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DETROIT, Aug 25, 2005 /PRNewswire-FirstCall via COMTEX/ -- United American Healthcare Corporation (Nasdaq: UAHC), a pioneer in health care services for Medicaid recipients, announced today its financial results for its fiscal fourth quarter and fiscal year ended June 30, 2005.
Total revenues for the fourth quarter ended June 30, 2005 were $5.7 million, up slightly from revenues of $5.3 million reported in the fourth quarter of fiscal 2004. Net earnings for the fourth quarter ended June 30, 2005 were approximately $433,000, or $0.06 per share, compared to $3.5 million, or $0.48 per share, reported for the quarter ended June 30, 2004. The decrease in net earnings was principally due to an increase in marketing, general and administrative expenses and a higher effective tax rate for the year. The increase in MG&A was primarily due to an increase in costs associated with the administrative supervision order binding on the Company's subsidiary, UAHC Health Plan of Tennessee, Inc. ("UAHC-TN"), since April 20, 2005, and an increase in claims processing costs.
For the fiscal year ended June 30, 2005, revenues were $22.1 million, compared to $22.1 million for the prior fiscal year, practically unchanged year-over-year. For the fiscal year ended June 30, 2005, net earnings were $5.3 million, or $0.72 per basic share, compared to net earnings of $7.2 million, or $0.99 per basic share, for the fiscal year ended June 30, 2004. The decrease in net earnings for the fiscal year was primarily due to an increase in marketing, general and administrative expenses and a higher effective tax rate for the period.
At June 30, 2005, the Company had cash and cash equivalents and short-term marketable securities of $13.6 million, a 55% increase compared to the $8.8 million reported at June 30, 2004 and a 32% increase compared to the $10.2 million reported at December 31, 2004. The increase in cash and cash equivalents and marketable securities was due primarily to operating activities.
William C. Brooks, President, CEO and Chairman of the Company commented, "We are pleased with the profitable results for the fiscal 2005 year, as our subsidiary, UAHC Health Plan of Tennessee, Inc., continues to deliver the best quality service to our TennCare enrollees. We also continue to work closely with the State of Tennessee to meet all regulatory requirements, while UAHC Health Plan remains under administrative supervision.
Mr. Brooks continued, "We are also very pleased that the State of Tennessee has extended its TennCare contract with our subsidiary, UAHC Health Plan of Tennessee, Inc. through, June 30, 2006. This is a testament to our dedicated employees, who continue to provide excellent service to our enrollees, despite these unusual times for UAHC, its employees, and shareholders. We want to reassure everyone of our commitment to our business, as we work hard to provide the best quality service to our TennCare enrollees, and deliver profitable results throughout fiscal 2006."
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, 2005.
UAHC anticipates that for the first fiscal quarter ended September 30, 2006, revenues will be in the range of $4.0 - $4.8 million and net earnings will be in the range of $0.06 - $0.08 per basic share.
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 800-218-0713 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 800-405-2236 and entering the following pass code: 11036940#. 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 in the delivery of healthcare services to the Medicaid population since 1985. The Company owns and manages UAHC Health Plan (formerly known as OmniCare) in west Tennessee, including Memphis. UAHC currently serves approximately 130,000 enrollees in Tennessee. For more information on the company, please visit the Company's website at 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 BALANCE SHEETS
(in thousands, except share data)
June 30,
2005 2004
Assets
Current assets
Cash and cash equivalents $9,843 $7,767
Marketable securities 3,730 1,000
Accounts receivable -- State of Tennessee 1,360 1,230
Other receivables 583 1,206
Prepaid expenses and other 172 147
Deferred income taxes 1,950 1,939
Total current assets 17,638 13,289
Assets held for sale -- 100
Property and equipment, net 179 323
Goodwill 3,452 3,452
Marketable securities 2,380 2,331
Other assets 586 586
$24,235 $20,081
Liabilities and Shareholders' Equity
Current liabilities
Current portion of debt $-- $847
Medical claims payable 172 406
Accounts payable and accrued expenses 1,096 1,140
Accrued compensation and related benefits 711 582
Accrued rent 235 837
Other current liabilities 1,538 1,384
Total current liabilities 3,752 5,196
Total liabilities 3,752 5,196
Shareholders' equity
Preferred stock, 5,000,000 shares
authorized; none issued -- --
Common stock, no par, 15,000,000 shares
authorized; 7,450,235 and 7,418,519 shares
issued and outstanding at June 30, 2005
and 2004, respectively 12,476 12,226
Retained earnings 8,047 2,702
Accumulated other comprehensive (loss),
net of deferred federal income taxes (40) (43)
Total shareholders' equity 20,483 14,885
$24,235 $20,081
See accompanying notes to the consolidated financial statements.
