TAMPA, Fla., Aug. 13, 2012 /PRNewswire/ -- Comprehensive
Care Corporation ("CompCare" or the "Company") (OTC BB: CHCR), a
leading behavioral health, substance abuse and psychotropic
pharmacy management services provider for managed care companies
throughout the U.S., today announced earnings of $1.7 million for the six months ended
June 30, 2012. Earnings per
diluted common share were $0.02. This compares to a $3.9 million loss in the first six months of 2011
and a $.07 loss per common share.
The Company announced that operating income for the first half
of 2012 totaled $2.1 million compared
to an operating loss of $3.1 million
in the same period in 2011. While revenues for the first six
months declined slightly from $36.8
million in 2011 to $36.0
million in 2012, the cost of revenues decreased 13.9 percent
from $35.3 million in 2011 to
$30.4 million in the comparable
period in 2012.
"The cost saving measures we accomplished earlier this year,
with mid-level and senior executives taking salary reductions, and
some layoffs, combined with ending contracts that were not
profitable for CompCare, are paying rewards. For the first
six months of 2012, we were profitable, cash flow positive and were
able to increase operating income and reduce our general and
administrative expenses from $4.1
million in the first half of 2011 to $2.7 million for the comparable period this
year," said Clark Marcus, Chairman
and CEO.
"I am especially pleased that our pharmacy management contracts
were up 18.9 percent, or $3.1
million, to $19.4 million in
the first six months of 2012 compared to the previous year due to a
3.6 percent increase in membership and an 11 percent contract rate
increase with the health plan we serve in Puerto Rico. We
truly believe our strategies to reduce pharmaceutical costs for our
clients will be a key element for our future growth," Mr. Marcus
said.
"I am very proud of these financial results and the fact that
CompCare's management team has solidified the foundation of the
Company, improving it to support our growth. We have added
senior level consultants with track records of success and we are
dedicated to provide our shareholders continued growth in the
future," Mr. Marcus concluded.
About CompCare:
Established in 1969, CompCare provides behavioral health,
substance abuse and psychotropic pharmacy management services for
managed care companies 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 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 CompCare's control that may cause actual
results to differ materially from stated expectations. These risk
factors include, among others, the ability of CompCare to maximize
its market share with new pharmacy initiatives, the success and
profitability of the new pharmacy initiatives, impact of senior
level consultants on the results, the ability of CompCare and its
staff to execute its business plan to generate exponential
growth, the ability of CompCare to offer and sell any of its
products at a profit, 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 business, the
profitability, if any, of our capitated contracts or other
products, increases or variations in cost of care, seasonality,
CompCare's ability to obtain additional financing, increased
outsourcing of behavioral health services, and additional risk
factors as discussed in the reports filed by the company with the
Securities and Exchange Commission, which are available on its
website at www.sec.gov. Any forward- looking statement in this
release speaks only as of the date on which it is made. CompCare
assumes no obligation to update or revise any forward-looking
statements.
Investor Contacts:
Paul Knopick
E & E Communications
pknopick@eandecommunications.com
940.262.3584
SOURCE Comprehensive Care Corporation