CHICAGO, Oct. 23 /PRNewswire/ -- First Commonwealth, Inc. (Nasdaq: FCWI),
a leading managed dental benefits company, today reported net income rose 32%
to $882,000 for the third quarter of 1997, over the $667,000 recorded in the
third quarter of 1996. Third quarter earnings per share were $0.24, an
increase of 33%, compared with $0.18 for the same period in 1996. Total
revenue for the third quarter was up 23% to $14.5 million, versus total
revenue of $11.8 million in the same period in 1996.
"We are quite pleased with the quarter's overall results. Enrollment
gains were strong for the company, particularly in our Chicago market which
experienced record third quarter gains. This reflects the continued success
in executing our middle market strategy," stated Christopher C. Multhauf, the
Company's Chairman and Chief Executive Officer. "We have been successful in
achieving price increases on new and renewing business which reflects
increasing provider expenses. We believe that the industry trend of higher
indemnity cost bodes well for managed care growth in 1998."
For the first nine months of 1997, net income increased 20% to $2.4
million of $0.65 per share from $2.0 million, or $0.57 per share in the first
nine months of last year. Total revenues for the first nine months of 1997
were $41.8 million, a 32% increase over $31.6 million for the same period in
1996.
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 employers' diverse requirements and currently serves
over 570,000 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.
FIRST COMMONWEALTH, INC. AND SUBSIDIARIES
Selected Consolidated Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Consolidated Statement
of Income Data:
Subscriber revenue
Managed care $10,978 $8,870 $32,284 $23,280
Indemnity/PPO 3,310 2,760 8,893 7,810
Fee income 231 156 661 488
Total subscriber
revenue 14,519 11,786 41,838 31,578
Benefit coverage expenses
Managed care 6,989 5,402 20,363 13,703
Indemnity/PPO 2,957 2,164 7,468 6,109
Fee income -- -- -- --
Total benefit
coverage expenses 9,946 7,566 27,831 19,812
Gross margin
Managed care 3,989 3,468 11,921 9,577
Indemnity/PPO 353 596 1,425 1,701
Fee income 231 156 661 488
Total gross margin 4,573 4,220 14,007 11,766
Selling, general and
administrative expense 3,201 3,249 10,210 8,836
Operating income 1,372 971 3,797 2,930
Interest income, net 121 160 339 482
Income before income taxes 1,493 1,131 4,136 3,412
Provision for income taxes 611 464 1,696 1,378
Net income $882 $667 $2,440 $2,034
Weighted average common
and equivalent shares
outstanding 3,736,008 3,682,978 3,732,886 3,564,831
Earnings per share $0.24 $0.18 $0.65 $0.57
September 30, December 31,
1997 1996
Balance Sheet Data:
Total current assets $17,420 $21,023
Total assets 30,552 34,454
Total current liabilities 7,915 14,331
Total liabilities 8,142 14,498
Stockholders' equity 22,410 19,956
Membership:
Managed Care 437,700 341,600
Indemnity
Managed Choice-Indemnity 53,000 51,400
Managed Choice-PPO 11,700 4,800
Total Indemnity 64,700 56,200
Fee income (ASO/PPO) 74,800 34,000
Total Membership 577,200 431,800
SOURCE First Commonwealth, Inc.
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CONTACT:
David W. Mulligan, President and Chief
Operating Officer, of First Commonwealth, 312-644-1800
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