OXFORD REPORTS RECORD FIRST QUARTER RESULTS
OXFORD REPORTS RECORD FIRST QUARTER RESULTS DARIEN, Conn., May 5 /PRNewswire/ -- Oxford Health Plans, Inc.
(NASDAQ: OXHP), a provider of managed care plans in greater New York, toady reported that its first quarter 1992 financial results set records for revenues, net income and earnings per share.
Revenues for the first quarter ended March 31, 1992 were $32.8 million, up 58 percent from $20.8 million in the same period last year. Net income totaled $4.8 million, or 66 cents per share, including $3.3 million, or 46 cents per share, attributable to the company's early implementation of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." Excluding the effects of this accounting change, the company's income from operations reached $1,451,000, a 120 percent increase over the same period last year. Operating earnings per share reached 20 cents compared with 14 cents in the first quarter of 1991, up 43 percent. The share base for the first quarter of 1992 is 52 percent higher than for the comparable year earlier quarter, a result of the August 1991 initial public offering. "The company continued its strong enrollment growth and successful cost containment during the period to achieve the highest pretax profits in Oxford's history," said Stephen F. Wiggins, Oxford's chairman, president and chief executive officer. Pre-tax profits for the first quarter were $2.5 million, 118 percent higher than last year's first quarter. Membership increased on a year-to-year basis by 40 percent, from 59,450 as of March 31, 1991 to 83,148 members at the end of the first quarter of 1992. Oxford's Freedom Plan Program continued to report dramatic growth. Freedom Plan membership increased 66 percent over the same period last year, Wiggins noted primarily due to the expansions of the sales and marketing program that occurred after the first quarter of 1991. Wiggins said that profitability was favorably affected by continued medical cost controls and emphasis on risk management. The company's medical loss ratio, which reflects medical expenses as a percentage of net premium revenues, was 78.4 percent in the first quarter, continuing to remain among the best in the industry. Selling, general and administrative expenses were higher in the first quarter of 1992 compared with the first quarter of 1991 due in part to costs relating to a secondary stock offering that was completed in April, 1992, increased commission payments due to third-party insurance brokers and agents associated with the Freedom Plan's rapid growth, and the build up of the sales and marketing force. At March 31, 1992, total assets compared with year end 1991 climbed 16 percent to $77 million. Working capital increased by 8 percent during the quarter to approximately $33 million. Book value per share amounted to $6.97, and stockholders' equity increased substantially to $48 million, an 11 percent increase from Dec. 31, 1991. The company has no long term debt. Oxford Health Plans, Inc.'s product lines include traditional health maintenance organizations ("HMOs"), a point-of-service plan (its Freedom Plan), third-party administration of employer-funded benefit plans, and dental plans. Oxford maintains a network of approximately 4,800 individual physicians in private practice and more than 650 other health care providers, primarily through direct contracts with individual providers. Oxford markets its health plans to employers in New York, New Jersey and Connecticut through its direct sales force and through independent insurance agents and brokers. As of March 31, 1992, the company had over 800 employer groups as its customers. OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per share) Quarter ended March 31 1992 1991 Revenues $32,799 $20,757 Net earnings before change in accounting principle (1992) or extraordinary item (1991) 1,451 659 Change in accounting principle (A) 3,300 --- Extraordinary item (B) --- 406 Net earnings 4,751 1,065 Net earnings per share: Earnings before change in accounting principle or extraordinary item 0.20 0.14 Net earnings 0.66 0.23 Average shares outstanding 7,174 4,722 (A) Cumulative effect of an accounting change for income taxes. (B) Tax benefit from tax loss carryforwards. -0- 5/5/92 /CONTACT: Stephen F. Wiggins, chairman, president and CEO of Oxford Health Plans, 203-656-1442, or Tom Gavin, 212-661-8030, or after 7 p.m., 203-846-4719, or Kathy Brunson, 312-266-7800, both of Financial Relations Board for Oxford/ (OXHP) CO: Oxford Health Plans, Inc. ST: Connecticut IN: INS SU: ERN
SH-AH -- NY090 -- 6759 05/05/92 16:48 EDT
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|Date:||May 5, 1992|
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