{ "market" : {"NAME" : "U.S.", "ID" : "us_market", "TZ" : "ET", "TZOFFSET" : "-18000", "open" : "1259332254", "close" : "1259344854", "flags" : {}} , "STREAMER_SERVER" : "http://streamerapi.finance.yahoo.com","arrowAsChangeSign" : false,"throttleInterval": "1000"}
businesswire

Continucare Corporation Reports 52% Increase in Net Income for Fourth Quarter of Fiscal 2009

Achieves 36% Increase in Net Income for Fiscal 2009


  • Press Release
  • Source: Continucare Corporation
  • On 7:03 am EDT, Thursday September 10, 2009

MIAMI--(BUSINESS WIRE)--Continucare Corporation (NYSE Amex:CNU) today reported financial results for its fourth quarter and fiscal year ended June 30, 2009. Financial highlights for the quarter include:

  • Total revenue increased 14% to $75.3 million, compared to $66.1 million in the fourth quarter of fiscal 2008;
  • Income from operations increased 55% to $7.8 million, compared to $5.0 million in the fourth quarter of fiscal 2008; and
  • Net income increased 52% to $4.8 million, or $0.08 per diluted share, compared to $3.2 million, or $0.05 per diluted share, in the fourth quarter of fiscal 2008.

Related Quotes

SymbolPriceChange
CNU3.11-0.05
Chart for CONTINUCARE CP
{"s" : "cnu","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Full Year Results

For the fiscal year ended June 30, 2009, total revenue increased 11% to $281.3 million compared to $254.4 million in the prior fiscal year. Income from operations for fiscal 2009 increased 38% to $24.7 million compared to $17.9 million for fiscal 2008. Net income for fiscal 2009 increased 36% to $15.3 million, or $0.24 per diluted share, compared to $11.3 million, or $0.16 per diluted share, for fiscal 2008.

Balance Sheet

Continucare’s cash and cash equivalents increased to $13.9 million at June 30, 2009 compared to $9.9 million at June 30, 2008, while working capital increased to $25.5 million at June 30, 2009 compared to $20.3 million at June 30, 2008. Total liabilities were $14.1 million at June 30, 2009 compared to $13.3 million at June 30, 2008. Shareholders’ equity increased to $111.2 million at June 30, 2009 from $105.2 million at June 30, 2008.

“A strong fourth quarter capped another record year,” said Richard C. Pfenniger, Jr., Continucare’s Chairman and Chief Executive Officer. “Revenue growth, improved utilization outcomes and other operating efficiencies combined to produce 52% and 36% increases in our fourth quarter and full fiscal year net income, respectively, while our cash and working capital positions remain strong and our balance sheet continues to be virtually debt free.”

About Continucare Corporation

Continucare provides primary care physician services on an outpatient basis through a network of medical facilities and independent physician affiliates (IPAs) in the State of Florida. Continucare has 18 medical offices equipped with state-of-the-practice technology and staffed with experienced physicians and a comprehensive support staff. In addition, Continucare provides health practice management services to IPAs who practice primary care medicine in South Florida. Continucare assists these physicians with medical utilization and pharmacy management and specialist network development, freeing them to devote more time to patient care. Also, through its subsidiary, Seredor Corporation, Continucare operates 13 sleep diagnostic centers in six states. For more information please visit www.continucare.com.

Except for historical matters contained herein, statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors and others are cautioned that forward-looking statements are subject to risks and uncertainties that may affect our business and prospects and cause our actual results to differ materially from those set forth in the forward-looking statements including the following: our operations are dependent on three health maintenance organizations; under our most important contracts we are responsible for the cost of medical services to our patients in return for a capitated fee; our revenues will be affected by the Medicare Risk Adjustment program; if we are unable to manage medical benefits expense effectively, our profitability will likely be reduced; a failure to estimate incurred but not reported medical benefits expense accurately will affect our profitability; we compete with many health care providers for patients and HMO affiliations; we may not be able to successfully recruit or retain existing relationships with qualified physicians and medical professionals; our business exposes us to the risk of medical malpractice lawsuits; we primarily operate in Florida; a significant portion of our voting power is concentrated; we are dependent on our executive officers and other key employees; we depend on the management information systems of our affiliated HMOs; we depend on our information processing systems; the volatility of our stock price; a failure to successfully implement our business strategy could materially and adversely affect our operations and growth opportunities; our intangible assets represent a substantial portion of our total assets; competition for acquisition targets and acquisition financing and other factors may impede our ability to acquire other businesses and may inhibit our growth; our acquisitions could result in integration difficulties, unexpected expenses, diversion of management’s attention and other negative consequences; health care reform initiatives, particularly changes to the Medicare system, could adversely affect our operations; a decrease to our Medicare capitation payments may have a material adverse effect on our results of operations, financial position and cash flows; we are subject to government regulation; the health care industry is subject to continued scrutiny; our insurance coverage may not be adequate, and rising insurance premiums could negatively affect our profitability; deficit spending and economic downturns could negatively impact our results of operations; and many factors that increase health care costs are largely beyond our ability to control. These and other applicable risks, cautionary statements and factors that could cause actual results to differ from our forward-looking statements are included in our most recent annual report on Form 10-K and other filings with the SEC and we urge you to read those documents. We undertake no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date hereof except as required by law.

