ended December 31, 2003, grew 19%, to $6,396,175, compared with $5,392,792 last year. It said the increase came despite a 35% decline in contract management revenues, and that the higher year-to-year results were attributable to both growth and acquisitions in the temporary staffing segment. For the full year, temporary staffing revenues accounted for 58% of total revenues from continuing operations.
Net loss for the year ended December 31, 2003, was $893,255, or $0.15 per fully diluted share. This included a net loss from discontinued operations of $343,974, which represented $0.06 per fully diluted share, or 40% of the total loss in 2003. This compares with a net loss of $432,274, or $0.07 per fully diluted share, in the prior year, when there was no charge for discontinued operations. Thus, diluted per share loss for 2003 from continuing operations was $0.09 per share, compared with $0.07 in the same 2002 period.
The company's decision to close its Florida staffing operation in September 2003 is reflected as a discontinued operation for 2003 results. Net loss from continuing operations of $549,281, after tax benefits, includes a pretax allowance for temporary staffing doubtful accounts of $200,000, and a reduction in temporary staffing goodwill from acquired continuing operations of $125,100.
"Management has chosen to take an aggressive position in setting profitability and working capital requirements for the temporary staffing segment," said Chairman & CEO Edward A. Johnson, "and these charges reflect a conservative estimate of the changes needed to accurately measure future performance of these businesses. We believe that the contract business -- our traditional core -- has stabilized. The Company is aggressively pursuing new contract management opportunities, and our recent acquisition of Friendship Community Mental Health Center Inc. in Phoenix, Arizona is an addition to this core business."
Johnson also indicated that the Company has worked hard to reduce corporate and general overhead, pointing out that selling, general and administrative costs for the year were down 26%, despite the 19% increase in revenues, and a significant increase in the number of business units and employees. "All the major indicators suggest continuing operations are moving in the right direction -- revenues are increasing, costs are declining, net loss from continuing operations before allowances and goodwill reduction is down, and our balance sheet remains strong," Johnson continued.
"We feel that OptimumCare is continuing to execute on the strategy of growth from a solid base," Johnson added. "We have stabilized the contract management business, and are pursuing new contract opportunities, and acquisitions such as Friendship, to grow this attractive segment of our business. We are also moving forward with executing our temporary staffing segment strategy, and will continue to consolidate our temporary staffing operations.
"In addition," he said, "we have established allowances for doubtful accounts reflective of industry standards in this business. We also took a conservative posture in writing down good will, a very significant component of these staffing acquisitions. We will continue to manage the temporary staffing segment aggressively," Johnson 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 and medical centers, and through its own community mental health center. In addition, the Company has a growing presence in the temporary health care staffing business.
Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties, including risks associated with plans, the effects of changing economic and competitive conditions, government regulation which may affect facilities, licensing, healthcare reform which may affect payout amounts and timing, availability of sufficient working capital, program development efforts and timing, and market acceptance of new programs that 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.
SELECTED FINANCIAL RESULTS
(AUDITED)
Years Ended December 31,
-------------------------
2003 2002 2001
---------- ---------- ----------
TOTAL REVENUES 6,396,175 5,392,792 6,979,143
---------- ---------- ----------
LOSS FROM CONTINUING
OPERATIONS BEFORE INCOME
TAX BENEFIT (901,014) (684,682) (931,791)
NET LOSS FROM CONTINUING
OPERATIONS (549,281) (432,274) (572,398)
---------- ---------- ----------
LOSS FROM DISCONTINUED
OPERATIONS (133,666) -- --
LOSS ON IMPAIRMENT/SHUTDOWN (432,308) -- --
---------- ---------- ----------
LOSS FROM DISCONTINUED
OPERATIONS BEFORE INCOME
TAX BENEFIT (565,974) -- --
NET LOSS FROM DISCONTINUED
OPERATIONS (343,974) -- --
---------- ---------- ----------
NET LOSS $ (893,255) $ (432,274) $ (572,398)
========== ========== ==========
BASIC LOSS PER SHARE
CONTINUING OPERATIONS $ (0.09) $ (0.07) $ (0.10)
BASIC LOSS PER SHARE FROM
DISCONTINUED OPERATIONS (0.06) -- --
---------- ---------- ----------
BASIC LOSS PER SHARE $ (0.15) $ (0.07) $ (0.10)
========== ========== ==========
DILUTED LOSS PER SHARE FROM
CONTINUING OPERATIONS $ (0.09) $ (0.07) $ (0.10)
DILUTED LOSS PER SHARE FROM
DISCONTINUED OPERATIONS
(0.06) -- --
---------- ---------- ----------
DILUTED LOSS PER SHARE $ (0.15) $ (0.07) $ (0.10)
========== ========== ==========
NET LOSS $ (893,255) $ (432,274) $ (572,398)
========== ========== ==========