EXHIBIT 99.1 Contacts: Daniel J. Thomas Thomas E. Kiraly President and Executive Vice President and Chief Executive Officer Chief Financial Officer (617) 367-2163 (972) 364-8217 CONCENTRA OPERATING CORPORATION REPORTS FIRST QUARTER RESULTS ADDISON, Texas, April 26, 2000 - Concentra Operating Corporation ("Concentra") today announced financial results for its first quarter ended March 31, 2000. Highlights of the quarter included a 17% increase in revenues and a 19% increase in EBITDA when compared to first quarter of the prior year. Revenue and EBITDA growth in the Company's Health Services, Concentra Preferred Systems and First Notice Systems businesses contributed significantly to the Company's results. Revenues for the first quarter were $181,096,000 compared with $155,411,000 for the same period last year, reflecting an overall 17% increase. Operating income increased 15% to $16,369,000 versus $14,216,000 for the first quarter of the prior year. Concentra reported net income of $231,000 for the first quarter of 2000 as compared with net income of $6,068,000 in the first quarter of 1999. As expected, the Company's lower net income reflected the impact of interest expense associated with new credit facilities put in place to help facilitate Concentra's August 1999 recapitalization. Earnings before interest, taxes, depreciation and amortization ("EBITDA"), as computed in a manner consistent with the definition set forth in the Company's $190 million Series A Senior Subordinated Notes, increased 19% to $26,186,000 in the first quarter of 2000 versus $22,035,000 reported for the comparable 1999 period. "Our core business lines - Concentra Health Services, Concentra Preferred Systems and First Notice Systems - continued to expand throughout the first quarter, providing us with a strong overall increase in revenues and EBITDA," commented Daniel J. Thomas, President and Chief Executive Officer of Concentra. "We also witnessed increasing stability in our field case management business which, while operating somewhat below the level seen last year, showed a slight increase in revenue and earnings compared with the fourth quarter of 1999. In each of these four major lines of business, revenue and EBITDA growth exceeded our original expectations for the quarter." Thomas pointed out that the Health Services division continues to emerge as a key driver of the Company's growth, cash flow and profitability. This division accounted for 52% of Concentra's total first quarter revenues and provided the bulk of the Company's $25.7 million in incremental revenue during the quarter. Concentra Health Services, the nation's largest network of occupational healthcare centers, benefited from strong internal growth in the first quarter. The number of visits to Concentra's centers increased 28.5% in total compared with the prior year and 8.5% on a same-market basis, reflecting a slightly higher mix of non-injury visits. Same-market revenues rose 8.0% compared with the same period last year. Concentra Health Services currently operates 216 centers located in 63 markets in 32 states. "While we are gratified by the growth and financial contributions of Concentra Health Services, we also are pleased to note that key areas of our specialized cost containment business continue to expand successfully," Thomas said. "In particular, Concentra Preferred Systems continues to make solid gains in growing its customer base, and First Notice Systems, while still a small part of our overall operations, is our fastest growing line of business. "Even with this strong and successful start to the new year, we realize that it would be premature to draw long-term conclusions from the results of just one quarter, and we recognize that there is much we must do to further improve our operations," he added. "Nevertheless, we are encouraged by this progress and believe these results further validate our strategies to work in partnership with employers and insurers to control healthcare costs as we expand our presence in occupational healthcare and in other key healthcare markets." During the first quarter of 2000, Concentra increased its borrowings under its $100 million revolving credit facility to $24.5 million to compensate for previously anticipated seasonal working capital increases, capital expenditures and acquisition expenditures. Concentra Operating Corporation, the successor to and a wholly owned subsidiary of Concentra Managed Care, Inc., is the comprehensive outsource solution for containing healthcare costs. Serving the occupational, auto, and group healthcare markets, Concentra offers prospective and retrospective services to employers and payors by providing pre-employment testing, loss prevention services, first report of loss, injury care, specialist networks and other specialized cost containment services. This press release contains certain forward-looking statements, which the Company is making in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and that the Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the potential adverse impact of governmental regulation on the Company's operations, interruption in its data processing capabilities, operational financing and strategic risks related to the Company's capital structure and growth strategy, possible fluctuations in quarterly and annual operations, possible legal liability for adverse medical consequences, competitive pressures, adverse changes in market conditions for the Company's services, and dependence on key management personnel. Additional factors include those described in the Company's filings with the Securities and Exchange Commission. -MORE- CONCENTRA OPERATING CORPORATION a wholly owned subsidiary of CONCENTRA MANAGED CARE, INC. Unaudited Consolidated Statements of Operations (in thousands) Three Months Ended March 31, ------------------- 2000 1999 -------- -------- REVENUE: Health services $ 94,260 $ 70,622 Managed care services: Specialized cost containment 51,671 46,712 Field case management 35,165 38,077 -------- -------- Total managed care services 86,836 84,789 -------- -------- Total revenue 181,096 155,411 COST OF SERVICES: Health services 76,995 57,800 Managed care services: Specialized cost containment 35,379 32,903 Field case management 31,868 33,034 -------- -------- Total managed care services 67,247 65,937 -------- -------- Total cost of services 144,242 123,737 -------- -------- Gross profit 36,854 31,674 General and administrative expenses 16,919 14,420 Amortization of intangibles 3,566 3,038 -------- -------- Operating income 16,369 14,216 Interest expense 16,221 4,677 Interest income (80) (1,112) Other, net (196) 98 -------- -------- Income before income taxes 424 10,553 Provision for income taxes 193 4,485 -------- -------- Net income $ 231 $ 6,068 ======== ======== The consolidated statements of operations above include the post- recapitalization transaction operating results of Concentra Operating Corporation, a wholly owned subsidiary of Concentra Managed Care, Inc. and the pre-recapitalization transaction operating results of Concentra Managed Care, Inc. The recapitalization transaction was completed on August 17, 1999. -MORE- CONCENTRA OPERATING CORPORATION a wholly owned subsidiary of CONCENTRA MANAGED CARE, INC. Consolidated Balance Sheets (in thousands) March 31, December 31, 2000 1999 ----------- ------------ ASSETS (unaudited) CURRENT ASSETS: Cash and cash equivalents $ 6,744 $ 14,371 Accounts receivable, net 162,226 156,239 Prepaid expenses, taxes and other current assets 29,474 28,674 -------- -------- Total current assets 198,444 199,284 PROPERTY AND EQUIPMENT, NET 106,451 104,068 GOODWILL AND OTHER INTANGIBLE ASSETS, NET 328,259 324,984 OTHER ASSETS 26,959 25,768 -------- -------- $660,113 $654,104 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Revolving credit facilities $ 24,500 $ 4,000 Current portion of long-term debt 4,031 3,805 Accounts payable, accrued income tax and expenses 70,503 89,109 -------- -------- Total current liabilities 99,034 96,914 LONG-TERM DEBT 558,964 559,942 DEFERRED INCOME TAXES AND OTHER LIABILITIES 40,958 36,521 STOCKHOLDERS' EQUITY (DEFICIT) (38,843) (39,273) -------- -------- $660,113 $654,104 ======== ======== -END-