LAGUNA NIGUEL, Calif., Nov. 26, 2007 (PRIME NEWSWIRE) -- OptimumCare Corporation (Pink Sheets:OPMC), a behavioral healthcare and temporary staffing services provider, today reported operating results for the third quarter and nine months of 2007.
For the three months ended September 30, 2007, with all figures unaudited, net revenues from continuing operations were $1,334,000, compared with revenues of $1,990,000 in the third quarter of the prior year. For the nine months ended September 30, 2007, revenues were $4,578,891 compared with $5,800,000 in the first nine months of last year.
For the third quarter ended September 30, 2007, after allowances including doubtful accounts, the net loss for the period was $54,535, or $.01 per share, compared with $201,000, or $.03 pretax income per fully diluted share, in the prior year third quarter. Pretax profits for the first nine months ended September 30, 2007, were $77,345, or $.01 per share, compared with $477,000, after allowances including doubtful accounts, or approximately $.07 per fully diluted share, for the same period in 2006.
"Both third quarter and nine month operating results were impacted by the early termination of our contract with Huntington Beach Hospital following a change in ownership," said Edward A. Johnson, Chairman & CEO. "At the current time, OptimumCare is a plaintiff in litigation with the hospital for various breaches of contract termination." Additionally, he noted, revenues for the first nine months of 2006 included $250,000 attributable to a settlement fee from another behavioral healthcare contract that was not renewed.
"Meanwhile," said Johnson, "Our Friendship Community Mental Health Center in Phoenix, a wholly owned subsidiary, continues to operate profitably, and we are attempting to expand it. In addition, as in the third quarter and nine months of the prior year, our Associated Staffing Resources operations in 2007 also continue to be profitable.
"We are growing that business, and exploring ways to continue to lower overall operating expenses while simultaneously increasing its revenues and net profit. This segment of our business model continues to be the dominant source of OptimumCare's revenue stream.
"It also is the key to our company's longer term growth potential. Provider facilities, looking to control costs, continue to meet these fiscal challenges by increasing their demand for our outsourced professionals at several levels," Johnson observed.
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 2007.
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.