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MAMSI REPORTS RECORD 1992 EARNINGS;

 ROCKVILLE, Md., Feb. 8 /PRNewswire/ -- Mid Atlantic Medical Services, Inc. (NASDAQ-NMS: MAMS) ("MAMSI"), the largest managed care company in the Maryland/D.C./Virginia service area, today announced record operating revenues and earnings for the fourth quarter and fiscal year ended Dec. 31, 1992.
 Earnings per share were a record $.94 for the year, compared with $.68 per share for 1991, an increase of 38 percent.
 Regarding the company's 1992 performance and 1993 outlook, George T. Jochum, MAMSI's chairman, president and CEO, commented, "We are quite pleased with 1992's results. While the local economy remained essentially flat, our total membership grew dramatically and our ability to manage critical costs became more refined. We believe that 1993 holds even greater opportunities for MAMSI and the entire managed care industry. For us, we anticipate it will be a year of continued growth and expansion. For the managed care sector as a whole, the prospect of national health care reform holds great potential. We look forward to the challenge of this new year."
 Operating revenues for 1992 were $579.4 million, compared with $397.6 million for 1991, an increase of $181.8 million or 46 percent. Net income for 1992 was $13.5 million, compared with $9.7 million for 1991, an increase of $3.8 million or 39 percent. Medical expenses for 1992 were $518.1 million, compared with $356.7 million for the previous year. Administrative costs for 1992 were $43.3 million, compared with $29.1 million for 1991.
 For the fourth quarter 1992, earnings per share were $.33 on 14,632,369 weighted average shares outstanding, compared with $.23 per share on 14,257,687 weighted average shares outstanding for the same quarter in 1991. Extraordinary items were immaterial for both years for the quarter and the year-to-date cumulative results.
 Operating revenues for the fourth quarter of 1992 were $151.7 million, compared with $112.8 million for the same quarter in 1991, an increase of $38.9 million, or 34 percent. Net income for the quarter was $4.8 million, compared with $3.3 million for the same quarter in 1991, an increase of $1.5 million, or 45 percent. Medical expenses were $132.7 million for the fourth quarter 1992, compared with $102.1 million for the same period in 1991. Administrative expenses for the fourth quarter 1992 were $12.5 million, compared with $6.7 million for the same period in 1991.
 Total lives covered under all of MAMSI's managed care plans grew to 775,000 at Dec. 31, 1992, up from 591,000 at year-end 1991, an increase of 184,000 covered lives or 31 percent. Specifically:
 -- MAMSI's HMO products, including both large and small groups, grew from 386,000 covered lives at 12/31/91 to 448,000 at 12/31/92, an increase of 62,000 lives or 16 percent.
 -- Alliance PPO, Inc., and Mid Atlantic Psychiatric Services, Inc., the company's two non-risk products, together grew from 205,000 covered lives at 12/31/91 to 327,000 at 12/31/92, an increase of 122,000 lives or 60 percent.
 Additionally, the company's provider network included 107 hospitals and 11,908 physicians at Dec. 31, 1992.
 Other year-end 1992 highlights included:
 -- The company introduced a new prescription product, MAMSI Rx, which is being marketed as a free-standing prescription drug plan to both large and small groups which may or may not be current MAMSI customers.
 -- The company completed its acquisition of a life and health insurance company on substantially the same terms as were previously announced. The new subsidiary, MAMSI Life and Health Insurance Company, is slated to become operational during the first half of 1993.
