-----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, EpliA9IYNOZsbhmn3iOlh/Fzx2a+YOgyRCND/Tk60GQ6TWu/3Dsz91mIGNS/raQ1 dHsT8DuVELCoAqTKsq1JVA== 0000950124-95-003747.txt : 19951119 0000950124-95-003747.hdr.sgml : 19951119 ACCESSION NUMBER: 0000950124-95-003747 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEALTHCARE COMPARE CORP/DE/ CENTRAL INDEX KEY: 0000812910 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 363307583 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15846 FILM NUMBER: 95591504 BUSINESS ADDRESS: STREET 1: 3200 HIGHLAND AVE CITY: DOWNERS GROVE STATE: IL ZIP: 60515 BUSINESS PHONE: 7082417900 MAIL ADDRESS: STREET 2: 3200 HIGHLAND AVENUE CITY: DOWNERS GROVE STATE: IL ZIP: 60515 10-Q 1 FORM 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 {X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995 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 0-15846 HealthCare COMPARE Corp. (Exact name of registrant as specified in its charter) Delaware 36-3307583 -------- ---------- (State or other jurisdiction of (I.R.S. Employer Identification Number) incorporation or organization) 3200 Highland Avenue, Downers Grove, Illinois 60515 (Address of principal executive offices, Zip Code) (708) 241-7900 (Registrant's phone number, including area code) __________________________ (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 ----------- ---------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. The number of shares of Common Stock, par value $.01 per share, outstanding on November 10, 1995 was 34,548,511. 2 HealthCare COMPARE Corp. and Subsidiaries INDEX
Part I. Financial Information Page Number ----------- Item 1. Financial Statements Consolidated Balance Sheets - Assets at September 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Consolidated Balance Sheets - Liabilities and Stockholders' Equity at September 30, 1995 and December 31, 1994 . . . . . . . . . . . . 4 Consolidated Statements of Operations for the three months ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 5 Consolidated Statements of Operations for the nine months ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 7-8 Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . 9-10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . 11-13 Part II. Other Information Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 14 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Exhibit 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-17
2 3 PART 1. FINANCIAL INFORMATION HEALTHCARE COMPARE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
ASSETS September 30, 1995 December 31, 1994 ------------------ ----------------- Current Assets: Cash and cash equivalents . . . . . . . . . . . . . . $ 46,017,000 $ 29,412,000 Short-term investments . . . . . . . . . . . . . . . . 82,990,000 37,043,000 Accounts receivable, less allowances for doubtful accounts of $3,191,000 and $3,874,000, respectively . . . . . . . . . . . 27,528,000 24,386,000 Other current assets . . . . . . . . . . . . . . . . . 6,028,000 2,953,000 ------------ ------------ Total current assets . . . . . . . . . . . . . . . . . 162,563,000 93,794,000 ------------ ------------ Long-Term Investments: Marketable securities . . . . . . . . . . . . . . . . 50,212,000 62,229,000 Other . . . . . . . . . . . . . . . . . . . . . . . . 16,355,000 10,000,000 ------------ ------------ 66,567,000 72,229,000 ------------ ------------ Property and Equipment: Buildings and improvements . . . . . . . . . . . . . . 32,786,000 31,940,000 Computer equipment and software . . . . . . . . . . . 26,868,000 25,236,000 Office furniture and equipment . . . . . . . . . . . . 17,377,000 16,235,000 ------------ ------------ 77,031,000 73,411,000 Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . (33,775,000) (28,111,000) ------------ ------------ Net property and equipment . . . . . . . . . . . . . . 43,256,000 45,300,000 ------------ ------------ Other Assets . . . . . . . . . . . . . . . . . . . . . . . 5,604,000 3,686,000 ------------ ------------ $277,990,000 $215,009,000 ============ ============
