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Comprehensive Care Corporation Reports First Quarter Results

Business Wire - May 16 07:58 EDT
Company Symbols: NASDAQ-OTCBB:CHCR


Achieves Profitability and Improves Gross Margins by Nearly 500%

TAMPA, Fla.--(BUSINESS WIRE)-- Comprehensive Care Corporation (“CompCare” or the “Company”) (OTCBB: CHCR) today reported results for the first quarter ended March 31, 2011.

Total revenue for the three months ended March 31, 2011 increased 383% to $18.3 million, compared to $3.8 million for the three months ended March 31, 2010. The increase is primarily attributable to the addition of new customer contracts that commenced in the latter part of 2010 and the expansion of an existing client in the first quarter of 2011. Gross margin increased nearly 500% to $1.8 million for the three months ended March 31, 2011 compared to $0.3 million for the three months ended March 31, 2010, due to a greater volume of business and the expiration of at-risk contracts with high utilization of behavioral services. Net income for the three months ended March 31, 2011 was $0.04 million, or $0.00 per basic and diluted share, compared to a net loss of $2.2 million, or negative basic and diluted earnings per share of $0.06, for the three months ended March 31, 2010.

Clark A. Marcus, Chairman and Chief Executive Officer of CompCare, stated, “The strong top-line revenue growth and profit reported for the first quarter of 2011 were driven by our expanding membership base, which currently exceeds 1 million members, a streamlined and more effective staff, enhancement of our infrastructure, and implementation of and adherence to strict budgetary controls. All of this resulted in improved gross margins and a net profit for the first quarter of 2011, compared to a net loss for the first quarter of 2010. Achieving profitability again is a significant milestone for CompCare. We exceeded our original expectations as to when we could bring the Company to this point, and we are excited at the prospect of maintaining this momentum in the future.”

“To continue to pursue our goals, we have further enhanced our management and sales teams with the addition of several experienced healthcare professionals. We expect future growth to also be driven by our creating greater market awareness of our flexible line of offerings and growing membership base. This allows us to compete more effectively for a broader range of new, larger contracts,” concluded Mr. Marcus.

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 ability to grow our business and competitively bid on selling services to larger managed health care programs as a result of increased scale, and the effects of establishing a broader sales team and building our provider networks, 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 are available on its website at www.sec.gov.




For Comprehensive Care Corporation
KCSA Strategic Communications
Todd Fromer / Garth Russell
212-896-1215 / 212-896-1250
[e-mail] / [e-mail]