Coastal Physician Group, Inc. Reports Second Quarter and Six-Month Results.DURHAM, N.C.--(BUSINESS WIRE)--Aug. 14, 1995--Coastal Physician Group, Inc. (NYSE NYSE See: New York Stock Exchange : DR) today announced financial results for the second quarter and six-month period ended June 30, 1995. Total net operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the second quarter of 1995 was $211,342,000 up 18.4% over second quarter 1994 revenue of $178,453,000. The second quarter operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was $12,406,000, compared with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $12,042,000 for the second quarter last year. Approximately $12,300,000 of this change was a result of the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in south Florida operations. The Company reported a net loss for the second quarter of $10,491,000, or $0.44 per share, compared to net income of $5,900,000, or $0.27 per share, in the second quarter of 1994, which can be primarily attributed to a significant operating loss reported in the Company's south Florida capitated clinic operations, as well as additional costs related to the Company's allowances for contractual adjustments and uncollectibles and other miscellaneous expenses in Coastal's billing operations. Excluding the net effect of the operating loss from south Florida, certain non-recurring charges, acquisition expenses and other costs, net income after taxes for the quarter was approximately $900,000, or $0.04 per share. Weighted average shares outstanding for the 1995 second quarter increased 8% to 23,657,000, compared to 21,898,000 shares in the 1994 second quarter, which was primarily the result of shares issued in connection with acquisitions. For the six-month period ended June 30, 1995, total net operating revenue was $419,201,000, up 18.4% over revenue of $354,098,000 for the first six months of 1994. The operating loss for the first half of 1995 was $1,026,000, compared with operating income of $22,687,000 reported for the same period last year. Net loss for the first half of 1995 was $4,124,000, or $0.17 per share, versus net income of $8,848,000, or $0.41 per share, in the same period in 1994. South Florida Clinic Operations In the second quarter ended June 30, 1995, the south Florida operations sustained an operating loss of approximately $6,600,000. This was due to higher than expected medical utilization rates, primarily in the pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. 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 areas, certain retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a cost adjustments and the pass-through of additional pharmacy benefit costs made by Coastal's primary payor in this market, and changes in the amounts and manner in which the Company reimburses providers. The Company has received preliminary proposals from several well-capitalized public entities to either partner with or acquire Coastal's south Florida clinic operations, which may include an ongoing management contract and the continued operation of a majority of the clinic sites. Coastal has retained an investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. to help facilitate the process. Confidentiality agreements are in effect and therefore financial terms as well as the identity of the parties cannot be disclosed at this time. Summary "We experienced lower overall operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: primarily due to the operating loss generated in the Company's south Florida business unit, losses from our start-up HMOs in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and costs associated with developing our IPA IPA - International Phonetic Alphabet management services and MSO (1) (Multiple System Operator) Typically refers to a cable TV organization that owns more than one cable system, but it may refer to an operator of only one system. products. In addition, operating margins for Coastal's contract management and billing businesses were slightly lower than expected," said Steven M. Scott, M.D., President and Chief Executive Officer of Coastal Physician Group, Inc. "While these factors may continue to pressure operating margins in the short term, we feel the investments in new businesses and infrastructure will strategically position Coastal for growth in 1996," Scott continued. "In addition, we are in the process of actively implementing strategies to leverage our core businesses. Coastal will continue with its plan to make significant investments in information systems and software through calendar 1995 and 1996. This will allow the Company to realize initial cost savings beginning in the first quarter of 1996, as well as enhance management of our operations as the health care industry continues to evolve rapidly. "We are positioning our Company to provide physicians with real-time, enhanced information, which is the cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to to managing patient care while continuing to deliver the highest quality care in this rapidly changing marketplace. We believe that physicians are best suited to make medical decisions regarding the health and welfare of their patients, and we will continue with our vision and strategy to serve as an integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. of physician-directed health care delivery systems in targeted markets," Scott concluded. Coastal Physician Group, Inc. is one of the largest publicly-traded physician management companies in the U.S. and provides a broad range of health care and administrative services to physicians, hospitals, employers, managed care programs and other health care providers. -0-
Coastal Physician Group, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
1995 1994 1995 1994
Operating revenue, net $ 211,342 $ 178,453 $ 419,201 $ 354,098
Costs and expenses:
Physician and other
provider services 161,250 124,497 305,414 249,772
Medical support services 35,761 25,483 66,740 48,734
Selling, general and
administrative 26,737 16,431 48,073 32,905
Total costs and expenses 223,748 166,411 420,227 331,411
Operating income (loss) (12,406) 12,042 (1,026) 22,687
Other income (expense):
Interest expense (1,886) (511) (3,051) (972)
Interest income 274 662 467 1,153
Acquisition and related
expenses (919) (1,512) (919) (5,514)
Other, net (1,383) 2 (1,362) (527)
Total other income
(expense) (3,914) (1,359) (4,865) (5,860)
Income (loss) before
income taxes (16,320) 10,683 (5,891) 16,827
Provision (benefit) for
income taxes (5,829) 4,783 (1,767) 7,979
Net income (loss) $ (10,491) $ 5,900 $ (4,124) $ 8,848
Net income (loss) per share $ (0.44) $ 0.27 $ (0.17) $ 0.41
Weighted average number of
shares outstanding 23,657 21,898 23,598 21,728
CONTACT: Coastal Physician Group, Inc., Durham Stephen D. Corman, 919/383-0355 Robert P. Borchert, 919/383-0355 or 800/476-4587 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion