Printer Friendly

MAMSI POSTS RECORD THIRD QUARTER EARNINGS; ANNOUNCES 50 PERCENT STOCK DIVIDEND

 ROCKVILLE, Md., Oct. 21 /PRNewswire/ -- Mid Atlantic Medical Services, Inc. (NASDAQ-NMS: MAMS), the largest managed care company in the Maryland/Virginia/Washington area, today announced strong operating revenues and net income for the third quarter and nine months ended Sept. 30, 1993.
 George T. Jochu, MAMSI's chairman, president and CEO, further announced a 50 percent stock dividend for shareholders of record on Nov. 1, 1993. After the dividend, which is scheduled to be paid on Nov. 19, 1993, an owner who held two shares of MAMSI stock would own three shares. This action is being taken on order to increase the liquidity of MAMSI's stock by expanding the number of shares outstanding from approximately 14.78 million shares to approximately 22.0 million shares.
 Earnings per share before extraordinary item were a record $.97 for the first nine months of 1993 on 14,890,402 weighted average shares outstanding, compared with $.61 per share on 14,263,497 weighed average shares outstanding for the same period in 1992, an increase of 59 percent. Earnings per share on net income for the same period in 1993 were $.92, compared to $.61 per share 1992. Net income for the first nine months of 1993 reflects a $.05 per share cumulative effect charge taken in the first quarter due to the adoption of the new financial accounting standard for income taxes.
 Operating revenues for the nine months ended Sept. 30, 1993, were $480.9 million, compared with $427.6 million for the same period in 1992, an increase of $53.3 million, or 12.5 percent. Net income for the first nine months of 1993 was $13.7 million, compared with $8.7 million for the same period in 1992, an increase of $5 million for 57.5 percent. Medical expenses for the first nine months of 1993 were $419.2 million,. compared with $385.4 million, for the same period in 1992. Administrative expenses through Sept. 30, 1993 were $40 million, compared with $30.8 million of the same period in 1992.
 Net income per share for the third quarter 1993 was $.40 on 15,220,480 weighed average shares outstanding, compared to $.25 per share on 14,330,465 weighted average shares outstanding for the same quarter in 1992, an increase of 60 percent.
 Operating revenues for the third quarter of 1993 were $159.6 million, compared with $149.9 million for the same period in 1992, an increase of $9.7 million or 6.5 percent. Net income for the quarter was $6 million, compared with $3.6 million for the same quarter in 1992, an increase of $2.4 million or 66.7 percent. Medical expenses were $137.1 million for this third quarter, compared with $134.5 million for the same period in 1992. Third quarter 1993 administrative expenses were $12.7 million, compared to $10.1 million for the same quarter 1992.
 Total lives covered under all of MAMSI's managed care plans grew to 940,000 at Sept., 30, 1993, as compared with 902,000, at the end of the second quarter 1993, an increase of 38,000 covered lives, or 4.2 percnet. During the quarter:
 -- MAMSI's HMO products, large and small group grew from 445,000 at June 30, 1993 to 448,000 at Sept. 30, 1993.
 -- Alliance PPO, Inc. and Mid Atlantic Psychiatric Services, Inc., MAMSI's two non-risk products, together grew from 457,000 covered lives at June 30, 1993 to 492,000 lives at Sept. 30, 1993.
 -- Additionally, MAMSI's provider network included 122 hospitals and 14,421 providers at Sept. 30, 1993.
 "During the third quarter of 1993," noted Mr. Jochum, "we saw an increase in HMO membership as compared to the decrease that occurred during the second quarter. We view this as a good sign, and anticipate this trend will continue into the fourth quarter. MAMSI's continued membership growth is of utmost importance so as to consistently expand our ability to negotiate cost-effective rates with our providers in our major markets. It's also very important that as many people as possible be aware of our fine delivery systems, as "freedom of choice," one of the key elements of health care reform,, will be a major drawing card in the future. Our network offers a freedom of choice unmatched by any other managed care company in its marketplace."
 Regarding MAMSI's future performance, Mr. Jochum noted, "as we enter the era of health care reform, we believe MAMSI is well-positioned to continue to report on-going earnings growth. The four key issues of health care reform -- Guaranteed Coverage, Freedom of Choice, Managed Competition, and Premium/Price Controls -- fit well into MAMSI's strategy of providing quality and affordable health care, while giving investors a fair return on their investment. We look forward to continue growth and to being a major contributor to health care reform at local, state and regional levels."
 NOTE: Financial tables to follow.
 -0- 10/21/93
 /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 DIV

TS -- NY022 -- 5064 10/21/93 10:19 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 21, 1993
Words:857
Previous Article:NORTH SIDE SAVINGS BANK REPORTS NET INCOME FOR THE FOURTH QUARTER AND RESULTS OF OPERATIONS FOR THE YEAR ENDED SEPT. 30, 1993
Next Article:TVB INTERNATIONAL LTD. LAUNCHES FIRST DIGITAL COMPRESSED TV PROGRAM DELIVERY SERVICE IN ASIA-PACIFIC WITH GI'S DIGICIPHER SYSTEM
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters