-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MFUXqGduH0XBeNm6dtsCsw48rt4DU4Alzw5nOXzwMzPPFPZn5US9nJ6IYnIkz/QP w4uPWl0tVCRJrGC1Fc1w6Q== 0000912057-96-008008.txt : 19960506 0000912057-96-008008.hdr.sgml : 19960506 ACCESSION NUMBER: 0000912057-96-008008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960503 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HBO & CO CENTRAL INDEX KEY: 0000310377 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 370986839 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-09900 FILM NUMBER: 96555922 BUSINESS ADDRESS: STREET 1: 301 PERIMETER CTR N CITY: ATLANTA STATE: GA ZIP: 30346 BUSINESS PHONE: 4043936000 MAIL ADDRESS: STREET 1: 301 PERIMETER CTR N CITY: ATLANTA STATE: GA ZIP: 30346 10-Q 1 FORM 10-Q - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 10-Q (Mark one) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDING MARCH 31, 1996 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-9900 HBO & COMPANY (Exact name of registrant as specified in its charter) DELAWARE 37-0986839 (State or other jurisdiction (I.R.S. Employer of Identification incorporation or organization) Number)
301 PERIMETER CENTER NORTH ATLANTA, GEORGIA 30346 (Address of principal executive offices) (Zip Code) (770) 393-6000 (Registrant's telephone number, including area code) N/A (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ____. APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.
CLASS OUTSTANDING AT APRIL 30, 1996 - -------------------------------------------------------- -------------------------------------------------------- Common Stock, $.05 par value 40,386,274
Exhibit Index on Page 9 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Page 1 of 14 PART I -- FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. CONSOLIDATED BALANCE SHEETS -- UNAUDITED (000 OMITTED)
ASSETS MARCH 31, DEC. 31, 1996 1996 ----------- --------- CURRENT ASSETS: Cash and Cash Equivalents........................................... $ 67,941 $ 65,263 Receivables, Net of Allowance For Doubtful Accounts of $7,954 and $8,330............................................................. 164,268 156,210 Current Deferred Income Taxes....................................... 13,713 17,794 Inventories......................................................... 8,143 6,757 Prepaids and Other Current Assets................................... 6,745 6,346 ----------- --------- Total Current Assets.............................................. 260,810 252,370 ----------- --------- INTANGIBLES Net of Accumulated Amortization of $17,625 and $13,801.............. 183,994 184,051 ----------- --------- CAPITALIZED SOFTWARE Net of Accumulated Amortization of $23,527 and $22,054.............. 36,456 34,098 ----------- --------- PROPERTY AND EQUIPMENT Net of Accumulated Depreciation of $74,064 and $71,263.............. 32,490 33,609 ----------- --------- DEFERRED INCOME TAXES................................................. 24,309 25,098 ----------- --------- OTHER NONCURRENT ASSETS, NET.......................................... 7,152 5,908 ----------- --------- TOTAL ASSETS.......................................................... $ 545,211 $ 535,134 ----------- --------- ----------- --------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Deferred Revenue.................................................... $ 73,235 $ 71,684 Other Current Liabilities........................................... 120,077 133,436 ----------- --------- Total Current Liabilities......................................... 193,312 205,120 ----------- --------- LONG-TERM DEBT........................................................ 446 582 ----------- --------- OTHER LONG-TERM LIABILITIES........................................... 7,281 10,702 ----------- --------- Total Liabilities................................................. 201,039 216,404 ----------- --------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred Stock, 1,000 Shares Authorized and No Shares Issued....... -- -- Common Stock, $.05 Par Value, 60,000 Shares Authorized and 56,597 Shares Issued...................................................... 2,830 2,830 Additional Paid-in Capital.......................................... 322,162 315,906 Retained Earnings................................................... 98,301 80,255 ----------- --------- 423,293 398,991 Treasury Stock, at Cost (16,241 and 16,478 Shares).................. (79,121) (80,261) ----------- --------- Total Stockholders' Equity........................................ 344,172 318,730 ----------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............................ $ 545,211 $ 535,134 ----------- --------- ----------- ---------
The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements. Page 2 of 14 CONSOLIDATED STATEMENTS OF INCOME -- UNAUDITED (000 OMITTED EXCEPT FOR PER SHARE DATA)
