COVENTRY CORPORATION REPORTS RECORD RESULTS FOR YEAR-END 1994.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)--Feb. 21, 1995--Coventry Coventry Corporation (Nasdaq/NM:CVTY) reported record revenues and earnings for the fourth quarter and year ended December 31, 1994. Philip Hertik, President and Chief Executive Officer, said, "We are pleased to report that 1994 has been a year of record achievement for Coventry Corporation. We have achieved strong financial results driven by a decreased medical loss ratio, and we have also expanded our geographic markets into Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). and, more recently, into North Florida as a result of the pending acquisition of HealthCare USA. While we have been successful in improving the medical loss ratio in all markets, we are particularly pleased that for the fourth quarter, the medical loss ratio for our St. Louis plan has improved by approximately 2.5% from the previous quarter and by over 7.0% from the fourth quarter in the prior year." Coventry Corporation acquired Southern Health Management Corporation (SHMC SHMC Sacred Heart Medical Center (Eugene, Oregon) SHMC Sunrise Hospital and Medical Center (Las Vegas, NV) ) in Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. , in a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. transaction completed as of December 1, 1994. For the month of December 1994, the combined operations For the department of the British War Office during World War II, see . In the military, combined operations are operations conducted by forces of two or more allied nations acting together for the accomplishment of a single mission. See also
Coventry's revenues for the year ended December 31, 1994, were $747.3 million, an increase of 16.9% compared to 1993 revenues of $639.3 million. Net earnings, prior to nonrecurring merger costs of $3.4 million for SHMC, rose to $31.4 million, a 34.9% increase over 1993 net earnings of $23.3 million. Earnings per share, prior to nonrecurring merger costs, for the year ended December 31, 1994, rose to $1.08, a 31.7% increase over 1993 earnings per share of $0.82. Net earnings for the year ended December 31, 1994, including the charge for nonrecurring merger costs, were $28.0 million, or $0.96 per share. For the quarter ended December 31, 1994, revenues were $187.9 million compared to $167.0 million in the fourth quarter of 1993. Net earnings for the fourth quarter, prior to nonrecurring merger costs of $2.9 million for the quarter, rose to $8.6 million, an increase of 32.6% over $6.5 million for the fourth quarter of 1993; earnings per share rose to $0.29, an increase of 26.1% over the $0.23 for the fourth quarter of 1993. Net earnings for the fourth quarter of 1994, including the nonrecurring charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". , were $5.7 million, or $0.20 per share. In addition, Mr. Hertik said, "There have been several important events in 1994 and early 1995, which management is confident will contribute to even greater financial and enrollment performance in 1995 and 1996. The previously announced acquisition of HealthCare USA, a 28,000-member Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. 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, in Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. , is strategically very positive for both product and geographic expansion. This transaction moves the Company into the Medicaid product market, enabling the Company to access over 1.2 million additional lives in our current markets as well as providing access to the North Florida commercial HMO market. Additionally, we have hired a Vice President of Government Programs to develop the Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. risk product for introduction by January 1, 1996, or earlier, in all of our markets. This Medicare risk product will allow the Company to market to over 1.5 million additional Medicare covered individuals in our existing markets." At December 31, 1994, Coventry had total enrollment of 581,000 members, including the pending HealthCare USA acquisition. From December 31, 1993, to December 31, 1994, Coventry's enrollment grew by 14.1%. Coventry's enrollment at January 1, 1995, increased to 613,000 members, including the pending acquisition of HealthCare USA, an increase of 12.6% over January 1, 1994. In closing, Mr. Hertik added, "In addition to our acquisition strategy, we are pleased with the continuing success of our hub and spoke Any architecture that uses a central connecting point. It is the same as a star topology in a network. A network hub is hardware that functions as a central hub to all nodes. See hub and full mesh.  expansion strategy. The Company recently was the successful
bidder to provide coverage, effective July 1, 1995, for a large
manufacturer in their West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W).
Facts and FiguresArea, 24,181 sq mi (62,629 sq km). Pop. and Ohio locations. Utilizing this "anchor client" as a base, along with resources from our Pittsburgh hub, we anticipate a successful expansion into these two states. Likewise, we are pleased with the ongoing expansion efforts of our Richmond plan in accessing the underpenetrated areas of Virginia, having recently received approval to increase the available market by 20%, with a number of additional markets pending. We believe these efforts represent low risk expansion opportunities with the expectation of high returns for the future." Coventry Corporation, headquartered in Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. , is a managed health care company that provides a wide range of health benefits to a broad cross section of employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. , Illinois Illinois, river, United StatesIllinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. and Virginia. The Company operates from regional headquarters in Pittsburgh and Harrisburg, Pennsylvania This article is about the capital city of the Commonwealth of Pennsylvania. For other places named Harrisburg, see Harrisburg (disambiguation). Harrisburg is the capital of the Commonwealth of Pennsylvania, a state of the United States of America. , St. Louis, Missouri, and Richmond, Virginia. -0-
COVENTRY CORPORATION
Financial Highlights
(In thousands, except per share and enrollment amounts)
Three Months Ended
December 31,
1994 1993 % Change
Operating revenues $187,931 $166,958 12.6%
Operating earnings 15,090 12,660 19.2%
Nonrecurring merger costs 2,896 - -%
Earnings before income taxes and minority interest $ 12,802 $ 12,471 2.7% Net earnings $ 5,747 $ 6,520 (11.9%) Earnings per share $ 0.20 $ 0.23 (13.0%) Net earnings excluding nonrecurring merger costs(1) $ 8,643 $ 6,520 32.6% Earnings per share excluding nonrecurring merger costs(1) $ 0.29 $ 0.23 26.1% Average shares outstanding 29,304 28,843 1.6%
Twelve Months Ended
December 31,
1994 1993 % Change
Operating revenues $747,309 $639,334 16.9%
Operating earnings 57,218 44,454 28.7%
Nonrecurring merger costs 3,355 - -%
Earnings before income
taxes and minority interest 56,013 44,848 24.9%
Net earnings $ 28,091 $ 23,318 20.5% Earnings per share $ 0.96 $ 0.82 17.1% Net earnings excluding nonrecurring merger costs(1) $ 31,446 $ 23,318 34.9% Earnings per share excluding nonrecurring merger costs(1) $ 1.08 $ 0.82 31.7% Average shares outstanding 29,111 28,511 2.1%
December 31,
Enrollment by market: 1994 1993 % Change
Western Pennsylvania 235,185 211,781
Central Pennsylvania 137,000 120,611
St. Louis 134,829 131,485
Richmond 47,800 38,511
Jacksonville(2) 26,143 6,930
Total 580,957 509,318 14.1%
January 1,
1995 1994 % Change
Western Pennsylvania 247,976 230,891
Central Pennsylvania 146,100 128,783
St. Louis 141,422 133,086
Richmond 50,075 41,485
Jacksonville(2) 27,615 10,215
Total 613,188 544,460 12.6%
(1)Nonrecurring costs result from the merger with Southern Health
Management Corporation in December 1994.
(2)Transaction announced February 6, 1995, expected to close
approximately April 1995.
CONTACT: Coventry Corporation, Nashville Richard H. Jones, 615/391-2440 |
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