United American Healthcare Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Year ended June 30,
2005 2004 2003
Revenues
Fixed administrative fees $20,916 $20,391 $14,750
Medical premiums 23 532 7,841
Interest and other income 1,140 1,161 1,939
Total revenues 22,079 22,084 24,530
Expenses
Medical services 23 532 434
Marketing, general and
administrative 15,742 14,483 15,680
Depreciation and amortization 177 227 296
Interest expense 8 66 140
Total expenses 15,950 15,308 16,550
Earnings from continuing
operations before income taxes 6,129 6,776 7,980
Income tax expense (benefit) 655 (1,095) 647
Earnings from continuing operations 5,474 7,871 7,333
Discontinued operations
Loss from discontinued
operations (129) (700) (2,127)
Net earnings $5,345 7,171 $5,206
Net earnings per
common share -- basic
Earnings from continuing
operations 0.74 1.09 1.06
Loss from discontinued
operations (0.02) (0.10) (0.31)
Net earnings per common share $0.72 0.99 $0.75
Weighted average shares
outstanding 7,425 7,207 6,941
Net earnings per
common share -- diluted
Earnings from continuing
operations 0.71 1.08 1.06
Loss from discontinued
operations (0.02) (0.10) (0.31)
Net earnings per common share $0.69 0.98 $0.75
Weighted average shares
outstanding 7,674 7,266 6,950
See accompanying notes to the consolidated financial statements.
United American Healthcare Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year ended June 30,
2005 2004 2003
Operating Activities
Net earnings $5,345 $7,171 $5,206
Adjustments to reconcile net
earnings to net cash provided
by (used in) operating
activities:
Bad debt expense -- -- 847
Loss on disposal of assets 6 700 577
Loss (gain) on liquidation
of investment 3 (82) 24
Depreciation and amortization 177 227 640
Deferred income taxes (11) (1,369) 520
Stock awards 219 385 127
Changes in assets and liabilities
Accounts receivable --
State of Tennessee (130) (17) 581
Other receivables 623 289 514
Refundable federal income taxes -- -- 284
Prepaid expenses and other (25) 20 454
Other assets -- -- 91
Medical claims payable (234) (185) (23,904)
Accounts payable and
accrued expenses (44) (1,376) 1,648
Accrued rent (602) (315) 367
Accrued compensation and
related benefits 129 63 (269)
Other current liabilities 154 (46) (354)
Net cash provided by (used in)
operating activities 5,610 5,465 (12,647)
Investing Activities
Purchase of marketable securities (2,779) (171) (334)
Proceeds from the sale of
marketable securities -- -- 15,784
Purchase of property and equipment 61 (72) (68)
Net cash provided by (used in)
investing activities (2,718) (243) 15,382
Financing Activities
Payments made on debt (847) (1,419) (1,104)
Issuance of common stock 31 271 36
Net cash used in
financing activities (816) (1,148) (1,068)
Net increase in cash and
cash equivalents 2,076 4,074 1,667
Cash and cash equivalents
at beginning of year 7,767 3,693 2,026
Cash and cash equivalents
at end of year $9,843 7,767 $3,693
Supplemental disclosure of
cash flow information:
Interest paid $8 $63 $133
Income taxes paid $82 $-- $--
Non-cash financing activity --
Promissory note and
goodwill recorded upon purchase
of minority interest -- 500 --
See accompanying notes to the consolidated financial statements.
SOURCE United American Healthcare Corporation
Stephen D. Harris, Chief Financial Officer of United American Healthcare Corp., +1-313-393-4571, Investor_relations@uahc.com; or Investor Relations, Charles Messman or Todd Kehrli, both of MKR Group, LLC, +1-818-556-3700, ir@mkr-group.com, for United American Healthcare Corp.
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