FOR THE THREE MONTHS ENDED MARCH 31 -------------------- 1996 1995 --------- --------- REVENUE: Recurring....................................................................... $ 63,796 $ 37,163 One-Time Sales.................................................................. 81,282 62,020 --------- --------- Total Revenue................................................................. 145,078 99,183 OPERATING EXPENSE: Cost of Operations.............................................................. 65,095 48,482 Marketing....................................................................... 20,460 13,648 Research and Development........................................................ 11,788 9,020 General and Administrative...................................................... 15,972 9,948 --------- --------- Total Operating Expense....................................................... 113,315 81,098 --------- --------- Operating Income................................................................ 31,763 18,085 Other (Income) Expense, Net..................................................... (524) 242 --------- --------- Income Before Provision for Income Taxes........................................ 32,287 17,843 Provision for Income Taxes...................................................... 12,915 7,137 --------- --------- NET INCOME........................................................................ $ 19,372 $ 10,706 --------- --------- --------- --------- EARNINGS PER SHARE: Primary......................................................................... $ 0.46 $ 0.29 Fully Diluted................................................................... $ 0.46 $ 0.29 WEIGHTED AVERAGE SHARES OUTSTANDING: Primary......................................................................... 41,881 36,993 Fully Diluted................................................................... 41,914 37,099 CASH DIVIDENDS DECLARED PER SHARE................................................. $ 0.04 $ 0.04 --------- --------- --------- ---------
The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements. Page 3 of 14 CONSOLIDATED STATEMENTS OF CASH FLOWS -- UNAUDITED (000 OMITTED)
FOR THE THREE MONTHS ENDED MARCH 31 -------------------- 1996 1995 --------- --------- CASH FLOWS FROM OPERATING ACTIVITES: Net Income for the Period....................................................... $ 19,372 $ 10,706 --------- --------- Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and Amortization................................................. 9,137 5,809 Provision for Noncurrent Deferred Income Taxes................................ 789 2,319 Changes in Assets and Liabilities, Net of Acquisitions: Receivables................................................................. (8,058) 3,111 Current Deferred Income Taxes............................................... 4,081 507 Inventories................................................................. (1,386) (1,311) Prepaids and Other Current Assets........................................... (438) (1,144) Other Noncurrent Assets..................................................... (1,238) (629) Deferred Revenue............................................................ 1,551 7,373 Other Current Liabilities................................................... (15,176) (17,885) Other, Net.................................................................... 280 246 --------- --------- Total Adjustments......................................................... (10,458) (1,604) --------- --------- Net Cash Provided by Operating Activities................................. 8,914 9,102 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Sale of Business................................................................ 430 -- Sale of Property and Equipment.................................................. 493 39 Capital Expenditures............................................................ (3,237) (1,771) Capitalized Software............................................................ (3,861) (2,919) Purchase of Business, Net of Cash Acquired...................................... (4,000) (7,010) --------- --------- Net Cash Used in Investing Activities..................................... (10,175) (11,661) --------- --------- Net Cash Used Before Financing Activities................................. (1,261) (2,559) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Long-Term Debt.................................................... -- 22,000 Proceeds from Issuance of Common Stock.......................................... 5,773 3,486 Repayment of Long-Term Debt..................................................... (229) (17,141) Payment of Dividends............................................................ (1,605) (1,271) Repayment of Short-Term Debt.................................................... -- (5,000) --------- --------- Net Cash Provided by Financing Activities................................. 3,939 2,074 --------- --------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.................................. 2,678 (485) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD.................................. 65,263 14,951 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD........................................ $ 67,941 $ 14,466 --------- --------- --------- --------- Cash Paid During the Period For: Interest........................................................................ $ 232 $ 681 Income Taxes.................................................................... $ 4,841 $ 6,382