 
 

CONTINUCARE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 
June 30,
ASSETS 2009   2008
Current assets:
Cash and cash equivalents $ 13,895,823 $ 9,905,740
Due from HMOs, net of a liability for incurred but not reported medical claims expense of approximately $23,719,000 and $23,900,000 at June 30, 2009 and 2008, respectively

17,323,599

15,325,783

Prepaid expenses and other current assets 812,970 708,841
Deferred income tax assets   141,420   413,932  
Total current assets 32,173,812 26,354,296
Certificates of deposit, restricted 1,233,653 1,274,147
Property and equipment, net 10,489,383 8,363,427
Goodwill 73,204,582 73,204,582
Intangible assets, net of accumulated amortization of approximately $3,406,000 and $2,168,000 at June 30, 2009 and 2008, respectively

5,253,666

6,492,333

Deferred income tax assets 2,795,588 2,574,472
Other assets, net   152,702   227,047  
Total assets $ 125,303,386 $ 118,490,304  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 652,305 $ 402,718
Accrued expenses and other current liabilities 4,455,675 4,458,119
Income taxes payable   1,575,511   1,198,722  
Total current liabilities 6,683,491 6,059,559
Deferred income tax liabilities 6,435,732 6,256,205
Other liabilities   981,640   948,263  
Total liabilities 14,100,863 13,264,027
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.0001 par value: 100,000,000 shares authorized; 59,391,049 shares issued and outstanding at June 30, 2009 and 64,796,303 shares issued and outstanding at June 30, 2008

5,939

6,480

Additional paid-in capital 105,210,519 114,514,853
Accumulated earnings (deficit)   5,986,065   (9,295,056 )
Total shareholders’ equity   111,202,523   105,226,277  
Total liabilities and shareholders’ equity $ 125,303,386 $ 118,490,304  

   
 

CONTINUCARE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 

(Unaudited)

Three-Months Ended

June 30,

Year Ended

June 30,

2009   2008 2009   2008
 
Revenue $ 75,270,033 $ 66,095,772 $ 281,270,360 $ 254,440,048
Operating expenses:
Medical services:
Medical claims 53,483,994 47,240,423 199,167,856 181,097,183
Other direct costs   6,921,562     6,506,166     28,456,121     26,942,472  
Total medical services   60,405,556     53,746,589     227,623,977     208,039,655  
Administrative payroll and employee benefits 3,262,322 3,206,950 12,655,975 12,119,139
General and administrative   3,850,991     4,141,446     16,261,750     16,413,801  
Total operating expenses   67,518,869     61,094,985     256,541,702     236,572,595  
Income from operations 7,751,164 5,000,787 24,728,658 17,867,453
Other income (expense):
Interest income 22,405 94,524 174,039 602,826
Interest expense   (4,070 )   (50,865 )   (21,255 )   (67,898 )
Income before income tax provision 7,769,499 5,044,446 24,881,442 18,402,381
Income tax provision   2,970,823     1,883,478     9,600,321     7,132,727  
Net income $ 4,798,676   $ 3,160,968   $ 15,281,121   $ 11,269,654  
 
Net income per common share:
Basic $ .08   $ .05   $ .25   $ .16  
Diluted $ .08   $ .05   $ .24   $ .16  
 
Weighted average common shares outstanding:
Basic   59,385,410     67,217,043     61,405,620     68,862,836  
Diluted   60,536,072     68,327,375     62,488,340     70,007,760  

   
 

CONTINUCARE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 
Year Ended June 30,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 15,281,121 $ 11,269,654
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 2,303,327 2,507,535
Loss on impairment of fixed assets

-

171,515
Loss on disposal of fixed assets 65,760 -
Provision for bad debts - 181,081
Compensation expense related to issuance of stock options 1,163,472 1,332,786
Excess tax benefits related to exercise of stock options (116,593 ) -
Deferred income tax expense 230,923 (198,598 )
Changes in operating assets and liabilities:
Due from HMOs, net (1,997,816 ) (1,251,657 )
Prepaid expenses and other current assets (104,129 ) 676,782
Other assets 42,735 (128,743 )
Accounts payable 249,587 (605,151 )
Accrued expenses and other current liabilities (33,689 ) 145,851
Income taxes payable   549,398     1,131,324  
Net cash provided by operating activities 17,634,096 15,232,379
 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of certificates of deposit (682,948 ) (112,512 )
Proceeds from sales of certificates of deposit 723,442 15,000
Purchase of property and equipment   (3,100,935 )   (939,270 )
Net cash used in investing activities (3,060,441 ) (1,036,782 )
 
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment on long-term debt - (6,083 )
Principal repayments under capital lease obligations (115,225 ) (113,249 )
Proceeds from exercise of stock options 23,375 64,375
Excess tax benefits related to exercise of stock options 116,593 -
Payment of fees related to issuance of stock - (45,000 )
Repurchase of common stock   (10,608,315 )   (11,452,147 )
Net cash used in financing activities   (10,583,572 )   (11,552,104 )
 
Net increase in cash and cash equivalents 3,990,083 2,643,493
Cash and cash equivalents at beginning of fiscal year   9,905,740     7,262,247  
Cash and cash equivalents at end of fiscal year $ 13,895,823   $ 9,905,740  
 
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING TRANSACTIONS:
Purchase of equipment, furniture and fixtures with proceeds of capital lease obligations

$

123,831

 

$

38,922

 
Retirement of treasury stock

$

10,608,315

 

$

11,452,147

 
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for taxes $ 8,820,000  

$

6,200,000

 
Cash paid for interest $ 16,255  

$

20,898

 

Contact:

Continucare Corporation, Miami
Fernando L. Fernandez, Senior Vice President – Finance, 305-500-2105

Related Headlines

Related Blog Headlines

Top Stories

Related Message Boards

Sponsored Links

Copyright © 2009 Business Wire. All rights reserved. All the news releases provided by Business Wire are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials by posting, archiving in a public web site or database, or redistribution in a computer network is strictly forbidden.