Needham, MA, October 30, 1997 - CareMatrix Corporation, (AMEX:CMD) a fully integrated assisted living company, today announced record revenues and earnings for the third quarter and nine months ended September 30, 1997.
The Company reported net income of $1,935,131 or $0.11 per share on revenues of $20,818,581 for the three months ended September 30, 1997. This compares to a net income of $1,228,364 or $0.07 per share on revenues of $14,930,479 in the second quarter of 1997.
For the nine months ended September 30, 1997, the Company reported net income of $3,978,095 or $0.23 per share on revenues of $48,840,578.
Robert M. Kaufman, Chief Executive Officer of CareMatrix commented, "We are very pleased with our significant quarter-to-quarter increases in both revenues and earnings. Occupancy levels and operating margins again exceeded our targets and our development pipeline remains strong. During the quarter, we significantly enhanced our balance sheet by raising $100 million in a convertible debt offering (plus the underwriter's over-allotment of $15 million in early October). Additionally, Chancellor Senior Housing, owner of the majority of our development facilities, closed on over $350 million of very favorably priced long-term financing, helping to insure the continuity of our development pipeline. As a result of the above, we continue to exceed consensus estimates for both revenues and earnings and remain comfortable with earnings estimates for the remainder of 1997 and 1998."
Mr. Kaufman added, "The third quarter was important for us as we recently opened six facilities totaling 652 units and currently have 25 facilities accommodating 2,566 residents in operation. The facilities we opened are in upscale communities such as Darien, Connecticut, Princeton, New Jersey and Glen Cove, New York. In addition, we have nearly 60 facilities in our development pipeline, representing 7,200 units including 26 facilities in construction representing 3,200 units."
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 ftom the results anticipated in theseforward looking statements as a result of uncertainties, including risks relating to demand, pricing, competition, construction, and otherfactors identified in the Company'sfilings with the Securities and Exchange Commission.
CAREMATRIX CORPORATION
Consolidated Statement of Operations
Three Months Ended Nine Months Ended
9/30/97 6/30/97 9/30/97
Revenue $20,818,581 $14,930,479 $48,840,578
Net earnings applicable to $1,935,131 $1,228,364 $3,978,095
common shareholders
Earnings per share applicable $0.11 $0.07 $0.23
to common shareholders
Average shares outstanding 17,610,043 17,432,963 17,438,726