3 4 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY September 30, 1995 December 31, 1994 ------------------ ----------------- Current Liabilities: Accounts payable . . . . . . . . . . . . . . . . . . . . $ 6,502,000 $ 4,938,000 Accrued expenses . . . . . . . . . . . . . . . . . . . . 11,801,000 9,606,000 Income taxes payable . . . . . . . . . . . . . . . . . . -- 806,000 ----------- ------------ Total current liabilities . . . . . . . . . . . . . . . 18,303,000 15,350,000 Non-Current Liabilities . . . . . . . . . . . . . . . . . . . 141,000 102,000 ----------- ------------ Total liabilities . . . . . . . . . . . . . . . . . . . 18,444,000 15,452,000 ----------- ----------- Commitments and Contingencies . . . . . . . . . . . . . . . . -- -- Stockholders' Equity: Common stock . . . . . . . . . . . . . . . . . . . . . . 365,000 360,000 Additional paid-in capital . . . . . . . . . . . . . . . 102,384,000 89,798,000 Retained earnings . . . . . . . . . . . . . . . . . . . 192,015,000 143,533,000 Unrealized holding gain (loss) on marketable securities . . . . . . . . . . . . . . . . . . . . . 151,000 (935,000) Treasury stock, at cost . . . . . . . . . . . . . . . . (35,369,000) (33,199,000) ----------- ----------- Total stockholders' equity . . . . . . . . . . . . . . . 259,546,000 199,557,000 ----------- ----------- $277,990,000 $215,009,000 =========== ===========
4 5 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended September 30, ------------------------------------ 1995 1994 -------------------- -------------------- Revenues . . . . . . . . . . . . . . . . . . . . . . . . . $54,238,000 $48,132,000 ----------- ----------- Operating expenses: Cost of services . . . . . . . . . . . . . . . . . . . 15,650,000 15,054,000 Selling and marketing . . . . . . . . . . . . . . . . 6,616,000 5,752,000 General and administrative . . . . . . . . . . . . . . 2,734,000 2,503,000 Depreciation and amortization . . . . . . . . . . . . 2,479,000 3,239,000 Interest income, net . . . . . . . . . . . . . . . . . (1,993,000) (1,238,000) ----------- ----------- 25,486,000 25,310,000 ----------- ----------- Income before income taxes . . . . . . . . . . . . . . . . 28,752,000 22,822,000 Income taxes . . . . . . . . . . . . . . . . . . . . . . . (11,500,000) (9,432,000) ----------- ----------- Net income . . . . . . . . . . . . . . . . . . . . . . . . $17,252,000 $13,390,000 =========== =========== Weighted average common and common share equivalents . . . . . . . . . . . . . . . . 35,057,000 34,330,000 =========== =========== Net income per common share . . . . . . . . . . . . . . . . $ .49 $ .39 =========== ===========
5 6 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended September 30, --------------------------------------- 1995 1994 -------------------- -------------------- Revenues . . . . . . . . . . . . . . . . . . . . . . . . . $158,677,000 $137,165,000 ------------ ------------ Operating expenses: Cost of services . . . . . . . . . . . . . . . . . . . 47,777,000 46,963,000 Selling and marketing . . . . . . . . . . . . . . . . 19,279,000 16,443,000 General and administrative . . . . . . . . . . . . . . 8,204,000 7,665,000 Depreciation and amortization . . . . . . . . . . . . 7,845,000 7,998,000 Interest income, net . . . . . . . . . . . . . . . . . (5,713,000) (3,637,000) ------------ ------------ 77,392,000 75,432,000 ------------ ------------ Income before income taxes . . . . . . . . . . . . . . . . 81,285,000 61,733,000 Income taxes . . . . . . . . . . . . . . . . . . . . . . . (32,803,000) (25,002,000) ------------ ------------ Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 48,482,000 $ 36,731,000 ============ ============ Weighted average common and common share equivalents . . . . . . . . . . . . . . . . 35,020,000 35,034,000 ============ ============ Net income per common share . . . . . . . . . . . . . . . . $ 1.38 $ 1.05 ============ ============
6 7 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30, --------------------------------------- 1995 1994 -------------------- -------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers . . . . . . . . . . . . . . . . $155,985,000 $135,695,000 Cash paid to suppliers and employees . . . . . . . . . . . . (72,370,000) (68,860,000) Interest received, net . . . . . . . . . . . . . . . . . . . 5,997,000 4,448,000 Income taxes paid, net . . . . . . . . . . . . . . . . . . . (34,388,000) (23,121,000) ----------- ----------- Net cash provided by operating activities . . . . . . . . . 55,224,000 48,162,000 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of investments . . . . . . . . . . . . . . . . . . (133,970,000) (61,806,000) Sales of investments . . . . . . . . . . . . . . . . . . . . 