Comprehensive Care Corp. said net earnings for its fiscal 1986 fell 24% to $13.1 million from $17.2 million. Despite the lower earnings, revenues during the 12 months ended May 31 increased 22% to $192.9 million, from $158.5 million.
Racked by the costs of rapid expansion, the Irvine-based provider of treatment for substance abuse and psychiatric disorders previously reported that 1986 would mark the first-ever annual earnings decline in its 13-year history.
For the fiscal fourth quarter, Comprehensive Care reported net earnings of $384,000, off 92% from $5 million reported for the year-ago period. During the just-ended fourth quarter, the company took write-downs totaling $5.7 million on its Brea psychiatric facility and a licensing agreement with Smoke-Enders Inc.
Revenues for the quarter rose 11% to $53.1 million from $47.7 million.
Although company officials say they are hopeful that the worst is behind them, B. Lee Karns, Comprehensive Care's chairman and chief executive, said he is "reserving judgment" on what to expect during the company's current fiscal year.