TAMPA, Fla., June 25, 2012 /PRNewswire/ -- Comprehensive
Care Corporation ("CompCare" or the "Company") (OTCBB: CHCR)
announced today that it expects to report a profit for the second
quarter of 2012, with revenues for the quarter of approximately
$18 million. Revenues for the
same quarter in 2011 were $18.6
million. However, during that quarter, the Company
posted a loss of $4
million.
Commenting on the expected results for the quarter, Robert J. Landis, CompCare's Chief Financial
Officer, stated: "The Company is particularly excited about our
second quarter expected results since, if realized, it will be the
first time in many years that the Company has been able to post a
profit for two consecutive quarters. The improvement in
results from the second quarter of 2011 to the second quarter of
2012, we believe, is primarily attributable to our Pharmacy
Management Program which is now achieving traction and our cost
reduction efforts to streamline our internal systems. Part of
the shift in the pharmacy program occurred from our establishing
Company-owned clinics in areas where we experience high patient
utilization and cost. The clinics have the effect of reducing
those costs and providing us with a greater opportunity to directly
service the needs of the patients. Based on our best current
available information, for example, the Company expects to realize
a profit in its at-risk pharmacy operations in April, and this
trend continues in May where preliminary numbers indicate an
increase profit in the Company's at-risk pharmacy operations.
While there can be no assurances that this trend will continue or
that there might not be subsequent positive or negative adjustments
to the April and May results, the upward trend is what we were
looking for since we believe that it indicates the viability of the
overall program. Other aspects of the Pharmacy Management
Program are in the process of being implemented and will occur
shortly."
Mr. Landis continued, "Another aspect of the Pharmacy Management
Program that contributed to a successful second quarter was the
signing of a Third Amendment (the "Amendment") to a material
agreement with one of our existing, at-risk pharmacy clients.
As a result of the Amendment, the Company received a $2.2 million, retroactive, cash adjustment to
pharmacy prescriptions, which were originally charged to the
Company. Additionally, the Amendment shifts the financial
responsibility for a significant number of prescriptions from the
Company to the client for the remainder of 2012. We expect
this financial responsibility shift to further reduce the Company's
pharmacy expenses throughout the year, and although there can be no
guarantees that these expectations will be achieved, we expect the
shift to further enhance the Company's profitability in its
pharmacy operations for the remainder of 2012."
"Additionally, we were able to implement administrative,
cost-saving measures that also contributed to a profitable second
quarter," Mr. Landis said.
Revenue and other financial estimates contained in this press
release have not been audited or reviewed by the Company's
independent auditors, and accordingly they express no opinion or
other form of assurance as to this information. The Company
provides no assurance that these preliminary results, future
expectations or assumptions will be met for the second quarter or
fiscal year 2012. The Amendment addresses a number of other
aspects of the Company's business with its client. A complete
copy of the Amendment has been filed by the Company with the
Securities and Exchange Commission, which is available on its
website at www.sec.gov.
About CompCare
Established in 1969, CompCare provides behavioral health,
substance abuse and employee assistance programs for governmental
agencies, managed care companies and employer groups throughout
the United States. Headquartered
in Tampa, Florida, CompCare
focuses on personalized attention, flexibility, a commitment to
high-quality services and innovative approaches to behavioral
health that address both the specific needs of clients and changing
healthcare industry demands. For more information, please call
813-288-4808 or visit our website at www.compcare.com.
Forward-Looking Statements
Except for statements of historical fact, the matters
discussed in this press release, including but not limited to our
expected profitability in the second quarter of 2012, the continued
implementation of our Pharmacy Management Program, the impact of
the financial responsibility shift with one of our existing,
at-risk pharmacy clients, our ability to increase margins and to
obtain sustainable profitability, our ability to reduce overhead
and implement further cost savings, our ability to further improve
the Company's performance, the outcome of our business strategy,
our ability to expand our pharmacy management program with higher
profit margins, and our ability to reduce pharmacy expenses
throughout the year are forward looking and made pursuant to the
Safe Harbor provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements reflect numerous
assumptions and involve a variety of risks and uncertainties, many
of which are beyond the Company's control that may cause actual
results to differ materially from stated expectations. These risk
factors include, among others, changes in local, regional, and
national economic and political conditions, the effect of
governmental regulation, competitive market conditions, varying
trends in member utilization, our ability to manage healthcare
operating expenses, our ability to achieve expected results from
new and existing business, our ability to expand and manage our
provider network, the profitability, if any, of our recently
acquired or previously existing capitated contracts, the costs
incurred in seeking new contracts, the loss or termination of any
existing contract, increases or variations in cost of care,
seasonality, the Company's ability to obtain additional financing,
and additional risk factors as discussed in the reports filed by
the Company with the Securities and Exchange Commission, which is
available on its website at www.sec.gov.
Investor Contacts:
Paul Knopick
E & E Communications
pknopick@eandecommunications.com
949.707.5365
SOURCE Comprehensive Care Corporation