Comprehensive Care Quarterly Earnings Off 36%
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Blaming the start-up costs of new business for a continuing decline in profits, Comprehensive Care Corp. on Wednesday reported first-quarter earnings of $1.6 million, down 36% from earnings of $2.5 million for the same quarter a year ago.
Nonetheless, the company’s revenue for the quarter ended Aug. 31 was $58 million, up from $50 million in the first quarter of fiscal 1988.
Comprehensive Care is an Irvine-based operator of chemical dependency and physical rehabilitation programs.
B. Lee Karns, Comprehensive Care Corp. chairman and president, said that although the company’s hospital division, which operates 23 drug and alcohol abuse treatment facilities, remained profitable, the company’s physicial rehabilitation subsidiary posted a loss stemming from the costs associated with launching 12 new contracts to manage rehabilitation centers in acute care hospitals.
“Revenues have risen but profits haven’t caught up,” Karns said. He predicted an increase in profits in the fourth quarter of fiscal 1989.
Comprehensive Care Corp.’s net profit has declined from a peak of $17.2 million in fiscal 1985 to $9 million in the 1988 fiscal year ended May 31.
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