Community Psychiatric Centers Reports Record Net Earnings

Community Psychiatric Centers reported record net earnings of $51.3 million for its 1986 fiscal year, up 14% from $44.8 million a year earlier. Revenues for the year increased 13% to $246.8 million from $218 million during the company’s fiscal 1985.

The Santa Ana-based operator of psychiatric hospitals and kidney dialysis centers said that its earnings were affected by its failed attempt to convert to a limited partnership, which resulted in a $1.2-million charge against net earnings during the final quarter of its fiscal 1986, ended Nov. 30.

Community Psychiatric, which relocated to Santa Ana from San Francisco in late 1985, said net earnings for the fourth quarter increased 7% to $11.3 million from $10.6 million during the year-earlier period. Revenues climbed 16% to $62.6 million from $54 million a year earlier.

Late last year, company officials sought shareholder approval to convert Community Psychiatric to a limited partnership, a move they hoped would eliminate its corporate income taxes. However, the conversion fell through when the company’s largest shareholder, J.P. Morgan & Co., voted against the conversion.