LAGUNA NIGUEL, Calif., Dec. 20, 2006 (PRIME NEWSWIRE) -- OptimumCare Corporation (Pink Sheets:OPMC), a behavioral healthcare and temporary staffing services provider, today reported that the company had higher pretax profits for the third quarter and nine months of 2006 compared with the same periods last year.
For the three months ended September 30, 2006, with all figures unaudited, net revenues from continuing operations were $1,990,000, compared with revenues of $2,700,000 in the third quarter of the prior year. For the nine months ended September 30, 2006, revenues were $5,800,000 compared with $7,800,000 in the first nine months of last year.
Pretax profits for the third quarter ended September 30, 2006, after allowances including doubtful accounts, amounted to $201,000, or $.03 pretax income per fully diluted share, compared with pretax profit of $122,000 for the prior year third quarter. Pretax profits for the first nine months ended September 30, 2006 were $477,000, after allowances including doubtful accounts, or approximately $.07 per fully diluted share, compared with pretax profits of $158,000 for the same period in 2005.
"We believe that OptimumCare is well positioned for the future," said Edward A. Johnson, Chairman & CEO. "The contract staffing segment, the temporary health care worker staffing segment, and the owned out patient clinic are operating profitably. We have worked hard to reduce our overhead cost structure. We continue to see good growth in our staffing business, and out patient clinic."
Johnson said revenues for the first nine months of 2006 included $250,000 attributable to a settlement fee from a behavioral healthcare contract that was not renewed. He also noted that the first nine months of 2005 reflected full operations of certain discontinued operations not included in results for the first nine months of 2006. Included in these discontinued operations, he said, was the company's Heartline nurse staffing program, which was popular but unprofitable.
The CEO also said that the company has settled all previously announced and outstanding litigation. Because the company has a significant net operating loss carry forward, Johnson said OptimumCare does not expect to have any tax liability for the year 2006.
Created in 1987, OptimumCare Corporation provides healthcare services in two industry segments. The Behavioral Health Management Division provides management teams to client hospitals and medical centers on a long-term contract basis to run inpatient and outpatient behavioral health services. The Temporary Health Care Staffing Division provides temporary social workers and other professionals to a broad base of medical and healthcare client sites.
Certain of the statements made herein constitute forward-looking 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.