CareCentric, Inc. Announces Fourth Quarter and Annual 2000 Results

Apr 18, 2001, 01:00 ET from CareCentric, Inc.

    ATLANTA, April 18 /PRNewswire/ --
 CareCentric, Inc. (Nasdaq: CURA), a leading home health care information
 systems and services provider, today announced results for the three months
 and year ended December 31, 2000.
     For financial accounting purposes, the merger of MCS, Inc. ("MCS") with
 and into Simione Central Holdings, Inc. (now known as CareCentric, Inc.) on
 March 7, 2000, is accounted for as if MCS had acquired CareCentric in a
 reverse merger.  Thus, the historical statements of MCS are treated for
 accounting purposes as the financial statements of the Company.  The year to
 date December 31, 2000 results of operations and earnings set forth on the
 attached Consolidated Statements of Operations therefore include the
 operations of MCS for twelve months and those of CareCentric only for the
 period from March 8 through December 31, 2000.  Results of operations and
 earnings per share for 1999 reflect the results of MCS only.  Earnings per
 share data have also been adjusted to reflect the one for five reverse stock
 split effected by CareCentric on March 7, 2000.  Accordingly, the audited
 results for the years ended December 31, 2000, and 1999 are not readily
 comparable as they reflect fundamentally different enterprises.  See the
 Company's Form 10-K for the year ended December 31, 2000 for a more
 comprehensive explanation of "comparable" revenues and operating results.
     If, for purposes of comparability, the results of operations of all of the
 entities merged to form the current Company are combined on a pro forma basis
 for the years 1999 and 2000, with certain further adjustments for purposes of
 comparability as explained in more detail in the Management's Discussion and
 Analysis section of the Company's Form 10-K, the "comparable results" are as
 follows:
 
     Year Ended                   December 31, 2000        December 31, 1999
     Net revenues                 $ 27,277,000             $ 40,010,000
     Net (Loss)                   $(11,943,000)            $(15,843,000)
     Net (Loss) per share -
      basic and diluted           $(3.10)                  $(4.12)
 
     The reduced revenues illustrated above are traceable generally to adverse
 economic conditions in the home health care marketplace relating directly to
 changes in Medicare reimbursement formulae.  Software maintenance revenue was
 flat, while consulting revenues declined 28% and sales of new software systems
 and related services declined over 50%.  The Company's reduced operating loss
 as illustrated above is attributable to a number of cost savings initiatives
 undertaken by the Company subsequent to the merger on March 7, 2000 which
 somewhat mitigated the effect of reduced revenues.
     Despite depressed conditions in the home health care marketplace, the
 Company continued to fund significant product research and development efforts
 in 2000, accounting for $7.0 million of the pro forma $11.9 million loss.
 Depreciation and amortization charges accounted for another $4.7 million,
 suggesting that essentially all of the Company's operating loss in 2000 was
 attributable to non-cash charges and forward looking investments in its
 information systems technology.  At December 31, 2000, CareCentric has a
 backlog of $4.1 million, essentially equal to the backlog at September 30,
 2000.
     During the fourth quarter of 2000, the Company released versions of each
 of STAT 2, The Smart ClipBoard(R) and MestaMed(R) that facilitate compliance
 with the new prospective payment system (PPS) under Medicare which took effect
 October 1, 2000.  We believe that PPS distracted the Company's customers such
 that both collections of outstanding accounts receivable and sales of new
 software systems were adversely affected until well after the first of the
 year.  Notwithstanding these short-term effects, the Company believes that
 PPS, in transferring to home health providers committed to quality outcomes
 the risk of the cost associated with delivering care, creates an opportunity
 for CareCentric to deliver software applications and related services that
 will be tools in facilitating best practices, process improvement, decision
 support, activity-based costing and efficient, electronic transmission of
 medical records and forms.  Current information, which is the lifeblood of
 quality health care, must be organized, available and affordable.  Investment
 in point-of-care information technology, such as the Company's The Smart
 ClipBoard(R) connected by data gateway to the proven financial management
 solutions of STAT2 and MestaMed(R), is more critical to home health care under
 PPS because cost and quality must be co-managed, information needs both to be
 shared and to be secured and the system users can be both distributed and
 disconnected.  CareCentric is working to direct its information technology
 solutions at these opportunities.  The Company was encouraged by a significant
 increase in bookings of new software systems in all of its major product lines
 in March, 2001.
     CareCentric provides information technology systems and consulting
 services to over 2,500 customers.  CareCentric provides freestanding,
 hospital-based and multi-office home health care providers (including skilled
 nursing, private duty, home medical equipment and supplies, IV pharmacy and
 hospice) complete information solutions that enable these home care operations
 to generate and utilize comprehensive and integrated financial, operational
 and clinical information.  With offices nationwide, the company is
 headquartered in Atlanta, Georgia.
 
