DENVER, Feb. 10, 2000 (PRIMEZONE) -- Coram Healthcare Corporation (NYSE:CRH) today announced that it expects to release 1999 fourth quarter and annual results on Thursday, March 9, 2000 after the market closing.
"On December 21, 1999, the Company announced a strategic repositioning of Coram under new leadership," said Coram Chairman, President and Chief Executive Officer Daniel D. Crowley, who joined the Company November 30. "Since that time we have seen a corporate commitment to changing the mix to increase our percentage of nutrition, hemophilia and transplant therapies, collecting accounts receivable and reducing overhead and operating costs while maintaining and enhancing quality.
"We have been rapidly putting in place the management tools to drive the changes we believe are necessary to give the Company the opportunity to turn the operations around," said Mr. Crowley. "While we cannot predict the outcome, and many real risks remain, we believe that the operating results for January and February 2000 will begin to show some of the positive effects of the change, discipline and focus we have driven into the fabric of the organization.
"During my brief tenure, we have quickly come to know the organization better," Mr. Crowley added. "It has become clear that the originally contemplated 1999 fourth quarter charge of $25 to $30 million does not fully reflect the condition of the Company and the changes necessary to reposition it. As a result, we currently expect, subject to review by our outside auditors, to record charges of approximately $20 million for expenses related to the liquidation of the Resource Network Division (R-Net) and ongoing litigation, and approximately $25 million to $35 million related to the strategic repositioning, including associated severance costs, the write-down of impaired assets and various balance sheet adjustments."
Denver-based Coram Healthcare, through its subsidiaries, is a national leader in providing quality home infusion therapies. Company subsidiaries also provide support for clinical trials, medical product development and medical informatics, as well as specialty pharmacy benefit management and mail order services.
Note: Except for historical information, all other statements in this press release are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results may vary materially from these forward-looking statements due to important risk factors including the Company's history of operating losses and uncertainties associated with future operating results; significant outstanding indebtedness; equity conversion rights held by existing debt holders; limited liquidity; reimbursement-related risks; shifts in the mix of parties that pay for the Company's services; dependence upon relationships with third parties; uncertain future liabilities under capitation arrangements; timing of or ability to complete acquisitions; government regulation of the home health care industry and the Company's ability in the future to comply; certain legal proceedings, including tax disputes; dependence on key personnel; potential volatility of the stock price; New York Stock Exchange listing status; the ability to execute a repositioning of the Company; and unanticipated impacts from the Year 2000 issue. Certain risk factors are described in greater detail in the Company's Form 10-K Annual Report, as amended, Form 10-Q Quarterly Reports, and Form 8-K Current Reports on file with the Securities and Exchange Commission.