QUAL-MED ANNOUNCES SECOND QUARTER RESULTS
QUAL-MED ANNOUNCES SECOND QUARTER RESULTS PUEBLO, Colo., Aug. 13 /PRNewswire/ -- Qual-Med Inc.
(NASDAQ: QLMD) today reported that revenues for the second quarter ended June 30, 1992 increased 51 percent to $106.3 million compared to revenues of $70.5 million for the same quarter last year. Net income amounted to $3.7 million compared to $4.5 million for the same period last year. On a fully diluted per share basis, net income was $.21 (on 17.2 million weighted average shares outstanding) compared to $.34 (on 13.2 million weighted average shares outstanding) last year.
For the six months ended June 30, 1992, Qual-Med reported revenues of $179.5 million, an increase of 26 percent over revenues of $142.2 million for the same period a year ago. Net income amounted to $8.3 million compared to $8.2 million last year. On a fully diluted per share basis, net income was $.48 (on 17.3 million weighted average shares outstanding) compared to $.65 (on 12.6 million weighted average shares outstanding) for the same period last year. The recent acquisitions of Preferred Health Network Inc., PCA Health Plans Inc. (Sacramento) and Bridgeway Plan for Health contributed 31 percent of Qual-Med's revenues and 12 percent of Qual- Med's net income for the second quarter. "Earnings in the second quarter were impacted by our continuing investment in marketing, sales and other strategic activities that promote the long-term growth and competitiveness of Qual-Med," said Malik M. Hasan, M.D., chairman, president and chief executive officer. "However, integration of new acquisitions made in the first half of the year are nearly complete, and we are beginning to see new growth in membership, which is attributable to our recent emphasis on building a professional sales and marketing capability. In addition, medical loss ratios (medical expenses as a percent of premium revenue) at health plans owned prior to this year continued to improve in the second quarter." Qual-Med reported that its second quarter medical loss ratio for pre-1992 health plans improved to 75.1 percent vs. 76.2 percent a year ago. However, the consolidated medical loss ratio for all plans increased to 78.7 percent in the second quarter from 76.2 percent for the same period last year. This reflects the high combined medical loss ratios of 87.4 percent experienced at Bridgeway in San Francisco and PCA in Sacramento. Hasan said that Qual-Med expects to positively influence the medical loss ratios of Bridgeway and PCA in the second half of the year through its intensive focus on quality medical management and appropriateness of care that is now in place at these plans. In the second quarter of 1992, the company experienced overall enrollment growth at its pre-1992 plans, as well as at its newly acquired health plans. Excluding the recent acquisitions of Bridgeway and PCA, HMO membership at Qual-Med's pre-1992 plans increased to approximately 228,000 as of Aug. 1, 1992 compared to approximately 219,000 as of March 31, 1992. Total HMO membership of Qual-Med, including Bridgeway and PCA, was approximately 321,000 as of Aug. 1, 1992. "Qual-Med is rapidly evolving and going through a transitional period. We believe that Qual-Med is continuing to lay the groundwork for undertaking successful strategic initiatives to position the business for future growth and to enhance shareholder value," Hasan added. Qual-Med Inc., headquartered in Pueblo, provides comprehensive managed health care products and services to more than 321,000 HMO members and to more than two million covered persons who may access its preferred provider networks. Its HMO members in California, Colorado, Idaho, New Mexico, Oregon and Washington pay a fixed monthly premium for services rendered and choose among a broad network of independent primary care physicians. QUAL-MED INC. Second Quarter, June 30 1992 1991 Revenues $106,317,000 $70,492,000 Net income $3,695,000 $4,485,000 Weighted Avg. Shrs. O/S. Primary 17,243,096 12,403,287 Fully diluted 17,243,096 13,235,426 Earnings Per Share Primary $0.21 $0.36 Fully diluted $0.21 $0.34 Six Months, June 30 1992 1991 Revenues $179,542,000 $142,222,000 Net income $8,258,000 $8,209,000 Weighted Avg. Shrs. O/S Primary 17,260,871 11,664,637 Fully diluted 17,260,871 12,581,792 Earnings Per Share Primary $0.48 $0.70 Fully diluted $0.48 $0.65 -0- 8/13/92 /CONTACT: Keith Hovland, EVP-finance and administration of Qual-Med, 719-542-0500/ (QLMD) CO: Qual-Med Inc. ST: Colorado IN: MTC SU: ERN
JL-AL -- LA039 -- 9778 08/13/92 17:48 EDT
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|Date:||Aug 13, 1992|
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