Advertisement
Revenues increased 48 percent to $6.2 million for the first quarter endedSept. 30, 2007, compared with revenues of $4.2 million for the first quarterof fiscal 2007. The Company reported net income of $73,000, or $0.01 perfully diluted share, in the fiscal 2008 first quarter, compared with netincome of $332,000, or $0.04 per full diluted share, for the prior fiscalyear's first quarter.
Advertisement
The increase in fiscal first quarter revenue is due principally to growthin medical premium revenues of the Company's subsidiary, UAHC Health Plan ofTennessee (UAHC-TN), from its Medicare Advantage "Special Needs Plan" (MA-SNP), which comprised 34 percent of the Company's total revenue in thequarter. The increase in MA-SNP revenues during the first quarter helpedoffset an 8 percent decrease in Medicaid-related fixed administrative feerevenue from the prior fiscal year's first quarter. That decrease isprincipally attributable to a decline in UAHC-TN's enrollees. As of Sept. 30,2007, UAHC-TN's total enrollment included approximately 108,000 members, downfrom 116,034 members a year earlier.
"Early into our new fiscal year, enrollment within UAHC-TN's MedicareAdvantage Special Needs Plan has continued to grow, contributing positively toour 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 Countycontinue to focus on the approximately 10,000 'dual-eligible' beneficiaries inthe 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 thelong term."
"While we are encouraged by our Medicare-fueled revenue growth in thefiscal 2008 first quarter," continued Brooks, "improved profitability remainsa top priority, particularly as we seek to improve operational efficiency andcontain medical costs."
MA-SNP medical premiums revenues were $2.1 million during the fiscal 2008first quarter. Medical expenses for the MA-SNP were $1.9 million in the samequarter. The percentage of such medical expenses to medical premiums revenuesfor the MA-SNP -- the "medical loss ratio" -- was 89% for the quarter.
Total expenses increased 61 percent to $6.1 million in the fiscal 2008first quarter, compared to $3.8 million in the prior fiscal year's firstquarter, principally due to medical expenses related to UAHC-TN's MA-SNPlaunched in January 2007, as well as marketing costs related to ongoing MA-SNPenrollment efforts.
As of Sept. 30, 2007, United American Healthcare reported cash, cashequivalents 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 brandedSpecial Needs Plan," said Stephen Harris, executive vice president and CFO ofUnited American Healthcare. "As our efforts to market UAHC Gold Plus havegained momentum, dual-eligible enrollment within our Special Needs Plan hasrisen. With the annual enrollment season close at hand, additional investmentwill be required to support our marketing efforts during the second fiscalquarter, particularly to compete against other plans in UAHC-TN's market. Atthe same time, we intend to adhere to our model of disciplined expensemanagement as we stay focused on growing enrollment within the MA-SNP."
United Ame
