First
Health Reports Record Results 19% EPS Growth
Contact:
Edward L. Wristen, President and COO
or
Joseph E. Whitters, CFO
First Health
630-737-7511
DOWNERS GROVE, IL – July 30, 2001 - James C. Smith, Chairman
and Chief Executive Officer of First Health Group Corp. (NASDAQ:
FHCC), announced today the results of operations for the second
quarter ended June 30, 2001.
Diluted earnings per share (EPS) and net income for the three
months and six months ended June 30, 2001 increased 19% to
$.25 or $25,329,000 and 23% to $.49 or $49,729,000 respectively,
compared with $.21 or $20,533,000 and $.40 or $40,145,000
respectively, during the same periods last year. Revenues
for the three months and six months ended June 30, 2001 increased
10% to $138,949,000 from $125,884,000 and 11% to $275,933,000
from $248,359,000, respectively, during the same periods last
year. All EPS data and common share data have been adjusted
for a 2-for-1 stock split paid on June 25, 2001 to stockholders
of record on June 4, 2001.
Mr. Smith commented that the second quarter results reflect
the continued solid performance consistent with the last several
quarters and positions the Company well to achieve EPS growth
for the year in the area of 20%.
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 employe rs, 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
June 30, |
|
Six Months Ended
June 30, |
| |
|
2001 |
2000 |
% Increase (Decrease) |
|
2001 |
2000 |
% Increase (Decrease) |
| Revenues |
|
$138,949 |
$125,884 |
10% |
|
$275,933 |
$248,359 |
11% |
| Operating Expenses: |
|
|
|
|
|
|
|
|
| Cost of Services |
|
60,438 |
55,964 |
8% |
|
120,175 |
111,399 |
8% |
| Selling and Marketing |
|
13,233 |
11,914 |
11% |
|
26,177 |
23,387 |
12% |
| General and Administrative |
|
8,622 |
8,510 |
1% |
|
16,992 |
17,235 |
(1)% |
| Healthcare Benefits |
|
3,396 |
3,374 |
1% |
|
7,099 |
5,733 |
24% |
| |
|
85,689 |
79,762 |
7% |
|
170,443 |
157,754 |
8% |
| |
|
|
|
|
|
|
|
|
| Operating Income |
|
53,260 |
46,122 |
15% |
|
105,490 |
90,605 |
16% |
| |
|
|
|
|
|
|
|
|
| Depreciation and Amortization |
|
11,285 |
9,374 |
20% |
|
21,887 |
18,487 |
18% |
| |
|
|
|
|
|
|
|
|
| Interest Income |
|
(1,714) |
(1,841) |
(7)% |
|
(3,565) |
(3,398) |
5% |
| Interest Expense |
|
1,119 |
4,079 |
(73)% |
|
3,590 |
8,045 |
(55)% |
| Income Before Income Taxes |
|
42,570 |
34,510 |
23% |
|
83,578 |
67,471 |
24% |
| Income Taxes |
|
(17,241) |
(13,977) |
23% |
|
(33,849) |
(27,326) |
24% |
| Net Income |
|
$25,329 |
$20,533 |
23% |
|
$49,729 |
$40,145 |
24% |
| Weighted Average |
|
|
|
|
|
|
|
|
| Shares Outstanding - Basic |
|
97,765 |
95,940 |
2% |
|
97,270 |
95,724 |
2% |
| Net Income Per |
|
|
|
|
|
|
|
|
| Common Share - Basic |
|
$.26 |
$.21 |
24% |
|
$.51 |
$.42 |
21% |
| Weighted Average |
|
|
|
|
|
|
|
|
| Shares Outstanding - Diluted |
|
102,396 |
99,968 |
2% |
|
102,034 |
99,544 |
3% |
| Net Income Per |
|
|
|
|
|
|
|
|
| Common Share - Diluted |
|
$.25 |
$.21 |
19% |
|
$.49 |
$.40 |
23% |
Re
| First Health Group Corp. |
| (000's Omitted Except Percentages) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June30, |
|
Six Months Ended
June 30, |
| |
|
2001 |
2000 |
% Increase (Decrease) |
|
2001 |
2000 |
% Increase (Decrease) |
| Revenue Information: |
|
|
|
|
|
|
|
|
| PPO Services |
|
$78,104 |
$67,683 |
15% |
|
$153,815 |
$132,600 |
16% |
| Claims Administration |
|
42,529 |
37,381 |
14% |
|
84,074 |
74,926 |
12% |
| Clinical Management Services |
|
6,824 |
8,120 |
(16)% |
|
13,911 |
15,831 |
(12)% |
| Fee Schedule Services |
|
7,759 |
9,743 |
(20)% |
|
16,513 |
18,701 |
(12)% |
| Premiums |
|
3,733 |
2,714 |
38% |
|
7,620 |
5,622 |
36% |
| Service |
|
-- |
243 |
(100)% |
|
-- |
679 |
(100)% |
| Total Revenue |
|
$138,949 |
$125,884 |
10% |
|
$275,933 |
$248,359 |
11% |
Summary Balance Sheet Information:
| |
|
|
June 30, |
December 31, |
| |
|
|
2001 |
2000 |
Assets:
Cash and Investments |
|
|
$129,355 |
$127,582 |
| Accounts Receivable |
|
|
68,455 |
57,137 |
| Reinsurance Recoverable |
|
|
29,008 |
31,282 |
| Fixed Assets |
|
|
172,646 |
155,717 |
| Goodwill |
|
|
88,241 |
89,975 |
| Other Assets |
|
|
28,621 |
29,903 |
| Total Assets |
|
|
$516,326 |
$491,596 |
Liabilities: |
|
|
|
|
| Claims Reserves |
|
|
$ 40,073 |
$ 41,228 |
| Long-Term Debt |
|
|
62,500 |
127,500 |
| Other Liabilities |
|
|
145,728 |
141,455 |
| Total Liabilities |
|
|
$248,301 |
$310,183 |
Stockholders' Equity: |
|
|
268,025 |
181,413 |
Total Liabilities and
Stockholders' Equity |
|
|
$516,326 |
$491,596 |
|
