Financial News from Wellcare Management Group, Inc.; WellCare Announces Results for 1995 Year End and Fourth Quarter.Management Group, Inc. (Nasdaq: WELL), parent company of WellCare of 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 , Inc. and WellCare of Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , Inc., announced that net income in 1995 rose to $7.8 million, or $1.25 per share, as compared to $6.2 million, or $1.00 per share, for the prior year. Revenue for 1995 totaled $156.2 million, an increase of 27.4 percent from $122.6 million for the prior year. Net income for the fourth quarter of 1995 was $2.4 million, or $.38 per share, on total revenues of $44.3 million, compared to net income of $2.0 million, or $.31 per share, on revenues of $32.0 million for the prior year's fourth quarter. The results for 1995 reflect an increase of 23.2 percent in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income. The medical loss ratio for 1995 was 79.0 percent, as compared to 77.8 percent for 1994. "We are very pleased with the results for 1995. It was a great year for us financially and in terms of product innovation, operational growth and geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. expansion. We began the year with a service area of about 3.6 million people and ended with 12 million," said Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide A. Ullmann Ulmann (variations: Ullmann, Ullman) is a surname originating from "Ulmer Mann" (person from Ulm, Germany). Another explanation is that the name goes back to the Old High German word Uodalrich (uodal = heritage; rich = powerful). , WellCare President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In 1995, we substantially advanced WellCare's vision for health care, and we look forward to seeing the fruits of our labors into the 21st Century." Total general and administrative expenses represented 15.5 percent of total revenue for 1995, as compared to 12.7 percent in 1994. Total assets at December December: see month. 31, 1995 were $76.4 million compared with $55.7 million at December 31, 1994. In 1995, enrollment in plans managed by WellCare increased to 100,054 from 82,494 on December 31, 1994, a 21.3 percent increase. Enrollment growth lagged slightly behind expectations due to a moratorium A suspension of activity or an authorized period of delay or waiting. A moratorium is sometimes agreed upon by the interested parties, or it may be authorized or imposed by operation of law. placed upon New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. 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. marketing on August 1, 1995, that still has not been fully lifted. 1995 WellCare highlights include:
o In April, WellCare acquired Managed Care Administrators, Inc.
("MCA"), marking WellCare's first entry into the managed care
market in New York City. MCA managed a network of primary care
physicians that provided health care services to Medicaid
recipients in Manhattan and Queens.
o In July, WellCare received approval from the New York State
Department of Health to expand its service area into the New York
City Boroughs of Manhattan, Queens, Brooklyn and the Bronx. In
August, WellCare received regulatory approvals to offer Healthy
Choice in those boroughs.
o In March, WellCare of Connecticut, Inc. received licensure from
the Connecticut Department of Insurance to operate an HMO in that
state. WellCare has focused its initial marketing efforts in the
western part of the state which is contiguous to the company's
Hudson River Valley service area.
o In August, WellCare received approval from the Federal Health
Care Financing Administration to offer WellCare Senior Health, a managed
care risk program for Medicare beneficiaries, in eight counties of
the WellCare service area. The program is offered in Albany,
Rensselaer, Greene, Columbia, Ulster, Dutchess, Orange and Rockland
counties, a service area with more than 300,000 Medicare
beneficiaries.
o In August, WellCare received One-Year Accreditation from
the National Committee for Quality Assurance, an independent
not-for-profit organization that accredits managed care
organizations.
o In 1995, WellCare advanced the development of its health care
delivery system by executing new three year risk-sharing, or
capitation, agreements with physician alliances in its Hudson
Valley service area. These alliances provide health care services
to more than 80 percent of WellCare's membership.
o In April, WellCare executed a risk-sharing agreement with
ExcelCare, a consortium of more than 600 Westchester County
physicians and four hospitals. WellCare anticipates receiving a
license to operate in Westchester County in early 1996.
o In 1995, WellCare entered arrangements with several specialist
and provider groups to manage costs through global budgets and
capitation. These specialists and provider groups include
radiologists (through New York Medical Imaging), a new Laboratory
PPO and physical therapists.
o In the spring of 1995, WellCare markedly improved its information
systems with the opening of the WellCare Information Center which
brings state-of-the-art information technology to bear on every
business function including claims processing, physician payments,
utilization reporting and the company's internal and external
communications. WellCare information systems were also
significantly advanced in 1995 by the implementation of a new IBM
RISC System/6000, which provides ready access to information that
was previously only available through AMISYS, WellCare's database.
