AMERICAN HEALTHCORP REPORTS FIRST QUARTER RESULTS; DTCA SIGNS COMPREHENSIVE MANAGED CARE CONTRACT WITH 50,000 COVERED LIVES; AMSURG REVENUES UP 73%.NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 23, 1996--Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM:AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced financial results for the first quarter of fiscal 1997. Total revenues increased 30.8% to $18,182,000 for the quarter, which ended November 30, 1996, from $13,904,000 for the first quarter of fiscal 1996. Net income for the quarter was $463,000, or $0.06 per share, compared with $800,000, or $0.10 per share, for the same quarter the prior fiscal year. Mr. Cigarran commented, "The two primary factors driving American Healthcorp's performance for the latest quarter were Diabetes Treatment Centers of America(DTCA DTCA Direct-To-Consumer Advertising DTCA Dwell-Time Code Acquisition DTCA Defect-Tolerant Computer Architecture )'s initial implementation costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its managed care contracts in seven markets with Principal Health Care and Health Options, an HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, subsidiary of Blue Cross and Blue Shield of Florida Blue Cross and Blue Shield of Florida is Florida's largest health insurance provider and plan administrator. The company is a member of Blue Cross and Blue Shield Association. The nonprofit, Jacksonville-based Blue Cross and its subsidiaries serve more than 8. , and the substantial continuing growth of AmSurg. We were pleased with the performance of DTCA's hospital contract business for the quarter, which included the first quarter-to-quarter increase in the average number of contracts in operation since the quarter ended August 31, 1995. We were also very encouraged by the progress we have made during the implementation of DTCA's managed care contracts and with the infrastructure and relationships it is establishing at each of these locations. However, DTCA's financial performance for the quarter reflected the startup losses from these seven managed care contract locations. Despite the acceleration of the implementation timetable, the initiation of these contracts has proceeded smoothly and at a lower cost than originally estimated. We expect implementation to be completed and all of these contracts to be in operation by January 1997. "In addition, we are pleased to announce that DTCA has signed another comprehensive healthcare management contract with Principal Health Care. Implementation of this contract is already underway, and we expect it to be in operation by March 1, 1997. The contract, which is DTCA's seventh with Principal Health Care, involves approximately 50,000 covered lives and brings the total base of lives covered by DTCA's managed care contracts to approximately 500,000. The pipeline of additional prospective managed care contracts continued to grow during the quarter, with excellent prospects for contracts in new markets and with new payors during the balance of the year. "AmSurg's revenues increased 73% for the quarter to $10,203,000 and its pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profit rose 88% to $695,000. The growth resulted from both the 13% expansion of same-center revenues and the increase in AmSurg centers in operation to 26 at the quarter's end versus 18 at the end of the first quarter of fiscal 1996. AmSurg added four new centers during the latest quarter, which included the acquisition of an orthopaedic surgery center which is AmSurg's first center in this specialty. At quarter's end, AmSurg had 14 centers under construction, four awaiting certificate of need approval and 10 under signed letters of intent. At the same time the prior fiscal year, AmSurg had seven centers under construction, one awaiting a certificate of need and seven under signed letters of intent. The company expects to put 14 to 16 additional centers into operation during the next three quarters. "During the first quarter AmSurg substantially improved its ability to finance its growth through a private placement of redeemable Redeemable Eligible for redemption under the terms of an indenture. and convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". totaling $5,500,000. The convertible portion of this issue is convertible into a 6% (ratably increasing to 8% by November 2000 if certain liquidity events do not take place) ownership interest in AmSurg. We are also considering certain strategic alternatives to provide AmSurg better access to the public and private capital needed to fund AmSurg's continuing growth, including creating a public market for its stock through either an initial public offering or a spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. of the AmSurg stock owned by American Healthcorp." Mr. Cigarran concluded, "As the operating results for the first quarter indicate, both DTCA and AmSurg continue to build momentum as the leaders in their respective market segments. We remain very enthusiastic about their prospects for further growth and the impact of that growth on American Healthcorp's future stockholder value." This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which are based upon current expectations and involve a number of risks and uncertainties. In order for the Company to utilize the new "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995, you are hereby cautioned that these statements may be affected by the important factors, among others, set forth below, and, consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. For DTCA, the important factors include: DTCA's ability to attract and/or retain and effectively manage the employees required to implement the contracts and DTCA's ability to implement the contracts on schedule. For AmSurg, the important factors include AmSurg's ability to develop or acquire new centers on the schedules currently anticipated. American Healthcorp, Inc., through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Diabetes Treatment Centers of America, Inc., is the nation's leading provider of specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. services for people with diabetes. Through its majority ownership of AmSurg Corp., the Company also develops, acquires and manages physician practice-based ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery and specialty physician networks in partnership with surgical and other group practices. The Company wholly owns Arthritis and Osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia Care Centers, which operates two comprehensive treatment centers for individuals with arthritis and osteoporosis. -0-
AMERICAN HEALTHCORP, INC.
Unaudited Financial Highlights
Three Months Ended
November 30,
1996 1995
Revenues:
DTCA and other $ 7,979,000 $ 8,023,000
AmSurg 10,203,000 5,881,000
Total $ 18,182,000 $13,904,000
Net income:
DTCA and other $ 207,000 $ 651,000
AmSurg 256,000 149,000
Total $ 463,000 $ 800,000
Net income per share $ 0.06 $ 0.10
Average shares outstanding 8,199,000 8,090,000
CONTACT: American Healthcorp Inc., Nashville Henry D. Herr, 615/665-1122 |
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