CAREMATRIX REPORTS THIRD QUARTER
FINANCIAL RESULTS
Needham, MA, November 11, 1999 – CareMatrix Corporation (NASDAQ:
CMDC), a fully integrated assisted living company, today reported net earnings of
$1,056,955, or $0.06 per share, prior to pretax restructuring and other one-time charges
of $3,753,940. These operating results are in line with what the Company had anticipated
in its preannouncement of October 7, 1999. After the restructuring and other one-time
charges, the net loss to the Company was $1,214,178 or $0.07 per share. Net earnings for
the same quarter in 1998 were $4,937,234, or $0.27 per share. Operating revenues for the
third quarter were $44,395,048, an increase of 34% over operating revenues of $33,172,678
for the same quarter last year. Total revenues for the third quarter ended September 30,
1999 were $46,630,371, an increase of 18%, over revenues of $39,604,947 for the same
quarter last year.
Net earnings for the nine months ended September 30, 1999 were
$13,261,677, or $0.73 per share prior to pretax restructuring and other one-time charges
of $3,753,940. After the restructuring and other one-time charges, the net earnings for
the nine months ended September 30, 1999 were $10,990,544 or $0.61 per share. Net earnings
for the same quarter in 1998 were $12,452,959, or $0.69 per share. Operating revenues for
the nine months were $134,491,041, an increase of 58%, over revenues of $85,163,574 for
the same period a year ago. Total revenues for the nine months ended September 30, 1999
were $150,927,668, an increase of 46%, over revenues of $103,417,296 for the same period a
year ago.
The shortfall in earnings for the quarter and nine months ended
September 30, 1999 is the result of the curtailment of the majority of the Company’s
development projects due to the industry wide slowdown in facility fill-up rates and the
limited financing available. The Company previously stated that it would focus primarily
on filling its existing facilities and proceeding only with new developments in selected
markets. The Company has nine new facilities with 945 units that it expects to open in the
next ninety days.
Mr. Abraham D. Gosman, Chairman and Chief Executive Officer commented,
"Our focus on filling our existing facilities has resulted in a gross addition of 456
residents for the third quarter. The average occupancy rate for CareMatrix stabilized
assisted living communities for the third quarter was 94.3%, up a full point from the
93.4% that the Company reported for the comparable period last year. In the operations of
our facilities we remain committed to ensuring the satisfaction and well being of our
residents and the satisfaction and support of their family members and the key referral
sources in the communities we serve."
Mr. Gosman further commented, "We are continuing to explore
previously announced strategic alternatives. Among the options would be the sale of the
Company. Currently, we have been engaged in active discussions with an interested party.
Another alternative is that we sell specific assets of the Company. In this respect, we
have been contacted by a number of interested parties."
At September 30, 1999, CareMatrix had 61 communities in operation in 18
states with approximately 7,400 units, which compares to 41 facilities in 11 states with
approximately 5,100 units for the third quarter of 1998. The Company currently has 14
facilities, representing 1,529 units either under construction or fully permitted.
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, financing and other factors identified in the Company’s filings with
the Securities and Exchange Commission.
CONTACTS:
Abraham D. Gosman
Chairman and CEO
(781) 433-1099
Louise T. Major
Director of Investor Relations
(781) 433-1083
(Statement of Earnings Follows)
CareMatrix Corporation
Consolidated Statement of Earnings (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
Sept. 30, 1999 |
|
Sept.
30, 1998 |
|
Sept.
30, 1999 |
|
Sept.
30, 1998 |
| Revenue: |
|
|
|
|
|
|
|
|
| Resident operations |
|
$ 44,395,048 |
|
$
33,172,678 |
|
$
134,491,041 |
|
$
85,163,574 |
| Development fees |
|
2,235,323 |
|
6,432,269
|
|
16,436,627
|
|
18,253,722
|
| Total revenue |
|
46,630,371 |
|
39,604,947 |
|
150,927,668 |
|
103,417,296 |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Facility operating
expenses |
|
29,031,171 |
|
20,783,902
|
|
84,378,944 |
|
53,793,800
|
| Facility lease
expense |
|
5,053,416 |
|
4,254,038
|
|
15,218,715 |
|
11,979,939
|
| General and
administrative |
|
5,086,253 |
|
4,769,318
|
|
15,375,168 |
|
14,320,758
|
| Restructuring
and other charges |
|
3,753,940 |
|
-- |
|
3,753,940 |
|
-- |
| Depreciation and
amortization |
|
2,586,384 |
|
1,241,359
|
|
7,275,668 |
|
2,842,203
|
|
|
|
|
|
|
|
|
|
| Total operating
expenses |
|
45,511,164 |
|
31,048,617
|
|
126,002,435 |
|
82,936,700
|
|
|
|
|
|
|
|
|
|
| Earnings from
operations |
|
1,119,207 |
|
8,556,330
|
|
24,925,233 |
|
20,480,596
|
|
|
|
|
|
|
|
|
|
| Interest income
(expense): |
|
|
|
|
|
|
|
|
| Interest and other
income |
|
700,861 |
|
2,035,013
|
|
4,261,693 |
|
6,526,359
|
| Interest expense |
|
(3,824,040) |
|
(2,219,593)
|
|
(11,011,854) |
|
(5,886,303)
|
|
|
|
|
|
|
|
|
|
| Total other income
(expense) |
|
(3,123,179) |
|
(184,580)
|
|
(6,750,161) |
|
640,056
|
|
|
|
|
|
|
|
|
|
| Earnings
(loss) before income taxes |
|
|
|
|
|
|
| and preferred
dividends |
|
(2,003,972) |
|
8,371,750
|
|
18,175,072 |
|
21,120,652
|
| Income tax provision
(benefit) |
|
(791,569) |
|
3,432,691
|
|
7,179,153 |
|
8,659,468
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before preferred dividends |
(1,212,403) |
|
4,939,059
|
|
10,995,919 |
|
12,461,184
|
|
|
|
|
|
|
|
|
|
| Preferred dividends |
|
1,775 |
|
1,825
|
|
5,375
|
|
8,225
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) |
|
$ (1,214,178) |
|
$ 4,937,234 |
|
$ 10,990,544 |
|
$
12,452,959 |
|
|
|
|
|
|
|
|
|
| Diluted earnings
(loss) per share |
|
$ (0.07) |
|
$ 0.27 |
|
$ 0.61 |
|
$ 0.69 |
|
|
|
|
|
|
|
|
|
| Diluted shares
outstanding |
|
17,841,297 |
|
22,004,210 |
|
18,075,869 |
|
18,046,997 |
|
|
|
|
|
|
|
|
|
| Basic earnings (loss)
per share |
|
$ ( 0.07) |
|
$ 0.28 |
|
$ 0.61 |
|
$ 0.71 |
|
|
|
|
|
|
|
|
|
| Basic shares
outstanding |
|
17,841,297 |
|
17,670,260 |
|
17,930,581 |
|
17,571,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EDITOR’S NOTE: This release is available on the Internet at http://www.carematrix.com
### |
