CHICAGO, Ill., Feb. 13 /PRNewswire/ -- First Commonwealth, Inc.
(Nasdaq: FCWI), a leading managed dental benefits company, today reported net
income of $697,000 for the fourth quarter of 1996, an increase of 52% over the
$458,000 recorded in the fourth quarter of 1995. Fourth quarter earnings per
share were $0.19 compared with $0.14 for the same period in 1995. The
earnings per share data for 1996 reflects the issuance of 530,000 shares of
common stock in the Company's initial public offering in November 1995 and the
acquisition of Smileage Dental Services for 231,399 shares of common stock on
July 18, 1996. Total revenue for the fourth quarter was $12.5 million, up
45% from $8.6 million in 1995.
For the year ended December 31, 1996, net income was a record $2.7
million, up 36% from $2.0 million for the year 1995. Earnings per share was
$0.76 for 1996 as compared to $0.67 in 1995. Total revenue for 1996 was $44.1
million, up 32% from $33.3 million in 1995.
"We are pleased with the results we achieved in the fourth quarter," said
David W. Mulligan, the Company's President and Chief Operating Officer. "Our
efforts in marketing managed dental products to medium and smaller sized
employers are meeting with success. We also completed the Champion
acquisition during the quarter which positions us for growth in the St. Louis
market in 1997."
Christopher C. Multhauf, the Company's Chairman and Chief Executive
Officer noted, "We added four new markets to the Company's upper Midwest
service area during 1996 through two acquisitions and two new market start-
ups. On a combined basis, these four markets have a population of over 18
million people and represent significant managed dental care growth potential
for the Company."
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 480,000 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 Twelve Months Ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
Consolidated Statement of Income Data:
Subscriber revenue
Managed care $9,527 $6,779 $32,807 $25,739
Indemnity/PPO 2,819 1,715 10,629 6,893
Fee income 175 155 663 683
Total subscriber revenue 12,521 8,649 44,099 33,315
Benefit coverage expenses
Managed care 5,852 3,887 19,555 14,835
Indemnity/PPO 2,209 1,321 8,318 5,451
Fee income -- -- -- --
Total benefit coverage
expenses 8,061 5,208 27,873 20,286
Gross margin
Managed care 3,675 2,892 13,252 10,904
Indemnity/PPO 610 394 2,311 1,442
Fee income 175 155 663 683
Total gross margin 4,460 3,441 16,226 13,029
Selling, general and
administrative expense 3,437 2,732 12,273 9,883
Operating income 1,023 709 3,953 3,146
Interest income, net 160 54 642 194
Income before income taxes 1,183 763 4,595 3,340
Provision for income taxes 486 305 1,864 1,336
Net income $697 $458 $2,731 $2,004
Pro forma weighted average
common and equivalent
shares outstanding 3,717,769 3,214,089 3,604,468 2,993,319
Earnings per share $0.19 $0.14 $0.76 $0.67
Dec. 31, December 31,
1996 1995
Balance Sheet Data:
Total current assets $21,023 $16,889
Total assets 34,454 19,111
Total current liabilities 14,331 7,280
Total liabilities 14,498 7,405
Stockholders' equity 19,956 11,706
SOURCE First Commonwealth, Inc.
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CONTACT:
David W. Mulligan, President and Chief
Operating Officer, of First Commonwealth, Inc., 312-644-1800
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