CHICAGO, April 22 /PRNewswire/ -- First Commonwealth, Inc. (Nasdaq: FCWI),
a leading managed dental benefits company, today reported that net income for
the first quarter of 1999 increased 33% to $1.2 million from $913,000 recorded
in the first quarter of 1998. First quarter earnings per share increased 33%
to $0.32 from $0.24 for the same period in 1998. Total first quarter revenue
increased 7% to $16.7 million from $15.6 million in 1998.
"We are extremely pleased with the strength of our overall enrollment,
revenue, and earnings growth," stated David W. Mulligan, the Company's
President and Chief Operating Officer. "We have very successfully completed a
transition in our product design that is quite responsive to our participating
providers as well as to our client groups. We are particularly proud that we
have accomplished this while improving our margins."
"Continuing to increase our sales staffing is our number one priority,"
added Christopher C. Multhauf, the Company's Chairman and Chief Executive
Officer. "We believe we are extremely well positioned in each of our markets
and are enthusiastic about our expanded marketing efforts."
First Commonwealth, Inc. is a regionally focused managed dental benefits
company with operations in Illinois, Indiana, Michigan, Missouri and
Wisconsin. The Company markets a broad range of innovative dental benefit
products designed to meet the needs of a wide range of employers and currently
serves over 680,000 members through its managed care, indemnity/PPO and fee
income products. First Commonwealth, Inc. shares trade on the Nasdaq National
Market under the symbol FCWI.
This press release contains forward-looking information regarding
the Company. The forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statement may be significantly impacted by certain risks and
uncertainties including the Company's ability to execute its strategy. Other
risk factors are described in First Commonwealth, Inc.'s Annual Report on Form
10-K for the year ended December 31, 1998, all filed with the Securities and
Exchange Commission.
FIRST COMMONWEALTH, INC. AND SUBSIDIARIES
Selected Consolidated Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
1999 1998
Consolidated Statement of Income Data:
Subscriber revenue
Managed care $12,188 $11,686
Indemnity/PPO 4,231 3,649
Fee income 319 280
Total subscriber revenue 16,738 15,615
Benefit coverage expenses
Managed care 7,241 7,337
Indemnity/PPO 3,596 3,113
Fee income -- --
Total benefit coverage expenses 10,837 10,450
Gross margin
Managed care 4,947 4,349
Indemnity/PPO 635 536
Fee income 319 280
Total gross margin 5,901 5,165
Selling, general and
administrative expense 4,136 3,772
Operating income 1,765 1,393
Interest income, net 182 144
Income before income taxes 1,947 1,537
Provision for income taxes 735 624
Net income $1,212 $913
Weighted average common and
equivalent shares
outstanding 3,770,827 3,737,310
Diluted earnings per share $0.32 $0.24
March 31, December 31,
1999 1998
Balance Sheet Data:
Total current assets $25,589 $20,252
Total assets 40,607 38,076
Total current liabilities 11,396 10,181
Total liabilities 11,592 10,357
Stockholders' equity 29,015 27,719
Membership:
Managed Care 446,900 482,200
Indemnity/PPO 80,000 75,600
Fee income (ASO/PPO) 154,000 87,100
Total Membership 680,900 644,900
SOURCE First Commonwealth, Inc.
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CONTACT:
David W. Mulligan, President and Chief
Operating Officer of First Commonwealth, Inc., 312-644-1800
NOTE TO EDITORS: For more information on First Commonwealth via
facsimile at no additional cost, simply dial 1-800-PRO-INFO and
enter the ticker FCWI
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