CHICAGO, May 16 /PRNewswire/ -- Chicago-based First Commonwealth, Inc. is
rapidly becoming one of the leading managed dental benefit companies in the
Midwest.
Since 1990 our revenue has grown from $4.2 million to $44.1 million,
including 32% in growth over the past year. We now serve approximately
432,000 people with dental HMO, dental PPO and dental indemnity style
products.
Operating income has grown steadily to $4 million at year-end 1996 (up 29%
from 1995) while earnings per share increased 13%, finishing the year at $0.76
per share and exceeding analysts' expectations for our first fiscal year as a
public company.
We have $11.5 million in cash and no debt on our balance sheet, leaving us
in a strong position to continue executing our growth strategies.
The first of those strategies builds on our leading position in the
Chicago market, where there are two potential ways we can grow: First, by
moving some of the estimated 4.6 million people currently in group indemnity
programs into our dental HMO or dental PPO product lines; and second, by
marketing our employee-pay-all program to the estimated 2.7 million people who
do not currently have dental coverage.
Our second growth strategy involves continuing our geographic expansion.
We made two acquisitions in 1996: Smileage Dental Services in Milwaukee has
approximately 55,000 members, putting us in the the number two position in the
Milwaukee market (1.6 million people); while Champion Dental Services of St.
Louis has approximately 60,000 members, giving us probably the largest
position in the St. Louis market (2.8 million people).
In addition, we undertook two startups in 1996, expanding into the Detroit
market (4.4 million people) and the Indianapolis market (1.3 million people).
Both startups became operational in January 1997.
These expansions have repositioned the company's operation base from the
Chicago market (with $3 million people and a 13% dental HMO penetration) to a
five-state region with 18.4 million people, and a combined dental HMO
penetration of 12%.
These strategies will create significant growth opportunities for First
Commonwealth, Inc., both in Chicago and in our new markets.
SOURCE First Commonwealth, Inc.
 back to top
CONTACT:
Alan Simpson of Westerback Communications,
Inc. for First Commonwealth, Inc., 312-832-1676, or
wbc@interacess.com
|