     Note regarding Private Securities Litigation Reform Act:  Statements made
 in this press release which are not historical facts, including projections,
 statements of plans, objectives, expectations, or future economic performance,
 are forward looking statements that involve risks and uncertainties and are
 subject to the safe harbor created by the Private Securities Litigation Reform
 Act of 1995.  The Company's future financial performance could differ
 significantly from that set forth herein, and from the expectations of
 management.  Important factors that could cause the Company's financial
 performance to differ materially from past results and from those expressed in
 any forward looking statements include, without limitation, the inability to
 obtain additional capital resources, variability in quarterly operating
 results, customer concentration, product performance and acceptance, long
 sales cycles, long and varying delivery cycles, the Company's dependence on
 business partners, emerging technological standards, risks associated with
 acquisitions and the risk factors detailed in the Company's Registration
 Statement on Form S-4 (File No. 333-96529) and from time to time in the
 Company's periodic reports filed with the Securities and Exchange Commission.
 Readers are cautioned not to place undue reliance on these forward-looking
 statements, which speak only as of their dates.
 
                               CARECENTRIC, INC.
 
               CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
                                ($ in thousands)
 
                       Three Months Ended December 31,  Year Ended December 31,
                              2000           1999       2000           1999
 
     Net revenues:
       Software and services   $6,164        $4,130     $ 24.968       $16,648
         Total net revenues     6,164         4,130       24,968        16,648
 
     Costs and expenses:
       Cost of revenues         3,389         2,894       13,646        10,563
       Selling, general and
        administrative          3,234           925       10,756         4,077
       Research and
        development             1,786           220        6,174         1,051
       Amortization and
        depreciation            1,180            61        3,960           230
     Other (income) expense       301           (17)         831           (45)
         Total costs and
           expenses             9,890         4,083       35,367        15,921
 
      (Loss) income from
       operations before
       taxes                   (3,426)           47      (10,399)          772
 
     Income tax benefit
      (expense)                     4           (22)         154           306
 
     Net (loss) income from
      operations before
      discontinued segment    $(3,722)          $25      $(10,245)        $466
 
     Discontinued operations
      (Loss) income from
       operations of discontinued
       segment before taxes       ---            54           ---          251
      Applicable tax expense      ---            22           ---          100
      Net income from operation
       of discontinued segment    ---            31           ---          151
 
     Net income (loss)        $(3,722)           56      $(10,245)        $617
 
     Net loss per share
      - basic and diluted:
      From continuing
       operations              $(0.97)        $0.01        $(3.00)       $0.31
      From discontinued
       operations              $  ---         $0.01        $  ---        $0.10
      Net income (loss)        $(0.97)        $0.02        $(3.00)       $0.41
     Weighted average common
      shares - basic and
      diluted                   3,850         1,490         3,418        1,490
 
 

SOURCE CareCentric, Inc.
    ATLANTA, April 18 /PRNewswire/ --
 CareCentric, Inc. (Nasdaq: CURA), a leading home health care information
 systems and services provider, today announced results for the three months
 and year ended December 31, 2000.
     For financial accounting purposes, the merger of MCS, Inc. ("MCS") with
 and into Simione Central Holdings, Inc. (now known as CareCentric, Inc.) on
 March 7, 2000, is accounted for as if MCS had acquired CareCentric in a
 reverse merger.  Thus, the historical statements of MCS are treated for
 accounting purposes as the financial statements of the Company.  The year to
 date December 31, 2000 results of operations and earnings set forth on the
 attached Consolidated Statements of Operations therefore include the
 operations of MCS for twelve months and those of CareCentric only for the
 period from March 8 through December 31, 2000.  Results of operations and
 earnings per share for 1999 reflect the results of MCS only.  Earnings per
 share data have also been adjusted to reflect the one for five reverse stock
 split effected by CareCentric on March 7, 2000.  Accordingly, the audited
 results for the years ended December 31, 2000, and 1999 are not readily
 comparable as they reflect fundamentally different enterprises.  See the
 Company's Form 10-K for the year ended December 31, 2000 for a more
 comprehensive explanation of "comparable" revenues and operating results.
     If, for purposes of comparability, the results of operations of all of the
 entities merged to form the current Company are combined on a pro forma basis
 for the years 1999 and 2000, with certain further adjustments for purposes of
 comparability as explained in more detail in the Management's Discussion and
 Analysis section of the Company's Form 10-K, the "comparable results" are as
 follows:
 
     Year Ended                   December 31, 2000        December 31, 1999
     Net revenues                 $ 27,277,000             $ 40,010,000
     Net (Loss)                   $(11,943,000)            $(15,843,000)
     Net (Loss) per share -
      basic and diluted           $(3.10)                  $(4.12)
 
