Printer Friendly

STRONG PRODUCT DEMAND BOOSTS GMIS SECOND QUARTER EARNINGS

 STRONG PRODUCT DEMAND BOOSTS GMIS SECOND QUARTER EARNINGS
 MALVERN, Pa., July 24 /PRNewswire/ -- GMIS Inc. (NASDAQ: GMIS) reported total revenue of $3,472,000 for the second quarter of 1992, an increase of 63 percent compared to the same period in 1991.
 Net income before income taxes and extraordinary item (pretax profits) was $740,000, a 64 percent increase compared to the second quarter of 1991. Earnings per share was $.16 for the quarter as compared to $.14 for the same period in the prior year. The weighted average shares outstanding increased 37 percent primarily as a result of the company's initial public offering in July 1991. On a fully taxed basis, assuming a 38 percent tax rate, earnings per share for the second quarter would be $.10.
 Total revenue for the first half of 1992 was $6,838,000, 76 percent higher than for the first half of 1991. Pretax profits were $1,366,000, a 96 percent increase compared to the same period in 1991. Earnings per share for the first half of 1992 was $.29 compared to $.22 for the same period in 1991. On a fully taxed basis, assuming a 38 percent tax rate, earnings per share for the first half of 1992 would have been $.19.
 "Improved earnings are due to continued strong demand for all GMIS products," said Tom Owens, president of chief executive officer of GMIS. "GMIS' strategy to provide a full range of automated cost-containment products and services to the insurance industry is being well-received by the marketplace," added Owens. GMIS recently signed license agreements for all of its products with several insurers including Empire Blue Cross and Blue Shield, the nation's largest Blue Cross plan.
 On Feb. 13, 1992, GMIS acquired Medical Intelligence, Inc. (MII) in a pooling-of-interests transaction which required the restatement of prior year financial statements on a combined basis. Prior to the completion of the acquisition, MII was a Subchapter S corporation for federal and state tax purposes, and therefore, no income tax expense was recorded by MII in 1991. Net income before extraordinary item and net income before extraordinary item per common share for the quarter ended June 30, 1991, on a fully taxed basis assuming a 39 percent effective tax rate, would have been $276,000 and $.08, respectively.
 GMIS INC.
 Statements of Operations
 (Unaudited; amounts in thousands, except per-share data)
 Periods ended Three months Six months
 June 30 1992 1991(A) 1992 1991(A)
 Revenue:
 Operating revenue $3,264 $2,082 $6,456 $3,800
 Interest 208 48 382 90
 Total revenue 3,472 2,130 6,838 3,890
 Expenses:
 Cost of revenue 469 305 948 575
 Marketing and sales 836 481 1,564 923
 Research and development 749 542 1,388 1,077
 General administrative 678 338 1,572 587
 Interest 0 12 0 31
 Total expenses 2,732 1,678 5,472 3,193
 Income before income taxes
 and extraordinary item 740 452 1,366 697
 Provision for income taxes 280 127 520 222
 Income before
 extraordinary item 460 325 846 475
 Extraordinary credit(B) 253 127 453 222
 Net income 713 452 1,299 697
 Income per common share:
 Income before
 extraordinary item $.10 $.10 $.19 $.15
 Extraordinary credit .06 .04 .10 .07
 Net income .16 .14 .29 .22
 Weighted average shares
 outstanding 4,483 3,277 4,498 3,203
 (A) On Feb. 13, 1992, GMIS acquired Medical Intelligence, Inc. (MII) in a pooling-of-interests transaction which required the restatement of prior year financial statements on a combined basis. Prior to the completion of the acquisition by GMIS, MII was a Subchapter S corporation for federal and state tax purposes, and therefore, no income tax expense was recorded by MII in 1991. Net income before extraordinary item and net income before extraordinary item per common share for the quarter ended June 30, 1991, on a fully taxed basis assuming a 39 percent effective tax rate, would have been $276,000 and $.08, respectively.
 (B) A net operating loss carryforward was utilized to offset income tax expense. The extraordinary credit did not completely offset the provision for income taxes in 1992 due to state income taxes accrued on behalf of MII.
 /delval/
 -0- 7/24/92
 /CONTACT: Jeffrey Stello of GMIS, 215-296-3838, ext. 1101/
 (GMIS) CO: GMIS Inc.; Medical Intelligence, Inc. ST: Pennsylvania IN: HEA SU: ERN


CC-MP -- PH004 -- 2899 07/24/92 08:29 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 24, 1992
Words:734
Previous Article:ACKERLEY COMMUNICATIONS AUTHORIZED TO REPURCHASE 500,000 SHARES OF STOCK
Next Article:FARR CO. REPORTS RESULTS
Topics:


Related Articles
GMIS CHIEF NAMED REGIONAL ENTREPRENEUR OF THE YEAR -- ON TO NATIONAL COMPETITION
GMIS AND AMERICAN INTERNATIONAL HEALTHCARE INK SOFTWARE AGREEMENT; INCREASED DISTRIBUTION, PROFITS PREDICTED
GMIS DECLARES 3-FOR-2 STOCK SPLIT
GMIS FILES COMPLAINT AGAINST HPR
GMIS REPORTS STRONG REVENUE AND EARNINGS GROWTH FOR FIRST QUARTER
GMIS REPORTS SHORTFALL IN REVENUE AND A NET LOSS FOR THE SECOND OUARTER
GMIS ANNOUNCES RESTRUCTURING
HBO & Company Signs Definitive Agreement to Acquire GMIS Inc.
HBO & Company Announces Record Revenue and Earnings Per Share for Q3 1996
HBO & Company Completes Acquisition of GMIS Inc.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters