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9 Months Year Ended December 31, Ended September 30, ---------------------------- ---------------- 1995 1996 1997 ------------ ----------- ---------------- Total revenues....................... $22,496 $31,419 $28,421 Gross profit......................... $12,231 $16,393 $14,974 Net income........................... $ 3,426 $ 5,101 $ 1,950 Earnings per common share............ $ 0.35 $ 0.52 $ 0.18 Lives installed (in millions)........ 18.0 29.8 34.3
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Officer 3rd QUARTER NET INCOME UP 58%, EPS UP 33% >31% Increase in 3rd Quarter Revenue >Backlog at $642 Million, Up 22% Over Prior Year >3.1 Million Lives Added to Service Louisville, Kentucky (November 4, 1997) -- Net income for the quarter increased 58% to $1.84 million from $1.16 million in the year-earlier period. Earnings per share for the quarter increased 33% to $0.16 per share from $0.12 per share in the comparable quarter last year. Revenue for the quarter was $10.2 million, up 31% from the $7.8 million For the nine months ended September 30, 1997, net income increased 52% to $4.8 million from $3.16 million a year ago, excluding nonrecurring items. Earnings per share for this period increased 41% to $0.45 per share from $0.32 in the comparable period last year, similarly adjusted. These nonrecurring items were the noncash $2.8 million compensation charge (not deductible for tax purposes) incurred in the second quarter of 1997 related to Medaphis' divestiture of HRI and $605,000 of net income derived from the implant settlement in the second and third quarters of 1996. For the nine months ended September 30, 1997, revenue was $28.4 million, up 29% from $22.1 million in the year-earlier period, excluding $1.04 million of nonrecurring revenue derived from the implant settlement in the second and third quarters of 1996.
As Reported: 3 Months Ended 9 Months Ended September 30, September 30, ----------------------- ----------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Revenues: Subrogation................... $10,180 $7,718 $28,421 $22,074 Other revenues................ - 72 - 1,042 ------- ------- ------- ------- Total revenues........... 10,180 7,790 28,421 23,116 Cost of services.............. 4,762 3,869 13,447 10,926 ------- ------- ------- ------- Gross profit.................. 5,418 3,921 14,974 12,190 Support expenses.............. 2,332 1,807 6,638 5,418 Depreciation and amortization................ 317 237 799 642 Non-recurring compensation charge......... - - 2,848 - ------- ------- ------- ------- Operating income......... 2,769 1,877 4,689 6,130 Interest income............... 411 123 740 347 Income before income taxes.... 3,180 2,000 5,429 6,477 Provision for income taxes.... 1,341 838 3,479 2,716 ------- ------- ------- ------- Net income............... $1,839 $1,162 $1,950 $3,761 ======= ======= ======= ======= Weighted average shares....... 11,646 9,800 10,583 9,800 Earnings per common share..... $0.16 $0.12 $0.18 $0.38 ======= ======= ======= ======= As Adjusted: Subrogation revenues.......... $10,180 $7,718 $28,421 $22,074 Gross profit.................. 5,418 3,849 14,974 11,148 Operating income.............. 2,769 1,805 7,537 5,088 Income before income taxes.... 3,180 1,928 8,277 5,435 Net income.................... $1,839 $1,120 $4,798 $3,156 ======= ======= ======= ======= Earnings per common share....... $0.16 $0.11 $0.45 $0.32 ======= ======= ======= =======
3 Months Ended 9 Months Ended September 30, September 30, ----------------------- ----------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Cumulative Lives Sold, Beginning of Period........... 34.3 27.5 29.5 24.2 Lives From Existing Client Growth............... 0.4 0.5 1.3 0.7 Lives Added From Contracts With Existing Clients....... 3.1 0.5 5.4 2.0 Lives Added From Contracts With New Clients............ 0.0 0.1 0.6 1.7 ------- ------- ------- ------- Cumulative Lives Sold, End of Period............... 37.8 28.6 37.8 28.6 ======= ======= ======= ======= Lives Installed................. 34.3 27.1 34.3 27.1 ======= ======= ======= ======= During the third quarter of 1997, HRI signed 3 additional contracts with existing clients, accounting for a total of 3.1 million lives not previously subject to HRI's services. Internal growth from existing clients added another 400,000 lives during the quarter. On a cumulative basis, lives sold grew by 9.2 million over the comparable quarter last year, a 32% increase, and by 3.5 million over the prior quarter, a 10% increase. Installed lives grew by 7.2 million over the comparable quarter last year, a 27% increase, and 1.6 million over the prior quarter, a 5% increase. These increases represent additional client populations subject to HRI's customary recovery services as the result of the successful completion of electronic data interfaces with new clients, internal growth of client populations under existing contracts, and the contractual expansion of HRI's relationships with existing clients.
3 Months Ended 9 Months Ended September 30, September 30, ----------------------- ----------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Backlog (1)..................... $642.2 $526.5 $642.2 $526.5 Subrogation Recoveries (2)...... $ 37.3 $ 29.4 $105.1 $ 81.5 Subrogation Revenue (2)......... $ 10.2 $ 7.7 $ 28.4 $ 22.1 Throughput (3).................. 6.0% 5.7% 17.9% 18.3% Effective Fee Rate.............. 27.3% 26.3% 27.0% 27.1% Direct Operations Employees..................... 362 298 362 298 Support Staff Employees....... 82 67 82 67 ------- ------- ------- ------- Total Employees................. 444 365 444 365 ======= ======= ======= ======= (1) Backlog (i.e., gross recoveries in process) is the total
dollar amount of potentially recoverable claims pursued on behalf of clients
at the end of the period. Backlog for the quarter grew 22% over the comparable quarter and 7.1% over the prior quarter. This growth in backlog was the result of the installation of new lives and the processing of lives already installed. Statements in this release that look forward in time involve risks and uncertainties, including the ability of HRI to successfully implement its operating strategy and acquisition strategy, HRI's ability to manage growth, changes in laws and government regulations applicable to HRI, and changes in the historical relationships among such key operating indicators as lives sold, lives installed, backlog and throughput and in the predictive value of these indicators with respect to certain aspects of HRI's financial results. HRI is a leading provider of health insurance subrogation and related recovery services for private healthcare payors. For more financial information from HRI please direct your e-mail to Chief Financial Officer. Home | About HRI | Case of the Quarter | Future Pages | Talk to HRI |