     The reduced revenues illustrated above are traceable generally to adverse
 economic conditions in the home health care marketplace relating directly to
 changes in Medicare reimbursement formulae.  Software maintenance revenue was
 flat, while consulting revenues declined 28% and sales of new software systems
 and related services declined over 50%.  The Company's reduced operating loss
 as illustrated above is attributable to a number of cost savings initiatives
 undertaken by the Company subsequent to the merger on March 7, 2000 which
 somewhat mitigated the effect of reduced revenues.
     Despite depressed conditions in the home health care marketplace, the
 Company continued to fund significant product research and development efforts
 in 2000, accounting for $7.0 million of the pro forma $11.9 million loss.
 Depreciation and amortization charges accounted for another $4.7 million,
 suggesting that essentially all of the Company's operating loss in 2000 was
 attributable to non-cash charges and forward looking investments in its
 information systems technology.  At December 31, 2000, CareCentric has a
 backlog of $4.1 million, essentially equal to the backlog at September 30,
 2000.
     During the fourth quarter of 2000, the Company released versions of each
 of STAT 2, The Smart ClipBoard(R) and MestaMed(R) that facilitate compliance
 with the new prospective payment system (PPS) under Medicare which took effect
 October 1, 2000.  We believe that PPS distracted the Company's customers such
 that both collections of outstanding accounts receivable and sales of new
 software systems were adversely affected until well after the first of the
 year.  Notwithstanding these short-term effects, the Company believes that
 PPS, in transferring to home health providers committed to quality outcomes
 the risk of the cost associated with delivering care, creates an opportunity
 for CareCentric to deliver software applications and related services that
 will be tools in facilitating best practices, process improvement, decision
 support, activity-based costing and efficient, electronic transmission of
 medical records and forms.  Current information, which is the lifeblood of
 quality health care, must be organized, available and affordable.  Investment
 in point-of-care information technology, such as the Company's The Smart
 ClipBoard(R) connected by data gateway to the proven financial management
 solutions of STAT2 and MestaMed(R), is more critical to home health care under
 PPS because cost and quality must be co-managed, information needs both to be
 shared and to be secured and the system users can be both distributed and
 disconnected.  CareCentric is working to direct its information technology
 solutions at these opportunities.  The Company was encouraged by a significant
 increase in bookings of new software systems in all of its major product lines
 in March, 2001.
     CareCentric provides information technology systems and consulting
 services to over 2,500 customers.  CareCentric provides freestanding,
 hospital-based and multi-office home health care providers (including skilled
 nursing, private duty, home medical equipment and supplies, IV pharmacy and
 hospice) complete information solutions that enable these home care operations
 to generate and utilize comprehensive and integrated financial, operational
 and clinical information.  With offices nationwide, the company is
 headquartered in Atlanta, Georgia.
 
     Note regarding Private Securities Litigation Reform Act:  Statements made
 in this press release which are not historical facts, including projections,
 statements of plans, objectives, expectations, or future economic performance,
 are forward looking statements that involve risks and uncertainties and are
 subject to the safe harbor created by the Private Securities Litigation Reform
 Act of 1995.  The Company's future financial performance could differ
 significantly from that set forth herein, and from the expectations of
 management.  Important factors that could cause the Company's financial
 performance to differ materially from past results and from those expressed in
 any forward looking statements include, without limitation, the inability to
 obtain additional capital resources, variability in quarterly operating
 results, customer concentration, product performance and acceptance, long
 sales cycles, long and varying delivery cycles, the Company's dependence on
 business partners, emerging technological standards, risks associated with
 acquisitions and the risk factors detailed in the Company's Registration
 Statement on Form S-4 (File No. 333-96529) and from time to time in the
 Company's periodic reports filed with the Securities and Exchange Commission.
 Readers are cautioned not to place undue reliance on these forward-looking
 statements, which speak only as of their dates.
 
                               CARECENTRIC, INC.
 
               CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
                                ($ in thousands)
 
                       Three Months Ended December 31,  Year Ended December 31,
                              2000           1999       2000           1999
 
     Net revenues:
       Software and services   $6,164        $4,130     $ 24.968       $16,648
         Total net revenues     6,164         4,130       24,968        16,648
 
     Costs and expenses:
       Cost of revenues         3,389         2,894       13,646        10,563
       Selling, general and
        administrative          3,234           925       10,756         4,077
       Research and
        development             1,786           220        6,174         1,051
       Amortization and
        depreciation            1,180            61        3,960           230
     Other (income) expense       301           (17)         831           (45)
         Total costs and
           expenses             9,890         4,083       35,367        15,921
 
      (Loss) income from
       operations before
       taxes                   (3,426)           47      (10,399)          772
 
     Income tax benefit
      (expense)                     4           (22)         154           306
 
     Net (loss) income from
      operations before
      discontinued segment    $(3,722)          $25      $(10,245)        $466
 
     Discontinued operations
      (Loss) income from
       operations of discontinued
       segment before taxes       ---            54           ---          251
      Applicable tax expense      ---            22           ---          100
      Net income from operation
       of discontinued segment    ---            31           ---          151
 
     Net income (loss)        $(3,722)           56      $(10,245)        $617
 
     Net loss per share
      - basic and diluted:
      From continuing
       operations              $(0.97)        $0.01        $(3.00)       $0.31
      From discontinued
       operations              $  ---         $0.01        $  ---        $0.10
      Net income (loss)        $(0.97)        $0.02        $(3.00)       $0.41
     Weighted average common
      shares - basic and
      diluted                   3,850         1,490         3,418        1,490
 
 SOURCE  CareCentric, Inc.