Concentra Managed Care, Inc. Announces Second-Quarter 1998 Financial Results.BOSTON--(BW HealthWire)--July 30, 1998-- Revenues up 32%; 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. increases 55%; net income rises 50% over the second quarter last year Concentra Managed Care, Inc. (Nasdaq/NM:CCMC CCMC Commission for Case Manager Certification CCMC Communications Consortium Media Center CCMC Certified Career Management Coach CCMC Community Coordinated Modeling Center (NASA) ) today announced that revenues for the second quarter ended June June: see month. 30, 1998, increased 32% to $158,884,000, compared with revenues of $120,728,000 for the three months ended June 30, 1997. Operating income for the second quarter of 1998 increased 55% to $27,820,000, from $17,983,000 for the same period last year. Net income for the three months ended June 30, 1998, rose 50% to $14,161,000, or $0.30 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 with pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $9,440,000 or $0.21 per diluted share, for the same period last year. For the six months ended June 30, 1998, revenues increased 34% to $304,428,000, compared with revenues of $227,870,000 for the same period last year. Operating income for the first six months of 1998 grew 56% to $49,592,000 from $31,695,000 for the same period last year. Net income increased 49% to $24,608,000, or $0.52 per diluted share, compared with pro forma net income of $16,520,000, or $0.36 per diluted share, for the same period last year. The six month results for 1998 do not include a non-recurring charge of $12,600,000 ($9,600,000 after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , or $0.20 per diluted share) taken in the first quarter of 1998 for fees, expenses and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. primarily associated with the February February: see month. 1998 acquisition of Preferred Payment Systems. "The fact that we continue to report record revenues and net income demonstrates the power of the merged company and the response of our customers to our offerings across the entire episode of care," says Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. J. Larson Larson may refer to: People with the surname Larson:
Concentra Managed Care is the leading provider and comprehensive outsource solution for cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. and fully integrated care management in the occupational, auto, and group healthcare markets. Concentra offers prospective and retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. services to employers and insurers of all sizes, providing pre-employment testing, loss prevention services, first report of injury, injury care, specialist networks and 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. cost containment to the disability and automobile injury markets. The company has 123 field case management offices, with approximately 1,400 field case managers who provide medical management and return to work services in 49 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 Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . The company also has 85 service locations that provide specialized cost containment services including 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. , telephonic case management, and retrospective bill review. Under the name Concentra Medical Centers, the Company operates the nation's largest network of occupational healthcare centers, currently managing the practices of 259 physicians located in 148 centers in 39 markets in 21 states. This press release contains certain 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 the Company is making in reliance on 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 cautioned that all forward-looking statements involve risks and uncertainties, and that the company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the potential adverse impact of governmental regulation on the company's operations, and interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in its data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a capabilities, operational, financing and strategic risks related to the company's growth strategy, possible fluctuations in quarterly and annual operations, and possible legal liability for adverse medical consequences, competitive pressures, adverse changes in market conditions for the company's services, and dependence on key management personnel. Additional factors include those described in the company's Securities and Exchange Commission filings. -0-
Concentra Managed Care, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Restated Restated
REVENUES:
Field case
management $44,358,000 $34,632,000 $86,198,000 $67,021,000
Specialized cost
containment 47,124,000 33,431,000 91,503,000 61,801,000
Managed care
services 91,482,000 68,063,000 177,701,000 128,822,000
Health services 67,402,000 52,665,000 126,727,000 99,048,000
Total revenues 158,884,000 120,728,000 304,428,000 227,870,000
COST OF SERVICES:
Managed care
services 67,772,000 53,189,000 132,530,000 100,546,000
Health services 49,950,000 38,411,000 96,238,000 74,216,000
Total cost of
services 117,722,000 91,600,000 228,768,000 174,762,000
Total gross profit 41,162,000 29,128,000 75,660,000 53,108,000
General and
administrative
expenses 11,294,000 9,980,000 21,993,000 19,013,000
Amortization of
intangibles 2,048,000 1,165,000 4,075,000 2,400,000
Non-recurring
charge -- -- 12,600,000 --
Operating income 27,820,000 17,983,000 36,992,000 31,695,000
Interest expense 4,588,000 2,765,000 8,470,000 5,192,000
Interest income (1,429,000) (781,000) (1,662,000) (1,632,000)
Other, net 264,000 482,000 373,000 809,000
Income before
income taxes 24,397,000 15,517,000 29,811,000 27,326,000
Provision for
income taxes 10,236,000 5,395,000 14,803,000 9,501,000
Net income $14,161,000 $10,122,000 $15,008,000 $17,825,000
Pro forma net
income (1) $9,440,000 $16,520,000
Basic pro forma
and actual earnings
per share (1) $0.30 $0.22 $0.33 $0.39
Weighted average
common shares
outstanding 46,744,000 42,494,000 45,842,000 42,439,000
Diluted pro forma
and actual earnings
per share (1) $0.30 $0.21 $0.32 $0.36
Weighted average
common shares
and equivalents
outstanding 47,816,000 46,337,000 47,793,000 46,324,000
(1) Net income and earnings per share for the three and six
months ended June 30, 1997 have been calculated as if Preferred
Payment Systems, Inc. ("PPS") had been subject to federal and state
income taxes for the entire period, based upon an effective tax rate
indicative of the statutory rates in effect. Prior to its acquisition
by the company during the first quarter of 1998, PPS elected to be
taxed as an S corporation, and accordingly, was not subject to federal
and state income taxes in certain jurisdictions.
Concentra Managed Care, Inc.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1998 AND DECEMBER 31, 1997
(UNAUDITED)
June December
ASSETS 30, 1998 31, 1997
Restated
CURRENT ASSETS:
Cash and cash equivalents $ 121,922,000 $ 12,576,000
Accounts receivable, net 119,955,000 106,963,000
Prepaid expenses, tax assets
and other current assets 28,838,000 26,212,000
Total current assets 270,715,000 145,751,000
PROPERTY AND EQUIPMENT, AT COST 124,418,000 104,054,000
Less: Accumulated depreciation
and amortization (45,011,000) (38,351,000)
NET PROPERTY AND EQUIPMENT 79,407,000 65,703,000
GOODWILL AND OTHER INTANGIBLE
ASSETS, NET 269,963,000 262,592,000
OTHER ASSETS 15,676,000 8,925,000
$ 635,761,000 $ 482,971,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving credit facilities $ -- $ 49,000,000
Current portion of long-term debt 418,000 7,497,000
Accounts payable, accrued
income tax and expenses 63,967,000 52,136,000
Total current liabilities 64,385,000 108,633,000
LONG-TERM DEBT, NET OF
CURRENT PORTION 327,769,000 150,103,000
DEFERRED INCOME TAXES AND
OTHER LIABILITIES 16,323,000 17,794,000
STOCKHOLDERS' EQUITY :
Common stock 469,000 436,000
Paid-in capital 265,608,000 257,022,000
Retained deficit (38,793,000) (51,017,000)
Total stockholders' equity 227,284,000 206,441,000
$ 635,761,000 $ 482,971,000
-0- CONTACT: Joseph F. Pesce PESCE Peoples Education Society College of Engineering (India) , CFO See Chief Financial Officer. Concentra Managed Care, Inc. (617) 367-2163, Ext. 5101 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion