CORAL GABLES, Fla., Feb. 6 /PRNewswire/ -- Ramsay Managed Care, Inc.
(Nasdaq: RMCR) today announced results for the three months ended December 31,
1996.  The Company recorded for the second quarter a net loss from continuing
operations of ($239,000) or ($0.04) per share compared to a net loss from
continuing operations of ($639,000) or ($0.10) per share for the same quarter
in the prior year.  Revenues for the three months ended December 31, 1996 were
$5.8 million, compared to $5.3 million for the comparative prior year period.
    For the six months ended December 31, 1996 the Company recorded a net loss
from continuing operations of ($831,000) or ($0.13) per share compared at a
net loss from continuing operations of ($1,473,000) or ($0.23) per share for
the comparative prior year period.  Revenues for the six months ended December
31, 1996 were $11.6 million compared to $9.9 million in the comparable prior
year period.
    The results for the periods do not include the results of the Company's
HMO division, Apex Healthcare, Inc. which is treated as a discontinued
operations for accounting purposes.  The Company announced November 5, 1996
that it had agreed to sell Apex Healthcare, Inc.
    Ramsay Managed Care previously announced on October 2, 1996 that it had
entered into a merger agreement with Ramsay Health Care, Inc.  The agreement
is subject to shareholder approval, lender consent and other customary
conditions and is expected to close in March 1997.
    Ramsay Managed Care, Inc. operates a long established business in the
management of mental health services and substance abuse programs on behalf of
self insured employers, health maintenance organizations (HMOs) and
governmental agencies in various states and also operates the foregoing HMO
division.

                      Ramsay Managed Care, Inc.
                         Operating Results
                           (Unaudited)

                                       Quarter Ended December 31,
                                         1996                     1995
                                                               (restated)
    NET REVENUES              $5,799,000     100.0%     $5,280,000     100.0%
    Operating expenses:
      Contracted provider
        services               1,885,000      32.5%      1,869,000      35.4%
      Salaries, wages and
        benefits               2,466,000      42.5%      2,332,000      44.2%
      Management fees charged
        by related companies      88,000       1.5%         62,000       1.2%
      General and administrative
        expenses               1,063,000      18.3%      1,117,000      21.1%
      Depreciation and
        amortization             340,000       5.9%        332,000       6.3%
      Interest expense           196,000       3.4%        207,000       3.9%

    Total operating expenses   6,038,000     104.1%      5,919,000     112.1%

    Loss from continuing
      operations before
      income taxes              (239,000)     (4.1%)      (639,000)    (12.1%)
    Income tax expense                 0       0.0%              0       0.0%
    Loss from continuing
      operations                (239,000)     (4.1%)      (639,000)    (12.1%)
    Loss from operations of
      discontinued HMO
      operation(a)                     0       0.0%       (375,000)     (7.1%)
    Net loss                   ($239,000)     (4.1%)   ($1,014,000)    (19.2%)

    Loss per common share from
      continuing operations       ($0.04)                   ($0.10)
    Loss per common share from
      discontinued operation(a)     0.00                     (0.06)
    Loss per common share         ($0.04)                   ($0.16)

    Weighted average number of
      shares outstanding       6,397,304                 6,370,909

    (a) The Company recorded a reserve for loss from operations of
discontinued operation at June 30, 1996.  For the quarter ended December
31, 1996 the Company's loss, charged to the reserve, was $879,000.
Consequently, the loss has no effect on the operating results of the Company.


                            Ramsay Managed Care, Inc.
                               OPERATING RESULTS
                                 (Unaudited)

                                       Six Months Ended December 31,
                                      1996                       1995
                                                               (restated)
    NET REVENUES             $11,621,000    100.0%     $9,998,000     100.0%
    Operating expenses:
      Contracted provider
        services               4,308,000     37.1%      3,522,000      35.2%
      Salaries, wages and
        benefits               4,655,000     40.1%      4,516,000      45.2%
      Management fees charged by
        related companies        176,000      1.5%        132,000       1.3%
      General and administrative
        expenses               2,184,000     18.8%      2,282,000      22.8%
      Depreciation and
        amortization             695,000      6.0%        629,000       6.3%
      Interest expense           434,000      3.7%        390,000       3.9%

    Total operating expenses  12,452,000    107.2%     11,471,000     114.7%

    Loss from continuing
      operations before income
      taxes                     (831,000)    (7.2%)    (1,473,000)    (14.7%)
    Income tax expense                 0      0.0%              0       0.0%
    Loss from continuing
      operations                (831,000)    (7.2%)    (1,473,000)    (14.7%)
    Loss from operations of
      discontinued HMO
      operation(a)                     0      0.0%       (713,000)     (7.1%)
    Net loss                   ($831,000)    (7.2%)   ($2,186,000)    (21.8%)

    Loss per common share from
      continuing operations       ($0.13)                  ($0.23)
    Loss per common share from
      discontinued operation(a)     0.00                    (0.11)
    Loss per common share         ($0.13)                  ($0.34)

    Weighted average number of
      shares outstanding       6,397,304                6,370,909

    (a) The Company recorded a reserve for loss from operations of
discontinued operation at June 30, 1996.  For the six months ended December
31, 1996 the Company's loss, charged to the reserve, was $1,717,000.
Consequently, the loss has no effect on the operating results of the Company.

Link to this page: