Print page
Email page
Download PDF
« Previous Release | Next Release »
DETROIT, Oct 30, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- United American Healthcare Corporation (Nasdaq: UAHC), which owns and provides comprehensive management services to a full-service managed care organization in Tennessee, today announced financial results for its first fiscal quarter ended Sept. 30, 2007.
Revenues increased 48 percent to $6.2 million for the first quarter ended Sept. 30, 2007, compared with revenues of $4.2 million for the first quarter of fiscal 2007. The Company reported net income of $73,000, or $0.01 per fully diluted share, in the fiscal 2008 first quarter, compared with net income of $332,000, or $0.04 per full diluted share, for the prior fiscal year's first quarter.
The increase in fiscal first quarter revenue is due principally to growth in medical premium revenues of the Company's subsidiary, UAHC Health Plan of Tennessee (UAHC-TN), from its Medicare Advantage "Special Needs Plan" (MA- SNP), which comprised 34 percent of the Company's total revenue in the quarter. The increase in MA-SNP revenues during the first quarter helped offset an 8 percent decrease in Medicaid-related fixed administrative fee revenue from the prior fiscal year's first quarter. That decrease is principally attributable to a decline in UAHC-TN's enrollees. As of Sept. 30, 2007, UAHC-TN's total enrollment included approximately 108,000 members, down from 116,034 members a year earlier.
"Early into our new fiscal year, enrollment within UAHC-TN's Medicare Advantage Special Needs Plan has continued to grow, contributing positively to our overall revenue growth in the first quarter," said William C. Brooks, president, chairman and CEO of United American Healthcare. "As of Oct. 15, 2007, UAHC-TN's MA-SNP enrollment included 795 members in Shelby County, Tennessee. Our ongoing MA-SNP marketing efforts throughout the County continue to focus on the approximately 10,000 'dual-eligible' beneficiaries in the UAHC-TN member population who reside in the County. We expect the dual- eligible population to provide a catalyst for growth for UAHC-TN, over the long term."
"While we are encouraged by our Medicare-fueled revenue growth in the fiscal 2008 first quarter," continued Brooks, "improved profitability remains a top priority, particularly as we seek to improve operational efficiency and contain medical costs."
MA-SNP medical premiums revenues were $2.1 million during the fiscal 2008 first quarter. Medical expenses for the MA-SNP were $1.9 million in the same quarter. The percentage of such medical expenses to medical premiums revenues for the MA-SNP -- the "medical loss ratio" -- was 89% for the quarter.
Total expenses increased 61 percent to $6.1 million in the fiscal 2008 first quarter, compared to $3.8 million in the prior fiscal year's first quarter, principally due to medical expenses related to UAHC-TN's MA-SNP launched in January 2007, as well as marketing costs related to ongoing MA-SNP enrollment efforts.
As of Sept. 30, 2007, United American Healthcare reported cash, cash equivalents and short-term marketable securities of $15.2 million, compared to $6.7 million as of Sept. 30, 2006. The Company remains debt-free.
"We were pleased to return to profitability in the first fiscal quarter, driven by significant revenue contributions from UAHC Gold Plus, our branded Special Needs Plan," said Stephen Harris, executive vice president and CFO of United American Healthcare. "As our efforts to market UAHC Gold Plus have gained momentum, dual-eligible enrollment within our Special Needs Plan has risen. With the annual enrollment season close at hand, additional investment will be required to support our marketing efforts during the second fiscal quarter, particularly to compete against other plans in UAHC-TN's market. At the same time, we intend to adhere to our model of disciplined expense management as we stay focused on growing enrollment within the MA-SNP."
United American Healthcare Corporation also announced today that the Bureau of TennCare has given notice that TennCare's Request for Proposals for managed care services to enrollees in West Tennessee is expected to be released by the end of November 2007. TennCare's notice stated that the "purpose of the RFP is to secure contracts with managed care organizations (MCOs) to provide integrated behavioral and physical health services on a financial full-risk basis to TennCare enrollees in the West Tennessee region." Commenting on this, Mr. Brooks said: "Our subsidiary, UAHC Health Plan, has long been one of TennCare's contracted MCOs in the West Tennessee region. This RFP may present a significant opportunity to expand our business in this region, but we expect the competition to be intense. We expect it to also involve a change in TennCare's current West Tennessee modified risk payment arrangement."
Mr. Brooks continued: "It is too soon to comment more until we see the RFP and its details. But meanwhile, our UAHC Health Plan management and staff are vigorously preparing to participate and compete fully and as effectively as possible in this RFP process."
Fiscal 2008 First Quarter Conference Call
United American Healthcare Corporation will host a conference call at 4:30 p.m., Eastern time, today to discuss these results and current business trends. To access the live conference call, please dial (888) 220-8639 and provide the conference passcode 6748600. A replay of the call will be available through November 20, 2007. To access the replay, please call (888) 203-1112 and provide conference passcode 6748600.
About United American Healthcare Corporation
United American Healthcare Corporation (UAHC) is a full-service healthcare management company, pioneering the delivery of healthcare services to Medicaid recipients since 1985. UAHC owns and manages UAHC Health Plan, which is based in western Tennessee and includes the Memphis market. UAHC provides access to more than 900 primary and specialty care physicians and more than 19 hospitals for the members of UAHC Health Plan. For more information, please visit the Company's web site at www.uahc.com.
United American Healthcare Corporation Safe Harbor Statement
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 STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
Three months ended
September 30,
2007 2006
Revenues
Fixed administrative fees $3,706 $4,013
Medical premiums 2,082 -
Interest and other income 400 161
Total revenues 6,188 4,174
Expenses
Medical services 1,864 -
Marketing, general and administrative 4,191 3,759
Depreciation and amortization 40 32
Total expenses 6,095 3,791
Earnings from operations before income taxes 93 383
Income tax expense 20 51
Net earnings $73 $332
Net earnings per common share - basic
Net earnings per common share $0.01 $0.04
Weighted average shares outstanding 8,589 7,531
Net earnings per common share - diluted
Net earnings per common share $0.01 $0.04
Weighted average shares outstanding 8,800 7,725
United American Healthcare Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
September 30, June 30,
2007 2007
(Unaudited)
Assets
Current assets
Cash and cash equivalents $9,872 $8,932
Marketable securities 5,343 5,296
Accounts receivable - State of Tennessee, net 1,427 1,455
Interest receivable 505 578
Other receivables 222 455
Prepaid expenses and other 480 511
Deferred income taxes 1,950 1,950
Total current assets 19,799 19,177
Property and equipment, net 428 357
Goodwill 3,452 3,452
Marketable securities 7,540 7,475
Restricted assets 1,431 2,721
Other assets 586 586
Total assets $33,236 $33,768
Liabilities and Shareholders' Equity
Current liabilities
Medical claims payable $1,545 $576
Accounts payable and accrued expenses 2,057 3,142
Accrued compensation and related benefits 523 896
Accrued rent 124 135
Unearned revenue - 279
Other current liabilities 1,072 1,099
Total current liabilities 5,321 6,127
Commitments and contingencies
Total liabilities 5,321 6,127
Shareholders' equity
Preferred stock, 5,000,000 shares
authorized; none issued - -
Common stock, no par, 15,000,000 shares
authorized; 8,590,666 and 8,588,211
issued and outstanding at September 30,
2007 and June 30, 2007, respectively 18,333 18,327
Paid in capital-stock options 736 607
Warrants 444 444
Retained earnings 8,376 8,303
Accumulated other comprehensive income
(loss), net of deferred federal income
taxes 26 (40)
Total shareholders' equity $27,915 $27,641
Total $33,236 $33,768
SOURCE United American Healthcare Corporation
http://www.uahc.com
Copyright (C) 2007 PR Newswire. All rights reserved
News Provided by COMTEX