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EXHIBIT 99.1
Thursday, August 13, 1998
COMPANY PRESS RELEASE
Source: COHR Inc.
COHR REVENUES RISE 6.9 PERCENT IN THE FIRST QUARTER
CHATSWORTH, CA -- COHR Inc. (NASDAQ-CHRI) today announced revenues of $26.5
million for its first quarter ended June 30, 1998, an increase of 6.9% over the
first quarter of the prior fiscal year. The net loss for the first quarter of
fiscal year 1999 was $1.1 million, or $0.17 per basic share, compared to a net
loss of $355,000, or $0.06 per basic share, in the first quarter of fiscal year
1998.
Included in the $1.1 million net loss were special charges of $479,000,
representing severance costs incurred during the quarter. In addition, the net
loss included continuing legal expenses associated with pending shareholder
litigation.
Ray List, Chief Executive Officer of COHR Inc. commented, "The top-line growth
at a time when the Company is restructuring and emerging from a difficult period
in its history is truly gratifying. Our customers continue to want the
high-quality services we offer." List continued, "Our focus is not only on
revenue growth, but also on reducing administrative expenses, improving
operating margins and managing our balance sheet more effectively. Between
January and June of this year, we reduced our overall headcount by 10%. Our goal
is to restore the Company to profitability as quickly as possible, and the first
quarter represented a good start."
The COHR MasterPlan segment, the Company's equipment sales and servicing group
and largest operating division, generated revenues of $20.8 million in the first
quarter, compared to $19.2 million in last year's first quarter. The Purchase
Connection segment, which includes the Company's group purchasing organization
(GPO) and other ancillary businesses, produced revenues of $5.7 million in the
quarter, compared to $5.6 million in last year's first quarter, with revenue
growth in the GPO being partially offset by declines in the ancillary
businesses.
The Company's annual Shareholder's Meeting is scheduled for August 14, 1998, at
11:00 a.m. (PDT), at the Company's headquarters in Chatsworth, California. The
Company will not conduct a conference call in conjunction with this earnings
release.
COHR Inc. is a national outsourcing service organization providing equipment
sales and servicing, group purchasing and other ancillary services to hospitals,
integrated health systems and alternative site providers.
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This press release includes statements regarding anticipated future developments
that are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Because such statements involve risks and
uncertainties, the Company's actual future results could differ materially from
historical results and from those set forth in the forward-looking statements.
Some of the factors that could cause actual results to differ materially include
the effect of final accounting adjustments, the collectibility of accounts
receivable, competitive conditions, the effect of prior restatements of
financial statements on the results of operations or on relationships with
customers, and other factors identified in the Company's documents filed from
time to time with the Securities and Exchange Commission.
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COHR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS -- (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended Three Months Ended
- ---------------------------------------------- ---------------------------------- ----------------------------------
June 30, 1998 June 30, 1997
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- ---------------------------------------------- ---------------------------------- ----------------------------------
Revenues $ 26,513 $ 24,811
- ---------------------------------------------- ---------------------------------- ----------------------------------
Direct Operating Expenses 18,618 17,148
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Gross Margin 7,895 7,663
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Selling, General and Administrative Expenses 8,664 8,518
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Special Charges 479 ____
- ---------------------------------------------- ---------------------------------- ----------------------------------
Operating Loss $ (1,248) $ (855)
- ---------------------------------------------- ---------------------------------- ----------------------------------
Interest Income, Net 160 296
- ---------------------------------------------- ---------------------------------- ----------------------------------
Loss Before Income Tax Benefit (1,088) (559)
- ---------------------------------------------- ---------------------------------- ----------------------------------
Income Tax Benefit ______ 204
- ---------------------------------------------- ---------------------------------- ----------------------------------
Net Loss $ (1,088) $ (355)
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- ---------------------------------------------- ---------------------------------- ----------------------------------
Net Loss Per Share - Basic $ (0.17) $ (0.06)
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- ---------------------------------------------- ---------------------------------- ----------------------------------
Number of Shares Used to Compute Net Loss
Per Share - Basic 6,433 6,419
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