 MAMSI is a regional holding company for health care organizations which provides comprehensive health insurance products. Products include: M.D. IPA, 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 provides 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 (NASDAQ: MAMS).
 MID ATLANTIC MEDICAL SERVICES, INC.
 Selected Income Statement Information
 (In thousands except share amounts; unaudited)
 Fourth Quarter Year-to-Date
 1992 1991 12/31/92 12/31/91
 Operating revenues $151,734 $112,756 $579,355 $397,598
 Operating expenses 145,256 108,785 561,408 385,813
 Gross profit 6,478 3,971 17,947 11,785
 Income before
 extraordinary item 4,823 3,311 13,460 9,687
 Net income $ 4,778 $ 3,266 $ 13,460 $ 9,687
 Earnings per common and
 common equivalent share:
 Income before
 extraordinary item $.33 $.23 $.94 $.68
 Net income $.33 $.23 $.94 $.68
 Weighted average common and
 common equivalent shares
 outstanding 14,632,369 14,257,687 14,355,715 14,284,190
 MID ATLANTIC MEDICAL SERVICES, INC.
 1992 Financial Performance Summary
 ($000s)
 1992 1991 +/- Percent
 Total Year Variance Variance
 (Unaudited) (Audited)
 Premium revenues 575,818 396,001 179,817 45.4
 PMPM $111.03 $98.58 $12.45 12.6
 Fee revenues 3,537 1,597 1,940 121.5
 Total revenues 579,355 397,598 181,757 45.7
 Medical expenses 518,122 356,719 161,403 45.2
 PMPM $99.91 $88.80 $11.11 12.5
 Med. loss ratio (prem. only)
 (as a percent) 90.0 90.1 (0.1)
 Administrative expenses 43,286 29,094 14,192 48.8
 PMPM $8.35 $7.24 $1.11 15.4
 Administrative exp. ratio
 (all rev.) (as a percent) 7.5 7.3 0.2
 Investment income, other
 income/expense 2,670 2,310 360
 Equity in affil. & minority int. 696 462 234
 Income before tax 21,313 14,557 6,756 46.4
 Tax prov./net of
 extraordinary item 7,853 4,870 2,983
 Effective tax rate (as a pct.) 36.8 33.5 3.3
 Net income 13,460 9,687 3,773 38.9
 Net margin rate (as a percent) 2.3 2.4 (0.1)
 Earnings per share $0.94 $0.68 $0.26 38.2
 1992 1991 +/- Percent
 Fourth Quarter Variance Variance
 (Unaudited)
 Premium revenues 150,675 112,237 38,438 34.2
 PMPM $113.35 $100.26 $13.09 13.1
 Fee revenues 1,059 519 540 104.0
 Total revenues 151,734 112,756 38,978 34.6
 Medical expenses 132,725 102,052 30,673 30.1
 PMPM $99.85 $91.16 $8.69 9.5
 Med. loss ratio (prem. only)
 (as a percent) 88.1 90.9 (2.8)
 Administrative expenses 12,531 6,733 5,798 86.1
 PMPM $9.43 $6.01 $3.42 56.9
 Administrative exp. ratio
 (all rev.) (as a percent) 8.3 6.0 2.3
 Investment income, other
 income/expense 916 760 156
 Equity in affil. & minority int. 162 143 19
 Income before tax 7,556 4,874 2,682 55.0
 Tax prov./net of
 extraordinary item 2,778 1,608 1,170
 Effective tax rate (as a pct.) 36.8 33.0 3.8
 Net income 4,778 3,266 1,512 46.3
 Net margin rate (as a percent) 3.1 2.9 0.2
 Earnings per share $0.33 $0.23 $0.10 43.3
 MID ATLANTIC MEDICAL SERVICES, INC.
 Consolidated Condensed Balance Sheets
 ($000s)
 12/31/92 12/31/91
 (Unaudited) (Audited)
 Assets:
 Current assets $ 91,681 $ 75,937
 Property & equipment 26,042 19,416
 Other assets 12,633 5,424
 Total assets $130,356 $100,779
 Liabilities and stockholders' equity:
 Current liabilities $ 81,959 $ 67,602
 Long-term debt 6,416 7,064
 Other liabilities 1,592 1,254
 Stockholders' equity 40,389 24,859
 Total liabilities and stockholders' equity $130,356 $100,779
 -0- 2/8/93
 /CONTACT: Michael Savage of MAMSI, 301-294-5083/
 (MAMS)


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

GK-ST -- NY021 -- 3965 02/08/93 09:57 EST
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