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MAMSI POSTS RECORD SECOND QUARTER AND FIRST HALF 1993 EARNINGS

 ROCKVILLE, Md., July 20 /PRNewswire/ -- Mid Atlantic Medical Services, Inc. ("MAMSI") (NASDAQ-NMS: MAMS), the leading managed care company in the Maryland/Washington/Virginia marketplace, today announced record operating revenues and net income for the second quarter and first half ended June 30, 1993.
 Earnings per share before extraordinary items were a record 57 cents for the first half of 1993 on 14,725,364 weighted average shares outstanding, compared with 36 cents per share on 14,230,014 weighted average shares outstanding for the same period in 1992. Earnings per share after extraordinary items and cumulative effect of accounting change for the same period in 1993 were 52 cents on 14,725,364 weighted average shares outstanding, compared with 36 cents per share on 14,230,014 weighted average shares outstanding in 1992. Net income for the first half of 1993 reflects a 5 cents per share extraordinary earnings charge taken in the first quarter due to the adoption of the new financial accounting standard for income taxes.
 Operating revenues for the six months ended June 30, 1993 were $321.3 million, compared with $277.8 for the first half of 1992, an increase of $43.5 million or 15.7 percent. Net income for the first half of 1993 was $7.7 million, compared with $5.1 million for the same period in 1992, an increase of $2.6 million or 51.0 percent. Medical expenses for the first half of 1993 were $282.1 million, compared with $250.9 million for the same period in 1992. Administrative expenses for the first six months were $27.3 million, compared with $20.7 million for the first half of 1992.
 Earnings per share for the second quarter of 1993 were 21 cents on 14,883,601 weighted average shares outstanding, compared to 11 cents per share on 14,216,436 weighted average shares outstanding for the same quarter in 1992, an increase of 90.9 percent.
 Operating revenues for the second quarter 1993 were $160.5 million, compared with $142.4 million for the same period in 1992, an increase of $18.1 million or 12.7 percent. Net income for the quarter was $3.1 million, compared with $1.6 million for the same quarter in 1992. Medical expenses were $143.0 million for the quarter, compared with $130.0 million for the same period in 1992. Administrative expenses for the second quarter 1993 were $13.2 million, compared with $10.4 million for the same quarter in 1992.
 Total lives covered by all of MAMSI's managed care plans grew to over 902,000 at June 30, 1993, up from 850,000 at March 31, 1993, an increase of 52,000 lives or 6.2 percent. For the first six months of 1993, total lives covered grew from 775,000 at Dec. 31, 1992, to 902,000 at June 30, 1993, an increase of 127,000 lives or 16.4 percent. Specifically:
 -- MAMSI's HMO products, large and small groups, decreased from 452,000 at March 31, 1993 to 445,000 at June 30, 1993, a reduction of 7,000 lives.
 -- Alliance PPO, Inc. and Mid Atlantic Psychiatric Services, Inc. (MAPSI), the company's two non-risk products, together grew from 398,000 covered lives at March 31, 1993 to 457,000 at June 30, 1993, an increase of 59,000 lives.
 Additionally, MAMSI's provider network included 117 hospitals and 14,046 providers at June 30, 1993.
 George T. Jochum, MAMSI's chairman, president and CEO noted, "These results reflect the ongoing success of our program to evaluate the quality of our current book of business and shift away from business that has historically been marginal or unprofitable. At the same time, we have accelerated our efforts to increase our non-risk business. As we continue to successfully implement this strategy, we will be well- positioned to participate aggressively in the future health care reform arena."
 MAMSI is a regional holding company for health care organizations which provides comprehensive health insurance products. Products include: M.D. IPA, a a traditional HMO, and M.D. IPA Preferred, an open- ended version of the HMO; Optimum Choice, Inc., a non-federally qualified HMO; MAMSOVA, a non-federally qualified Virginia HMO; Alliance PPO, a preferred provider organization; MAPSI, a preferred provider organization and MAPSI Plus, both offering managed psychiatric health care services; MAMSI Life and Health Insurance Company, an indemnity insurance company that plans to develop and market a variety of managed care insurance products; and National Managed Care, Inc., a national network of regionally dominant, independent HMOs.
 Mid Atlantic Medical Services, Inc. securities are registered with the Securities and Exchange Commission and are traded on the NASDAQ National Market System under the symbol MAMS.
 MID ATLANTIC MEDICAL SERVICES, INC.
 Selected Income Statement Information
 (Unaudited, in thousands except share amounts)
 Year to date
 Second Quarter First Half
 1993 1992 1993 1992
 Operating revenues $160,512 $142,384 $321,330 $277,762
 Operating expenses 156,160 140,417 309,391 271,529
 Gross profit 4,352 1,967 11,939 6,233
 Income before
 extraordinary item 3,123 1,560 8,355 5,061
 Extraordinary items -- 12 -- 23
 Cumulative effect of change
 in accounting method -- -- (663) --
 Net income 3,123 1,572 7,692 5,084
 Earnings per common and
 common equivalent share:
 Income before
 extraordinary item $.21 $.11 $.57 $.36
 Extraordinary items -- .00 -- .00
 Cumulative effect of change
 in accounting method -- -- ($.05) --
 Net income $.21 $.11 $.52 $.36
 Weighted average common
 and common equivalent
 shares outstanding 14,883,601 14,216,436 14,725,364 14,230,014
 1993 Financial Performance Summary
 (Dollars in thousands, unaudited)
 Second quarter +/- Percent
 1993 1992 Variance Variance
 Premium revenues $159,020 $141,593 $17,427 12.3
 PMPM premiums 120.27 110.48 9.79 8.9
 Fee revenues 1,492 791 701 88.6
 Total revenues 160,512 142,384 18,128 12.7
 Medical expenses 142,969 130,004 12,965 10.0
 PMPM 108.13 101.44 6.69 6.6
 Med Loss ratio
 (Premiums only)
 (as a percent) 89.9 91.8 (1.9)
 Administrative expenses 13,191 10,413 2,778 26.7
 PMPM 9.98 8.12 1.85 22.8
 Administrative expense
 ratio (all revenues)
 (as a percent) 8.2 7.3 0.9
 Investment income, other
 income/expense 786 509 277
 Equity in affiliated and
 minority interest 143 217 (74)
 Income before tax 5,281 2,693 2,588 96.1
 Income tax provision 2,158 1,133 1,025
 Effective tax rate
 (as a percent) 40.9 42.1 (1.2)
 Net income before
 extraordinary item 3,123 1,560 1,563 100.2
 Extraordinary item and
 deferred taxes 0 12 (12)
 Net income 3,123 1,572 1,551 98.7
 Net margin rate
 (as a percent) 1.9 1.1 0.9
 EPS - Before
 extraordinary $0.21 $0.11 $0.10 90.9
 EPS - Extraordinary
 and deferred tax 0.00 0.00 0.00
 EPS - Net income $0.21 $0.11 $0.10 90.9
 Weighed average
 shares 14,883,601 14,216,436
 First half +/- Percent
 1993 1992 Variance Variance
 (Unaudited)
 Premium revenues $318,542 $276,352 $42,190 15.3
 PMPM premiums 120.02 108.99 11.04 10.1
 Fee revenues 2,788 1,410 1,378 97.7
 Total revenues 321,330 277,762 43,568 15.7
 Medical expenses 282,107 250,855 31,252 12.5
 PMPM 106.29 98.93 7.36 7.4
 Med Loss ratio
 (Premiums only)
 (as a percent) 88.6 90.8 (2.2)
 Administrative expenses 27,284 20,674 6,610 32.0
 PMPM 10.28 8.15 2.13 26.1
 Administrative expense
 ratio (all revenues)
 (as a percent) 8.5 7.4 1.0
 Investment income, other
 income/(expense) 1,341 1,445 (104)
 Equity in affiliated and
 minority interest 297 375 (78)
 Income before tax 13,577 8,053 5,524 68.6
 Income tax provision 5,222 2,992 2,230
 Effective tax rate
 (as a percent) 38.5 37.2 1.3
 Net income before
 extraordinary item 8,355 5,061 3,294 65.1
 Extraordinary item and
 deferred taxes (663) 23 (686)
 Net income 7,692 5,084 2,608 51.3
 Net margin rate
 (as a percent) 2.6 1.8 0.8
 EPS - Before
 extraordinary $0.57 $0.36 $0.21 58.3
 EPS - Extraordinary
 and deferred tax (0.05) 0.00 (0.05)
 EPS - Net income $0.52 0?.36 $0.16 58.3
 Weighed average
 shares 14,725,364 14,230,014
 Consolidated, Condensed Balance Sheets
 6/30/93 12/31/92
 (Unaudited) (Audited)
 Assets
 Current assets $115,253 $91,681
 Property and equipment 25,941 26,042
 Other assets 12,425 12,633
 Total assets 153,619 130,356
 Liabilities and Stockholders' Equity
 Current Liabilities $92,595 $81,959
 Long-term debt 6,092 6,416
 Other liabilities 2,688 1,592
 Stockholders' equity 52,244 40,389
 Total liabilities &
 stockholders' equity 153,619 130,356
 -0- 7/20/93
 /CONTACT: Michael Savage of Mid Atlantic Medical Services, Inc., 301-294-5083/
 (MAMS)


CO: Mid Atlantic Medical Services, Inc. ST: Maryland IN: HEA SU: ERN

MP-TS -- NY014 -- 3531 07/20/93 15:54 EDT
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Date:Jul 20, 1993
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