94,503,000 53,517,000 Purchase of property and equipment . . . . . . . . . . . . . (5,821,000) (5,821,000) ----------- ----------- Net cash used in investing activities . . . . . . . . . . . (45,288,000) (14,110,000) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from sales of put options on common stock . . . . . . -- 778,000 Purchase of treasury stock . . . . . . . . . . . . . . . . . (2,170,000) (28,130,000) Proceeds from issuance of common stock . . . . . . . . . . . 8,839,000 3,932,000 ----------- ----------- Net cash provided by (used in) financing activities . . . . 6,669,000 (23,420,000) ----------- ----------- NET INCREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . 16,605,000 10,632,000 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD . . . . . . . . . 29,412,000 23,425,000 ----------- ----------- CASH AND CASH EQUIVALENTS, END OF PERIOD . . . . . . . . . . . . $46,017,000 $34,057,000 ========== ==========
7 8 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30, ------------------------------------- 1995 1994 -------------------- -------------------- RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,482,000 $36,731,000 ----------- ----------- ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Depreciation and amortization . . . . . . . . . . . . . . . . 7,845,000 7,998,000 Change in provision for uncollectible receivables . . . . . . (683,000) 510,000 Amortization of bond premiums . . . . . . . . . . . . . . . . 1,061,000 930,000 Tax benefit from stock options and unrealized holding (gain) loss on marketable securities, net . . . . . 3,017,000 1,720,000 (Gain) loss on sale of investments . . . . . . . . . . . . . (58,000) 152,000 Loss on property disposal . . . . . . . . . . . . . . . . . . 20,000 -- Changes in Assets and Liabilities: Accounts receivable . . . . . . . . . . . . . . . . . . . . . (2,459,000) (748,000) Other current assets . . . . . . . . . . . . . . . . . . . . (3,075,000) (688,000) Other assets . . . . . . . . . . . . . . . . . . . . . . . . (1,918,000) 14,000 Accounts payable . . . . . . . . . . . . . . . . . . . . . . 1,564,000 (526,000) Accrued expenses . . . . . . . . . . . . . . . . . . . . . . 2,195,000 1,882,000 Income taxes payable . . . . . . . . . . . . . . . . . . . . (806,000) 161,000 Other liabilities . . . . . . . . . . . . . . . . . . . . . . 39,000 26,000 ----------- ----------- TOTAL ADJUSTMENTS . . . . . . . . . . . . . . . . . . . . . . . . 6,742,000 11,431,000 ----------- ----------- NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . $55,224,000 $48,162,000 =========== ===========
8 9 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. The unaudited financial statements herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. The accompanying interim financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited financial statements for the latest fiscal year ended December 31, 1994. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the December 31, 1994 audited financial statements have been omitted from these interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. Although the Company believes that the disclosures are adequate to make the information presented not misleading, it is suggested that these interim financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest Annual Report on Form 10-K. 2. The Company's investments in marketable securities which are classified as available for sale had a net unrealized gain in market value of $1,086,000, net of deferred income taxes, for the nine months ended September 30, 1995. The net unrealized gain at September 30, 1995, included as a component of stockholders' equity, was $151,000, net of deferred income taxes. The Company's $10,000,000 investment in a limited partnership is carried at cost. The current value of the Company's interest in the limited partnership at September 30, 1995, as reported by the partnership, was $9,936,000. In the third quarter of 1995, the Company invested $6,355,000 in another limited partnership which is being accounted for under the equity method of accounting. The Company's proportionate share of the partnership's income was $57,000 for the three months ended September 30, 1995 and is included in interest income. 