First
Health Reports Record Results 20% EPS Growth
Contact: James C. Smith, Chairman and CEO
or
Joseph E. Whitters, CFO
First Health Group Corp.
630-737-7511
FOR IMMEDIATE RELEASE
DOWNERS GROVE, Illinois, April 30, 2001 /PRNewswire/ -- James
C. Smith, Chairman and Chief Executive Officer of First Health
Group Corp. (Nasdaq: FHCC), announced today the results of
operations for the first quarter ended March 31, 2001.
Diluted earnings per share for the three months ended March
31, 2001 increased 20% to a record $.48 or $24,400,000 compared
with $.40 or $19,612,000 during the same period last year.
Revenues for the three months ended March 31, 2001 increased
12% to $136,984,000 from $122,475,000 during the same period
last year.
Mr. Smith commented that the addition of new clients on January
1 and the effective control of the Company's operating expenses
have allowed for a strong start to the new year. As a result
of the strong results in the first quarter, the Company is
currently estimating EPS growth for the year in the 19%-20%
area, up from its previous estimate of 18% EPS growth.
First Health, the nation's premier full-service national
health benefits company, specializes in providing large employers
with one integrated source for group health and workers' compensation.
By combining pioneering technology with expert industry knowledge,
First Health delivers comprehensive, cost-effective solutions
for its clients nationally. For more information, visit the
company web site at www.firsthealth.com.
Certain statements herein regarding anticipated financial
results for fiscal 2001 and the Company's business and growth
prospects are forward-looking statements that involve substantial
risks and uncertainties. In accordance with the Private Securities
Litigation Reform Act of 1995, factors that could cause the
Company's actual results to differ materially from those expressed
or implied by such forward-looking statements include, among
others, the inability of the Company to continue to: (i) enter
into contracts with and successfully implement programs for
new clients within the time frame established by the Company
and achieve the revenue growth expected to result from the
addition of such clients, (ii) expand its group health, workers'
compensation and public sector business, (iii) achieve the
growth in the group health area that is anticipated as a result
of the Company's strategy of focusing on larger, multi-sited
national employers, or (iv) control healthcare benefit expenses.
All forward-looking statements herein are made as of the date
hereof and the Company undertakes no obligation to update
such statements.
| First Health Group Corp. |
| (000's Omitted Except EPS
and Percentages) |
| (Unaudited) |
| |
|
|
|
|
|
|
| |
|
Three Months Ended
March 31, |
| |
|
2001 |
|
2000 |
|
% Increase
(Decrease) |
| Revenues |
|
$136,984 |
|
$122,475 |
|
12% |
| Operating Expenses: |
|
|
|
|
|
|
| Cost of Services |
|
59,737 |
|
55,435 |
|
8% |
| Selling and Marketing |
|
12,944 |
|
11,473 |
|
13% |
| General and Administrative |
|
8,370 |
|
8,725 |
|
(4)% |
| Healthcare Benefits |
|
3,703 |
|
2,359 |
|
57% |
| |
|
84,754 |
|
77,992 |
|
9% |
| |
|
|
|
|
|
|
| Operating Income |
|
52,230 |
|
44,483 |
|
17% |
| |
|
|
|
|
|
|
| Depreciation and Amortization |
|
10,602 |
|
9,113 |
|
16% |
| |
|
|
|
|
|
|
| Interest Income |
|
(1,851) |
|
(1,557) |
|
19% |
| Interest Expense |
|
2,471 |
|
3,966 |
|
(38)% |
| Income Before Income Taxes |
|
41,008 |
|
32,961 |
|
24% |
| Income Taxes |
|
(16,608) |
|
(13,349) |
|
24% |
| Net Income |
|
$24,400 |
|
$19,612 |
|
24% |
| Weighted Average |
|
|
|
|
|
|
| Shares Outstanding - Basic |
|
48,363 |
|
47,712 |
|
1% |
| Net Income Per |
|
|
|
|
|
|
| Common Share - Basic |
|
$.50 |
|
$.41 |
|
22% |
| Weighted Average |
|
|
|
|
|
|
| Shares Outstanding - Diluted |
|
50,849 |
|
49,531 |
|
3% |
| Net Income Per |
|
|
|
|
|
|
| Common Share - Diluted |
|
$.48 |
|
$.40 |
|
20% |
| First Health Group Corp. |
| (000's Omitted Except Percentages) |
| (Unaudited) |
| |
|
|
|
|
|
|
| |
|
Three Months Ended
March 31, |
| |
|
2001 |
|
2000 |
|
% Increase
(Decrease) |
| Revenue Information: |
|
|
|
|
|
|
| Sources of Revenue: |
|
|
|
|
|
|
| PPO Services |
|
$75,711 |
|
$64,917 |
|
17% |
| Claims Administration |
|
41,545 |
|
37,545 |
|
11% |
| Clinical Management Services |
|
7,087 |
|
7,711 |
|
(8)% |
| Fee Schedule Services |
|
8,754 |
|
8,958 |
|
(2)% |
| Premiums |
|
3,887 |
|
2,908 |
|
34% |
| Service |
|
0 |
|
436 |
|
(100)% |
| Total Revenue |
|
$136,984 |
|
$122,475 |
|
12% |
Summary Balance Sheet Information:
| |
|
|
|
March 31, |
|
December 31, |
| |
|
|
|
2001 |
|
2000 |
| Cash and Investments |
|
|
|
$130,398 |
|
$127,582 |
| Accounts Receivable |
|
|
|
58,604 |
|
57,137 |
| Reinsurance Recoverable |
|
|
|
29,616 |
|
31,282 |
| Fixed Assets |
|
|
|
165,474 |
|
155,717 |
| Goodwill |
|
|
|
89,109 |
|
89,975 |
| Other Assets |
|
|
|
30,644 |
|
29,903 |
| Total Assets |
|
|
|
$503,845 |
|
$491,596 |
| |
|
|
|
|
|
|
| Claims Reserves |
|
|
|
$39,184 |
|
$41,228 |
| Long-Term Debt |
|
|
|
100,000 |
|
127,500 |
| Other Liabilities |
|
|
|
148,312 |
|
141,455 |
| Stockholders' Equity |
|
|
|
216,349 |
|
181,413 |
| Total Liabilities and |
|
|
|
|
|
|
| Stockholders' Equity |
|
|
|
$503,845 |
|
$491,596 |
|
