American Healthways Earns $0.09 Per Share for Third Quarter of Fiscal 2001; Total Health Plan Equivalent Lives Double To More Than 394,000.Business Editors NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--June 21, 2001 Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs G. Cigarran, Chairman, President and Chief Executive Officer of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Healthways Healthways can mean:
AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced financial results for the third quarter of fiscal 2001. For the quarter, which ended May 31, 2001, total revenues increased 59% to $18,459,000 compared with $11,617,000 for the third quarter of fiscal 2000. Net income for the latest quarter was $840,000, or $0.09 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss for the same quarter in the prior fiscal year of $1,013,000, or $0.12 per diluted share. Earnings per diluted share for the current quarter were impacted by a 13% increase in average common shares and equivalents outstanding from the third quarter of fiscal 2000. "American Healthways' significant progress for the third quarter strengthened the Company's leading position in the disease and care management industry and positioned the Company to be the leader in Care Enhancement, our strategy for the future," said Mr. Cigarran. "Financial and operating results for the quarter were solidly in line with the Company's expectations. Our revenue growth reflected a 57% expansion in average health plan lives under management for the quarter, to 217,821 from 138,953 for the third quarter of fiscal 2000. In addition, new contract signings during the third quarter, including our latest contracts with Aetna Aetna, volcano: see Etna, Italy. and Blue Cross of Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. ,
which will begin generating revenue in the fourth quarter of fiscal
2001, helped to increase American Healthways' total health plan
equivalent lives under contract by 101% to 394,137 at the end of the
quarter from 195,615 at the same time in fiscal 2000.
"We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for continuing these trends while we work toward our goal of helping our customers change the focus of healthcare from one of utilization management Utilization management is the evaluation of the appropriateness, medical need and efficiency of health care services procedures and facilities according to established criteria or guidelines and under the provisions of an applicable health benefits plan. to one based on improved outcomes. With our existing chronic disease programs, we have proven our ability to use this approach to both improve the health of individual participants, to reduce their healthcare costs and to improve their and their physician's satisfaction with their healthcare experience. With the recent acquisitions of CareSteps and Empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems Health, as well as our new alliances with Johns Hopkins Noun 1. Johns Hopkins - United States financier and philanthropist who left money to found the university and hospital that bear his name in Baltimore (1795-1873) Hopkins 2. and Cap Gemini Gemini (jĕm`ənī, –nē) [Lat.,=the twins], northern constellation lying on the ecliptic (the sun's apparent path through the heavens) between Taurus and Cancer, N of Canis Minor; it is one of the constellations of the zodiac. Ernst & Young, we believe that we have the expertise, the technology, the delivery systems and the management talent in place to aggressively pursue the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of this goal by expanding our Care Enhancement programs to the entire populations of our health plan customers. "We expect this initiative to further strengthen our new contract pipeline that has grown substantially during fiscal 2001. As of the end of the third quarter, we have essentially reached our full fiscal 2001 target of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 400,000 total health plan equivalent lives. We expect additional contract signings between now and the end of this fiscal year. Based on contract discussions with potential new customers and with existing customers regarding contract expansions, we expect to double our total health plan equivalent lives to approximately 800,000 by the end of fiscal 2002." Mr. Cigarran added, "We have also been pleased with the performance of our hospital business, which reflects both a stronger healthcare economic environment and increased recognition within the hospital industry of the benefits of our hospital programs. For the third consecutive quarter, we signed three new hospital contracts which, combined with higher contract renewal rates, resulted in an increase in the average number of contracts in operation for this business segment." As previously reported, expenses associated with the Company's two recent acquisitions and the launch of its Care Enhancement strategy are expected to reduce earnings, before amortization expense associated with the CareSteps and the Empower Health acquisitions, for the fourth quarter by $0.05 to $0.06 per diluted share. In addition, the recent substantial increase in the Company's stock price, which increases the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of its outstanding stock options, will likely increase fiscal 2001 average common shares and equivalents outstanding by almost 10% from fiscal 2000 levels. As a result, the Company currently expects earnings for the full fiscal 2001 year, before amortization expense from recent acquisitions, to be $.33 to $.35 per diluted share, consistent with previous guidance. The impact on the Company's non-cash amortization expense resulting from anticipated new accounting rules for business combinations has not yet been determined. For fiscal 2002, American Healthways has given guidance of earnings per diluted share, before amortization expense