CORAL GABLES, Fla., May 21 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) today announced results for the third quarter ended March 31,
1998. These results have been significantly impacted by asset write-downs and
the establishment of reserves related to the divestiture of certain non-youth
services assets and organizational restructuring. The write-offs and reserves
recorded by the Company in the third quarter totaled approximately
$40.5 million.
Total revenues for the third quarter ended March 31, 1998 were $37,046,000
an increase of 16% over total revenues of $31,801,000 for the same period in
the prior year. The Company recorded a net loss of ($41,222,000) for the
third quarter, principally as a result of the write-offs and reserves.
For the nine months ended March 31, 1998 total revenues reached
$114,778,000 compared to $98,408,000 in the same period of 1997. The Company
reported for the nine-month period a net loss of ($43,642,000) reflecting the
third quarter write-offs and reserves and a $3.6 million loss on debt
extinguishment in the first quarter.
Commenting on the results, Luis E. Lamela, Chief Executive Officer of
Ramsay Health Care, Inc. stated, "This quarter we continued to experience
steady growth in our core youth services facilities where we saw a 58%
increase in residential days over the same period last year. In addition, the
Company penetrated new markets with uniquely-tailored youth programs and
services."
Mr. Lamela, added, "We are committed to our new youth services strategy.
We will continue to assess the value of all non-youth services assets
identified for divestiture as we move towards the final implementation of our
new strategy."
As previously announced on May 1, 1998, the Company signed a definitive
agreement under which Horizon Health Corporation would acquire Ramsay's
managed behavioral care subsidiary, FPM Behavioral Health, Inc. for $20
million in cash. The sale, subject to customary closing conditions is
expected to be completed in early June, 1998.
Ramsay Health Care, Inc., is a provider and manager of specialized
programs and services for at-risk and troubled youth. The Company through its
subsidiary, Ramsay Youth Services, Inc., operates residential youth
facilities, group homes and a juvenile assignment center. Ramsay Health Care,
Inc. also operates psychiatric facilities and manages the delivery of
behavioral healthcare programs on behalf of acute care hospitals and community
mental health centers.
RAMSAY HEALTH CARE, INC.
Operating Results
Quarter Ended March 31
1998 1997
$ % $ %
TOTAL REVENUES 37,046,000 100.0% 31,801,000 100.0%
Operating Expenses:
Salaries, wages
and benefits 21,358,000 57.7% 16,473,000 51.8%
Managed care
provider expenses 2,409,000 6.5% -- --
Other operating
expenses 17,401,000 47.0% 10,257,000 32.3%
Provision for
doubtful accounts 2,840,000 7.7% 1,183,000 3.7%
Depreciation and
amortization 1,648,000 4.4% 1,376,000 4.3%
Interest and other
financing charges 2,749,000 7.4% 1,429,000 4.5%
Restructuring charges 3,927,000 10.6% -- --
Asset impairment
charges 16,525,000 44.6% -- --
TOTAL OPERATING
EXPENSES 68,857,000 185.9% 30,718,000 96.6%
INCOME (LOSS)
BEFORE INCOME TAXES (31,811,000) -85.9% 1,083,000 3.4%
Provision for
income taxes 9,411,000 25.4% 411,000 1.3%
NET INCOME (LOSS) (41,222,00O) -111.3% 672,000 2.1%
BASIC EARNINGS
(LOSS) PER SHARE ($3.82) $0.07
DILUTED EARNINGS
(LOSS) PER SHARE ($3.82) $0.06
Basic Weighted Average
Shares Outstanding 10,867,000 8,426,000
Diluted Weighted Average
Shares Outstanding 10,867,000 10,514,000
RAMSAY HEALTH CARE, INC.
Operating Results
Nine Months Ended
March 31
1998 1997
TOTAL REVENUES 114,778,000 100.0% 98,408,000 100.0%
Operating Expenses:
Salaries, wages
and benefits 60,962,000 53.1% 49,736,000 50.6%
Managed care
provider
expenses 7,805,000 6.8% -- --
Other operating
expenses 40,714,000 35.4% 32,613,000 33.1%
Provision for
doubtful accounts 5,033,000 4.4% 3,332,000 3.4%
Depreciation and
amortization 4,929,000 4.3% 3,969,000 4.0%
Interest and other
financing
charges 5,540,000 4.8% 4,463,000 4.5%
Restructuring
charges 3,927,000 3.4% -- --
Asset impairment
charges 16,525,000 14.4% -- --
TOTAL OPERATING
EXPENSES 145,435,000 126.7% 94,113,000 95.6%
INCOME (LOSS) BEFORE
INCOME TAXES AND
EXTRAORDINARY
ITEM (30,657,000) -26.7% 4,295,000 4.4%
Provision for
income taxes 9,411,000 8.2% 1,632,000 1.7%
INCOME (LOSS) BEFORE
EXTRAORDINARY
ITEM (40,068,000) -34.9% 2,663,000 2.7%
Extraordinary item,
loss on early
extinguishment
of debt (3,574,000) -3.1% -- --
NET INCOME (LOSS) (43,642,000) -38.0% 2,663,000 2.7%
BASIC EARNINGS PER SHARE:
Income before
extraordinary item ($3.79) $0.30
Extraordinary item (0.33)
Net income (loss) ($4.12) $0.30
Basic Weighted
Average Shares
Outstanding 10,755,000 8,329,000
DILUTED EARNINGS PER SHARE:
Income before
extraordinary item ($3.79) $0.27
Extraordinary item (0.33) --
Net income (loss) ($4.12) $0.27
Diluted Weighted
Average Shares
Outstanding 10,755,000 10,012,000
SOURCE Ramsay Health Care, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 116733
CONTACT:
Isa Diaz, Vice President Corporate Relations
of Ramsay Health Care, 305-569-4626
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