United American Healthcare Corporation Reports Fiscal 2005 First Quarter Financial Results
DETROIT, Oct. 28 /PRNewswire-FirstCall/ -- United American Healthcare Corporation , a pioneer in health care services for Medicaid recipients, announced today its financial results for its fiscal 2005 first quarter ended September 30, 2004.
Total revenues for the fiscal first quarter ended September 30, 2004 were $5.4 million, up from revenues of $5.3 million reported in the prior fiscal quarter, and down 6% from the $5.7 million reported in fiscal first quarter of last year. The decrease in revenues year over year was due primarily to a contractual risk amendment with TennCare, the State of Tennessee healthcare program, in September 2002. In the amendment, TennCare agreed to pay the Company's subsidiary in Tennessee, OmniCare Health Plan, Inc. ("OmniCare"), up to $7.5 million and additional funds as necessary to meet its statutory net worth requirements as of June 30, 2002. Under GAAP, such receivable has been recorded in the Company's later financial statements as fiscal 2002 claims were processed. For the fiscal quarter ended September 30, 2004, $0.02 million of such medical claims were processed, compared to $0.4 million for the fiscal quarter ended September 30, 2003, and the same amount was recognized as revenue by OmniCare. Earnings from continuing operations increased 75% to $1.6 million, or $0.22 per basic common share, in the fiscal first quarter ended September 30, 2004, compared to earnings from continuing operations of $0.9 million, or $0.13 per basic common share, in the comparable period last year.
Net earnings increased 61% to $1.5 million, or $0.20 per basic common share, for the three months ended September 30, 2004, compared to net earnings of $0.9 million, or $0.13 per basic common share, for the three months ended September 30, 2003. The Company recognized a charge of $0.1 million from discontinued operations for the three months ended September 30, 2004, due to a contingent liability relating to a sublease agreement with a company previously managed by the Company, now expected to end prematurely, partially offset by the release of certain liabilities related to a patient care software system which is no longer in use.
"We are pleased to announce another strong financial performance for the Company," commented William C. Brooks, President, CEO and Chairman of United American Healthcare. "During the quarter, we increased profitability, successfully retired all outstanding bank debt and increased our cash position to $9.2 million. We have also closely monitored our current reimbursement arrangement with TennCare, under which we operate with an administrative services only (ASO) arrangement, which has been extended through December 31, 2004, and we continue to expect a mutually agreeable reimbursement arrangement with TennCare after that date." Mr. Brooks continued, "As we look to the remainder of this fiscal year, we are excited about several new opportunities ahead of us, including potential geographic expansion and potentially adding additional new members to our program."
Total expenses were $3.8 million in the fiscal quarter ended September 30, 2004, compared to $4.4 million in the comparable quarter last year.
At September 30, 2004, the Company had cash and cash equivalents and short-term marketable securities of $9.2 million, compared to $6.3 million at September 30, 2003.
Fiscal Year 2005 Guidance
The following statements are based on the Company's current expectations. These statements are forward-looking, and actual results may differ materially. Except as expressly set forth below, these statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be closed or entered into after September 30, 2004.
UAHC anticipates FY 2005 revenues in the range of $21 - $23 million and earnings per common basic share in the range of $0.85 - $0.90 for FY 2005.
Corporate Conference Call
The Company will host a conference call today at 4:30 p.m. EDT (1:30 p.m. PDT) to review the fiscal first quarter financial results and other corporate events. William Brooks, UAHC's President and CEO, and Stephen Harris, UAHC's CFO, will be on-line to discuss these results and take part in a Q&A session.
To access the live conference call, dial 800-370-0898, and give the Company name, "United American Healthcare." Participants are asked to call the assigned number approximately 10 minutes before the conference call begins.
For those unable to participate in the conference call, a replay of the call will be available two hours after the call for the following five business days by dialing 877-519-4471 within the U.S. or by dialing 973-341-3080 internationally and entering the following pass code: 5326332. Also, an instant replay of the conference call will be available over the Internet at http://www.uahc.com/ in the Investor Relations area of the site or by going to http://www.mkr-group.com/.
About United American Healthcare
United American Healthcare is a full-service healthcare management company, pioneering the delivery of healthcare services to the Medicaid population since 1985. The Company owns and manages OmniCare in western Tennessee, including Memphis. UAHC serves 130,000 enrollees in Tennessee. For more information on the Company, please visit the Company website at http://www.uahc.com/.
Forward-looking statements by United American Healthcare Corporation, including those in this announcement, involve known and unknown risks, which may cause actual results and corporate developments to differ materially from those expected. Factors that could cause results and developments to differ materially from expectations include, without limitation, the effects of state and federal regulations, the effects of acquisitions and divestitures, and other risks described from time to time in each of United American Healthcare's SEC reports, including quarterly reports on Form 10-Q, annual reports on Form 10-K, and reports on Form 8-K.
United American Healthcare Corporation and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, June 30, 2004 2004 (Unaudited) Assets Current assets Cash and cash equivalents $5,598 $7,767 Marketable securities 3,605 1,000 Accounts receivable -- State of Tennessee 1,218 1,230 Other receivables 1,634 1,206 Prepaid expenses and other 126 147 Deferred income taxes 2,097 1,939 Total current assets 14,278 13,289 Assets held for sale -- 100 Property and equipment, net 269 323 Goodwill 3,452 3,452 Marketable securities 2,358 2,331 Other assets 586 586 Total assets $20,943 $20,081 Liabilities and Shareholders' Equity Current liabilities Current portion of long-term debt $125 $847 Medical claims payable 341 406 Accounts payable and accrued expenses 746 1,140 Accrued compensation and related benefits 511 582 Accrued rent 1,223 837 Other current liabilities 1,535 1,384 Total current liabilities 4,481 5,196 Total liabilities 4,481 5,196 Shareholders' equity Preferred stock, 5,000,000 shares authorized; none issued -- -- Common stock, no par, 15,000,000 shares authorized; 7,442,557 and 7,418,519 issued and outstanding at September 30, 2004 and June 30, 2004, respectively 12,314 12,226 Retained earnings 4,168 2,702 Accumulated other comprehensive gain, net of income taxes (20) (43) Total shareholders' equity 16,462 14,885 $20,943 $20,081 United American Healthcare Corporation and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) Three months ended September 30, 2004 2003 Revenues Fixed administrative fees $5,128 $5,074 Medical premiums 19 369 Interest and other income 261 285 Total revenues 5,408 5,728 Expenses Medical services 19 369 Marketing, general and administrative 3,737 3,915 Depreciation and amortization 49 63 Interest expense 8 20 Total expenses 3,813 4,367 Earnings from continuing operations before income taxes 1,595 1,361 Income tax expense -- 449 Earnings from continuing operations 1,595 912 Discontinued operations Loss from discontinued operations (129) -- Net earnings $1,466 $912 Net earnings per common share -- basic Earnings from continuing operations $0.22 $0.13 Discontinued operations (0.02) 0.00 Net earnings per common share $0.20 $0.13 Weighted average shares outstanding 7,391 6,939 Net earnings per common share -- diluted Earnings from continuing operations $0.21 $0.13 Discontinued operations (0.02) 0.00 Net earnings per common share $0.19 $0.13 Weighted average shares outstanding 7,443 6,953United American Healthcare Corporation
CONTACT: Stephen D. Harris, Chief Financial Officer of United AmericanHealthcare Corp., +1-313-393-4571, email@example.com; or InvestorRelations, Charles Messman or Todd Kehrli, both of MKR Group, LLC,+1-818-556-3700, for United American Healthcare Corp.
Web site: http://www.uahc.com/