UNITED AMERICAN HEALTHCARE CORPORATION
ANNOUNCES STRONG FIRST-QUARTER RESULTS
DETROIT, Nov. 18 /PRNewswire/ -- United American Healthcare Corporation (NASDAQ: UAHC) today announced a 30-percent increase in net income for the first quarter ended Sept. 30, 1991. Per-share earnings were up 4 percent as weighted average shares outstanding increased 27 percent.
Revenues for the quarter totaled $8,922,254, up 7 percent from $8,278,115 in the September, 1990 quarter. Net earnings in the recent quarter were $1,199,972, or 24 cents a share, with 5,060,393 weighted average shares outstanding. For the year-earlier period, the company posted net earnings of $898,000, or 23 cents a share, with 3,980,393 weighted average shares outstanding.
The number of average shares outstanding has increased substantially in the current fiscal year since 1,080,000 new shares were issued at the time of the company's initial public offering on April 30, 1991.
"Total revenues grew primarily due to higher management fees from the company-managed health maintenance organizations, OmniCare Health Plan and Personal Physician Care of Ohio, Inc.," said Julius V. Combs, M.D., chairman and chief executive officer.
"Both HMOs are solidly profitable, growing, and in excellent shape financially.
"OmniCare membership grew to 92,179 from year earlier 89,502. OmniCare's commercial enrollment declined by 2,600 due to the loss of one 5,000-member group. We are continuing special emphasis on the growth of the commercial sector. The Medicaid segment grew by more than 5,000 members, bringing total enrollment up 3 percent. OmniCare's loss ratio was 80 percent in the recent quarter, vs. 75 percent in the year-earlier quarter.
"Personal Physician Care has made remarkable progress since last year at this time. Its equity position has been positive since June, 1991, and it has posted profits every month since January, 1991. Commercial enrollment has grown by 17 percent, while total enrollment was down by 10 percent, reflecting the loss of Medicaid enrollees who ceased to meet technical eligibility requirements," Dr. Combs said. "PPC's loss ratio has improved to 76 percent from 91 percent, a key factor in the HMO's return to profitability."
"The continuation of CountyCare beyond Nov. 30 remains unknown at this time. While this part of our business is important, it is not our most profitable segment. We have previously said its termination would affect this year's earnings by 3 to 5 cents a share. We pioneered this program. Even if it does not continue, we are confident our experience will serve us well as we pursue similar programs for the general assistance population," Dr. Combs said.
"United American's highly liquid balance sheet is available to support the company's growth. The company has $14 million cash, or $2.76 a share, and a current ratio of 5.1. Michigan National Bank has increased our credit line to $2.5 million from $1 million as our financial condition continues to strengthen.
"We continue to actively market UAHC services and pursue opportunities to maximize our management expertise, as well as review potential acquisitions. Looking forward, the company is on track for continued growth and profitability," he concluded.
United American Healthcare Corp. is a health care management company. UAHC provides a full range of services to two health maintenance organizations -- OmniCare Health Plan in southeast Michigan and Personal Physician Care of Ohio, based in Cleveland. Through CountyCare, a program of Wayne County, Mich., the company provides comprehensive health care services to approximately 14,000 general assistance recipients, a contract which is effective through Nov. 30, 1991.
UNITED AMERICAN HEALTHCARE CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended
Mgmt. Fees from related party $5,621,943 $4,967,183
Wayne County Capitation 3,110,185 3,214,639
Interest & other income 190,126 96,293
8,922,254 8,278,115 +7 pct
Sal., fringe bene. & P/R taxes 2,364,602 2,140,450
Promotion & advertising 419,034 636,601
General & administrative 1,334,107 1,430,551
Wayne County Medical Care 3,032,139 2,736,983
Earnings before Income Taxes 1,772,372 1,333,530 +33 pct
Income Tax Expense 572,400 435,170
$1,199,972 $ 898,360 +34 pct
Net Earnings per Common Share $ 0.24 $ 0.23 +4 pct
Shares Outstanding 5,060,393 3,980,393
MEDICAL Loss Ratios
OmniCare Health Plan 80 pct 75 pct
Personal Physician Care 76 pct 91 pct
OmniCare Health Plan
Commercial 47,198 49,746
Medicaid 44,981 39,756
Total 92,179 89,502
Personal Physician Care
Commercial 9,113 7,740
Medicaid 8,270 11,567
Total 17,383 19,307
TOTAL 109,562 108,809
/CONTACT: Dr. Julius V. Combs, M.D., chairman, United American Healthcare Corporation, 313-873-2852; or Dixie Watterson, 708-564-5610, Bruce Marcus, 212-580-0703, Largent Parks, 214-387-4520, Earle Brown, 813-796-1452, or Tim King, 213-541-4415, all of The Investor Relations Company, for United American Healthcare Corporation/
(UAHC) CO: United American Healthcare Corporation ST: Michigan IN: HEA SU: ERN JG -- DE007 -- 1319 11/18/91 10:22 EST