Comprehensive Care Corp (OTC:CHCR)

TAMPA, Fla., Nov. 21, 2011 /PRNewswire/ -- Comprehensive Care Corporation ("CompCare") (OTC BB: CHCR), a leading behavioral health, substance abuse and psychotropic pharmacy management services provider for managed care companies throughout the U.S., is pleased to announce that its revenues for the nine months ended September 30, 2011 increased 212 percent to $54,039,000 compared to $17,344,000 for the same period in 2010.

Revenues for the three months ended September 30, 2011 totaled $17,200,000, up 118 percent compared to revenues of $7,901,000 in the same period in 2010.

"We are delighted by this significant increase in revenues," said Clark Marcus, CompCare's Chairman and Chief Executive Officer.  "A year ago, the Company's revenues for the nine-month period ended September 30, 2010 were up 66% from the same nine-month period in 2009.  The entire two-year period of 2009 to 2011 represented a material transition and growth time for the Company during which the Company not only maintained full staff but added significant executive personnel in order to position the Company for profitability.  By successfully increasing the Company's business and adding top-line revenue, we believe the Company is on the track to achieve sustainable profitability in 2012, and we look forward to continuing to announce this progress to our investors."  

CompCare's revenues are obtained through managed care activities, the majority of which are performed under the terms of at-risk agreements with health maintenance organizations and other health plans or payers to provide contracted behavioral healthcare services to subscribing participants. Revenue under a substantial portion of these agreements is earned monthly based on the number of qualified participants regardless of services actually provided.  This is generally referred to as at-risk arrangements.  

Under certain behavioral health contracts CompCare also manages the psychotropic drug benefit for the health plan's subscribing participants and is responsible for the cost of drugs dispensed.  Pharmacy drug management revenue is recognized monthly at a contracted rate per eligible member.  In accordance with the contracts, the health plan's pharmacy benefit manager performs drug price negotiation and claims adjudication.

First Quarter Results:

• Total revenue for the three months ended March 31, 2011 increased 383% to $18.3 million, compared to $3.8 million for the three months ended March 31, 2010.
• Net income for the three months ended March 31, 2011 was $0.04 million, or $0.00 per basic and diluted share, compared to a net loss of $2.2 million, or negative basic and diluted earnings per share of $0.06, for the three months ended March 31, 2010.

Clark A. Marcus, Chairman and Chief Executive Officer of CompCare, stated, "The strong top-line revenue growth and profit reported for the first quarter of 2011 were driven by our expanding membership base, which currently exceeds 1 million members, a streamlined and more effective staff, enhancement of our infrastructure, and implementation of and adherence to strict budgetary controls. All of this resulted in improved gross margins and a net profit for the first quarter of 2011, compared to a net loss for the first quarter of 2010. Achieving profitability again is a significant milestone for CompCare. We exceeded our original expectations as to when we could bring the Company to this point, and we are excited at the prospect of maintaining this momentum in the future."

Company expects $18m 4Q revenue vs. $3m a year ago. Still losing money.