Needham, MA, February 16, 1999 - CareMatrix Corporation, (AMEX:CMD) a fully integrated assisted living company, today announced record results for the fourth quarter and twelve months ended December 31, 1998.
The Company reported net income of $5,605,982 or $0.30 per share on revenues of $43,501,182 for the fourth quarter ended December 31, 1998. This compares to a net income of $2,598,292 or $0.15 per share on revenues of $24,352,510 for the fourth quarter of 1997.
For the year ended December 31, 1998, the Company reported net income of $18,058,941 or $0.99 per share on revenues of $146,918,478. This compares to net income of $6,576,387 or $0.38 per share on revenues of $73,193,088 for the year ended December 31, 1997
Abraham Gosman, Chairman of CareMatrix commented, "We are very pleased with our results for both the fourth quarter and the full year that were achieved during a period of very rapid growth. We doubled our revenues and nearly tripled our income as compared to 1997. During the past three months we added 11 facilities for 1,360 residents and sold three smaller Standish facilities with a total of 164 units that do not fit our model. We currently operate 52 facilities with a resident capacity of over 6,500 compared to 26 facilities for 2,700 residents one year ago. Additionally, we expect to complete construction on 10 facilities for 1,050 residents in the next three months. Included in these openings are 6 facilities in the metropolitan New York market, our deepest cluster."
Mr. Gosman added, "Our development pipeline remains strong, representing over 80 facilities for over 11,000 residents in 18 states. This begins our penetration into the upper mid-west market, that includes Illinois, Ohio and Michigan, our newest cluster market. We continue to focus on difficult zoning markets that create barriers to entry. In addition, our development pipeline contains several campus facilities that offer multiple entry points for seniors with a continuum of care. This not only increases choice, it allows us to offer multiple service programs to our residents, and should also result in extended stays and reduced turnover."
"Operating margins for our stabilized assisted living facilities, which includes six SeniorCare facilities, continue to increase and are currently at 39.7% compared to 37.2% one year ago. Occupancy levels at these facilities are 93.2%, which we feel is virtually stabilized occupancy. Fill rates for our nonstabilized facilities remain strong and ahead of plan. Furthermore, we are pleased with all of our cluster markets and will continue to follow our strategy of developing depth in specific cluster markets to take advantage of marketing, hiring, training and management synergies."
- Doubled revenues and nearly tripled income.
- Doubled our resident operating capacity.
- Increased operating margins in stabilized facilities by 2.5%.
- Acquired seven operating and three development facilities with a total resident capacity of 2,100 from SeniorCare, all but one of which are located on Long Island.
- Entered into an affiliation agreement to acquire up to nine facilities upon stabilization within our existing cluster markets at a very reasonable price.
- Acquired leases on campus site for two operating facilities with 331 residents in Arizona with an additional 118 units being built.
- Acquired leases for seven facilities for 685 residents in operation or development in Connecticut. Four of the seven are now open and two more are in construction.
- Completed development of two facilities in metropolitan markets, San Francisco and Philadelphia.
- Began construction on a
campus development in conjunction with Lasell
College, part of the Company's strategy seeking
alliances with strong affinity groups.
Finally, Mr. Gosman noted, "We are very pleased with the quality and location of our facilities and the depth of our development pipeline. Our assisted living is completely private pay and our facilities are built to meet the most stringent codes imposed by any state. We have a deep management team with a strong operating culture. This industry is still in its infancy and we believe that we are well positioned to capitalize on the growth opportunities that we face. We are confident that our existing models and campus developments are the appropriate models to capture the needs and demands of our seniors."
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.
(Statement of Earnings to Follow)
CAREMATRIX CORPORATION
Consolidated Statement of Operations (unaudited)
|
|
|
Three Months
Ended
December 31,
|
Year
Ended
December
31, |
|
|
|
1998
|
1997
|
1998
|
1997
|
|
Revenue:
|
|
|
|
|
|
|
Residence operations
|
37,223,748 |
18,659,054
|
121,787,322 |
55,556,759 |
|
|
Development fee income |
6,277,434
|
5,693,456 |
25,131,156 |
17,636,329 |
|
|
|
43,501,182 |
24,352,510 |
146,918,478 |
73,193,088
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
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Facility operating expenses
|
21,789,173 |
12,368,554 |
75,582,973 |
38,385,616
|
|
|
Facility lease expense |
4,467,097
|
3,162,991
|
16,447,036
|
8,515,197
|
|
|
General and administrative |
5,037,549
|
4,112,586
|
19,358,307
|
15,003,514
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|
|
Depreciation and amortization |
1,981,291
|
762,267
|
4,823,494
|
2,315,189
|
|
|
|
33,275,110
|
20,406,398
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116,211,810
|
64,219,516
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|
|
|
|
|
|
|
|
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Earnings from operations |
10,226,072
|
3,946,112
|
30,706,668
|
8,973,572
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|
|
|
|
|
|
|
|
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Other income (expense:
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|
|
|
|
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Interest and other income |
2,151,737
|
2,337,714
|
8,678,096
|
5,421,078
|
|
|
Interest and other expense |
(2,874,877)
|
(1,934,941)
|
(8,769,405)
|
(3,381,416)
|
|
|
|
(723,140)
|
(402,773)
|
(91,309)
|
(2,039,662)
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|
|
|
|
|
|
|
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Earnings before income taxes |
9,502,932
|
4,348,885
|
30,615,359
|
11,013,234
|
|
Income
taxes |
3,896,950 |
1,750,593 |
12,556,418 |
4,436,847 |
|
Net earnings |
5,605,982 |
2,598,292 |
18,058,941 |
6,576,387
|
|
Diluted earnings per share |
$0.30 |
$0.15
|
$0.99 |
$0.38
|
|
|
|
|
|
|
|
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Average diluted shares outstanding |
22,464,770 |
17,747,482 |
18,154,159 |
17,536,173
|
Editor's Note: This release is available on the Internet at http://www.carematrix.com
