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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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): September 8, 1998
CONCENTRA MANAGED CARE, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 000-22751 04-3363415
(State or other jurisdiction of (Commission File (IRS Employer
incorporation or organization) Number) Identification Number)
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 September 8,
1998 announcing comments on earnings expectations.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release of Registrant dated September 8, 1998.
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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 hereunto duly authorized.
CONCENTRA MANAGED CARE, INC.
(Registrant)
Date: September 08, 1998 By: /s/Richard A. Parr II
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Richard A. Parr II
Executive Vice President, General
Counsel and Secretary
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[LOGO]
Exhibit 99.1
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FOR IMMEDIATE RELEASE
CONTACT: JOSEPH F. PESCE, EXECUTIVE VICE PRESIDENT
CHIEF FINANCIAL OFFICER
CONCENTRA MANAGED CARE, INC.
(617) 367-2163, EXT. 5101
CONCENTRA MANAGED CARE, INC.
COMMENTS ON THIRD QUARTER EXPECTATIONS
BOSTON, Mass (September 8, 1998) - Concentra Managed Care, Inc.
(Nasdaq/NM:CCMC) today announced that revenues and net income for the first
two months of the quarter ending September 30, 1998 are below expectations.
Consequently, results for the third quarter are expected to be lower than
analysts' estimates of approximately $169 million in revenues and earnings
per diluted share share of $0.34. The Company's revenue growth has slowed to
approximately 20%, having a direct effect on the earnings outlook of the
Company.
Accordingly, the Company now expects revenues of approximately $160
million for the third quarter of 1998 with earnings per diluted share of
$0.29 for the third quarter and $0.21 for the fourth quarter of 1998.
Donald J. Larson, Chairman & Chief Executive Officer commented, "We expect
that revenues for 1998 will be up 26% from last year with an increase in
operating income, before non-recurring charges, in excess of 35% and growth
in earnings per diluted share of 30%. We remain committed to providing
creative solutions to our customers' total insurance costs and are confident
that Concentra offers the widest range of services and the only integrated
care management approach to controlling the costs and the duration of
disability."
Mr. Larson continued, "We are targeting our 1999 earnings growth to be
approximately 25%, and we will continue to invest in technology, network
development and product offerings. Concentra is a very solid and profitable
company with cash balances in excess of $110 million, and unused $100 million
credit facility and EBITDA, before non-recurring charges, for 1998 of
approximately $120 million. We believe our strategy is sound and we are very
confident about the future."
Concentra Managed Care is the leading provider and comprehensive
outsource solution for cost containment and fully integrated care management
in the occupational, auto, and group healthcare markets. Concentra offers
prospective and retrospective services to employers and insurers of all sizes,
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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 123 field case
management offices, with approximately 1,400 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 85 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 259
physicians located in 148 centers in 39 markets in 21 states.
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 operations, 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.
