Community Psychiatric Centers’ Quarterly Net Up 12%

Community Psychiatric Centers said Monday that its second-quarter earnings rose 12% to $26.7 million, up from $23.9 million in the same period a year earlier.

The Laguna Hills-based chain of psychiatric hospitals said revenue for the quarter ended May 31 increased 15% to $117.7 million, from $102.7 million a year earlier.

Richard L. Conte, president and chief financial officer, attributed the higher earnings to increased referrals from managed-care companies and health maintenance organizations.

“We’re very cost-conscious. That’s why we keep our debts low, and this leaves us free from the fluctuations of interest payments,” he said, “And we’ve been able to provide the capital to expand our facilities from our own cash flow.”

Conte said CPC is discussing the possible acquisitions of several hospitals--including individual hospitals and hospital chains--that specialize in acute psychiatric care. He declined to name the companies.

In March, CPC made a $1.1-billion unsolicited buyout offer for Charter Medical Corp., a financially struggling chain of psychiatric hospitals based in Macon, Ga. Charter rebuffed the offer and has said it won’t consider the proposal further.

But CPC has extended the offer indefinitely and said it is still pursuing the deal. Charter operates 88 facilities in the Southeast.

In the last year, CPC has acquired Brea Psychiatric Hospital from Comprehensive Care Corp. for $11 million and Brentwood Hospital from Humana Inc. for $7.5 million.

CPC, which operates 50 hospitals in the United States and United Kingdom, has recently signed contracts with two California-based managed-care companies to provide psychiatric care.

CPC’s stock closed Monday at $28.50 a share, off $1.50 in New York Stock Exchange trading.

Rae E. Alperstein, an analyst at Kemper Securities Group in Los Angeles, attributed the stock drop mostly to the fact that CPC’s earnings were slightly below market expectations. She said she expects CPC to do better in the third and fourth quarters, and to end its 1991 fiscal year with a 15% growth in earnings.

“The company has an excellent balance sheet . . . and a lot of cash to pursue other acquisitions,” she said.

For the six months ended May 31, CPC’s earnings increased 12% to $47.9 million from $42.7 million a year earlier. Revenue rose 18% to $220.8 million from $187.3 million.