3. Commitments and Contingencies Litigation: In April 1993, seven lawsuits were filed in the United States District Court for the Northern District of Illinois alleging violations of Federal securities laws by the Company and two of its executive officers. The plaintiffs allege, among other things, that the defendants made false and misleading statements regarding the Company's financial prospects for 1993, which they further allege resulted in the price of the Company's common stock being inflated during the period in question. The plaintiffs seek compensatory damages, pre-and post-judgement interest, and the costs and disbursements of the lawsuits, including reasonable attorneys' and experts' fees. The lawsuits have been consolidated and in May, 1993, the defendants filed a motion to dismiss the consolidated complaint. The plaintiffs filed a motion for class certification in June, 1993, and defendants subsequently filed their opposition to class certification. In November 1993, the presiding Magistrate Judge recommended that the consolidated complaint be dismissed and subsequently stayed all proceedings involving class certification and discovery. Plaintiffs appealed the Magistrate's ruling to the presiding Federal Judge who, in June, 1994, affirmed the dismissal of the complaint. In August 1994, the Federal Judge entered an order allowing the plaintiffs to file 9 10 an amended complaint, and in February 1995, the Federal Judge denied the Company's motion to dismiss the plaintiffs' amended complaint. The presiding Federal Judge subsequently certified, for review by the Seventh Circuit Court of Appeals, the issue of whether the amended complaint should be dismissed. The Seventh Circuit Court of Appeals accepted the certification and the matter was duly briefed before the Court of Appeals. In October, oral arguments were presented to the panel from the Seventh Circuit Court of Appeals. The Court has not yet ruled on the defendant's motion to dismiss. Management continues to believe that the plaintiffs' claims are without merit and is vigorously contesting these actions. However, the ultimate outcome of the litigation cannot presently be determined. Accordingly, no provision for liability, if any, that may result upon resolution of the matter has been made in the financial statements. 10 11 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED) RESULTS OF OPERATIONS Revenues for the three and nine months ended September 30, 1995 increased $6,106,000 (13%) and $21,512,000 (16%), respectively, from the comparable periods of 1994. The Company's revenues consist of fees for cost management services provided under contracts which typically require clients to pay based upon a percentage of savings or on a predetermined contractual basis (fee-based revenue). The Company also derives revenues based on a fixed monthly fee for each participant, excluding covered dependents, in a client-sponsored health care plan (capitated revenue). The fee varies based upon the programs selected. Fee-based revenue has increased substantially from 1989 to the present as COMPARE has significantly expanded its PPO networks. The following tables set forth information with respect to the types and sources of the Company's revenues for the three and nine months ended September 30, 1995 and 1994: TYPES OF REVENUE ($ in thousands)
Three Months Ended September 30, Nine Months Ended September 30, ------------------------------------------------ ----------------------------------------- 1995 % 1994 % 1995 % 1994 % ---- - ---- - ---- - ---- - Fee-based Revenue $48,392 89% $41,619 86% $140,508 89% $117,250 85% Capitated Revenue 5,846 11 6,513 14 18,169 11 19,915 15 ------- -- ------- -- --------- -- -------- -- Total $54,238 100% $48,132 100% $158,677 100% $137,165 100% ====== === ====== === ======= === ======= ===
SOURCES OF REVENUE ($ in thousands)
Three Months Ended September 30, Nine Months Ended September 30, ----------------------------------------- ------------------------------------- 1995 % 1994 % 1995 % 1994 % ----- -- ---- -- ---- -- ----- -- PPO Services $42,421 78% $36,310 75% $122,513 77% $102,731 75% Utilization Mgmt. Services 6,389 12 6,455 14 19,458 12 19,022 14 Fee Schedule Services 3,960 7 3,897 8 12,418 8 10,572 8 Government Contract Services 1,468 3 1,470 3 4,288 3 4,840 3 ------- --- ------ --- ------- --- ------ --- Total $54,238 100% $48,132 100% $158,677 100% $137,165 100% ====== === ====== === ======= === ======= ===
