DETROIT, Aug. 26 /PRNewswire-FirstCall/ -- United American Healthcare Corporation , a pioneer in healthcare services for Medicaid recipients, today announced financial results for its 2004 fiscal fourth quarter and year ended June 30, 2004.
Total revenues for the fourth quarter ended June 30, 2004 were $5.3 million, up 14% over the same quarter ended June 30, 2003. Net earnings for the fourth quarter increased 327% to $3.5 million, or $0.48 per diluted share, from $0.8 million, or $0.12 per diluted share, for the fourth quarter a year ago. Net earnings for the 2004 fiscal fourth quarter increased 153% over the third quarter.
Total revenues for fiscal 2004 were approximately $22.1 million, a decrease of 10% compared to the fiscal year ended June 30, 2003. The decrease in revenues was primarily due 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 was recorded in the Company's later financial statements as fiscal 2002 claims were processed. For the fiscal year ended June 30, 2004, $0.5 million of such medical claims were processed and the same amount was recognized as revenue by OmniCare, compared to $7.8 million for the fiscal year ended June 30, 2003. Net earnings for fiscal 2004 were $7.2 million, a 38% increase over the $5.2 million reported in fiscal 2003. Earnings per diluted share for the fiscal year ended June 30, 2004 increased 31% to $0.98 from the $0.75 reported for the fiscal year ended June 30, 2003. The increase in net earnings year-over-year was primarily due to an increase in the Company's OmniCare members and an increase in reimbursement rates effective July 1, 2003 and utilization of net operating loss carryforwards. The Company also continued to focus on increasing profitability, as total expenses in the fiscal year ended June 30, 2004 decreased 8% from the prior fiscal year.
At June 30, 2004, the Company's cash and cash equivalents and short-term marketable securities increased 87%, or $4.1 million, to $8.8 million, from $4.7 million at June 30, 2003.
"We are very pleased to report another strong performance in the fourth quarter and for the fiscal year as a whole," commented William C. Brooks, President, CEO and Chairman of United American Healthcare. "Throughout the last year, we have aggressively worked to increase profitability and as a result we saw substantial quarterly earnings increases both year--over-year and sequentially. We also exceeded our fiscal 2004 annual EPS guidance of $0.68 to $0.73, reporting $0.98 for fiscal 2004. We have a satisfactory reimbursement arrangement with TennCare, under the administrative services only (ASO) arrangement that has been extended through December 31, 2004, and we continue to expect a mutually agreeable reimbursement arrangement with TennCare after that date." Mr. Brooks concluded, "We are very excited about fiscal 2005, as we believe we will be able to add additional members to our OmniCare Health Plan during the year."
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 June 30, 2004.
UAHC anticipates FY 2005 revenues in the range of $21 - $23 million and earnings in the range of $0.85 - $0.90 per share 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 fourth quarter and year-end 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.
The call can be accessed by dialing 800-370-0898 and giving the company name, "United American Healthcare." Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. A replay of the conference call will be available two hours after the call for the following five business days by dialing 877-519-4471 and entering the following pass code: 5085360. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended June 30, 2004 2003 2002 Revenues Fixed administrative fees 20,391 14,750 -- Medical premiums $532 $7,841 $163,094 Interest and other income 1,161 1,939 2,082 Total revenues 22,084 24,530 165,176 Expenses Medical services 532 434 155,092 Marketing, general and administrative 14,483 15,680 17,989 Depreciation and amortization 227 296 320 Interest expense 66 140 216 Total expenses 15,308 16,550 173,617 Earnings (loss) from continuing operations before income taxes 6,776 7,980 (8,441) Income tax expense (benefit) (1,095) 647 818 Earnings (loss) from continuing operations 7,871 7,333 (9,259) Discontinued operations Loss from discontinued operations (700) (2,127) (1,704) Net earnings (loss) $7,171 $5,206 $(10,963) Net earnings (loss) per common share -- basic Earnings (loss) from continuing operations 1.09 1.06 (1.35) Loss from discontinued operations (0.10) (0.31) (0.25) Net earnings (loss) per common share $0.99 $0.75 $(1.60) Weighted average shares outstanding 7,207 6,941 6,839 Net earnings (loss) per common share -- diluted Earnings (loss) from continuing operations 1.08 1.06 (1.35) Loss from discontinued operations (0.10) (0.31) (0.25) Net earnings (loss) per common share $0.98 $0.75 $(1.60) Weighted average shares outstanding 7,266 6,950 6,839 See accompanying notes to the consolidated financial statements. United American Healthcare Corporation and Subsidiaries CONSOLIDATED BALANCE SHEETS (in thousands, except share data) June 30, 2004 2003 Assets Current assets Cash and cash equivalents $7,767 $3,693 Marketable securities 1,000 1,000 Accounts receivable -- State of Tennessee 1,230 1,213 Other receivables 1,206 1,495 Prepaid expenses and other 147 167 Deferred income taxes 1,939 570 Total current assets 13,289 8,138 Assets held for sale 100 800 Property and equipment, net 323 478 Goodwill 3,452 2,952 Marketable securities 2,331 2,160 Other assets 586 586 $20,081 $15,114 Liabilities and Shareholders' Equity Current liabilities Current portion of debt $847 $1,108 Medical claims payable 406 591 Accounts payable and accrued expenses 1,140 2,516 Accrued compensation and related benefits 582 519 Accrued rent 837 280 Other current liabilities 1,384 1,430 Total current liabilities 5,196 6,444 Long-term debt, less current portion -- 658 Accrued rent -- 872 Total Liabilities 5,196 7,974 Shareholders' equity Preferred stock, 5,000,000 shares authorized; none issued -- -- Common stock, no par, 15,000,000 shares authorized; 7,418,519 and 6,910,721 shares issued and outstanding at June 30, 2004 and 2003, respectively 12,226 11,570 Retained earnings (deficit) 2,702 (4,469) Accumulated other comprehensive (loss) income, net of deferred federal income taxes (43) 39 Total shareholders' equity 14,885 7,140 $20,081 $15,114
United American Healthcare CorporationCONTACT: Stephen D. Harris, Chief Financial Officer of United AmericanHealthcare Corp., +1-313-393-4571, investor_relations@uahc.com; or investorrelations, Charles Messman or Todd Kehrli of MKR Group, LLC, +1-818-556-3700,ir@mkr-group.com, for United American Healthcare Corp.
Web site: http://http//www.mkr-group.com
Web site: http://www.uahc.com/
