Ramsay Health Care, Inc. Announces First Quarter Results

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Ramsay Health Care, Inc. Announces First Quarter Results
    CORAL GABLES, Fla., Nov. 16 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) today announced results for the first fiscal quarter ended
September 30, 1998.  Total revenues for the quarter reached $31,120,000, with
a net loss of ($181,000) or ($0.04) per share.  These results include an
extraordinary loss of ($888,000) or ($0.08) per share, arising from the early
extinguishment of debt and a non-recurring gain of $2,039,000 as a result of
the Company's divestiture of certain non-youth services assets.
    Commenting on first quarter results, Luis E. Lamela, Chief Executive
Officer of Ramsay Health Care, Inc., stated, "Our results for the first
quarter of fiscal 1999 reflect the Company's operational transformation from
an in-patient psychiatric hospital company to a youth services company.  We
are very pleased that we have finalized our psychiatric business divestiture
plan and have implemented our debt reduction strategy.  We anticipate as part
of our debt reduction plan to record next quarter an additional loss of
approximately $1.8 million on the early extinguishment of debt."
    Mr. Lamela added, "We look forward to the second quarter as we finalize
our restructuring plan, which is well underway with the completion of the
previously announced private placement of common stock and refinancing.  We
are also very excited about the future of the Company in the youth services
industry and look forward to starting the new year with a strengthened balance
sheet and new name, Ramsay Youth Services."
    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 Exchange Commission for additional information.
    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 treatment
centers, group homes and other specialized treatment and educational youth
programs in 9 states and Puerto Rico.

                  RAMSAY HEALTH CARE, INC. AND SUBSIDIARIES
                              OPERATING RESULTS
                                 (unaudited)

                                      QUARTER ENDED SEPTEMBER 30,
                                1998                   1997

    Revenues:
     Provider-based
      revenue               $28,987,000             $31,561,000
     Managed care revenue           ---               6,132,000
     Gain on sale of assets   2,039,000                     ---
     Investment income
      and other                  94,000                  62,000
    TOTAL REVENUES           31,120,000     100%     37,755,000        100%

    Expenses:
     Salaries, wages
      and benefits           17,162,000    55.1%     19,347,000       51.3%
     Managed care provider
      expenses                      ---     0.0%      2,387,000        6.3%
     Other operating
      expenses               10,232,000    32.9%     11,566,000       30.6%
     Provision for
      doubtful accounts       1,101,000     3.5%      1,099,000        2.9%
     Depreciation and
      amortization              703,000     2.3%      1,638,000        4.3%
     Interest and other
      financing charges       1,215,000     3.9%      1,320,000        3.5%
    TOTAL EXPENSES           30,413,000    97.7%     37,357,000       98.9%
    INCOME BEFORE INCOME
     TAXES AND EXTRAORDINARY
      ITEM                      707,000     2.3%        398,000        1.1%

    Provision for income taxes      ---     0.0%            ---        0.0%

    INCOME BEFORE
     EXTRAORDINARY ITEM         707,000     2.3%        398,000        1.1%
    Extraordinary item:
     Loss from early
      extinguishment of debt  (888,000)    -2.9%    (3,574,000)       -9.5%

    NET LOSS                 $(181,000)    -0.6%   $(3,176,000)       -8.4%

    Income (loss) per common share:
     Basic:
      Before extraordinary item   $0.04                   $0.03
      Extraordinary item:
      Loss from early
       extinguishment of debt    (0.08)                  (0.34)
                                $(0.04)                 $(0.31)

     Diluted:
      Before extraordinary item   $0.04                   $0.02
      Extraordinary item:
      Loss from early
       extinguishment of debt    (0.07)                  (0.28)
                                $(0.03)                 $(0.26)

    Weighted average number
     of common shares
     outstanding:
     Basic                   10,875,916              10,575,563
     Diluted                 11,875,916              12,562,141
SOURCE Ramsay Health Care, Inc.
http://www.ramsay.com
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 Health Care, Inc., 305-569-4626