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HEALTH RISK MANAGEMENT REPORTS 63 PERCENT INCREASE IN REVENUE FOR ITS THIRD QUARTER

 HEALTH RISK MANAGEMENT REPORTS 63 PERCENT INCREASE
 IN REVENUE FOR ITS THIRD QUARTER
 MINNEAPOLIS, May 12 /PRNewswire/ -- Health Risk Management, Inc. (NASDAQ: HRMI) (HRM) today announced that revenues for its fiscal third quarter ended March 31, 1992, were $8,404,000 compared to $5,165,000 in the third quarter a year ago. Net income for the quarter was $130,000 and earnings per share were $.03, compared to net income of $501,000 and earnings per share of $.12 in the previous year's third quarter.
 HRM's third quarter results for the current year include a recently acquired third party administrator (TPA) business, which contributed $2,273,000 to revenues, and HRM's basic business grew approximately $1,000,000.
 For the first nine months of the fiscal year, HRM revenues were $18,873,000 compared to $15,033,000 in the prior year, and it reported a net loss of $214,000 and a loss per share of $.05, versus net earnings of $1,111,000 and earnings per share of $.36 for the first three quarters last fiscal year. The year-to-date figures for the current year include a one-time reorganization charge in the second quarter amounting to $.15 per share.
 Gary T. McIlroy, M.D., HRM chairman and chief executive officer, said, "Revenues in the quarter reflect the beginning of the results of the investments made in the last 12 months, including expanded sales and marketing efforts, the acquisition of a TPA business, and restructuring and augmenting management. We have now implemented substantial upgrades to our computer and vital telecommunications systems and completed the transition of claims administration software from a vendor environment to the HRM mainframe. These contributed to an increase in cost of services in the quarter, but will have a positive impact on such costs in subsequent quarters."
 HRM said it had signed new contracts not previously announced beginning in April 1992 through October 1992 with annual revenues of $2,000,000. New clients include Administrative Support, Inc.; American Medical Security; Koch Industries Employee Group Benefit Trust; Lumber Employees 786 Building Materials Welfare Fund; Lukens Inc.; Regal Beloit Corporation; Washington National Insurance Company; and World Insurance Company.
 Headquartered in Minneapolis, Health Risk Management, Inc. provides a broad range of integrated managed health care services to self-insured employers, unions, governmental entities and insurance company clients.
 HEALTH RISK MANAGEMENT, INC.
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands, except share data)
 Three Months Ended Nine Months Ended
 3/31/92 3/31/91 3/31/92 3/31/91
 Revenues:
 Care review, case
 management, and price
 control services $5,414 $4,395 $14,663 $12,769
 Claims administration
 services 2,821 418 3,681 1,291
 Information management
 and consulting services 169 352 529 973
 Total revenues 8,982
 Depreciation and
 amortization,
 principally cost
 of services 824 506 1,931 1,495
 Selling and marketing 1,198 692 2,843 1,778
 Administration 917 576 2,203 1,592
 Reorganization charge -- -- 600 --
 Total operating expenses 8,221 4,806 19,228 13,847
 Operating income (loss) 183 359 (355) 1,186
 Other income (expense):
 Interest income 72 244 399 259
 Interest expense (120) (96) (248) (315)
 Total other income (expense) (48) 148 151 (56)
 Income (loss) before
 income taxes 135 507 (204) 1,130
 Provision for income taxes 5 6 10 19
 Net income (loss) $130 $501 $(214) $1,111
 Net income (loss) per
 common and common
 equivalent share $.03 $.12 $(.05) $.36
 Weighted average common
 and common equivalent
 shares 3,916,655 3,959,858 3,901,064 2,766,957
 BALANCE SHEET INFORMATION
 Assets 3/31/92 6/30/91
 Cash and cash equivalents $5,689 $13,428
 Other current assets 4,742 2,736
 Fixed assets, contract rights,
 software, etc., net 17,606 7,630
 Other assets 916 275
 -- $28,953 $24,069
 Liabilities and shareholders' equity
 Current liabilities 7,121 3,747
 Other liabilities 2,943 1,284
 Shareholders' equity 18,889 19,038
 -- $28,953 $24,069
 -0- 5/12/92
 /CONTACT: Nancy Hurd of Health Risk Management, 612-829-3749/
 (HRMI) CO: Health Risk Management, Inc. ST: Minnesota IN: MTC INS SU: ERN


AL -- MN010 -- 9265 05/12/92 15:35 EDT
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Publication:PR Newswire
Date:May 12, 1992
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