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.