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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 31, 1997
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CONCENTRA MANAGED CARE, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 000-22751 04-3363415
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification Number)
incorporation)
312 UNION WHARF
BOSTON, MASSACHUSETTS 02109
(Address of principal (Zip code)
executive offices)
Registrant's telephone number, including area code: (617) 367-2163
NOT APPLICABLE
(former address if changed since last report)
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ITEM 5. OTHER EVENTS
See the press release attached hereto as Exhibit 99.1 dated October 31,
1997 announcing earnings for the quarter ended September 30, 1997 for Concentra
Managed Care, Inc.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
99.1 Press Release of the Registrant dated October 9, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CONCENTRA MANAGED CARE, INC.
(Registrant)
By: /s/ Richard A. Parr II
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Name: Richard A. Parr II
Title: Executive Vice President and General
Counsel
Date: November 7, 1997
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INDEX TO EXHIBITS
EXHIBIT
NUMBER PAGE
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99.1 Press Release of Registrant dated October 31, 1997
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EXHIBIT 99.1
Contact:
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Joseph F. Pesce
Chief Financial Officer
(617) 367-2163
FOR IMMEDIATE RELEASE
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CONCENTRA MANAGED CARE, INC.
ANNOUNCES THIRD-QUARTER 1997 FINANCIAL RESULTS
BOSTON, MASSACHUSETTS, (October 30, 1997) - Concentra Managed Care, Inc.
(Nasdaq/NM: CCMC) today announced that revenues for the third quarter ended
September 30, 1997, increased 30% to $120,559,000 compared with revenues of
$92,965,000 for the three months ended September 30, 1996. Operating income for
the third quarter of 1997 increased 52% to $18,176,000 from $11,966,000 for the
same period last year.
Net income for the three months ended September 30, 1997, rose 37% to
$9,811,000, or $0.25 per share, compared with $7,136,000, or $0.19 per share,
for the same period last year.
These results do not include a non-recurring charge of $38,625,000
($29,040,000 after-tax or $0.74 per share), taken in the third quarter of 1997
for fees, expenses and restructuring charges associated with the recent merger.
Concentra Managed Care was formed through the merger of CRA Managed Care
(Nasdaq/NM: CRAA) and OccuSystems (Nasdaq/NM: OSYS) - two leaders in the field
of occupational healthcare and workers' compensation cost containment. This
merger was completed on August 29, 1997.
For the nine months ended September 30, 1997, revenues increased 30% to
$335,226,000, compared with revenues of $258,377,000 for the same period last
year. In addition, operating income for the first nine months of 1997 grew 58%
to $45,065,000, before the non-recurring charge, from $28,523,000 for the same
period last year. Net income increased 51% to $24,290,000, or $0.63 per share
before the non-recurring charge, compared with $16,091,000, or $0.44 per share,
for the nine months ended September 30, 1996.
"Concentra Managed Care is the first fully integrated managed care company
for workers' compensation spanning the entire episode of care. Our continued
growth as evidenced by this quarter's financial performance is due to the
increased acceptance of managed care techniques by insurance companies, third
party administrators and major employers," says Donald J. Larson, President and
Chief Executive Officer. "Our success this quarter is due to several factors:
growth in same market revenue and margins, expansion of our cost containment
services and continued growth in both of our divisions, Concentra Managed Care
Services and Concentra Health Services. We continue to aggressively integrate
our service capability across both divisions in order to take advantage of our
position as the only company able to offer a fully integrated managed care
program to our customers."
This press release contains certain forward-looking statements, which the
Company is making in reliance on the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that all
forward-looking statements involve risks and uncertainties, and that the
Company's actual results may differ materially from the results discussed in the
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, the potential adverse impact of
governmental regulation on the Company's operations, and interruption in its
data processing capabilities, operational, financing and strategic risks related
to the Company's growth strategy, possible fluctuations in quarterly and annual
operating results, litigation against the Company, possible legal liability for
adverse medical consequences, competitive pressures, adverse changes in market
conditions for the Company's services, and dependence on key management
personnel. Additional factors include those described in the Company's
Securities and Exchange Commission filings.
Concentra Managed Care is the nation's first fully integrated managed care
company focused on workers' compensation cost containment. Concentra offers
prospective and retrospective services to employers and insurers of all sizes,
providing pre-employment testing, loss prevention services, first report of
injury, injury care, specialist networks and specialized cost containment to the
disability and automobile injury markets. The Company has 122 field case
management offices, with approximately 1,250 field case managers who provide
medical management and return to work services in 49 states, the District of
Columbia, and Canada. The Company also has 83
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service locations that provide specialized cost containment services
including utilization management, telephonic case management, and
retrospective bill review. Under the name Concentra Medical Centers, the
Company operates the nation's largest network of occupational healthcare
centers, currently managing the practices of 249 physicians located in 138
centers in 36 markets in 19 states.
