TRUMBULL, Conn., Jan. 7 /PRNewswire/ -- Oxford Health Plans, Inc.
(NYSE: OHP) announced today that it purchased 4.75 million shares of common
stock for $132.8 million during the fourth quarter ended December 31, 2001.
The Company has purchased a total of 12.961 million shares for $366.1 million
since beginning its repurchase program in the third quarter of 2001. Oxford
ended the year with approximately 87.4 million common shares outstanding,
after giving effect to the repurchases and stock option exercises during 2001.
The Company's weighted diluted share count for 2001 was approximately
100.5 million. The Company currently estimates that, excluding the effect of
additional share repurchases, the weighted diluted share count for 2002 would
be approximately 92 million, assuming a stock price of $30.00 per share.
"We believe that our stock buyback program, through which we purchased
about 13% of our outstanding common stock in the second half of 2001, has been
an efficient way to return excess cash to our shareholders and will likely be
accretive in 2002," said Oxford Health Plans' Chairman and Chief Executive
Officer, Norman C. Payson, M.D.
The Company's has remaining repurchase authority of approximately
$134 million over the next two years.
Founded in 1984, Oxford Health Plans, Inc., provides health plans to
employers and individuals in New York, New Jersey and Connecticut, through its
direct sales force, independent insurance agents and brokers. Oxford's
services include traditional health maintenance organizations,
point-of-service plans, third-party administration of employer-funded benefit
plans and Medicare plans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements concerning
the Company's future operating prospects, repurchase of common stock, Parent
Company liquidity, and other statements contained herein regarding matters
that are not historical facts, are forward-looking statements (as such term is
defined in the Securities Exchange Act of 1934); and because such statements
involve risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are not limited
to:
* Changes in Federal or State regulation relating to health care and
health benefit plans, including proposed patient protection
legislation and mandated benefits.
* The state of the economy.
* The impact of the September 11, 2001 terrorist attack and the recent
cases of Anthrax infection or exposure, and the effect of any future
act of terrorism.
* Rising medical costs or higher utilization of medical services,
including higher out-of-network utilization under point-of-service
plans and new drugs and technologies.
* Competitive pressure on the pricing of the Company's products,
including acceptance of premium rate increases by the Company's
commercial groups.
* Higher than expected administrative costs in operating the Company's
business and the cost and impact on service of changing
technologies.
* The ability of the Company to maintain risk transfer and other
provider arrangements and the resolution of existing and future
disputes over the reconciliations and performance under such
arrangements.
* Any changes in the Company's estimates of its medical costs and
expected cost trends.
* The impact of future developments in various litigation (including
pending class and derivative actions filed against the Company and
certain of its officers and directors, and other proceedings
commenced against the Company and several employees by certain
healthcare providers), the recent class actions in Connecticut and
New York and related litigation by the Connecticut Attorney General,
regulatory proceedings and other governmental action (including the
ongoing examination, investigation and review of the Company by
various Federal and State authorities).
* The Company's ability to renew existing members and attract new
members.
* The Company's ability to develop processes and systems to support
its operations and any future growth.
* Those factors included in the discussion under the caption "Business
- Cautionary Statement Regarding Forward-Looking Statements" in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2000 and under the caption "Management's Discussion and
Analysis of Financial Condition and Results of Operations -
Cautionary Statement Regarding Forward-Looking Statements" in the
Company's Quarterly Report on Form 10-Q for the period ended
September 30, 2001.
SOURCE Oxford Health Plans, Inc.
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Related links:
http://www.oxfordhealth.com
CONTACT:
Investors - Gary Frazier, +1-203-459-7331, or
Deborah Abraham, +1-203-459-6674; Media - Maria Gordon-Shydlo,
+1-203-459-7674, all of Oxford Health Plans, Inc.
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