HEALTHSOURCE REPORTS 23 PERCENT INCREASE IN ANNUAL EARNINGS PER SHARE; NET INCOME INCREASES 34 PERCENT; REVENUE INCREASES 103 PERCENT
CONCORD, N.H., Feb. 16 /PRNewswire/ -- Healthsource, Inc. (NYSE: HS), a leading operator of HMOs and managed health care services, today reported that net income for the three month period ended Dec. 31, 1992 was up 38.8 percent to $4.7 million from the $3.4 million earned in the three month period ended Dec. 31, 1991. All common share and per share amounts reflect the 3-for-2 stock split effected as a 50 percent stock dividend on Dec. 15, 1992 to shareholders of record as of Nov. 16, 1992.
Fourth Quarter 1992
Earnings per share on a fully diluted basis increased 35.7 percent to 38 cents for the three months ended Dec. 31, 1992, vs. 28 cents for the same period a year ago. Total revenues for the quarter increased 118 percent to $52.0 million compared with $23.9 million for the fourth quarter in 1991.
1992 Full Year Results
For the year ended Dec. 31, 1992, net income increased 33.8 percent to $17.0 million from $12.7 million in the previous year, and earnings per share on a fully diluted basis increased 23.0 percent to $1.39 compared with $1.13 for 1991. Weighted average shares outstanding on a fully diluted basis increased 9.1 percent primarily as a result of the sale of 2.625 million shares of common stock in a public offering during May 1991. Revenues for the period reached $177.6 million, up 102.9 percent from $87.5 million for the comparable period of 1991.
January HMO Enrollment Increased To 248,100 Members
The company has completed its January enrollment period and reported an increase in membership in its owned or partially owned HMO and other fully insured managed care plans to 248,100 members, compared to 149,400 in January 1992. Exclusive of the May 1992 acquisition in Indiana, membership increased 37 percent in HMOs owned by the company in January 1992. January is the month in which much of the company's new enrollment and renewal activity takes place. In addition, enrollment in the company's employer insured point-of- service plans increased to 59,400 company wide. Healthsource began offering customized point-of-service products to self-insured employers in January 1992. The company provides other managed health care services including third party claims administration, PPO and indemnity insurance services. Norman C. Payson, M.D., president and chief executive officer of Healthsource, Inc., commented, "Our record revenue and earnings are principally due to the company's ongoing success in controlling health care costs over a rapidly expanding membership base. This substantial membership increase more than offsets slightly higher medical loss ratios. Our medical loss ratios remain among the best in the industry, as does our growth rate. Moreover, the company's qualitative and pricing advantages over its competitors have become more pronounced in many of these markets. The growth in enrollment in January of this year also reflects the continued geographic expansion of our health plans into adjacent areas similarly underpenetrated by managed care such as Columbia, S.C. "The company's position in all its markets is enhanced by its ability to offer multiple health care financing products such as point- of-service, and preferred provider plans either fully insured or self- funded. The company also continues to grow through acquisition, including recently purchased plans in Tennessee, Indiana and TakeCare's plan in Maine. The previously announced acquisition of the remaining interest of the company's South Carolina affiliate, Physicians' Health Services, is anticipated to be closed within approximately 45 days." Healthsource, Inc. sponsors or manages HMOs in New Hampshire, Maine, South Carolina, North Carolina, Tennessee, Indiana and New York and owns EBPA, one of the largest third-party claims administrators in New England. Healthsource also provides utilization review services and preferred provider networks primarily to self-insured employer plans and Blue Cross and Blue Shield of Vermont. HEALTHSOURCE, INC. Financial Summary (unaudited) (amounts in thousands) Three Months Ended Dec. 31, 1992 1991 Revenue: Premiums $45,940 $19,758 Administrative and managed care fees 4,115 2,579 Management fees 1,966 1,522 Total revenue 52,021 23,859 Expenses: Health care 35,358 14,653 Premium tax 597 391 Selling, general and administrative 10,526 5,963 Depreciation and amortization 1,323 429 Total expenses 47,804 21,436 Operating income 4,217 2,423 Interest and other income 1,198 1,224 Interest and other expense (2) (17) Income before provision for income taxes and equity items 5,413 3,630 Equity in income of unconsolidated affiliates 876 777 Provision for income taxes (1,596) (1,036) Minority interest in net earnings of consolidated entity (15) ---- Net income $4,678 $3,371 Net income per share: Primary 38 cents 28 cents Fully diluted 38 cents 28 cents Weighted average number of common and common equivalent shares outstanding: Primary 12,300 12,084 Fully diluted 12,338 12,149 Year Ended Dec. 31, 1992 1991 Revenue: Premiums $155,755 $70,875 Administrative and managed care fees 14,422 10,018 Management fees 7,409 6,624 Total revenue 177,586 87,517 Expenses: Health care 118,983 50,700 Premium tax 2,236 1,397 Selling, general and administrative 36,493 22,235 Depreciation and amortization 3,913 1,743 Total expenses 161,625 76,075 Operating income 15,961 11,442 Interest and other income 4,730 4,011 Interest and other expenses (19) (72) Income before provision for income taxes and equity items 20,672 15,381 Equity in income of unconsolidated affiliates 3,006 2,098 Provision for income taxes (6,626) (4,646) Minority interest in net earnings of consolidated entity (65) (133) Net income $16,987 $12,700 Net income per share: Primary $1.39 $1.13 Fully diluted 1.39 1.13 Weighted average number of common and common equivalent shares outstanding: Primary 12,222 11,199 Fully diluted 12,242 11,225 SELECTED BALANCE SHEET (in thousands) Dec. 31, Dec. 31, 1992 1991 (Unaudited) Cash, cash equivalents, and current marketable securities $67,103 $63,104 Current assets 77,314 69,928 Long-term marketable securities 27,847 18,535 Total assets 146,568 115,240 Medical claims payable 19,600 9,049 Current liabilities 25,540 13,342 Shareholders' equity 119,480 101,100 COMMON USED RATIOS (Unaudited) Dec. 31, Dec. 31, 1992 1991 Book value per common shares outstanding (12,036,000 at Dec. 31, 1992 and 11,932,500 at Dec. 31, 1991) $9.93/share $8.47/share Working capital $51.8 million $56.6 million Current ratio 3.0 5.2 Days of health care expense in medical claims payable (medical claims payable divided 51.0 days 47.4 days(a) by average daily health care expenses for the three months ended Dec. 31, 1992 and the year ended Dec. 31, 1991) --- NOTE: (a) Dec. 31, 1991 calculation includes medical claims payable and medical expenses for Healthsource New Hampshire, Inc. only. NOTE TO EDITORS: Additional financial information is available. -0- 2/16/93 /CONTACT: Thomas Congoran, chief financial officer, or Tracey Turner, shareholder relations, of Healthsource, 603-225-5077; or Kerry Thalheim, 212-661-8030, or Kathy Waller, 312-266-7800, of The Financial Relations Board, Inc. for Healthsource/ (HLTH)
CO: Healthsource, Inc. ST: New Hampshire IN: HEA SU: ERN
CH -- NE011 -- 6804 02/16/93 12:48 EST
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|Date:||Feb 16, 1993|
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