The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements. Page 4 of 14 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The consolidated financial statements include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results for the periods indicated. All such adjustments are of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results. Certain previously reported amounts may have been reclassified to conform to the current presentation. These statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's 1995 Annual Report to Stockholders. 2. During the first quarter of 1996, the Company increased the amount available under its existing long-term revolving credit agreement from $25 million to $30 million. As of March 31, 1996, there was no outstanding balance. Interest is payable at the Company's option of prime or LIBOR plus a margin determined by certain of the Company's financial ratios (6-1/16 as of March 31, 1996). A commitment fee on the revolving credit agreement is payable quarterly on the unused portion of the commitment. The agreement, which expires June 30, 1997, contains certain net worth, income, cash flow and financial ratio covenants. The Company is in compliance with these covenants at March 31, 1996. During the first quarter of 1996, the Company canceled one of its two $5 million unsecured lines of credit. The Company has extended until June 30, 1997, its agreement with a financial institution whereby the Company can sell on an ongoing basis, with partial recourse, an undivided interest in a pool of customer receivables. As of March 31, 1996, the amount available to be sold was $30 million and the amount sold was $25 million. Interest is payable at the Company's option of prime or LIBOR plus a margin determined by certain of the Company's financial ratios (6-1/16 as of March 31, 1996). The Company, as agent for the purchaser, retains collection and administrative responsibilities for the receivables sold. ------------------------ The financial information included in this Quarterly Report on Form 10-Q has been reviewed by Arthur Andersen LLP, independent public accountants, in accordance with established professional standards and procedures for such a review as set forth in their review letter presented on page 8 of this report. ------------------------ ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. RESULTS OF OPERATIONS QUARTER ENDED MARCH 31, 1996, COMPARED TO QUARTER ENDED MARCH 31, 1995: For the first quarter of 1996, HBO & Company posted record earnings per share of $.46, a 59% increase over earnings per share of $.29 for the first quarter of 1995. Quarterly revenue increased 46% to $145.1 million from $99.2 million for the first quarter of 1995, while operating expense increased only 40% to $113.3 million from $81.1 million in 1995. These changes in revenue and expense combined to boost quarterly net income 81% to $19.4 million from $10.7 million for the first quarter of 1995. The Company's revenue growth was fueled primarily by the healthcare industry's growing interest in enterprisewide solutions and the Company's ability to provide products and services that fit this profile. In addition, the June 1995 acquisition of First Data Health Systems Corporation (now known as the Charlotte Product Group or CPG) contributed to the growth in maintenance and remote processing revenue. Revenue per average employee increased to $170,000 for the first quarter of 1996, from $149,000 for the same period in 1995. Software license fee revenue grew 38% to $34.2 million for the first quarter of 1996 from $24.8 million in the first quarter of 1995. The increase was primarily due to the growing demand for the Pathways 2000 line of enterprisewide solutions and continued strong sales of TRENDSTAR decision support products. Page 5 of 14 Hardware revenue increased 33% to $21.0 million for the first quarter of 1996 from $15.8 million for the first quarter of 1995. This increase was mainly due to hardware deliveries related to strong sales in the fourth quarter of 1995 and the first quarter of 1996. Hardware revenue also increased due to sales of add-on hardware resulting from a more focused effort to sell additional items to existing customers. The Company has successfully maintained stable hardware margins and continues to design its software products to run on a variety of hardware platforms. Implementation services revenue for the first quarter of 1996 increased 22% from the first quarter of 1995, primarily due to greater system sales and the addition of CPG. The Company continues to invest in programs designed to streamline the implementation process and encourage customer ownership of each step of that process. As a result, the productivity of the Company's implementation personnel continues to improve. Maintenance and support revenue increased 55% to $41.0 million for the first quarter of 1996 from $26.4 million in the first quarter of 1995. This increase was mainly due to the continued expansion of the customer base from acquisitions and internal growth. The Company is in the process of implementing a central support system which will service all product lines and business units to streamline the timeliness and quality of issue resolution. Recurring revenue as a percent of total revenue increased to 44% in the first quarter of 1996 from 37% for the same period in 1995. This was due to the addition of new customers and product lines as well as the CPG remote processing business. This continuing shift from one-time sales to recurring revenue provides a stable basis of cash flows to fund further expansion. Cost of operations as a percent of revenue dropped to 45% in the first quarter of 1996 from 49% in the first quarter of 1995 as a result of productivity enhancements. This in turn, increased the gross margin to 55% in 1996 from 51% in 1995. Cost of operations expense increased over the first quarter of 1995 primarily due to increased hardware costs associated with the growth in hardware sales, costs associated with the remote processing data center, increased software and hardware maintenance