CORE, INC. Announces 31% Earnings Growth

Apr 26, 2001, 01:00 ET from CORE, INC.

    IRVINE, Calif., April 26 /PRNewswire/ -- CORE, INC. (Nasdaq:   CORE), a
 national provider of employee absence management, today announced revenues of
 $17.3 million for the first quarter of 2001, a slight increase from the
 $17.1 million during the first quarter of 2000.  Net income for the first
 quarter of 2001 was $479,000, or $0.05 per share, a 31 percent increase from
 net income of $367,000, or $0.04 per share, in the first quarter of 2000.
     By principal service line, first quarter 2001 revenues for Integrated
 Disability Management decreased by 2 percent to $12.8 million, Peer Review
 Analysis decreased by 6 percent to $2.6 million, and other services increased
 by 40 percent to $1.9 million, compared to the first quarter of 2000.
     "Our first quarter results demonstrate the recent progress we've made,
 with consistently increasing revenues and positive earnings over the past six
 months.  Our mid-market WorkAbility(R) IDM growth is meeting our expectations,
 and our Social Security Disability Consultants business has exceeded them,"
 said George C. Carpenter IV, chairman and chief executive officer of CORE.
 "Having stabilized our business, we now plan to expand our distribution
 through partnerships, such as our recently announced agreement with Magellan,
 and capitalize our continued growth through our pending merger with Fortis,
 Inc."
     CORE also announced today that it added new clients in its WorkAbility,
 Disability RMS, Social Security Disability Consultants and Peer Review
 Analysis lines of business during the first quarter of 2001.
 
     About CORE
     CORE is the leading independent provider of employee absence management,
 covering 1.8 million employees nationwide.  CORE combines proprietary clinical
 systems with a staff of experienced nurses, physicians, benefits specialists
 and claims professionals to help employers reduce absences, increase employee
 satisfaction and improve workplace productivity.
     Among CORE's clients are Apple Computer, Bayer, Bristol-Myers Squibb
 Company, CNA Insurance Company (RSKCo), the Commonwealth of Virginia,
 DaimlerChrysler Corporation, General Electric Company, GTE, Humana Health
 Plans, Liberty Mutual Insurance Company, Motorola and PPG Industries.
 
     Conference Call Information
     CORE will be hosting a live conference call Web cast today at
 5 p.m. Eastern time at www.coreinc.com.  Participants should allow at least
 15 minutes to register for the call and download the appropriate software.  A
 replay of the call will be available today after 9 p.m. Eastern time at the
 same Web address.
     For more information, please contact Mona Baset Winn at (949) 442-2109 or
 (949) 306-6422, or visit CORE's Web site at www.coreinc.com.
 
     Safe Harbor Statement
     This press release contains certain statements that are forward-looking
 within the meaning of the Private Securities Litigation Reform Act of 1995 and
 CORE's actual results may differ materially from those contemplated by such
 statements.  These forward-looking statements reflect management's current
 expectations, are based on many assumptions, and are subject to certain risks
 and uncertainties, including, among other things, those factors described in
 the periodic reports and registration statements CORE files from time to time
 with the Securities and Exchange Commission.  CORE does not intend to update
 or publicly release any revisions to the forward-looking statements.
 
 
     CORE, INC. First Quarter 2001 Earnings
 
     Financial Summary
 
                                             Three Months Ended March 31,
                                                2001              2000
 
     Net revenues                           $17,274,722       $17,146,044
 
     Gross profit                             8,687,875         8,339,917
 
     Operating expenses:
       Selling, general and
        administrative                        5,775,971         5,165,223
       Depreciation and amortization          1,156,112         1,081,749
       Proposed merger costs                    654,817                --
       Non-recurring restructuring
        charges                                      --         1,148,193
 
     Income from operations                   1,100,975           944,752
 
     Interest expense, net                     (415,583)         (418,193)
 
     Income before income taxes                 685,392           526,559
 
     Income tax provision                      (206,000)         (160,000)
 
     Net Income                                $479,392          $366,559
 
     Income Per Common Share:
       Basic                                      $0.05             $0.04
       Diluted                                    $0.05             $0.04
 
     Weighted average number of common
      shares and equivalents outstanding:
       Basic                                  9,089,000         8,182,000
       Diluted                                9,108,000         8,472,000
 
 
     Summary Balance Sheet Information
 
                                             March 31,        December 31,
                                                2001              2000
 
     Cash and cash equivalents                 $303,206          $328,518
     Receivables, net                        11,583,104        11,554,568
     Fixed assets, net                       12,221,857        12,229,484
     Goodwill and intangibles, net           26,145,326        26,528,996
     Other assets                             2,037,857         2,210,560
 
     Total Assets                           $52,291,350       $52,852,126
 
     Borrowings under credit agreement      $12,000,000       $13,000,000
     Other liabilities                        5,992,143         6,032,311
 
     Total Liabilities                       17,992,143        19,032,311
 
     Stockholders' Equity                    34,299,207        33,819,815
 
     Total Liabilities and
      Stockholders' Equity                  $52,291,350       $52,852,126
 
