COVENTRY CORPORATION REPORTS THIRD QUARTER RESULTS.NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 8, 1996-- THIRD QUARTER HIGHLIGHTS: - Permanent Chief Executive Officer appointed - On target to achieve over $1 billion in revenues by year-end - Total membership increased to 877,424 as of September 30, 1996 - 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 members increased by 27% over second quarter - SG&A decreased for second consecutive quarter - Medical loss ratio improves sequentially over prior quarter - Group Health Plan awarded provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. by NCQA NCQA National Committee on Quality Assurance, see there Coventry Corporation (Nasdaq/NM:CVTY) reported operating results for the third quarter and nine months ended September 30, 1996. For the third quarter ended September 30, 1996, revenues totaled $272.9 million, a 29.3% gain over the prior year's $211.1 million. Net earnings for the third quarter were $300,000, or $0.01 per share, compared with $1.5 million, or $0.05 per share, for the year-earlier period. For the first nine months of 1996, revenues were $767.6 million, up 21.9% over prior year revenues of $629.7 million. Net loss for the nine-month period was $9.1 million, or $0.28 per share, compared with earnings of $13.5 million, or $0.42 per share, for the prior year. During the quarter, the Company announced several personnel changes. Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. F. Wise, was appointed president and chief executive officer, replacing Lawrence N. Kugelman, who had been serving as the interim president and chief executive officer since December 1995. Mr. Kugelman will remain on the Board and Mr. Wise was also added to Coventry's Board of Directors. Richard H. Jones, former senior vice president finance and development, was promoted to president and chief executive officer of Group Health Plan, a Coventry subsidiary in St. Louis, Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. . In his new position, Mr. Jones will have
responsibility for all operational activities in Missouri and 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. . Mr. Jones will also remain on Coventry's Board of Directors. Allen F. Wise, president and chief executive officer of Coventry Corporation, said, "Coventry recognizes the challenges of a more competitive marketplace. Clearly, there is much work to be done. Specifically, we must execute the basics of our business better. But, we have made progress in several areas including significant enrollment gains, recontracting of medical services, global capitation CAPITATION. A poll tax; an imposition which is yearly laid on each person according to his estate and ability. 2. The Constitution of the United States provides that "no capitation, or other direct tax, shall be laid, unless in proportion to the census, or of medical costs, capitation of specialists and ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services, and improved health center operations. As we move forward, we will continue to improve the focus of our management team." In September 1996, the Health Care Financing Administration Health Care Financing Administration, n.pr department in the U.S. agency of Health and Human Services responsible for the oversight of the Medicaid and Medicare benefit programs, including guidelines, payment, and coverage policies. (HCFA HCFA abbr. Health Care Financing Administration HCFA, n.pr See Health Care Financing Administration. ) announced that the national Medicare average payment rate for 1997 increased by 5.9% over the prior year. Currently, Coventry has introduced Medicare risk products in three of its regional markets. Coventry's 1997 average Medicare payment Noun 1. medicare payment - a check reimbursing an aged person for the expenses of health care medicare check bank check, check, cheque - a written order directing a bank to pay money; "he paid all his bills by check" rates reflected a 9.2% increase in the St. Louis market, an 8.7% increase in Pittsburgh and a 7.3% increase in Harrisburg, which are well above HCFA's 5.9% national average payment increase. During the third quarter, Coventry entered into a definitive agreement to sell Champion Dental to First Commonwealth, Inc. (Nasdaq/NM:FCWI). Champion Dental is a managed care dental plan, consisting of 60,000 members, owned by Group Health Plan, Coventry's 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 in St. Louis, Missouri. Also during the quarter, Coventry's St. Louis plan, Group Health Plan, was awarded provisional accreditation by the National Committee of Quality Assurance (NCQA). Provisional accreditation is effective for 15 months with a resurvey re·sur·vey tr.v. re·sur·veyed, re·sur·vey·ing, re·sur·veys To survey or study anew. n. A new survey or study. Noun 1. scheduled for October 1997. In closing, Mr. Wise said, "We believe we are in the right business in great markets. We are convinced we can deliver more cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. care and reduce medical loss ratios while we improve quality and enhance the value of our shareholders' investment." 