expense related to acquisitions, and increased personnel expense due to the overall growth of the Company. Marketing expense as a percent of revenue remained constant at 14% from the first quarter of 1995 to 1996. Marketing expense increased from quarter to quarter, primarily due to higher personnel, travel and commission expenses all directly related to the growth in revenue of the Company. Research and development (R&D) expense as a percent of revenue decreased to 8% in the first quarter of 1996 from 9% in the first quarter of 1995, while the R&D capitalization rate increased from 24% to 25% for the same periods. R&D expense increased primarily due to increased personnel costs related to the Company's plan of aggressively developing enhancements to existing products and bringing new products to the point of general availability. General and administrative expense as a percent of revenue increased to 11% in the first quarter of 1996 from 10% in the first quarter of 1995. This increase was primarily due to increased facilities costs and increased personnel expense due to acquisitions and overall growth in the Company. Operating expense grew at a slower rate than revenue due to successful cost control programs and productivity enhancements. Total operating income increased 76%, and operating income as a percent of revenue increased to 22% in 1996 compared to 18% in 1995. These increases demonstrate a significant growth in volume and increased efficiency in operations. The tax rate remained constant at 40% for all periods presented. Page 6 of 14 LIQUIDITY AND CAPITAL RESOURCES MARCH 31, 1996, COMPARED TO DECEMBER 31, 1995: HBOC continues to maintain a strong balance sheet. At March 31, 1996, with $67.9 million in cash, no debt and an improving current ratio, the Company remains well positioned for continued growth. During the first quarter of 1996, the Company generated $8.9 million in cash flow from operations. The Company used $10.2 million in investing activities primarily consisting of a $4.0 million contractual contingency payment associated with the 1995 purchase of Pegasus Medical Ltd., $3.9 million for software development capitalization and $3.2 million for capital expenditures. An additional $3.9 million was generated from financing activities. As a result, the Company's cash balance increased slightly to $67.9 million at March 31, 1996 from $65.3 million at December 31, 1995. The Company's current ratio increased to 1.35:1 at March 31, 1996 from 1.23:1 at December 31, 1995. Current assets increased $8.4 million mainly reflecting increases in receivables and cash, partially offset by a decrease in current deferred income taxes. Receivables management is a key performance factor for the Company, and although management believes that the Company has better receivables performance than most of its competitors, it continues to place a high priority on this area. Current liabilities decreased $11.8 million due to the reduction in year-end accruals and payables, specifically those related to employee incentive plans, partially offset by an increase in customer deposits. The Company has access to several financing sources including a $5 million line of credit and a $30 million revolving credit agreement. As of March 31, 1996, there were no outstanding balances on either. The stability of the Company's liquidity is enhanced as the revenue mix continues to shift towards recurring revenue. This provides a stable, growing source of cash for operating, investing and financing needs that should enable the Company to achieve its strategic objectives. Page 7 of 14 ARTHUR ANDERSEN LLP REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Stockholders and Board of Directors of HBO & Company: We have reviewed the accompanying consolidated balance sheet of HBO & Company (a Delaware corporation) and Subsidiaries as of March 31, 1996 and the related consolidated statements of income and cash flows for the three-month period then ended. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the balance sheet of HBO & Company as of December 31, 1995 (presented herein), and in our report dated February 6, 1996, we expressed an unqualified opinion on that statement. Arthur Andersen LLP Atlanta, Georgia April 16, 1996 Page 8 of 14 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits: PAGE --------- 10 Indemnification Agreement, dated as of April 11, 1996, between Bank of America National Trust and Savings Association and HBO & Company of Georgia.................................................................... 11 11 Statement regarding computation of per share earnings...................... 12 15 Letter re: unaudited interim financial information......................... 13 27 Financial Data Schedule.................................................... 14 (b) Reports on Form 8-K during the quarter ended March 31, 1996, or subsequent to that date but prior to the filing date of this Form 10-Q: FORM 8-K DATED FEBRUARY 27, 1996: Reporting under Item 5 that the Company's Board of Directors: i) approved an amendment to the Certificate of Incorporation to increase the number of shares of authorized Common Stock from 60 million to 250 million subject to stockholder approval; ii) announced its intention to declare a two-for-one stock split in the form of a stock dividend contingent upon stockholder approval of the increase in authorized shares; and iii) declared a quarterly dividend of $.04 per share payable April 22, 1996 to stockholders of record March 29, 1996.
