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 ALEXANDRIA, Va., Aug. 13 /PRNewswire/ -- PHP Healthcare Corporation (NYSE: PPH) incurred a loss of $3.8 million for its fiscal year ended April 30, 1993, on sales of $126 million. When compared to the prior year, revenues increased 7 percent from $118 million, while net earnings decreased 188 percent from a profit of $4.3 million. Net earnings per share decreased to a net loss of 75 cents per share in fiscal 1993, compared with net earnings of 85 cents for fiscal 1992. This reduction in net earnings was due to, among other things, business development costs related to private sector expansion (including the write-off of amounts associated with a private sector project), proposal efforts related to government contracts (including the write-off of costs associated with the CHAMPUS Reform Initiative in California and Hawaii effort), the completion of long-term contracts and start-up of newly awarded contracts. In addition, the company has written down the value related to property held for sale and recorded a loss associated with a recent subleased office space.
 After four years of increasing sales and profits, fiscal 1993 was a transition year for PHP. As previously announced the company is being transformed from a primarily government contractor to a full service, primary care-based, managed health care company. During the year, the company was successful in winning a substantial portion of its military contracts that were up for re-competition, increasing its government contract backlog to approximately $400 million. PHP now has entered the private sector market through the acquisition of outpatient surgery centers, the finalization of an agreement to acquire an HMO operating in the District of Columbia, the acquisition of a consulting firm specializing in the design and development of provider networks and the initiation of operations at full service primary care centers for GTE Corporation and Bethlehem Steel.
 PHP intends to integrate these systems with its primary care gatekeeper clinics and delivery sites, providing a unique ability to manage the care of the patient from the primary care centers. Charles H. Robbins, president and chairman, stated: "It is our strong conviction that the primary care gatekeeper function will be the cornerstone of the health care reformation process. It is considered to be the most efficient, cost effective model of health care delivery. PHP's knowledge, experience and expertise in providing primary care services over the past eight years will position it to be a significant participant in the health care reformation."
 To capitalize on its expertise, PHP has begun to offer a new product, its "Integrated System of Care" (ISOC). This product provides the full array of PHP services, including primary care gatekeeper clinics, utilization management services, network design and development, physician practice management, and facilities design and development. "With this product," Robbins stated, "we are in a key position to address our emerging large scale markets for ISOC services, which include health insurers, large employers, coalitions of employers, managed care plans, hospital systems and major government programs such as MEDICAID."
 Consolidated Balance Sheets
 April 30, 1993 and 1992
 (In thousands, except share data)
 1993 1992
 Current assets:
 Cash and cash equivalents $ 3,988 $ 4,060
 Cash held in escrow 3,200 --
 Accounts receivable, net 20,650 19,759
 Income tax receivable 2,147 601
 Prepaid expenses 1,394 1,412
 Pharmaceutical and medical supplies 1,682 1,037
 Property held for sale, net 1,681 249
 Pre-operation contract costs 861 1,192
 Other current assets 1,555 174
 Total current assets 37,158 28,484
 Property and equipment, net 23,585 15,052
 Excess of cost over fair value
 of net assets acquired, net of
 accumulated amortization of $977
 in 1993 and $623 in 1992 11,735 11,303
 Other assets 1,343 903
 Total Assets $73,821 $55,742
 Liabilities and Stockholders' Equity
 Current Liabilities:
 Current maturities of notes
 payable to banks $ 2,723 $ 1,390
 Current maturities of
 notes payable-other 1,560 1,136
 Accounts payable 6,366 4,345
 Accrued salaries and benefits 5,347 4,598
 Billings in excess of costs 409 1,338
 Total current liabilities 16,405 12,807
 Billings in excess of costs,
 net of current portion -- 170
 Notes payable to banks, net of
 current maturities 25,380 2,901
 Notes payable-other, net of
 current maturities 3,508 4,513
 Deferred lease obligation 227 226
 Deferred income taxes -- 159
 Total liabilities 45,520 20,776
 Minority interest 2,568 2,340
 Stockholders' equity:
 Preferred stock, $0.01 par value,
 500,000 shares authorized, none
 issued -- --
 Common stock, $0.01 par value,
 10,000,000 shares authorized,
 7,070,851 shares issued in 1993,
 and 7,062,577 issued in 1992 71 71
 Additional paid-in capital 27,373 27,289
 Retained earnings 6,812 10,568
 Treasury stock, 2,113,066 common
 shares in 1993, and 1,913,066
 common shares in 1992, at cost (8,523) (5,302)
 Total stockholders' equity 25,733 32,626
 Total Liabilities and
 Stockholders' Equity $73,821 $55,742
 Consolidated Statements of Operations
 Years Ended April 30, 1993, 1992 and 1991
 1993 1992 1991
 Revenues $126,076 $117,790 $95,323
 Direct costs 116,840 100,813 79,958
 Gross Profit 9,236 16,977 15,365
 General & administrative
 expenses 13,251 10,093 8,293
 Operating income (loss) (4,015) 6,884 7,072
 Other income (expense):
 Interest expense (1,071) (283) (1,061)
 Interest income 74 409 --
 Miscellaneous income (expense) (325) 25 139
 Minority interest in (earnings)
 losses of subsidiaries (225) 39 --
 Earnings (loss) before
 income taxes (5,562) 7,074 6,150
 Income tax expense (benefit) (1,806) 2,807 2,415
 Net earnings (loss) $(3,756) $4,267 $3,735
 Net earnings (loss) per share $ (0.75) $ 0.85 $ 0.89
 Weighted average number of
 common shares and equivalents 4,998 5,043 4,216
 -0- 8/13/93
 /CONTACT: Charles H. Robbins, president and chairman, or Anthony M. Picini, vice president-finance, PHP Healthcare Corporation, 703-998-7808/

CO: PHP Healthcare Corporation ST: Virginia IN: HEA SU: ERN

DC-KD -- DC022 -- 2740 08/13/93 17:29 EDT
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Publication:PR Newswire
Date:Aug 13, 1993

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