Cutbacks Result in 2nd Quarter Gains for ReadiCare Inc.

With the savings from closing several of its clinics and slashing corporate overhead, ReadiCare Inc. was able to report net earnings of $206,000 for the second quarter of its 1987 fiscal year, compared with a $60,000 loss for the same period last year. For the six months ended Aug. 31, the Newport Beach-based operator of industrial medical clinics posted net earnings of $451,000, compared with a net loss of $346,000 for the year-earlier period. The company has not posted an annual profit since it was incorporated in 1983.

During the second quarter and the first half of its fiscal 1987, ReadiCare’s revenues were essentially unchanged from the prior year--hovering at $4.4 million for the quarter and $8.6 million for the six months.

ReadiCare officials reportedly were not available Tuesday to answer questions about the company’s financial report.

But Steve Reid, an analyst with the Los Angeles investment house of Wedbush, Noble & Cook--which makes a market for ReadiCare’s common stock--said that revenues failed to grow because the company closed down four unprofitable clinics, reducing the number it operates to 22. Eliminating the money-losing facilities, however, helped boost the company’s profits, Reid said.

Reductions of about $500,000 in corporate administrative costs also contributed to ReadiCare’s profitability in the first two quarters, he said.