Page 9 of 14 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HBO & COMPANY (Registrant) Date: May 2, 1996 By: /s/JAY P. GILBERTSON Jay P. Gilbertson Senior Vice President-Finance, Chief Financial Officer, Principal Accounting Officer, Treasurer and Assistant Secretary
Page 10 of 14 EX-10 2 EXHIBIT 10 EXHIBIT 10 INDEMNIFICATION AGREEMENT Indemnification Agreement, dated as of April 11, 1996, between Bank of America National Trust and Savings Association, a national bank (the "Bank") and HBO & Company of Georgia, a Delaware corporation (the "Company"). WHEREAS, the Bank has notified the Company that the grid note, dated June 25, 1993 with respect to that certain $5,000,000 uncommitted demand line of credit (the "Note") payable to the order of the Bank in the original principal amount of U.S. dollars of Five Million ($5,000,000) and issued by the Company to the Bank; WHEREAS, the Company has requested that the Note be returned to the Company; WHEREAS, the Bank considers the Note paid in full and canceled as of the date hereof; IT IS THEREFORE, AGREED AS FOLLOWS: 1. REPRESENTATIONS AND WARRANTIES OF THE BANK. The Bank warrants and represents to the Company that (a) the Note was not endorsed by the Bank; (b) neither the right to receive payment under the Note nor any other rights of the Bank therein have been assigned, transferred, hypothecated, pledged or otherwise disposed of by the Bank, either in whole or in part; and (c) the Note has been lost, stolen or destroyed and diligent efforts made to locate it have failed to do so. 2. INDEMNIFICATION. The Bank hereby agrees that (a) in case the original Note can be found or comes into the hands, custody or power of the Bank or its successors or assigns, or into the hands, custody or power of any entity controlled by the Bank or its successors or assigns, the Note shall be delivered to the Company in order to be canceled, and (b) the Bank, its successors or assigns, shall at all times indemnify and save harmless the Company from and against any and all claims, actions and suits, and from and against any and all liabilities, losses, damages, costs, charges, counsel fees and other expenses of every nature and character by reason of the original Note, until the redelivery and cancellation of the original Note. IN WITNESS THEREOF, the undersigned has executed this Agreement as of the date first above written. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION By:_MICHAEL J. MCKENNEY_______________ Title:________________________________ Michael J. McKenney Vice President Page 11 of 14 EX-11 3 EXHIBIT 11 EXHIBIT 11 HBO & COMPANY AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (000 OMITTED EXCEPT FOR PER SHARE DATA)
FOR THE THREE MONTHS ENDED MARCH 31, -------------------- 1996 1995 --------- --------- WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING............................................................................... 40,244 35,353 ADD -- Shares of common stock assumed issued upon exercise of stock options using the "treasury stock" method as it applies to the computation of primary earnings per share............................................................................... 1,637 1,640 --------- --------- NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING.................................. 41,881 36,993 ADD -- Additional shares of common stock assumed issued upon exercise of stock options using the "treasury stock" method as it applies to the computation of fully diluted earnings per share.................................................................. 33 106 --------- --------- NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING ASSUMING FULL DILUTION........... 41,914 37,099 --------- --------- --------- --------- NET EARNINGS FOR PRIMARY AND FULLY DILUTED EARNINGS PER SHARE................................................................................. $ 19,372 $ 10,706 --------- --------- --------- --------- EARNINGS PER SHARE: PRIMARY.................................................................................. $ 0.46 $ 0.29 --------- --------- --------- --------- FULLY DILUTED............................................................................ $ 0.46 $ 0.29 --------- --------- --------- ---------
Page 12 of 14 EX-15 4 EXHIBIT 15 EXHIBIT 15 ARTHUR ANDERSEN LLP To HBO & Company: We are aware that HBO & Company has incorporated by reference in its previously filed registration statements on Form S-8 its Form 10-Q for the quarter ended March 31, 1996, which includes our report dated April 16, 1996 covering the unaudited interim consolidated financial information contained therein. Pursuant to Regulation C of the Securities Act of 1933 (the "Act"), that report is not considered a part of the registration statement prepared or certified by our firm or a report prepared or certified by our firm within the meaning of Sections 7 and 11 of the Act. Arthur Andersen LLP Atlanta, Georgia April 16, 1996 Page 13 of 14 EX-27 5 EX-27 FDS
5 This schedule contains summary financial information extracted from HBO & Company Consolidated Statement of Income for the Three Months Ended 3/31/96 and HBO & Company Consolidated Balance Sheet at 3/31/96 and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 67,941 0 172,222 7,954 8,143 260,810 106,554 74,064 545,211 193,312 0 0 0 2,830 341,342 545,211 0 145,078 0 65,095 48,220 0 0 32,287 12,915 19,372 0 0 0 19,372 0.46 0.46
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