associated with the Company's fiscal fourth quarter 2001 acquisitions, in a range of $0.80 to $0.90, with revenues expected to grow by over 85% to approximately $140 million. The Company expects to have executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. contracts that would generate approximately $110 million during fiscal 2002 in hand by the end of fiscal 2001. The size of the market for Care Enhancement services, the Company's current leading position in that market, the recently announced strategic alliances with Johns Hopkins and Cap Gemini Ernst & Young and the acquisitions of CareSteps and Empower Health support the Company's belief that its annual revenues could reach $1 billion by the year 2006. Mr. Cigarran concluded, "We are confident that, because of its potential to improve outcomes and lower costs, Care Enhancement can become the dominant strategy for health plans to meet the needs of their customers for improved health and financial outcomes. As the leading Care Enhancement company, we believe we are well positioned to capture the largest share of this market, further improving our prospects for profitable growth." American Healthways will hold a conference call to discuss this release today at 4:15 p.m. Eastern time. Investors will have the opportunity to listen to the conference call live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by going to www.americanhealthways.com and clicking Investor Relations Investor relations The process by which the corporation communicates with its investors. or by going to the following web site - www.streetevents.com - at least fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these web sites shortly after the call through the end of business on July July: see month. 21, 2001. 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 "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 Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, investors 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. The important factors include: the Company's ability to renew and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. maintain contracts with its customers under existing terms or restructure these contracts on terms that would not have a material negative impact on the Company's results of operations; the Company's ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution new contracts for health plan disease management and care enhancement services; the risks associated with a significant concentration of the Company's revenues with a small number of health plan customers; the Company's ability to effect estimated cost savings and clinical outcome improvements under health plan disease management and care enhancement contracts and reach mutual agreement with customers with respect to outcomes and cost savings, or to effect such savings and improvements within the time frames contemplated by the Company; the ability of the Company to effectively integrate new technologies such as those encompassed in its Care Enhancement initiatives into the Company's care management information technology platform; the ability of the Company to improve its health plan sales and marketing effectiveness Marketing Effectiveness is the function of improving how marketers go to market with the goal of optimizing their marketing spend to achieve even better results for both the short-term and long-term. Also related to Marketing ROI and Return on Marketing Investment (ROMI). as a result of the integration of Empower Health personnel into its existing management organization; the ability of the Company to implement its Care Enhancement strategy within the expected cost estimates; the ability of the Company to obtain adequate financing to provide the capital that may be needed to support the growth of the Company's health plan operations; the ability of health plan customers to maintain the number of covered lives enrolled in their plans during the terms of the agreements between the health plans and the Company; the Company's ability to implement its backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of contracted lives within time frames contemplated by the Company; the Company's ability to attract and/or retain and effectively manage the employees required to implement its agreements with hospitals and health plan organizations; and the impact of existing 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. involving the Company. The Company undertakes no obligation to update or revise any such forward-looking statements. American Healthways (www.americanhealthways.com) 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. , comprehensive Care Enhancement services to health plans, physicians and hospitals. Through its product lines - diabetes diabetes or diabetes mellitus (məlī`təs), chronic disorder of glucose (sugar) metabolism caused by inadequate production or use of insulin, a hormone produced in specialized cells (beta cells in the islets of healthways(SM), cardiac cardiac /car·di·ac/ (-ak) 1. pertaining to the heart. 2. pertaining to the cardia. car·di·ac adj. 1. Of, near, or relating to the heart. 2. healthways(SM), respiratory respiratory /res·pi·ra·to·ry/ (res´pi-rah-tor?e) pertaining to respiration. res·pi·ra·to·ry adj. Of, relating to, used in, or affecting respiration. healthways(SM) and myhealthways(SM) - the Company provides Care Enhancement programs to health plans with members in all 50 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. . The Company has contracts to serve approximately 394,000 health plan equivalent lives. American Healthways also operates diabetes management This article is about the management of diabetes mellitus. For more on the disease itself see diabetes mellitus. Diabetes is a chronic disease with no cure as of 2007. It is associated with an impaired glucose cycle, altering metabolism. programs in hospitals nationwide.
AMERICAN HEALTHWAYS, INC.
