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SAFEGUARD HEALTH ENTERPRISES INC. REPORTS SECOND QUARTER 1993 RESULTS

 ANAHEIM, Calif., July 29 /PRNewswire/ -- Safeguard Health Enterprises Inc. (NASDAQ-NMS: SFGD), announced its financial results for the second quarter and six-month period ended June 30, 1993. Earnings per share for the quarter were $.21 for both 1993 and 1992. Net income was $971,000, compared to $986,000 a year earlier. Health care revenue increased 2 percent to $15,477,000, compared to $15,208,000 for the same quarter a year ago.
 For the six-month period ended June 30, 1993, earnings per share were $.40, compared to $.41 a year ago. Net income was $1,904,000, compared to $1,945,000 a year earlier. Revenue increased to $30,863,000, compared to $30,599,000 for the same period a year ago.
 "Despite the continuation of significant layoffs in a number of the company's major clients, we are pleased to report the continued increase in sales to new small and mid-sized clients during the second quarter of 1993. Safeguard's enhanced sales efforts resulted in the addition of over 71,656 new members during the first half of 1993, and a slight increase in revenue for the quarter and six-month period; the first such revenue increase in over two years. New plan members offset almost entirely the membership reduction from layoffs and employee terminations from a number of the company's major clients in the aerospace, defense and retailing industries, which are experiencing significant employee down-sizing. At the end of the second quarter of 1993, the company had 1,351 clients, compared to 1,150 clients for the same period a year ago," said Steven J. Baileys, D.D.S., president and chief operating officer.
 "The addition of a significant number of new account executives over the last seven months, the introduction of new managed care products and the increased emphasis on the small and mid-sized group marketplace, has resulted in a significant number of new clients and proposals outstanding. During the first half of 1993, the company has invested an additional 6 cents per share in expanding its marketing and sales staff. We are pleased to see the beginning of the results of this investment in the number of new group clients we are adding to the Plan. This expense has resulted in a slight increase in the percentage of selling, general and administrative expense during the quarter and that trend is expected to continue during the remainder of the year as we continue to expand our marketing and sales force," Baileys said.
 "Safeguard's dental office subsidiary also continues to post significant increases in revenues and improvement in net profitability during the second quarter. Revenue increased by over 17.9 percent during this period, and with more services being provided to plan members by this subsidiary, the company is realizing the advantages of an integrated health care delivery system," Baileys said.
 Safeguard is a multifaceted managed care company offering prepaid dental and vision care programs and indemnity dental insurance plans. The company provides managed care benefits to more than 642,000 members through more than 2,900 contracting providers.
 SAFEGUARD HEALTH ENTERPRISES INC.
 (000s omitted, except per share data)
 Earnings Summary:
 Percent of Percent of Percent
 Quarter Ended June 30, 1993 Revenue 1992 Revenue Change
 Health care revenue $15,477 100.0 $15,208 100.0 1.8
 Health care expense 11,295 73.0 11,162 73.3 1.2
 SG & A expense 2,799 18.1 2,632 17.3 6.3
 Other income 205 1.3 208 1.4 (1.4)
 Income before income
 taxes 1,588 10.3 1,622 10.7 (2.1)
 Net income 971 6.3 986 6.5 (1.5)
 Net income per share $.21 $.21 ---
 Average shares
 outstanding 4,724 4,791 (1.4)
 Percent of Percent of Percent
 Six month ended June 30, 1993 Revenue 1992 Revenue Change
 Health care revenue $30,863 100.0 $30,599 100.0 .8
 Health care expense 22,397 72.6 22,342 73.0 .2
 SG & A expense 5,718 18.5 5,391 17.6 6.1
 Other income 312 1.0 321 1.0 (.3)
 Income before
 income taxes 3,060 9.9 3,187 10.4 (.4)
 Net income 1,904 6.2 1,945 6.4 (.2)
 Net income per share $.40 $.41 (2.4)
 Average shares
 outstanding 4,726 4,769 (.9)
 Selected Balance Sheet Data:
 Percent
 Six month ended June 30, 1993 1992 Change
 Cash and marketable
 securities $17,145 14,397 19.1
 Current assets 18,869 17,091 10.4
 Current liabilities 1,440 2,313 (37.7)
 Long-term debt 0 0 ---
 Shareholders' equity 24,805 18,037 37.5
 Total assets 26,676 23,948 11.4
 -0- 7/29/93
 /CONTACT: Ronald I. Brendzel, senior VP of Safeguard Health Enterprises, 714-778-1005/
 (SFGD)


CO: Safeguard Health Enterprises Inc. ST: California IN: HEA SU: ERN

LM-JL -- LA018 -- 7140 07/29/93 09:10 EDT
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Date:Jul 29, 1993
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