LAGUNA NIGUEL, Calif., June 30, 2005 (PRIMEZONE) -- OptimumCare Corporation (Pink Sheets:OPMC) today announced that the first quarter of 2005, ended March 31, showed progress in resolving "old business" and in moving forward to growth and profitability, highlighted by a 39 percent increase in revenues for the period.
Unaudited figures for the period include revenues of approximately $2.5 million, up from $1.8 million in the prior-year quarter. Revenues for the first quarter of 2005 reflected full inclusion of Friendship CMHC, Inc., acquired during the first quarter of 2004.
Pretax operating profit for the quarter was $50,000 compared with a pretax operating loss of $180,000 in the prior year. The first quarter of 2005 reflected full operations of all divisions. The first quarter is also traditionally the weakest for the Company's staffing businesses.
The Company has a significant net operating loss carry forward, and does not expect to have any tax liability for FY 2005.
The year ended December 31, 2004, was a turning point for OptimumCare, reflecting improved operating performance and the resolution of old issues.
Financial performance for the year, again unaudited, included revenues for the year ended December 31, 2004, of approximately $9.7 million, up 56 percent from $6.2 million in 2003. Revenues for 2004 reflected full inclusion of Heartline Inc., acquired in September 2003 and Friendship CMHC, Inc. acquired during the first quarter of 2004, as well as continued growth in staffing revenues.
Pretax operating profit before charges for the year was $138,000, compared with a pretax operating loss of $1.4 million in the prior year. The Company has chosen to expense certain obligations acquired as part of the Friendship acquisition, resulting in a pretax charge of $660,000. This charge will result in a reported pretax loss of approximately $522,000, compared with the prior year's reported pretax loss of $1.4 million.
The Company has a significant net operating loss carry forward, and does not expect to have any tax liability for the year 2004.
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.