TAMPA, Fla.--(BUSINESS WIRE)--Comprehensive Care Corporation (“CompCare” or the “Company”) (OTCBB: CHCR) today reported results for the fourth quarter and year ended December 31, 2010.
Total revenue for the three months ended December 31, 2010 increased 371% to $17.9 million, compared to $3.8 million for the three months ended December 31, 2009. The increase is primarily attributable to revenue from several new contracts the Company signed earlier in the year. Net loss for the three months ended December 31, 2010 was $1.8 million, or $0.03 per basic and diluted share, compared to a net loss of $5.0 million, or $0.13 per basic and diluted share, for the three months ended December 31, 2009.
Total revenue for the year ended December 31, 2010 increased 148% to $35.2 million, compared to $14.2 million for the year ended December 31, 2009. For the year ended December 31, 2010, the Company incurred a net loss of $10.4 million, or $0.23 per basic and diluted share, compared to a net loss of $18.9 million, or $0.59 per basic and diluted share, for the year ended December 31, 2009. General and administrative expense as a percentage of total revenue decreased from 68.4% in 2009 to 27.8% in 2010 due to operational efficiencies realized during 2010.
Clark A. Marcus, Chairman and Chief Executive Officer of CompCare, stated, “We experienced significant growth throughout 2010, with much of that growth being reflected in our fourth quarter, as revenue from several new contracts contributed to our financial performance. One major contract win this year was a two-year contract with two affiliated Medicare Advantage health plans serving approximately 195,000 members in Puerto Rico. I am pleased to say that we now serve more than one million members throughout 18 states and Puerto Rico, which represents a net increase of approximately 340,000 lives during the 2010 calendar year. We believe that our ability to sign new contracts and expand contracts with existing clients is reflective of an increasing demand for the innovative line of behavioral health and pharmacy programs which we developed over the past year and are positioned to provide, on a customized basis, to our customers and their members going forward. Additionally we have developed an exciting new line of ancillary products and services. We began marketing these products and services in the fourth quarter and have already seen interest among our existing clients. We hope to grow this business in 2011.”
Mr. Marcus continued, “In addition to the substantial increase in revenue we experienced during 2010, we engaged in streamlining our internal processes so that our growth, both that has already been experienced and that which is expected to materialize in 2011, can be more efficiently and cost-effectively managed. We believe that our future growth and profitability will be largely associated with our information and technical systems and the skills of our leadership team. We intend to improve on what we already have and expand our IT capabilities to accommodate future growth.”
“We made several additions to our management team and board of directors over the last twelve months that we believe will drive future growth and allow us to execute on our marketing and sales strategies. With such a strong foundation for growth in place, we are excited to move further into 2011 with a continued focus on competing for more contracts, while driving greater innovation within the industry,” concluded Mr. Marcus.
About CompCare
Established in 1969, CompCare provides behavioral health, substance abuse and employee assistance programs for governmental agencies, managed care companies and employer groups throughout the United States. Headquartered in Tampa, Florida, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches to behavioral health that address both the specific needs of clients and changing healthcare industry demands. For more information, please call 813-288-4808 or visit our website at www.compcare.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release, including but not limited to our ability to grow our business and competitively bid on selling services to larger managed health care programs as a result of increased scale, and the effects of establishing a broader sales team and building our provider networks, are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company’s control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in local, regional, and national economic and political conditions, the effect of governmental regulation, competitive market conditions, varying trends in member utilization, our ability to manage healthcare operating expenses, our ability to achieve expected results from new and existing business, our ability to expand and manage our provider network, the profitability, if any, of our recently acquired or previously existing capitated contracts, the costs incurred in seeking new contracts, the loss or termination of any existing contract, increases or variations in cost of care, seasonality, the Company’s ability to obtain additional financing, and additional risk factors as discussed in the reports filed by the Company with the Securities and Exchange Commission, which are available on its website at www.sec.gov.