Wellpoint spent millions in failed merger.WellPoint Noun 1. wellpoint - a perforated tube driven into the ground to collect water from the surrounding area well point tube, tubing - conduit consisting of a long hollow object (usually cylindrical) used to hold and conduct objects or liquids or gases Health Networks Inc. and Health Systems International Inc. spent about $38 million combined on their failed merger last year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. WellPoint 1995 earnings released last week. The Woodland Hills-based WellPoint reported last week that $34.5 million of non-recurring expenses in the fourth quarter "primarily" pertained to its proposed merger with HSI (Hue Saturation Intensity) A color space similar to HSB. See HSB. before it collapsed at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , HSI, also based in Woodland Hills, reported $20.2 million in merger-related expenses when it released its 1995 numbers in mid-February. WellPoint spokesman John Cygul said the $34.5 million was about evenly divided between merger-related expenses and a change in accounting regarding pharmaceutical assets. For 1995, WellPoint reported non-recurring expenses of $57.1 million before taxes - a figure that was reduced considerably in the net results by an income tax burden $25.1 million less than in 1994. Analysts and the company reported that the $57.1 million figure included the merger, acquisition-related expenses, legal fees pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. in connection with the creation of two charitable health care foundations, and the pharmaceutical changes in accounting. WellPoint earnings were down for 1995. Net income was $180 million, or $1.81 a share, on revenues of $3.1 billion, compared to net income of $213.2 million, or $2.14 a share, on revenues of $2.8 billion in 1994. Excluding non-recurring charges, net income remained flat, up only six-tenths of a percent, to $214.5 million, or $2.16 a share. Membership in WellPoint's health plans increased 7 percent during 1995, to 2.8 million. |
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