LAGUNA NIGUEL, Calif., March 13, 2008 (PRIME NEWSWIRE) -- OptimumCare Corporation (Pink Sheets:OPMC), a behavioral healthcare and temporary staffing services provider, today reported full year 2007 financial results.
For the three months ended December 31, 2007, with all figures unaudited, net revenues from continuing operations were $5,868,786. This compared with revenues of $7,519,588 for the 12 months ended December 31, 2007.
The company reported a net loss of $43,000, or $.005 per fully diluted share, for the 12 months ended December 31, 2007, prior to a one-time charge of $65,000. Pretax profits for the year ended December 31, 2006, amounted to $618,052, or approximately $.09 per fully diluted share.
"The last quarter of this year was also affected by a reduction in the temporary staffing business," the CEO continued. "This was because of the generally traditional slowdown in the medical business during the holidays."
Johnson noted that another contributing factor to lower annualized revenues and earnings for the full year was that the company's Phoenix outpatient operation was hampered by a changeover in one of the primary insurance providers during the fourth quarter.
"The company hopes to return to profitability in 2008 with continued reductions in operating expenses, coupled to increasing staffing business revenues, as well as the anticipated growth in the Phoenix behavioral health program's outpatient revenues," Johnson noted.
"Moreover," he added, "the company was successful in paying off its revolving line of credit from operations' cash flow in 2007, which should improve the profitability of the company in the year ahead."
"OptimumCare enters 2007 with a well defined business plan," said Edward A. Johnson, Chairman & CEO. "The temporary health care worker staffing segment, and the owned out patient clinic are operating profitably. We continue to identify reductions in our overhead cost structure, and see good growth in our staffing business, and out patient clinic."
Referring to prior year performances, Johnson noted that revenues for 2006 included $250,000 attributable to a settlement fee from a behavioral healthcare contract that was not renewed. He also pointed out that the year 2006 did not reflect certain discontinued operations included in revenues for the 2005 year. Included in these discontinued operations, he said, was the company's Heartline nurse staffing program, which was popular but unprofitable.
Created in 1987, OptimumCare Corporation provides healthcare services in two industry segments. The Behavioral Health Management Division provides management teams to client hospitals and medical centers on a long-term contract basis to run inpatient and outpatient behavioral health services. The Temporary Health Care Staffing Division provides temporary, social workers and other professionals to a broad base of medical and healthcare client sites.
Certain of the statements made herein constitute forward-looking statements that involve risks and uncertainties, including the risks associated with plans, the effects of changing economic and competitive conditions, government regulation which may affect facilities, licensing, healthcare reform which may affect payment amounts and timing, availability of sufficient working capital, program development efforts and timing, and market acceptance of new programs which may affect future sales growth and/or costs of operations.