MAMSI Announces Third Quarter Earnings: Net Income up 54%.Business Editors/Health & Medical WritersROCKVILLE, Md.--(BUSINESS WIRE)--Nov. 8, 2000 Mid Atlantic Mid Atlantic can mean:
MAMSI Middle-Aged Men's Snowboarding Initiative (Minnesota) ) (NYSE NYSE See: New York Stock Exchange :MME See Multimedia Extensions. ), one of the mid-Atlantic region's largest managed care companies, today reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.28 for the third quarter of 2000. "MAMSI's strong third quarter affirms that we are moving in the right direction with our focus on disciplined pricing, diversified diversified (di·verˑ·s products offering access to a large physician network and excellent service to members and health care practitioners," remarked Mark D. Groban, M.D., Chairman of the Board. "The Company is well positioned to maintain its earnings and membership growth." The Selected Income Statement Information below summarizes the Company's third quarter performance.
Selected Income Statement Information
(In thousands except share amounts, unaudited)
3Q 2000 3Q 1999 YTD 2000 YTD 1999
----------------------------------------------------------------------
Revenue $ 371,428 $ 335,250 $1,099,880 $ 971,978
Expenses $ 356,779 $ 324,689 $1,060,998 $ 945,376
Income Before
Taxes $ 14,649 $ 10,561 $ 38,882 $ 26,602
Net Income $ 10,974 $ 7,120 $ 26,889 $ 17,497
Basic Earnings
per Common
Share $ 0.29 $ 0.17 $ 0.71 $ 0.42
Weighted
Average Shares
Outstanding 37,388 40,896 38,026 41,751
Diluted
Earnings per
Common Share $ 0.28 $ 0.17 $ 0.69 $ 0.42
Weighted
Average
Shares
Outstanding 38,994 40,928 38,858 41,802
Net income increased 54% over the third quarter of 1999 while diluted earnings per share increased 65% due to the effect of the Company's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The third quarter of 2000 included favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. one-time tax adjustments amounting to $1,300,000 or $0.03 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. Net income per diluted share excluding these adjustments was $0.25. Commercial health premiums for the third quarter of 2000 were up 10.2% on a per member per month basis over the third quarter of 1999 and totaled $353,090,000. Commercial medical expenses incurred in the third quarter of 2000 were up 8.8% on a per member per month bases over the third quarter of 1999 and totaled $306,221,000. The medical care ratio for the third quarter of 2000 was 86.7%, a 120 basis point improvement over the commercial medical care ratio for the third quarter of 1999. Administrative expenses totaled $44,178,000 in the third quarter of 2000 and were 11.9% of revenue. This compares with 11.2% of revenue for the third quarter of 1999. For the nine months ended September 30, 2000, net income increased 54% over the nine months ended September 30, 1999 and diluted earnings per share increased 64%. Commercial health premiums were up 10% for the nine months ended September 30, 2000 on a per member per month basis over the same period in 1999 and totaled $1,039,324,000. For the nine months ended September 30, 2000, commercial medical expenses were up 8.5% on a per member per month basis over the same period in 1999 and totaled $904,060,000. The medical care ratio for the nine months ended September 30, 2000 was 87.0% compared with 88.2% of the same period in 1999, a 120 basis point improvement. Administrative expenses were 11.8% of revenue for the first nine months of 2000 compared with 11.4% of revenue for the comparable period in 1999. Commercial membership in MAMSI's subsidiaries continued to grow. As of September 30, 2000, membership in all MAMSI's subsidiaries was 1,791,300 covered lives. Membership by product is as follows:
Increase/
Product 9-30-00 9-30-99 (Decrease) % Change
--------------------------------------------------------------------
HMO/Commercial (1) 758,300 725,000 33,300 4.6%
HMO Medicaid --0-- 37,000 (37,000) (100.0%)
ASO 11,000 11,000 --0-- --0--
--------- --------- ---------
Subtotal 769,300 773,000 (3,700) (0.5%)
PPO 1,022,000 1,070,000 (48,000) (4.5%)
--------- --------- ---------
Total 1,791,300 1,843,000 (51,700) (2.8%)
(1) Includes indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. members MAMSI also announced: -- The Board of Directors has authorized an additional $10,389,000 for the share repurchase program. This brings the total amount currently authorized for the share repurchase program to $20 million total. -- Since October 1, 2000, the Company has repurchased 132,300 shares of its common stock, bringing the total shares repurchased year to date to 2,569,800. -- Optimum Choice of the Carolinas, Inc. (OCCI) is now marketing an open access HMO product to employers in North Carolina. -- The Company's third quarter conference call will be broadcast on its Web site. Interested persons may listen to the conference call on November 9, 2000 at 11 a.m. on www.mamsi.com. Those without access to the Internet may listen to the conference call by phone at 1-703-871-3627. Interested persons may listen to the conference call at a later time by calling the replay number 1-703-925-2533, passcode 4670802. "We are pleased with our third quarter earnings and will continue to improve our market position," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs P. Barbera, 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. . "We are developing our technology applications and improving our mix of product offerings to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our business advantages in the Mid-Atlantic region." MAMSI's subsidiaries operate in Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , 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). , 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. , Pennsylvania, 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. , Delaware and Washington, D.C. Note 1: 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. Statement under 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: All forward-looking information or statements contained in this release, including expectations regarding future or continued performance, are based on management's current knowledge of factors, all with inherent risks and uncertainties, affecting MAMSI's business. MAMSI's actual results may differ materially if these assumptions prove invalid Null; void; without force or effect; lacking in authority. For example, a will that has not been properly witnessed is invalid and unenforceable. INVALID. In a physical sense, it is that which is wanting force; in a figurative sense, it signifies that which has no effect. . Significant risk factors, while not all-inclusive, are: the possibility of increasing price competition in the Company's marketplace; the possibility that the Company is not able to increase its market share at the anticipated premium rate; the possibility of increased litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , legislation or regulation that might increase regulatory oversight
Oversight may refer to:
Note 2: MAMSI is a regional holding company for health care organizations that provides comprehensive health insurance products and services including: three health maintenance organizations, MD-Individual Practice Association, Inc. (M.D. IPA IPA - International Phonetic Alphabet ), Optimum Choice, Inc.(R)(OCI OCI Oracle Call Interface OCI Organisation de la Conférence Islamique (French: Organization of the Islamic Conference) OCI Other Comprehensive Income OCI Office of the Commissioner of Insurance OCI Organizational Conflict of Interest ) and Optimum Choice of the Carolinas, Inc. (OCCI OCCI Osaka Chamber of Commerce and Industry (Osaka, Japan) OCCI Ontario Case Costing Initiative (Ontario, Canada) OCCI Oregon Center for Clinical Investigations, Inc OCCI Oracle C++ Call Interface ); two preferred provider organizations pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. , Alliance PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and Mid Atlantic Psychiatric psy·chi·at·ric adj. Of or relating to psychiatry. psychiatric adjective Pertaining to psychiatry, mental disorders Services, Inc.; a life and health insurance company, MAMSI Life and Health Insurance Company (MLH MLH Mellieha (postal locality, Malta) MLH Mint, Lightly Hinged MLH Major League Hockey MLH Michigan League of Handweavers MLH Mulhouse, France - Mulhouse (Airport Code) ); and home care companies such as HomeCall, Inc., FirstCall, Inc., and HomeCall Pharmaceutical Services, Inc.
MID ATLANTIC MEDICAL SERVICES, INC.
IN 000's EXCEPT PMPM AND PER SHARE
(UNAUDITED)
QUARTER ENDED QUARTER ENDED QUARTER ENDED
9/30/00 9/30/99 6/30/00
---------------------------------------
MEMBER MONTHS 2,264,435 2,259,662 2,275,074
MEMBER MONTHS - ASO 29,036 32,813 28,943
HEALTH PREMIUM $ 353,090 $ 318,794 $ 351,809
PMPM $ 155.93 $ 141.08 $ 154.64
FEE AND OTHER
5,409 5,224 5,308
LIFE AND SHORT-TERM
DISABILITY
2,040 2,089 1,983
HOME HEALTH SERVICES
7,455 6,531 6,026
INVESTMENT
3,434 2,612 3,213
TOTAL REVENUE 371,428 335,250 368,339
MEDICAL EXPENSE 306,221 281,050 308,147
PMPM $ 135.23 $ 124.38 $ 135.44
MEDICAL CARE RATIO 86.7% 88.2% 87.6%
LIFE AND SHORT-TERM
DISABILITY
552 934 957
HOME HEALTH COSTS
5,828 5,264 5,006
ADMINISTRATIVE 44,178 37,441 43,059
ADMIN EXPENSE RATIO 11.9% 11.2% 11.7%
INCOME BEFORE TAX 14,649 10,561 11,170
TAX PROVISION
3,675 3,441 3,857
EFFECTIVE TAX RATE 25.1% 32.6% 34.5%
NET INCOME $ 10,974 $ 7,120 $ 7,313
BASIC EPS $ 0.29 $ 0.17 $ 0.19
WEIGHTED AVERAGE SHARES 37,388 40,896 37,706
DILUTED EPS $ 0.28 $ 0.17 $ 0.19
WEIGHTED AVERAGE SHARES 38,994 40,928 38,443
NET MARGIN 3.0% 2.1% 2.0%
MEDICAL CLAIMS PAYABLE
AT END OF PERIOD $ 172,596 $ 151,320 $ 167,062
ADDITIONAL INFORMATION:
------------------------
MEDICAID PROGRAM:
PREMIUM $ -- $ 14,698 $ 2,437
PMPM $ -- $ 133.78 $ 190.05
MEDICAL EXPENSE -- 13,774 2,333
PMPM $ -- $ 125.38 $ 181.91
MEDICAL CARE RATIO -- 93.7% 95.7%
MID ATLANTIC MEDICAL SERVICES, INC.
IN 000's EXCEPT PMPM AND PER SHARE
(UNAUDITED)
NINE MONTHS NINE MONTHS
ENDED ENDED
9/30/2000 9/30/1999
------------- ------------
MEMBER MONTHS 6,827,120 6,663,650
MEMBER MONTHS - ASO 88,243 99,005
HEALTH PREMIUM $1,049,261 $ 925,335
PMPM $ 153.69 $ 138.86
FEE AND OTHER 15,935 16,063
LIFE AND SHORT-TERM
DISABILITY 5,990 6,043
HOME HEALTH SERVICES 19,120 17,279
INVESTMENT 9,574 7,258
TOTAL REVENUE 1,099,880 971,978
MEDICAL EXPENSE 913,053 817,635
PMPM $ 133.74 $ 122.70
MEDICAL CARE RATIO 87.0% 88.4%
LIFE AND SHORT-TERM
DISABILITY 2,332 2,849
HOME HEALTH COSTS 15,821 14,117
ADMINISTRATIVE 129,792 110,775
ADMIN EXPENSE RATIO 11.8% 11.4%
INCOME BEFORE TAX 38,882 26,602
TAX PROVISION 11,993 9,105
EFFECTIVE TAX RATE 30.8% 34.2%
NET INCOME $ 26,889 $ 17,497
BASIC EPS $ 0.71 $ 0.42
WEIGHTED AVERAGE SHARES 38,026 41,751
DILUTED EPS $ 0.69 $ 0.42
WEIGHTED AVERAGE SHARES 38,858 41,802
NET MARGIN 2.4% 1.8%
MEDICAL CLAIMS PAYABLE
AT END OF PERIOD $ 172,596 $ 151,320
ADDITIONAL INFORMATION:
MEDICAID PROGRAM:
PREMIUM $ 9,937 $ 38,124
PMPM $ 191.62 $ 125.56
MEDICAL EXPENSE 8,993 35,341
PMPM $ 173.41 $ 116.39
MEDICAL CARE RATIO 90.5% 92.7%
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