11 12 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED) (CONT'D.) The growth in revenue during the three and nine months ended September 30, 1995 from the comparable periods of 1994 is primarily attributable to the expansion and development of the Company's PPO services. PPO revenue increased $6,111,000 (17%) and $19,782,000 (19%), respectively, from the same periods of 1994. This growth is the result of new client additions and increased utilization of the PPO network by existing clients. Revenue from utilization management (U/M) services decreased $66,000 (1%) and increased $436,000 (2%) for the three and nine months ended September 30, 1995, respectively, from the comparable periods in 1994. Revenue from fee schedule services increased $63,000 (2%) and $1,846,000 (17%) for the three and nine months ended September 30, 1995, respectively, from the comparable periods in 1994 due to new client additions and increased revenue from several existing clients. Government contract revenue decreased $2,000 (0%) and $552,000 (11%) from the same periods in 1994 due to the successful completion of the regional review portion of the Company's CHAMPUS contract. Cost of services increased $596,000 (4%) and $814,000 (2%) for the three and nine months ended September 30, 1995, respectively, from the comparable periods of 1994. Cost of services consists primarily of salaries for personnel involved in PPO administration, development and expansion, utilization management programs, fee schedule and other cost management services offered by the Company. To a lesser extent, cost of services includes telephone expenses, facility expenses and information processing costs. The increase in these costs is primarily attributable to expenses incurred in the development of the Company's risk-based products. For the nine months ended September 30, 1995, cost of services increased only 2% on a 16% revenue increase due to the Company's consolidation of various California operations into one facility and due to the fixed cost nature of the PPO business. Selling and marketing costs increased $864,000 (15%) and $2,836,000 (17%) for the three and nine months ended September 30, 1995 from the same periods of 1994, primarily as a result of the hiring of additional sales personnel. General and administrative costs for the three and nine months ended September 30, 1995 increased $231,000 (9%) and $539,000 (7%), respectively, from the comparable periods of 1994. This increase is primarily attributable to the utilization of outside professional services in connection with the Company's efforts to acquire an insurance company. Depreciation and amortization expenses decreased $760,000 (23%) and $153,000 (2%) for the three and nine months ended September 30, 1995 from the comparable periods of 1994, principally as a result of shortening the useful life of certain assets in 1994 which resulted in higher depreciation expense in 1994. Interest income for the three and nine months ended September 30, 1995 increased $755,000 (61%) and $2,076,000 (57%), respectively, from the same periods in 1994 due to a 50% increase in the amount of cash equivalents and investments since September 30, 1994. 12 13 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED) (CONT'D.) Net income for the three and nine months ended September 30, 1995 increased $3,862,000 (29%) and $11,751,000 (32%), respectively, from the comparable periods of 1994. This increase is due primarily to the growth in revenues from the Company's PPO services occurring at a more rapid pace than the growth of related expenses. LIQUIDITY AND CAPITAL RESOURCES The Company had $144,260,000 in working capital at September 30, 1995 compared with working capital of $78,444,000 at December 31, 1994. Cash equivalents and short- and long-term investments increased to $195,574,000 at September 30, 1995 from $138,684,000 at December 31, 1994, primarily as the result of cash provided by operating activities and, to a lesser extent, cash received upon the exercise of stock options. Through the first nine months of the year, operating activities provided $55,224,000 of cash. The Company believes that its working capital, long-term investments, and cash generated from future operations will be sufficient to fund the Company's anticipated operations and expansion plans. 13 14 PART II Item 6. Exhibits and Reports on Form 8-K (a) Exhibit 11 - Computation of Primary Earnings Per Common Share (b) Exhibit 11 - Computation of Fully Diluted Earnings Per Common Share 14 15 SIGNATURES 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. HealthCare COMPARE Corp. Dated: November 13, 1995 /s/James C. Smith ------------------------------------------ James C. Smith President and Chief Executive Officer Dated: November 13, 1995 /s/Joseph E. Whitters ------------------------------------------ Joseph E. Whitters Chief Financial Officer (Principal Financial and Accounting Officer) 15 EX-11 2 COMPUTATION OF PRIMARY EARNINGS 1 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES EXHIBIT 11 COMPUTATION OF PRIMARY EARNINGS PER COMMON SHARE (UNAUDITED) ________________________________________________________________________________
