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HEALTH MANAGEMENT SYSTEMS, INC. REPORTS RECORD REVENUE AND EARNINGS FOR THIRD QUARTER 1993

 NEW YORK, Sept. 7 /PRNewswire/ -- Health Management Systems, Inc. (NASDAQ: HMSY) today announced fiscal 1993 third quarter results reflecting record levels of revenue, operating profitability, net income and earnings per share.
 HMSY's third quarter revenue of $11.519 million exceeded revenue realized in the comparable period in 1992 by 20 percent and represented the fifth consecutive quarter of revenue growth. HMSY's three proprietary service offerings (RCR(SM), CAMS(SM) and TPLR(SM)) accounted for 83 percent of consolidated revenue, and increased 23 percent from the third quarter of fiscal 1992. Revenue of $32.938 million during the first nine months of 1993 increased 17 percent from the comparable prior year period, while revenue attributable to the company's three proprietary services grew 23 percent. HMSY's third quarter operating margin was 20 percent, and operating income increased 114 percent from the third quarter of fiscal 1992, to $2.298 million. Improved operating profitability, combined with substantially reduced levels of interest expense, contributed to the realization of net income (before extraordinary item) of $1.253 million and $3.159 million during the third quarter and first nine months of fiscal 1993, respectively.
 Paul J. Kerz, chief executive officer, said, "In an environment of rising costs and diminishing reimbursement, the company's capacity to enhance revenue and reduce administrative costs for providers and payors of healthcare translates to a full pipeline of business from both existing and new clients for the company's proprietary service offerings. New functionality available from the company's electronic media claiming subsidiary accounts for a renewed, modest growth in this line of business."
 HMSY provides information management and data processing services to hospitals and other healthcare providers, healthcare payors and other companies serving the healthcare industry. The company's services constitute an outsourcing of various aspects of the information processing functions associated with the healthcare payment process.
 HEALTH MANAGEMENT SYSTEMS, INC.
 Consolidated Statements of Operations
 (Unaudited, in thousands except per share amounts)
 Period ended Three months Nine months
 July 31, 1993 1992 1993 1992
 Revenue $11,519 $ 9,621 $32,938 $28,064
 Cost of services:
 Compensation 5,605 4,887 16,334 14,637
 Occupancy 1,068 1,093 3,144 3,023
 Other 2,508 2,073 6,995 5,504
 Total 9,181 8,053 26,473 23,164
 Operating margin 2,338 1,568 6,465 4,900
 Amort. of intangibles 40 496 263 2,669
 Operating income 2,298 1,072 6,202 2,231
 Merger termination
 expense 0 0 0 (7,133)
 Other income
 (expense), net 61 (612) (351) (1,896)
 Income (loss) before
 income tax expense 2,359 460 5,851 (6,798)
 Income tax expense (1,106) (249) (2,692) (253)
 Income (loss) before
 extraordinary item 1,253 211 3,159 (7,051)
 Extraordinary item 0 0 (306) 0
 Net income (loss) 1,253 211 2,853 (7,051)
 Accretion of preferred
 stock redemption value 0 (46) (33) (139)
 Income (loss)
 attributable to
 common stockholders 1,253 165 2,820 (7,190)
 Per common share:
 Net income (loss) bef.
 extraord. item $.21 $.05 $.56 $(2.33)
 Extraord. item .00 .00 (.05) .00
 Net income (loss) .21 .05 .51 (2.33)
 Weighted average shares 6,003 3,256 5,540 3,083
 Consolidated Condensed Balance Sheets
 (In thousands)
 7/31/93 10/31/92
 (unaudited)
 Assets:
 Current assets $ 32,154 $ 18,544
 Property and equipment, net 5,474 3,148
 Intangible assets 5,684 5,947
 Other 1,995 2,838
 Total assets 45,307 30,477
 Liabilities and Stockholders'
 Equity (Deficiency):
 Current liabilities $ 6,938 $ 7,064
 Long-term debt 262 19,458
 Other liabilities 651 539
 Deferred income taxes 4,270 4,279
 Total liabilities 12,121 31,340
 Redeemable preferred stock 0 1,134
 Stockholders' equity
 (deficiency) 33,186 (1,997)
 Total liabilities and
 stockholders' equity
 (deficiency) 45,307 30,477
 -0- 9/7/93
 /CONTACT: Scott A. Remley, chief financial officer of Health Management Systems, Inc., 212-685-4545, or Laura A. Plevyak of Noonan/Russo Communications, 212-696-4455, ext. 205/
 (HMSY)


CO: Health Management Systems, Inc. ST: New York IN: HEA SU: ERN

GK-MP -- NY027 -- 9265 09/07/93 10:42 EDT
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Publication:PR Newswire
Date:Sep 7, 1993
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