Mr. Landis continued, "Another aspect of the Pharmacy Management Program that contributed to a successful second quarter was the signing of a Third Amendment (the "Amendment") to a material agreement with one of our existing, at-risk pharmacy clients. As a result of the Amendment, the Company received a $2.2 million, retroactive, cash adjustment to pharmacy prescriptions, which were originally charged to the Company. Additionally, the Amendment shifts the financial responsibility for a significant number of prescriptions from the Company to the client for the remainder of 2012. We expect this financial responsibility shift to further reduce the Company's pharmacy expenses throughout the year, and although there can be no guarantees that these expectations will be achieved, we expect the shift to further enhance the Company's profitability in its pharmacy operations for the remainder of 2012."
"Additionally, we were able to implement administrative, cost-saving measures that also contributed to a profitable second quarter," Mr. Landis said.
Revenue and other financial estimates contained in this press release have not been audited or reviewed by the Company's independent auditors, and accordingly they express no opinion or other form of assurance as to this information. The Company provides no assurance that these preliminary results, future expectations or assumptions will be met for the second quarter or fiscal year 2012. The Amendment addresses a number of other aspects of the Company's business with its client. A complete copy of the Amendment has been filed by the Company with the Securities and Exchange Commission, which is available on its website at www.sec.gov.
Established in 1969, CompCare provides behavioral health, substance abuse and employee assistance programs for governmental agencies, managed care companies and employer groups throughout the United States . Headquartered in Tampa, Florida, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches to behavioral health that address both the specific needs of clients and changing healthcare industry demands. For more information, please call 813-288-4808 or visit our website at www.compcare.com.
Except for statements of historical fact, the matters discussed in this press release, including but not limited to our expected profitability in the second quarter of 2012, the continued implementation of our Pharmacy Management Program, the impact of the financial responsibility shift with one of our existing, at-risk pharmacy clients, our ability to increase margins and to obtain sustainable profitability, our ability to reduce overhead and implement further cost savings, our ability to further improve the Company's performance, the outcome of our business strategy, our ability to expand our pharmacy management program with higher profit margins, and our ability to reduce pharmacy expenses throughout the year are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the Company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in local, regional, and national economic and political conditions, the effect of governmental regulation, competitive market conditions, varying trends in member utilization, our ability to manage healthcare operating expenses, our ability to achieve expected results from new and existing business, our ability to expand and manage our provider network, the profitability, if any, of our recently acquired or previously existing capitated contracts, the costs incurred in seeking new contracts, the loss or termination of any existing contract, increases or variations in cost of care, seasonality, the Company's ability to obtain additional financing, and additional risk factors as discussed in the reports filed by the Company with the Securities and Exchange Commission, which is available on its website at www.sec.gov.
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