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UNITED AMERICAN HEALTHCARE ANNOUNCESRECORD FIRST-QUARTER EARNINGS, REVENUES

 DETROIT, Nov. 2 /PRNewswire/ -- On the strength of increased management fees, commission and service fees, United American Healthcare Corporation (NYSE: UAH) today reported record net income and revenue for the fiscal first quarter ended Sept. 30, 1993.
 Net income in the quarter just ended rose 33 percent to $1,773,115, or 27 cents a share, from $1,329,801, or 21 cents a share, in the same period a year ago. There were 6,560,941 common shares outstanding in the quarter just ended against 6,325,460 in the year-ago quarter.
 Management fees in the first fiscal quarter totaled $7,486,229, up 10 percent from $6,825,117 in the comparable three months last year. Recently acquired Baltimore-based Corporate Healthcare Financing, Inc. (CHF), generated commission and service fees of $1,963,778 from new business as well as contract renewals. The comparable year-earlier total was $7,008,203. Management fees resulting from retroactive adjustment on OmniCare's 1992 Medicaid contract recognized this period amounted to about $120,000. The comparable year-earlier retro adjustment was $396,000.
 The company's enrollment in HMOs increased by about 14 percent. Of this 14 percent, approximately a 10-percent increase was due to membership in OmniCare's Point of Service, dental and vision products.
 Promotion and advertising expenses increased by about $200,000 (25 percent) from $786,258 in 1992 to $985,814 in 1993 due to the company's new policy to recognize costs on a straight-line basis over the year earlier rather than the as-incurred basis used in the first quarter of fiscal 1993.
 "The company's financial performance in the first fiscal quarter slightly exceeded our expectations," said Julius V. Combs, M.D., chairman.
 The company entered into negotiations to manage Affordable Healthcare Corporation, a start-up Tennessee-based preferred provider organization. Affordable will provide benefits to Medicaid recipients in Memphis, Nashville, Chattanooga and Jackson.
 "We feel the enrollment prospects are excellent. There are approximately 400,000 Medicaid eligibles in the four cities who will be required to participate in the Medicaid program," Dr. Combs said. "If TennCare is approved, the eligible population is expected to increase to about 600,000."
 UAH is also engaged in negotiations with a Southeast-based Medicaid HMO which is expected to result in a share of the equity and a management contract, through a newly formed subsidiary.
 UNITED AMERICAN HEALTHCARE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF EARNINGS
 Three months ended
 Sept. 30,
 1993 1992
 (unaudited)
 Revenues
 Management fees $7,486,229 $6,825,117
 Commission and service fees 1,963,778 ---
 Interest and other 195,657 183,086
 Total revenues 9,645,664 7,008,203
 Expenses
 Salaries, fringe benefits
 and payroll taxes 3,540,937 2,636,816
 Promotion and advertising 985,814 786,258
 Depreciation and amortization 334,456 124,992
 General, administrative and other
 operating expenses 2,062,342 1,479,336
 Total expenses 6,923,549 5,027,402
 Earnings before income tax
 expense 2,722,115 1,980,801
 Income tax expense 949,000 651,000
 Net earnings $1,773,115 $1,329,801
 Net earnings per common share $0.27 $0.21
 HMO ENROLLMENT
 Sept. 30,
 1993 1992
 OmniCare 98,299 94,861
 PPC 25,355 16,454
 123,654 111,315
 MEDICAL LOSS RATIOS OF HMOs MANAGED
 (Health care services as a percentage of premium revenues)
 Nine months ended
 Sept. 30
 1993 1992
 OmniCare 83 pct 84 pct
 PPC 79 pct 79 pct
 -0- 11/2/93
 /CONTACT: Dr. Julius V. Combs, M.D., chairman and CEO of United American Healthcare Corporation, 313-393-0200; or Gale Strenger or Warren Moulds, 708-564-5610, Mark Perlgut, 212-580-4141, or Earle Brown, 813-796-1452, all of The Investor Relations Company; or Joyce Davis- Adams of JDA Enterprises, 313-961-7835, all for United American Healthcare Corporation/
 (UAH)


CO: United American Healthcare Corporation ST: Michigan IN: HEA INS SU: ERN

JG-ML -- DE027 -- 9733 11/02/93 14:51 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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