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 DETROIT, Sept. 20 /PRNewswire/ -- Confirming estimates disclosed in a major wire service interview on Sept. 1, 1993, United American Healthcare Corporation (NYSE: UAH) today reported higher revenues and earnings for its fiscal year ended June 30, 1993.
 Total revenues for the year grew 15 percent, to $29,035,695 from $25,264,997 in 1992, excluding revenues from discontinued Wayne County operations. Management fees, which account for the majority of revenues, grew 13.5 percent to $27,582,375 from $24,299,144.
 Net income of $4,658,631, or 73 cents a share, was in line with management's expectations. The prior year's net income was $4,583,462, or 72 cents a share. The 1992 net income figure includes $291,850, or 4.6 cents a share, from the Wayne County program which was discontinued in April 1992 due to lack of funding from the Michigan state Legislature.
 For the fourth quarter, total revenues rose 21 percent to $8,178,291 and included a 13 percent increase in management fees as well as $749,000 in fees from the recently acquired Corporate Healthcare Financing, Inc. (CHF). In the comparable 1992 quarter, revenues were $6,768,167, excluding Wayne County operations.
 The quarterly net income of $1,476,560, or 23 cents a share, was sharply higher than the $923,936, or 15 cents a share, reported in the comparable 1992 quarter. The Wayne County program contributed $72,442, or one cent a share in the year ago three month results.
 There were 6,362,988 weighted average outstanding shares for the recent year and 6,325,460 for the prior year. These weighted averages reflect a 5-for-4 stock split effective March 25, 1993, 75,000 shares purchased under the stock buy-back program in the fourth quarter of 1993 and 310,481 shares issued as part of the purchase price of CHF.
 "Our financial results are in line with our expectations and our strategic plan for growth is progressing as designed," said Julius V. Combs, M.D., chairman. "It is important to note we had an earlier- than-anticipated contribution to earnings from CHF.
 "Management fees grew primarily due to a five percent increase in enrollment and a 13 percent rate increase from the State of Michigan for the more than 48,000 OmniCare Medicaid enrollees. That rate increase was retroactive to January 1, 1993 and will continue to benefit fiscal 1994. In the commercial market, rate increases were constrained by the competitive environment resulting from cost-conscious consumers. Commission and service fees will continue to reflect CHF revenues," Dr. Combs noted.
 "During the third quarter we incurred some one time expenses which impacted our yearly earnings performance. Totaling about $300,000 were non-recurring expenses associated with our New York Stock Exchange listing as well as specific, highly targeted marketing efforts for the OmniCare and Personal Physicians Care programs. Promotion and advertising expenses were back on target during the fourth quarter.
 "The important strategic moves we've made during the past year are expanding UAH's influence in the changing healthcare industry as well as building a strong financial capability, demonstrated by the balance sheet. Total assets grew 39 percent to $32,798,498. The current ratio is 2.82 to 1.00, we have no long term debt and shareholders' equity grew 33 percent, to $26,806,590.
 "We continue to aggressively pursue new business opportunities in the form of acquisitions, mergers or joint ventures. We are excited that New York-based HealthScope/United program is under way and we expect the first enrollees will be on line Nov. 1, 1993. The marketing effort is directed at an eligible population of 500,000 people.
 "As part of the loan agreement with the management company, HealthScope/United, UAH holds and can exercise an option to acquire a controlling interest in this company," Dr. Combs explained.
 He concluded by saying, "We do not see anything in the health care proposal from the Clinton Administration which would alter our course of business. Any plan to be presented will target healthcare cost containment and expanded population coverage. These are the essential elements of United American's business. Opportunities abound within the health care services industry and we believe our track record for performance and innovation will continue to grow our revenues and earnings."
 United American Healthcare Corporation is a health care management company. UAH provides a full range of services to two health maintenance organizations -- OmniCare Health Plan in Southeast Michigan and Personal Physician Care, Inc., based in Cleveland.
 The company provides management services for self-funded companies through the recent acquisition of Baltimore-based Corporate Healthcare Financing. The company is seeking to pursue additional opportunities as they arise in the changing health care industry.
 June 30
 1993 1992
 OmniCare 100,671 93,761
 Personal Physician Care 24,296 16,193
 _________ _________
 TOTAL 124,937 109,954
 (Healthcare Services as a percentage of premium revenues)
 Six Months Ended
 June 30
 1993 1992
 OmniCare 82 76
 Personal Physician Care 79 78
 Year Ended June 30
 1993 1992
 Management fees $ 27,582,375 $ 24,299,144
 Commission and service fees 749,874 -
 Interest and other 703,446 965,853
 Total revenues 29,035,695 25,264,997
 Salaries, fringe benefits and
 payroll taxes 11,429,487 10,034,660
 Promotion and advertising 3,420,712 3,066,173
 Depreciation and amortization 702,547 381,964
 General, administrative and
 other operating expenses 6,552,318 5,523,369
 Total expenses 22,105,064 19,006,166
 Wayne County capitation fees - 9,605,601
 Wayne County medical expenses - 9,179,970
 - 425,631
 Earnings before income tax
 expense 6,930,631 6,684,462
 Income Tax Expense
 Current 2,025,000 2,058,000
 Deferred 247,000 43,000
 2,272,000 2,101,000
 Net earnings $ 4,658,631 $ 4,583,462
 Net earnings per common share $0.73 $0.72
 Weighted average common shares 6,362,988 6,325,460
 United American Healthcare Corporation and Subsidiary
 Three months ended
 June 30,
 1993 1992
 Management fees $ 7,302,226 $6,448,937
 Commission and service fees 749,874 -
 Interest and other 126,191 319,230
 Total revenues 8,178,291 6,768,167
 Salaries, fringe benefits and
 payroll taxes 3,203,734 2,711,467
 Promotion and advertising 530,185 1,231,596
 Depreciation and amortization 271,278 112,561
 General, administrative and
 other operating expenses 1,976,534 1,580,999
 Total expenses 5,981,731 5,636,623
 Wayne County capitation fees - 857,612
 Wayne County medical expenses - 751,963
 - 105,649
 Earnings before income tax
 expense 2,196,560 1,237,193
 Income tax expense
 Current 585,000 270,257
 Deferred 135,000 43,000
 720,000 313,257
 Net earnings $ 1,476,560 $ 923,936
 Net earnings per common share $0.23 $0.15
 Weighted average common
 shares 6,362,988 6,325,460
 -0- 9/20/93
 /CONTACT: Dr. Julius V. Combs, M.D., chairman and CEO of United American Healthcare Corporation, 313-393-0200; or Dixie Watterson, 708-564-5610, Mark Perlgut, 212-580-4141, or Earle Brown, 813-796-1452, all of the Investor Relations Company; or Joyce Davis-Adams of JDA Enterprises, 313-961-7835, all for United American Healthcare Corporation/

CO: United American Healthcare Corporation ST: Michigan IN: HEA SU: ERN

JG -- DE006 -- 3539 09/20/93 10:05 EDT
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Publication:PR Newswire
Date:Sep 20, 1993

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