Three Months Ended September 30, -------------------------------- 1995 1994 ------------ ------------ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,252,000 $13,390,000 ========= ========== Weighted average number of common shares outstanding: Shares outstanding from beginning of period . . . . . . . . 34,253,000 33,892,000 Other issuances of common stock . . . . . . . . . . . . . . 96,000 35,000 Purchases of treasury stock . . . . . . . . . . . . . . . . -- (16,000) Common Stock Equivalents: Additional equivalent shares issuable from assumed exercise of common stock options . . . . . . . . . 708,000 419,000 ---------- ----------- Weighted average common and common share equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,057,000 34,330,000 =========== ============= Net income per common share . . . . . . . . . . . . . . . . . . . $ .49 $ .39 ============ =============
Nine Months Ended September 30, --------------------------------- 1995 1994 ------------ ------------ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,482,000 $36,731,000 ========== ========== Weighted average number of common shares outstanding: Shares outstanding from beginning of period . . . . . . . . 34,034,000 35,033,000 Other issuances of common stock . . . . . . . . . . . . . . 261,000 206,000 Purchases of treasury stock . . . . . . . . . . . . . . . . (58,000) (695,000) Common Stock Equivalents: Additional equivalent shares issuable from assumed exercise of common stock options . . . . . . . . . 783,000 490,000 ----------- ----------- Weighted average common and common share equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,020,000 35,034,000 ========== ========== Net income per common share . . . . . . . . . . . . . . . . . . . $ 1.38 $ 1.05 ============= =============
16 2 EXHIBIT 11 HEALTHCARE COMPARE CORP. AND SUBSIDIARIES COMPUTATION OF FULLY DILUTED EARNINGS PER COMMON SHARE (UNAUDITED) ________________________________________________________________________________
Three Months Ended September 30, -------------------------------- 1995 1994 ------------ ------------ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,252,000 $13,390,000 ========== ========== Weighted average number of common shares outstanding: Shares outstanding from beginning of period . . . . . . . . 34,253,000 33,892,000 Other issuances of common stock . . . . . . . . . . . . . . 96,000 35,000 Purchases of treasury stock . . . . . . . . . . . . . . . . -- (16,000) Common Stock Equivalents: Additional equivalent shares issuable from assumed exercise of common stock options . . . . . . . . . 840,000 698,000 ---------- ---------- Weighted average common and common share equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,189,000 34,609,000 ========== ========== Net income per common share . . . . . . . . . . . . . . . . . . . $ .49 $ .39 ========== ==========
Nine Months Ended September 30, --------------------------------- 1995 1994 ------------ ------------ Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,482,000 $36,731,000 ========== ========== Weighted average number of common shares outstanding: Shares outstanding from beginning of period . . . . . . . . 34,034,000 35,033,000 Other issuances of common stock . . . . . . . . . . . . . . 261,000 206,000 Purchases of treasury stock . . . . . . . . . . . . . . . . (58,000) (695,000) Common Stock Equivalents: Additional equivalent shares issuable from assumed exercise of common stock options . . . . . . . . . 848,000 610,000 ---------- ---------- Weighted average common and common share equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,085,000 35,154,000 ========== ========== Net income per common share . . . . . . . . . . . . . . . . . . . $ 1.38 $ 1.05 ========== ==========
17 EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 USD 3-MOS DEC-31-1995 JUL-01-1995 SEP-30-1995 1 46,017 149,557 30,719 (3,191) 0 162,563 77,031 (33,775) 277,990 18,303 0 365 0 0 259,181 277,990 0 56,231 0 25,000 2,479 0 0 28,752 11,500 17,252 0 0 0 17,252 0.49 0.49
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