The implementation was done in partnership with IBM Corporation and
was featured in PC Week and the national IBM magazine
"Aixcellence."
o During 1995, WellCare University became operational as a center
for strategic planning and managed care research and development.
Additionally, WellCare University entered into pastorships with
Smith Kline Beecham, Astra Merck Inc. and Diversified Pharmaceutical
Services. An early contribution of WellCare University was the
development of Bienestar, a new wellness product for 1996 which
includes coverage for chiropractic care, acupuncture, nutritional
counseling and a proactive approach to member care.
o In April 1995, Healthy Choices, WellCare's managed care program
for Medicaid recipients, won the prestigious Astra Merck-National
Managed Care Congress Partnership Award which was presented at the
Seventh Annual National Managed Health Care Congress held in
Washington, D.C.
o The WellCare Foundation, an independent not-for-profit agency,
was established in March to maintain a grant giving program for
community organizations dedicated to charitable, educational and
scientific purposes with the goal of improving the quality of life
in the communities served by WellCare.
WellCare currently provides cost-effective comprehensive health
care services in a service area extending from New York City to the
southern Adirondacks, incorporating the Hudson River Valley, west into
the Mohawk River Valley and Southern Tier counties, and east into
bordering areas of Connecticut.
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Enclosures: Selected Balance Sheet Information and Selected Financial
Information
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THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
SELECTED BALANCE SHEET INFORMATION
(in thousands)
December 31, December 31,
1995 1994
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $ 6,712 $ 9,950
Accounts receivable 14,623 7,275
Other current assets 14,976 7,205
TOTAL CURRENT ASSETS 36,311 24,430
PROPERTY AND EQUIPMENT - NET 12,993 11,902
OTHER ASSETS:
Restricted cash - statutory reserve 8,241 6,584
Goodwill - net 8,626 7,507
Other non-current assets 10,221 5,251
TOTAL $76,392 $55,674
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Medical costs payable $ 9,237 $ 8,796
Other current liabilities 7,035 8,265
TOTAL CURRENT LIABILITIES 16,272 17,061
LONG-TERM LIABILITIES 19,400 6,526
TOTAL LIABILITIES 35,672 23,587
SHAREHOLDERS' EQUITY 40,720 32,087
TOTAL $76,392 $55,674
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(in thousands, except per share amounts)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
1995 1994 1995 1994
REVENUE:
Premiums earned $39,755 $31,759 $145,170 $120,411
Other income 4,569 240 11,043 2,171
TOTAL REVENUE 44,324 31,999 156,213 122,582
EXPENSES: Medical expenses 31,382 22,952 114,718 93,700 General and administrative expenses 7,818 4,942 24,232 15,599 Depreciation and amortization expense 761 529 2,289 1,611 Interest and other expense 532 257 1,950 1,099 TOTAL EXPENSES 40,493 28,680 143,189 112,009 INCOME BEFORE INCOME TAXES 3,831 3,319 13,024 10,573 PROVISION FOR INCOME TAXES 1,450 1,363 5,210 4,335 NET INCOME $2,381 $1,956 $7,814 $6,238 NET EARNINGS PER SHARE $0.38 $0.31 $1.25 $1.00 Weighted average number of common and common equivalent shares outstanding 6,272 6,224 6,250 6,226 CONTACT: Marystephanie Corsones, WellCare (914) 338-4110, Ext. 7230 or Melissa melissa: see bee balm. Wilmoth, Cameron Cam·er·on , Mount A peak, 4,342.6 m (14,238 ft) high, in the Rocky Mountains of central Colorado. Associates (212) 644-9560 |
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