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Revenues increased 67 percent to $7.0 million for the second fiscalquarter ended Dec. 31, 2007, compared with revenues of $4.2 million for thesecond quarter of the prior fiscal year. The Company reported net income of$0.3 million, or $0.03 per fully diluted share, for the fiscal 2008 secondquarter, compared with net income of $0.2 million, or $0.03 per full dilutedshare, for the fiscal 2007 second quarter.
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The increase in second fiscal quarter revenue is primarily attributable tomedical premiums revenues of the Company's subsidiary, UAHC Health Plan ofTennessee (UAHC-TN), from its Medicare Advantage "Special Needs Plan"(MA-SNP), which comprised 38 percent of the Company's total revenue in thequarter. The increase in MA-SNP revenues during the second fiscal quarterhelped offset a 7 percent decrease in TennCare-related fixed administrativefee revenue from the prior fiscal year's second quarter. That decrease isprincipally due to a decline in UAHC-TN's TennCare member enrollment. As ofDec. 31, 2007, UAHC-TN's total enrollment was approximately 105,189 members,down from approximately 112,000 members a year earlier.
"In UAHC-TN's first full year as a Medicare Advantage qualifiedorganization, it continued to successfully grow enrollment in its SpecialNeeds Plan, resulting in profitable growth for our Company," said William C.Brooks, president, chairman and CEO of United American Healthcare."Importantly, our proven managed care model is designed to effectively addressthe needs of the populations we serve in western Tennessee, and has becomeincreasingly disciplined over the years in managing costs, thereby positioningUAHC-TN to become a managed care organization of choice in the region."
"As of January 20th, UAHC-TN's MA-SNP enrollment included 815 members,partly as a result of our ongoing marketing efforts focused on the'dual-eligible' population in Shelby County, Tennessee," continued Brooks.
Total expenses increased 68 percent to $6.7 million in the fiscal 2008second quarter, compared to $4.0 million in the prior fiscal year's secondquarter, principally due to medical expenses related to UAHC-TN's MA-SNP,which was launched in Jan. 2007. In addition, United American Healthcarereported cash, cash equivalents and short-term marketable securities of $16.8million as of Dec. 31, 2007, compared to $13.0 million as of Dec. 31, 2006.The Company remains debt-free.
On Jan. 7, 2008, the State of Tennessee, Bureau of TennCare, issued aRequest for Proposal (RFP) for managed care services to be provided in theWest Grand Region of Tennessee. The RFP indicates TennCare's intent to securetwo contracts for the provision of managed care services in that region, withservices scheduled to begin Nov. 1, 2008. The Company's subsidiary, UAHC-TN,currently provides such services in that region under its existing TennCarecontract. UAHC-TN has notified TennCare that UAHC-TN intends to submit ajoint proposal with another party in response to this RFP to serve thepopulation of the West Grand Region. At present, TennCare is scheduled toannounce the bid winners on April 22, 2008.
Fiscal 2008 Second Quarter Conference Call
United American Healthcare Corporation will host a conference call at 4:30p.m., Eastern time, today to discuss these results and current businesstrends. To access the live conference call, please dial (800) 273-4998 andprovide the conference passcode 9267674. A replay of the call will beavailable through Feb. 28, 2008. To access the replay, please call (888) 203-1112 and provide conference passcode 9267674.
About United American Healthcare Co
