Earnings Estimate Down at Comprehensive Care Corp.
The first-ever annual earnings decline for Comprehensive Care Corp. will be even greater than previously expected.
The 13-year-old, Irvine-based health care company said Friday it plans to take $6 million in write downs on its Brea psychiatric facility and on its licensing agreement with Smok-Enders Inc., an operator of smoking cessation programs.
Comprehensive Care, which operates drug and alcohol rehabilitation facilities in 33 states, revealed two weeks ago that it expected a 10% decline in net income for its fiscal year ended May 31, primarily because its 30% expansion in the last year outstripped demand. It also laid off 200 workers nationwide, the company’s first work-force reduction.
Now it appears that the year-end earnings may be about 25% lower than last year’s net income of $17.2 million, according to the company’s latest estimate. Final figures are expected to be released July 21, said William James Nicol, the firm’s vice chairman.
Nicol said Wall Street investment advisers began anticipating earnings of $1.05 a share after the company’s prediction two weeks ago of lower profits for the year. Friday’s release, he said, should indicate a year-end profit of just 85 cents a share.
The company’s board of directors, meantime, increased the regular quarterly dividend Friday to 9 cents a share from 8 cents a share. The company has about 15 million shares outstanding.