Unaudited Financial Highlights
(In thousands, except per share data)
Three Months Ended
May 31,
Consolidated Statements of Operations: 2001 2000
-------- --------
Revenues $ 18,459 $ 11,617
-------- --------
Expenses:
Salaries and benefits 10,825 8,537
Other operating expenses 4,716 3,654
Depreciation and amortization 1,393 980
Interest 38 9
-------- --------
Total expenses 16,972 13,180
-------- --------
Income (loss) before income taxes 1,487 (1,563)
Income tax expense (benefit) 647 (550)
-------- --------
Net income (loss) $ 840 $ (1,013)
======== ========
Basic income (loss) per share $ 0.10 $ (0.12)
======== ========
Diluted income (loss) per share $ 0.09 $ (0.12)
======== ========
Weighted average common shares and equivalents:
Basic 8,485 8,228
Diluted 9,308 8,228
Nine Months Ended
May 31,
Consolidated Statements of Operations: 2001 2000
-------- ---------
Revenues $ 52,694 $ 37,895
-------- --------
Expenses:
Salaries and benefits 31,420 25,700
Other operating expenses 13,533 9,766
Depreciation and amortization 3,888 2,488
Interest 62 14
-------- --------
Total expenses 48,903 37,968
-------- --------
Income (loss) before income taxes 3,791 (73)
Income tax expense (benefit) 1,649 180
-------- --------
Net income (loss) $ 2,142 $ (253)
======== ========
Basic income (loss) per share $ 0.26 $ (0.03)
======== ========
Diluted income (loss) per share $ 0.24 $ (0.03)
======== ========
Weighted average common shares and equivalents:
Basic 8,368 8,281
Diluted 9,065 8,281
May 31, February 28,
Financial Position: 2001 2001
----------- -----------
Cash and cash equivalents $ 9,064 $ 8,303
Current assets 16,965 16,562
Property and equipment (net) 13,582 12,512
Total assets 44,594 43,321
Current liabilities 7,507 8,399
Long-term liabilities 3,253 3,105
Stockholders' equity 33,834 31,817
AMERICAN HEALTHWAYS, INC.
Unaudited Financial Highlights
(Dollars in thousands)
Three Months Ended
May 31,
-----------------------
2001 2000
---------- ---------
Segment Operating Information:
Revenues:
Health plan contracts $ 13,307 $ 6,410
Hospital contracts 5,033 5,121
Other revenue 119 86
--------- ---------
$ 18,459 $ 11,617
========= =========
Income (loss) before income taxes:
Health plan contracts $ 3,072 $ (440)
Hospital contracts 1,404 1,408
Shared support services (2,120) (1,938)
--------- ---------
Total segments 2,356 (970)
General corporate (869) (593)
--------- ---------
$ 1,487 $ (1,563)
========= =========
Operating Statistics:
Health Plan Segment - Equivalent Lives (1)
Lives under management at end of period 238,137 146,615
Lives in backlog at end of period 156,000 49,000
Total lives at end of period 394,137 195,615
Average number of lives under
management during period 217,821 138,953
(1)Equivalent lives converts cardiac and
respiratory lives to the approximate
revenue equivalent of diabetes lives
Hospital Segment
Contracts at end of period 56 54
Hospital sites at end of period 79 69
New contracts signed during period 3 2
Contracts discontinued during period 2 2
Contracts renewed during period 2 1
Average number of contracts in operation
during period 55.7 53.4
Nine Months Ended
May 31
----------------------
2001 2000
--------- ----------
Segment Operating Information:
Revenues:
Health plan contracts $ 37,685 $ 22,383
Hospital contracts 14,672 15,142
Other revenue 337 370
--------- ---------
$ 52,694 $ 37,895
========= =========
Income (loss) before income taxes:
Health plan contracts $ 8,686 $ 2,419
Hospital contracts 3,825 4,174
Shared support services (6,224) (5,037)
--------- ---------
Total segments 6,287 1,556
General corporate (2,496) (1,629)
--------- ---------
$ 3,791 $ (73)
========= =========
Operating Statistics:
Health Plan Segment - Equivalent Lives (1)
Lives under management at end of period 238,137 146,615
Lives in backlog at end of period 156,000 49,000
Total lives at end of period 394,137 195,615
Average number of lives under
management during period 214,800 128,971
(1)Equivalent lives converts cardiac and
respiratory lives to the approximate
revenue equivalent of diabetes lives
Hospital Segment
Contracts at end of period 56 54
Hospital sites at end of period 79 69
New contracts signed during period 9 8
Contracts discontinued during period 4 12
Contracts renewed during period 8 4
Average number of contracts in operation
during period 53.9 54.7
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