FORTIS ANNOUNCES RECORD QUARTERLY RESULTS
FORTIS ANNOUNCES RECORD QUARTERLY RESULTS IRVINE, Calif., Jan. 20 /PRNewswire/ -- Fortis Corp.
(NASDAQ: FORT) reported record revenues of $12.2 million for its third fiscal quarter ending Dec. 31, 1991, up 63 percent from $7.5 million in the same quarter of the prior year. Net income for the quarter was a record $423,000 or $.10 per share vs. a profit of $186,000 or $.04 pro forma earnings per share in the prior year. Increasing employer interest in managed care approaches to controlling workers' compensation expenses has resulted in increased insurer demand for its services.
Revenue for the nine-month period ending Dec. 31, 1991 was $33.8 million, up 67 percent from $20.2 million in the prior year. Net income was $1,140,000, up from $359,000 for the same period in the prior year. During the quarter the company expanded the launch of its preferred provider network services (PPOs) and built its first PPO in Oregon. Legislation favoring such managed care services is increasingly supported in a number of states as a means of reducing the cost of health care in workers' compensation. Many states are experiencing losses in their state-financed workers' compensation funds, and such losses can add to the deficits hitting state governments. Glenn Clemons, president, commented: "Employers and state governments are becoming increasingly concerned about the cost of workers compensation. Our integrated managed care services and national service network are well suited to the challenges involved in controlling healthcare costs. We plan to continue expanding the information processing technology and professional staffs required to respond to these customer needs. Our company and our industry face a time of rapid change and growth." Fortis Corp. is an independent nationwide provider of medical cost containment and managed care services designed to address the rapidly escalating costs of workers compensation. The company operates from 80 offices providing service in 40 states. FORTIS CORP. Quarterly Income Statement Three and nine months ended Dec. 31, 1991 Three months ended Dec. 31, 1991: Dec. 31, 1991 Dec. 31, 1990 Revenue $12,208,000 $7,472,000 Costs and expenses 11,514,000 7,230,000 Income before income taxes 694,000 242,000 Income tax expense 271,000 56,000 Net income $423,000 $186,000 Net income (loss) available to common shareholders $423,000 ($40,000) Earnings per common and common equivalent share $.10 ($.02) Weighted average common and common equivalent shares 4,133,000 1,673,000 Nine months ended Dec. 31, 1991: Dec. 31, 1991 Dec. 31, 1990 Revenue $33,840,000 $20,229,000 Costs and expenses 31,950,000 19,761,000 Income before income taxes 1,890,000 468,000 Income tax expense 750,000 109,000 Net income $1,140,000 $359,000 Net income (loss) available to common shareholders $1,140,000 ($300,000) Earnings per common and common equivalent share $.31 ($.18) Weighted average common and common equivalent shares 3,633,000 1,673,000 -0- 1/20/92 /CONTACT: Gordon Clemons, president of Fortis Corp., 714-851-1473/ (FORT) CO: Fortis Corp. ST: California IN: HEA SU: ERN
EH-KJ -- LA016 -- 1504 01/20/92 16:00 EST
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|Date:||Jan 20, 1992|
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