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SOURCE CORE, INC.
    IRVINE, Calif., April 26 /PRNewswire/ -- CORE, INC. (Nasdaq:   CORE), a
 national provider of employee absence management, today announced revenues of
 $17.3 million for the first quarter of 2001, a slight increase from the
 $17.1 million during the first quarter of 2000.  Net income for the first
 quarter of 2001 was $479,000, or $0.05 per share, a 31 percent increase from
 net income of $367,000, or $0.04 per share, in the first quarter of 2000.
     By principal service line, first quarter 2001 revenues for Integrated
 Disability Management decreased by 2 percent to $12.8 million, Peer Review
 Analysis decreased by 6 percent to $2.6 million, and other services increased
 by 40 percent to $1.9 million, compared to the first quarter of 2000.
     "Our first quarter results demonstrate the recent progress we've made,
 with consistently increasing revenues and positive earnings over the past six
 months.  Our mid-market WorkAbility(R) IDM growth is meeting our expectations,
 and our Social Security Disability Consultants business has exceeded them,"
 said George C. Carpenter IV, chairman and chief executive officer of CORE.
 "Having stabilized our business, we now plan to expand our distribution
 through partnerships, such as our recently announced agreement with Magellan,
 and capitalize our continued growth through our pending merger with Fortis,
 Inc."
     CORE also announced today that it added new clients in its WorkAbility,
 Disability RMS, Social Security Disability Consultants and Peer Review
 Analysis lines of business during the first quarter of 2001.
 
     About CORE
     CORE is the leading independent provider of employee absence management,
 covering 1.8 million employees nationwide.  CORE combines proprietary clinical
 systems with a staff of experienced nurses, physicians, benefits specialists
 and claims professionals to help employers reduce absences, increase employee
 satisfaction and improve workplace productivity.
     Among CORE's clients are Apple Computer, Bayer, Bristol-Myers Squibb
 Company, CNA Insurance Company (RSKCo), the Commonwealth of Virginia,
 DaimlerChrysler Corporation, General Electric Company, GTE, Humana Health
 Plans, Liberty Mutual Insurance Company, Motorola and PPG Industries.
 
     Conference Call Information
     CORE will be hosting a live conference call Web cast today at
 5 p.m. Eastern time at www.coreinc.com.  Participants should allow at least
 15 minutes to register for the call and download the appropriate software.  A
 replay of the call will be available today after 9 p.m. Eastern time at the
 same Web address.
     For more information, please contact Mona Baset Winn at (949) 442-2109 or
 (949) 306-6422, or visit CORE's Web site at www.coreinc.com.
 
     Safe Harbor Statement
     This press release contains certain statements that are forward-looking
 within the meaning of the Private Securities Litigation Reform Act of 1995 and
 CORE's actual results may differ materially from those contemplated by such
 statements.  These forward-looking statements reflect management's current
 expectations, are based on many assumptions, and are subject to certain risks
 and uncertainties, including, among other things, those factors described in
 the periodic reports and registration statements CORE files from time to time
 with the Securities and Exchange Commission.  CORE does not intend to update
 or publicly release any revisions to the forward-looking statements.
 
 
     CORE, INC. First Quarter 2001 Earnings
 
     Financial Summary
 
                                             Three Months Ended March 31,
                                                2001              2000
 
     Net revenues                           $17,274,722       $17,146,044
 
     Gross profit                             8,687,875         8,339,917
 
     Operating expenses:
       Selling, general and
        administrative                        5,775,971         5,165,223
       Depreciation and amortization          1,156,112         1,081,749
       Proposed merger costs                    654,817                --
       Non-recurring restructuring
        charges                                      --         1,148,193
 
     Income from operations                   1,100,975           944,752
 
     Interest expense, net                     (415,583)         (418,193)
 
     Income before income taxes                 685,392           526,559
 
     Income tax provision                      (206,000)         (160,000)
 
     Net Income                                $479,392          $366,559
 
     Income Per Common Share:
       Basic                                      $0.05             $0.04
       Diluted                                    $0.05             $0.04
 
     Weighted average number of common
      shares and equivalents outstanding:
       Basic                                  9,089,000         8,182,000
       Diluted                                9,108,000         8,472,000
 
 
     Summary Balance Sheet Information
 
                                             March 31,        December 31,
                                                2001              2000
 
     Cash and cash equivalents                 $303,206          $328,518
     Receivables, net                        11,583,104        11,554,568
     Fixed assets, net                       12,221,857        12,229,484
     Goodwill and intangibles, net           26,145,326        26,528,996
     Other assets                             2,037,857         2,210,560
 
     Total Assets                           $52,291,350       $52,852,126
 
     Borrowings under credit agreement      $12,000,000       $13,000,000
     Other liabilities                        5,992,143         6,032,311
 
     Total Liabilities                       17,992,143        19,032,311
 
     Stockholders' Equity                    34,299,207        33,819,815
 
     Total Liabilities and
      Stockholders' Equity                  $52,291,350       $52,852,126
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93753157
 
 SOURCE  CORE, INC.