CORAL GABLES, Fla., March 19 /PRNewswire/ -- Ramsay Youth Services, Inc.
(Nasdaq: RYOU) announced today results for the transition period from July 1,
1998 to December 31, 1998. The results reflect the Company's final
transformation from Ramsay Health Care, Inc., an inpatient psychiatric
hospital company to Ramsay Youth Services, Inc., a youth services company.
These results have been affected by non-recurring items, such as losses
related to non-youth service asset sales and extraordinary losses in
connection with the early extinguishment of debt. As previously announced,
the Company's fiscal year end has been changed to December 31st of each year.
Total revenues for the six months ended December 31, 1998 reached $47,892,000.
The Company reported a net loss of ($4,263,000) or ($1.10) per share for the
six-month period.
Commenting on the results, Luis E. Lamela, President and CEO of Ramsay
Youth Services, Inc. stated, "We are very pleased that we have finalized the
Company's transformation phase, and are now fully dedicated and focused on
youth services and growing the Company. We are delighted with our continued
success in growing our youth services business which grew in 1998 to over $45
million in revenues."
Ramsay Youth Services, Inc. is a leading provider and manager of education
and treatment services for at-risk and troubled youth. The Company serves
over 2,300 youth through schools, residential treatment facilities, group
homes and service contracts in 8 states and Puerto Rico.
Except for historical information contained herein, the matters set forth
in this news release are forward-looking statements as defined under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties.
Actual operations and results may differ materially from those expected in the
forward looking statements made by the Company. Please refer to Ramsay's
filings with the Securities and Exchange Commission for additional
information.
RAMSAY YOUTH SERVICES, INC. AND SUBSIDIARIES
OPERATING RESULTS
SIX MONTHS ENDED DECEMBER 31,
1998 1997
Revenues:
Provider-based
revenue $47,892,000 $64,327,000
Managed care
revenue --- 13,208,000
TOTAL REVENUES 47,892,000 100.0% 77,535,000 100.0%
Expenses:
Salaries, wages
and benefits 28,313,000 59.1% 39,604,000 51.1%
Other operating
expenses 17,470,000 36.5% 23,313,000 30.1%
Managed care
patient costs --- 0.0% 5,396,000 7.0%
Provision for
doubtful
accounts 1,549,000 3.2% 2,193,000 2.8%
Depreciation and
amortization 1,627,000 3.4% 3,281,000 4.2%
TOTAL OPERATING
EXPENSES 48,959,000 102.2% 73,787,000 95.2%
Income (loss) from
operations (1,067,000) (2.2%) 3,748,000 4.8%
Non-operating
income (expenses):
Investment income
and other 178,000 0.4% 197,000 0.3%
Gain on sale of
assets 2,039,000 4.3% --- 0.0%
Interest and other
financing
charges (1,655,000) (3.5%) (2,791,000) (3.6%)
Losses related to
asset sales and
closed businesses (947,000) (2.0%) --- 0.0%
Total non-operating
expenses, net (385,000) (0.8%) (2,594,000) (3.3%)
INCOME (LOSS) BEFORE
INCOME TAXES AND
EXTRAORDINARY
ITEM (1,452,000) (3.0%) 1,154,000 1.5%
Provision for
income taxes --- 0.0% --- 0.0%
INCOME (LOSS)
BEFORE EXTRA-
ORDINARY ITEM (1,452,000) (3.0%) 1,154,000 1.5%
Extraordinary item:
Loss from early
extinguishment
of debt (2,811,000) (5.9%) (3,574,000) (4.6%)
NET LOSS $ (4,263,000) (8.9%) $ (2,420,000) (3.1%)
Income (loss)
per common share
Basic:
Before extra-
ordinary item $(0.47) $0.21
Extraordinary item: (0.63) (1.00)
$(1.10) $(0.79)
Diluted:
Before extra-
ordinary item $(0.47) $0.18
Extraordinary
item: (0.63) (0.86)
$(1.10) $(0.68)
Weighted average
number of common
shares outstanding:
Basic 4,487,000 3,574,000
Diluted 4,487,000 4,139,000
SOURCE Ramsay Youth Services, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/116733.html or fax,
800-758-5804, ext. 116733
CONTACT:
Isa Diaz, Vice President Corporate Relations,
Ramsay Youth Services, 305-569-4626
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