Needham, MA, February 10, 1998 - CareMatrix Corporation, (AMEX:CMD) a fully integrated assisted living company, today announced record results for the fourth quarter and twelve months ended December 31, 1997.
The Company reported net income of $2,598,292 or $0.15 per share on revenues of $24,352,510 for the fourth quarter ended December 31, 1997. This compares to a net loss of $485,394 or $0.03 per share on revenues of $8,649,170 for the fourth quarter of 1996.
For the year ended December 31, 1997, the Company reported net income of $6,576,387 or $0.38 per share on revenues of $73,193,088.
Robert Kaufman, Chief Executive Officer of CareMatrix commented, "We are very pleased with our record fourth quarter and full year results. We exceeded consensus estimates for both revenues and earnings and remain confortable with the earnings estimates for 1998. These results are due to a number of factors that include increased operating margins, fill-ups of new facilities exceeding plan, and a strong development pipeline."
In late 1997, CareMatrix opened a total of five facilities in the metropolitan New York marketplace. There were approximately 550 units added as a result of the opening of these facilities. Mr. Kaufman added, "Our newly opened facilities reached an average lease-up rate of 43% within 90 days. This is over 40% ahead of plan and demonstrates the marketing and operating synergies realized from our cluster market strategy. In addition, we have 69 facilities in development that represent 8,125 units, which includes 27 facilities in construction with 3,385 units. Many of our facilities in development are in difficult zoning markets that will create barriers to entry. As part of our development strategy, we will continue to increase the number of our campus developments to extend the stay of our residents as they age in place. In the assisted living industry, reduced turnover is critical to future success."
Recently, the Company announced lease agreements for seven facilities under development in southwestern Connecticut. Mr. Kaufman concluded, "We continue to grow primarily as a result of internal development, supplemented by selective acquisitions. We expect to announce shortly the acquisition of a majority interest in a 330 unit senior campus community in one of our fastest growing markets. We plan to open 27 facilities in the next twelve months, most in our primary market clusters. Finally, Chancellor Senior Housing Group, Inc., the owner of many of our development facilities, continues to obtain long-term financing commitments that are among the most favorable terms in the industry. This helps insure the continuity of our development pipeline, as well as one of the lowest effective costs of capital to the Company."
CareMatrix Corporation is a leading provider of senior housing services including assisted living, supportive independent living and specialized programs for people with Alzheimer's disease.
This release contains forward-looking statements regarding the Company's future plans, operations and prospects. The Company's actual results could differ materially from the results anticipated in these forward looking statements as a result of uncertainties, including risks relating to demand, pricing, competition, construction, and other factors identified in the Company's filings with the Securities and Exchange Commission.