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 and services to a broad cross section of employer and government-funded groups 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 , Ohio, 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 Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Missouri, Illinois, 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 Florida. 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; Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. ; and 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. . This press release contains forward-looking information. The 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. are made pursuant to 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. Forward-looking statements may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission for the year ended December 31, 1995. -0-
COVENTRY CORPORATION
Unaudited Financial Highlights
(In thousands, except per share and membership data)
Three Months Ended Nine Months Ended
September 30, September 30,
Percent Percent
1996 1995 Change 1996 1995 Change
Operating
revenues $272,903 $211,137 29.3% $767,577 $629,657 21.9%
Operating earnings
(loss) 143 1,118 (87.2%) (16,975) 22,135 (176.7%)
Earnings (loss)
before income
taxes and minority
interests 417 2,546 (83.6%) (15,446) 24,453 (163.2%)
Net earnings (loss) 348 1,494 (76.7%) (9,148) 13,541 (167.6%)
Earnings (loss) per
share 0.01 0.05 (80.0%) (0.28) 0.42 (166.7%)
Weighted average
number of common
and common
equivalent shares
outstanding 33,021 31,952 3.3% 32,839 32,106 2.3%
COVENTRY CORPORATION
UNAUDITED FINANCIAL HIGHLIGHTS
September 30,
1996 1995 % Change
Total enrollment by market:
Western Pennsylvania 301,215 249,419 20.8%
Central Pennsylvania 238,567 154,520 54.4%
St. Louis (1) 238,704 189,146 26.2%
Richmond 73,302 63,249 15.9%
Jacksonville 25,636 26,756 (4.2%)
Total 877,424 683,090 28.4%
Risk enrollment by market:
Western Pennsylvania (1) 259,225 220,201 17.7%
Central Pennsylvania 166,606 116,632 42.8%
St. Louis (1) 214,031 177,470 20.6%
Richmond 60,932 55,591 9.6%
Jacksonville 25,636 26,756 (4.2%)
Total 726,430 596,650 21.8%
Nonrisk enrollment 150,994 86,440 74.7%
Total 877,424 683,090 28.4%
Total enrollment by product:
Commercial HMO 424,032 411,712 3.0%
Commercial POS 174,901 110,207 58.7%
Medicare risk 16,873 - n/a
Medicaid 110,624 74,731 48.0%
Nonrisk 150,994 86,440 74.7%
Total 877,424 683,090 28.4%
(1) Western Pennsylvania and St. Louis enrollments include
respective geographic Medicaid enrollment.
Certain 1995 memberships have been reclassified to conform to 1996
presentations.
COVENTRY CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Operating revenues:
Managed care premiums $ 269,602 $ 209,324 $ 757,277 $ 623,633
Managed care services 3,301 1,813 10,300 6,024
Total operating revenues 272,903 211,137 767,577 629,657
Operating expenses:
Health benefits 232,678 177,981 655,322 513,202
Selling, general and
administrative 35,968 28,329 102,914 81,403
Depreciation and
amortization 4,114 3,709 12,111 10,667
Termination and related
costs - - 5,962 -
Provision for multi-year
contracts - - 8,243 -
Merger costs - - - 2,250
Total operating
expenses 272,760 210,019 784,552 607,522
Operating earnings (loss) 143 1,118 (16,975) 22,135
Other income, net of
interest expense 274 1,428 1,529 2,318
Earnings (loss) before
income taxes
and minority interest 417 2,546 (15,446) 24,453
Provision for (benefit
from) income taxes 167 1,081 (6,178) 10,956
Minority interest in
earnings (loss) of
consolidated subsidiary,
net of income tax (98) (29) (120) (44)
Net earnings (loss) $ 348 $ 1,494 $ (9,148) $ 13,541
Net earnings (loss) per
common and common
equivalent share $ 0.01 $ 0.05 $ (0.28) $ 0.42
Weighted average number
of common and common
equivalent shares
outstanding 33,021 31,952 32,839 32,106
Certain 1995 amounts have been reclassified to conform to 1996
presentations.
COVENTRY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
September 30, December 31,
1996 1995
(Unaudited)
ASSETS:
Current assets:
Cash and short term investments $ 96,221 $ 85,843
Other current assets 78,313 57,593
Total current assets 174,534 143,436
Long-term investments 63,083 68,258
Other long-term assets 208,186 173,981
TOTAL ASSETS $ 445,803 $ 385,675
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Medical claim liabilities $ 105,545 $ 92,160
Other current liabilities 88,879 64,103
Total current liabiliti 194,424 156,263
Long-term liabilities 99,455 75,561
Total liabilities 293,879 231,824
Stockholders' equity 151,924 153,851
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 445,803 $ 385,675
CONTACT: Coventry Corp., Nashville Richard H. Jones, (615) 391-2448 or Scott Whitaker, (615) 231-1159 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion