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MAMSI POSTS FIRST QUARTER EARNINGS; RECORD PERFORMANCE CONTINUES; MED LOSS RATIO DECLINES

 ROCKVILLE, Md., April 15 /PRNewswire/ -- Mid Atlantic Medical Services, Inc. ("MAMSI") (NASDAQ-NMS: MAMS), the leading managed care organization in the Maryland/D.C./Virginia service area, today posted record operating revenues and net income for the first quarter ended March 31, 1993.
 Earnings per share before extraordinary items were a record 36 cents for the first quarter of 1993 on 14,567,128 weighted average shares outstanding, compared with 25 cents per share on 14,243,496 weighted average shares outstanding for the same period in 1992. Net income per share was 31 cents, compared with 25 cents per share for the same quarter in 1992. Net income for the first quarter of 1993 reflects a 5 cents per share extraordinary charge to earnings due to the adoption of the new accounting rule for income taxes (SFAS 109).
 Operating revenues for the first quarter of 1993 were $160.8 million, compared with $135.4 million for the same period in 1992, an increase of $25.4 million, or 18.8 percent. Net income for the first quarter was $4.6 million, compared with $3.5 million for the same period in 1992, an increase of $1.1 million, or 31.4 percent. Medical expenses for the first quarter 1993 were $139.1 million, compared with $120.9 million for the same period in 1992. Administrative expenses for the first quarter of 1993 were $14.1 million, compared with $10.3 million for the same period in 1992.
 Total lives covered under all of MAMSI's managed care plans grew to 850,000 at March 31, 1993, up from 775,000 at Dec. 31, 1992, an increase of 75,000 lives or 9.7 percent. Specifically:
 -- MAMSI's HMO products, both large and small group, grew from 448,000 covered lives at Dec. 31, 1992, to 452,000 at March 31, 1993, an increase of 4,000 lives.
 -- Alliance PPO, Inc. and Mid Atlantic Psychiatric Services, Inc. (MAPSI), the company's non-risk products, together grew from 327,000 covered lives at Dec. 31, 1992, to 398,000 lives at March 31, 1993, an increase of 71,000 lives.
 Additionally, the company's provider network included 112 hospitals and 12,834 providers at March 31, 1993.
 In commenting on first quarter results, George T. Jochum, MAMSI's chairman, CEO and president, stated, "We are pleased that MAMSI had another excellent first quarter. This is the sixth year in which year- over-year first quarter earnings have exceeded the previous year by a substantial amount. While the quarter was also marked by much uncertainty over which direction will be taken to solve the health care crisis, all indications are that some form of managed care will emerge as the legislated method of delivering health care. MAMSI is positioned to respond and participate as a major player no matter what form of managed care is mandated. I believe that the same creative and responsive management that contributed to MAMSI's past successes will contribute to our future success and membership growth in 1993 and beyond."
 MAMSI is a regional holding company for health care organizations which provides comprehensive health insurance products. Products include: M.D. IPA, a traditional HMO, and M.D. IPA Preferred, an open-ended version of the HMO; Optimum Choice, Inc., a non-federally qualified HMO; MAMSOVA, a non-federally qualified Virginia HMO; Alliance PPO, a preferred provider organization; MAPSI, a preferred provider organization, and MAPSI Plus, both offering managed psychiatric health care services; MAMSI Life and Health Insurance Company, an indemnity insurance company that plans to develop and market a variety of managed care insurance products; and National Managed Care, Inc., a national network of regionally-dominant, independent HMOs.
 Mid Atlantic Medical Services, Inc., securities are registered with the Securities and Exchange Commission and are traded on the NASDAQ National Market System.
 MID ATLANTIC MEDICAL SERVICES, INC.
 Selected Income Statement Information
 (Unaudited; in thousands except share amounts)
 First quarter 1993 1992
 Operating revenues $160,818 $135,378
 Operating expenses 153,231 131,112
 Gross profit 7,587 4,266
 Income before extraordinary item 5,232 3,501
 Extraordinary items -- 11
 Cumulative effect of change in accounting method (663) --
 Net income $ 4,569 $ 3,512
 Earnings per common and common equivalent share:
 Income before extraordinary item $.36 $.25
 Extraordinary items .00 .00
 Cumulative effect of change in accounting method (.05) .00
 Net income $.31 $.25
 Weighted average common and common equivalent
 shares outstanding 14,567,128 14,243,496
 MID ATLANTIC MEDICAL SERVICES, INC.
 1993 Financial Performance Summary
 (Unaudited, $000s)
 First Quarter +/- Percent
 1993 1992 Variance Variance
 Premium revenues $159,522 $134,759 $24,763 18.4
 PMPM premiums 119.78 107.46 12.32 11.5
 Fee revenues 1,296 619 677 109.4 ? Tot


al
evenues 160,818 135,378 25,440 18.8
 Medical expenses 139,138 120,851 18,287 15.1
 PMPM 104.47 96.37 8.11 8.4
 Med loss ratio (premiums
 only) (percent) 87.2 89.7 (2.5)
 Administrative expenses 14,093 10,261 3,832 37.3
 PMPM 10.58 8.18 2.40 29.3
 Admin. exp. ratio (all rev.)
 (percent) 8.8 7.6 1.2
 Invest. income, other
 income/expense 555 936 (381)
 Equity in affil. & minority
 interest 154 158 (4)
 Income before tax 8,296 5,360 2,936 54.8
 Income tax provision 3,064 1,859 1,205
 Effective tax rate (percent) 36.9 34.7 2.3
 Net income before extraord. 5,232 3,501 1,731 49.4
 Extraordinary item and
 deferred taxes (663) 11 (674)
 Net income 4,569 3,512 1,057 31.4
 Net margin rate (percent) 3.3 2.6 0.7
 EPS - before extraordinary $.36 $.25 $.11 46.1
 EPS - extraordinary and
 deferred tax (.05) .00 (.05)
 EPS - net income $.31 $.25 $.07 27.2
 Weighted average shares 14,567,128 14,243,496
 MID ATLANTIC MEDICAL SERVICES, INC.
 Consolidated Condensed Balance Sheets
 3/31/93 12/31/92
 (Unaudited) (Audited)
 Assets
 Current assets $107,270 $91,681
 Property and equipment 26,341 26,042
 Other assets 12,798 12,633
 Total assets 146,409 130,356
 Liabilities and stockholders' equity:
 Current liabilities $89,942 $81,959
 Long-term debt 6,254 6,416
 Other liabilities 2,583 1,592
 Stockholders' equity 47,630 40,389
 Total liabilities and
 stockholders' equity 146,409 130,356
 -0- 4/15/93
 /CONTACT: Michael Savage of MAMSI, 301-294-5083/
 (MAMS)


CO: Mid Atlantic Medical Services, Inc. ST: Maryland IN: MTC SU: ERN

GK-TS -- NY012 -- 6114 04/15/93 10:20 EDT
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Date:Apr 15, 1993
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