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EMPLOYEE BENEFIT PLANS, INC. ANNOUNCES SECOND QUARTER RESULTS

 MINNEAPOLIS, Aug. 12 /PRNewswire/ -- Employee Benefit Plans, Inc. (NYSE: EBP) today reported financial results for its second quarter and six month period ended June 30, 1993. Revenues for the quarter were $64.5 million, compared to $59.1 million for the comparable three month period ended June 30, 1992, or an increase of 9.1 percent. Revenues for the six month period were $129.4 million, compared with $117.4 million for the same six month period last year, or an increase of 10.2 percent.
 Operating earnings were $2.9 million for the quarter and $5.4 million for the six month period. This compares to an operating loss of $15.2 million and $13.2 million during the three and six month comparable periods ended June 30, 1992, respectively, which primarily resulted from charges and reserves totaling $16.6 million during those periods.
 The company's net earnings were $933,000 for the second quarter and $1.5 million for the six month period. Earnings per share were $.11 for the quarter and $.18 for the six month period. The company incurred a net loss of $11.5 million, or $1.39 per share, in the prior-year three month period and a net loss of $11.1 million, or $1.35 per share, in the prior-year six month period.
 The loss ratio (incurred claims to net premiums earned) was 60.4 percent for the quarter and 60.8 percent for the six month period, compared to the unusually high 69.5 percent and 66.9 percent loss ratios experienced in the prior-year quarter and six month period, respectively. "The loss experience is at the low end of our previously announced expectation of an annual loss ratio in the low to mid-60s, and is a major contributor to our improved earnings," said Earl Milbrath, executive vice president and chief financial officer.
 EBP's customer base was 2,687 employers with 556,000 eligible employees at June 30, 1993, down from 2,733 employers with 573,000 eligible employees at March 31, 1993. The company attributed this small decrease primarily to the loss of certain low margin customers of managed care companies acquired during 1992. The company expects this trend to continue through the year as these customers complete their first renewal cycle and EBP can assess the individual profitability of these customers along with its ability to market the company's integrated product line to them. Further, the company expects some volatility in its customer base as it implements its geographical focus through its regional health plans.
 Employee Benefit Plans, Inc. is headquartered in Minneapolis. The company provides benefit design and consulting, administrative services, underwriting of group health and accident insurance, and managed care programs to companies throughout the United States through its subsidiaries EBP HealthPlans, Inc. and EBPLife Insurance Company.
 EMPLOYEE BENEFIT PLANS, INC.
 SELECTED FINANCIAL INFORMATION
 (In thousands, except per share amounts)
 Selected Operating Results:
 (Unaudited)
 Three Months Ended Six Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Revenues:
 Insurance premiums $41,664 $35,026 $83,408 $69,556
 Managed health care fees 20,501 21,486 41,707 42,940
 Investment income 1,743 2,097 3,467 3,901
 Realized gains on investments 555 511 801 1,005
 -- 64,463 59,120 129,383 117,402
 Operating expenses:
 Loss & loss adjustment expenses 25,159 24,356 50,725 46,556
 Commissions and policy
 acquisition costs 13,851 15,432 28,313 29,147
 Salaries and benefits 13,512 12,144 26,746 23,431
 General and administrative 8,479 10,375 17,155 18,923
 Legal charge -- 11,304 -- 11,304
 Amortization expense 531 738 1,092 1,235
 -- 61,532 74,349 124,031 130,596
 Earnings (loss) from operations 2,931 (15,229) 5,352 (13,194)
 Interest expense 1,228 1,430 2,560 2,870
 Earnings (loss) before provision
 (benefit) for income taxes 1,703 (16,659) 2,792 (16,064)
 Provision (benefit) for
 income taxes 770 (5,598) 1,264 (5,355)
 Earnings (loss) before cumulative
 effect of change in accounting
 for income taxes 933 (11,061) 1,528 (10,709)
 Cumulative effect of change in
 accounting for income taxes -- (393) -- (393)
 Net earnings (loss) $933 $(11,454) $1,528 $(11,102)
 Net earnings (loss) per common
 and common equivalent share $.11 $(1.39) $.18 $(1.35)
 Weighted average common and
 common equivalent shares
 outstanding 8,445 8,236 8,422 8,234
 Selected Balance Sheet Data:
 6/30/93 12/31/92
 (Unaudited)
 Invested assets (including cash
 and cash equivalents) $125,696 $127,651
 Total assets 201,693 214,783
 Debt 75,915 80,146
 Shareholders' equity 73,013 69,215
 Customer Base and Eligible Employees:
 3/92 6/92 9/92 12/92 3/93 6/93
 Total
 Customers 2,642 2,747 2,736 2,756 2,733 2,687
 Eligible employees 602,800 618,800 608,600 604,800 573,000 556,000
 Insurance segment
 Customers 2,050 2,075 2,095 2,131 2,116 2,082
 Eligible employees 372,800 366,800 366,400 376,500 361,800 359,100
 Managed care segment
 Customers 1,719 1,824 1,822 1,828 1,823 1,793
 Eligible employees 436,300 451,800 452,300 436,300 416,700 394,600
 -0- 8/12/93
 /CONTACT: Earl Milbrath, chief financial officer of Employee Benefit Plans, 612-546-4353/
 (EBP)


CO: Employee Benefit Plans, Inc. ST: Minnesota IN: INS SU: ERN

KH -- MN011 -- 2288 08/12/93 16:57 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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