NASHVILLE, Tenn.--(BUSINESS WIRE)--May 20, 1999--New American Healthcare Corporation (NYSE:NAH) today announced results for the fourth quarter and year ended March 31, 1999. For the fourth quarter ended March 31, 1999, net revenues were $49.8 million, up 65% from $30.2 million in the fourth quarter of the prior year. Net loss attributable to common stockholders for the fourth quarter ended March 31, 1999, including restructuring and other related costs of $906,000 pertaining primarily to severance and transition costs, totaled $1.7 million, or $0.10 per diluted share, on 17.6 million average shares outstanding compared with a net loss of $251,000, or $0.03 per diluted share, on 8.4 million average shares outstanding in the prior year period. Excluding restructuring and other related costs, the Company would have reported a fourth quarter loss of approximately $1.1 million, or 0.06 per diluted share. For the year ended March 31, 1999, net revenues were $171.8 million, up 127% from $75.6 million in the same period of the prior year. Net loss attributable to common stockholders, including the fourth quarter restructuring and other related costs mentioned above, totaled $182,000, or $0.01 per diluted share, on 14.0 million average shares outstanding for the year ended March 31, 1999, compared with net income of $175,000, or $0.01 per diluted share, on 13.2 million average shares outstanding in the prior year period. Excluding the restructuring and other related costs, the Company would have reported income for the year of approximately $416,000, or $0.03 per diluted share. The Company also stated that it expects to incur additional restructuring and other related costs pertaining to severance and other transition costs. Those charges will be recorded in the quarter ending June 1999 and are expected to total $700,000 to $900,000. Also, the Company is exploring the sale of up to three hospitals this fiscal year and may incur significant non-cash losses on the sale of these hospitals. Thomas W. Singleton, president and chief executive officer of New American Healthcare, said, "While we are not happy with the $0.10 per share loss in the fourth quarter, it is in line with the guidance contained in our press release of February 23, 1999." Mr. Singleton continued, "Our plan to strengthen our company and return it to profitability requires that we bite the bullet and take some painful steps -- steps which are absolutely necessary to improve stockholder value. These steps include the planned sale of hospitals and various restructuring charges relating primarily to decreasing overhead expense. As we move to complete these initiatives, we also will be extremely focused on improving existing operations. We are not planning any additional acquisitions for the next 12 to 18 months." Concluding his remarks, Mr. Singleton said, "The steps we are announcing today are essential, but we are also hard at work on other important programs. These programs include improving physician recruiting, the introduction of new services, updating information and reporting systems, and stronger financial management. The Company has recently identified recruiting opportunities for 42 additional physicians at hospitals it expects to continue to operate, has extended 19 offers to physicians, and has signed agreements with 12 physicians to begin practicing this summer. "New American Healthcare has planned $15 million in capital expenditures during fiscal year 2000 which will be used to upgrade existing facilities, add new clinical services, and replace medical equipment that is not Y2K compliant. In recent months, the Company has hired new chief financial officers at three of its hospitals, hired two business office specialists to support hospital operations, and hired a vice president of financial operations, all moves intended to strengthen the Company's operational performance. Based on these initial steps and my review of the Company, I am confident that we will return New American Healthcare Corporation to profitability." New American Healthcare Corporation was formed to capitalize on opportunities to be the principal provider of quality, cost-effective healthcare services in the non-urban communities which it targets. Since acquiring its first hospital in August 1996, the Company has acquired ten additional hospitals. These eleven acute care hospitals are located in nine states with 1,347 licensed beds. For additional information about the Company, visit New American Healthcare's web site: http://www.nahc.net. This press release contains forward-looking information that is subject to certain risks, trends, and uncertainties that could cause actual results to differ from those projected. Among these risks, trends, and uncertainties are the following: general economic and business conditions, both nationally and in regions where the Company operates; demographic changes; the effect of existing or future government regulation and federal and state legislative and enforcement initiatives on the Company's business; changes in Medicare and Medicaid reimbursement levels; the Company's ability to implement successfully its acquisition and development strategy and changes in such strategy; the availability and terms of financing to fund the expansion of the Company's business, including the acquisition of additional hospitals; the Company's ability to attract and retain qualified management personnel and to recruit and retain physicians and other health care personnel to the rural markets it serves; the effect of managed care initiatives on the rural markets served by the Company's hospitals and the Company's ability to enter into managed care provider agreements on acceptable terms; the effect of liability and other claims asserted against the Company; the effect of competition in the markets served by the Company's hospitals; and other factors referenced in the prospectus. NEW AMERICAN HEALTHCARE CORPORATION Financial Highlights (In thousands, except per share amounts) Three Months Ended Year Ended March 31, March 31, ----------------- ------------------ 1999 1998 1999 1998 ------- ------- -------- ------- Net operating revenues $49,825 $30,153 $171,840 $75,649 Net income (loss) attributable to common stockholders $(1,733) $(251) $(182) $175 Net income (loss) per common and common equivalent share: Basic $(0.10) $(0.03) $(0.01) $0.02 Diluted $(0.10) $(0.03) $(0.01) $0.01 Weighted average number of common stock and common stock equivalents outstanding: Basic 17,557 8,406 14,026 8,406 Diluted 17,557 8,406 14,026 13,210 Supplemental Data: All Hospitals: Total hospital revenue $49,825 $30,153 $171,840 $75,649 EBITDA 1,295 2,448 14,518 6,844 Admissions 6,384 3,348 20,882 8,378 Adjusted admissions 10,477 5,382 35,657 13,630 Patient days 34,769 19,042 112,833 50,961 Adjusted patient days 57,059 30,609 192,669 82,908 Average length of stay 5.45 5.69 5.40 6.08 Number of hospitals 11 8 11 8 Same Hospitals(1) Hospital revenue $15,875 $17,662 $67,295 $70,079 Admissions 2,168 2,059 7,885 7,715 Adjusted admissions 3,628 3,242 13,614 12,405 Patient days 12,474 12,211 44,384 47,273 Adjusted patient days 20,875 19,227 76,629 76,029 Average length of stay 5.75 5.93 5.63 6.13 Number of hospitals 4 4 4 4 (1)Same hospitals are Doctors Hospital, Memorial Hospital of Center, Delta Medical Center - Memphis, and Dolly Vinsant Memorial Hospital.  