TriCare, IRVINE
Nature of Business: Occupational health care services
Total employees: 450
In Orange County: 120
Stock listing in The Times: On NASDAQ as “Tricare”
Ticker Symbol: “TRCR”
Friday’s Close: $5.50
One-week change: Down $0.75
Analyst Review: “TriCare is well-positioned in the workers comp market. Its management is resourceful, and will probably have to draw on that talent as changes evolve in California. TriCare is a highly ethical, well-regarded company in very good financial condition. Book value is over $4 per share, it has negligible long-term debt and more than $10 million in cash and cash equivalents. We have the stock rated as a speculative buy. I personally don’t think there’s very much risk at this time, but there’s always a degree of uncertainty with unknown legislative events; but, there is nothing I think will be materially damaging. If TriCare’s prediction that it will post a 20% earnings gain in 1993 is realized, the stock is extrordinarily cheap at its current levels.”
--Steve Handley, analyst Smith Barney, New York
Sales and Profits (Dollar amounts in millions)
3 Qtrs 3 Qtrs. ’89 ’90 ’91 ’91 ’92 Sales $17.9 $20.9 $36.6 $25.9 $35.0 Profit $1.3 $1.6 $2.4 $1.6 $2.7
Corporate Outlook: “Our goal is to be the leader in occupational health care services. We have been focusing exclusively on California, but as we look to the future, we look for opportunities to expand our business outside of California. We believe TriCare is part of the answer in helping employers to lower their workers compensation costs.”
--Stephen F. Bullock, president/CEO
RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE
Fiscal year ending May 31 May 31 May 31 3 Qtrs. 3 Qtrs. ’89 ’90 ’91 ’91 ’92 52-Week High* N/A $6.17 $10.50 $7.50 $17.50 52-Week Low* N/A $4.33 $3.67 $3.67 $7.67 Book Value Per Share $1.68 $3.50 $3.59 $2.41 $4.16 Price Per Share* N/A $5.83 $8.75 $7.17 $13.50 Net Earnings Per Share $0.44 $0.50 $0.62 $0.28 $0.36 Price-to-Earnings Ratio N/A 12:1 14:1 20:1 30:1 Avg. Return on Investor Equity 27% 14% 17% 11% 9%
* TriCare sold 1.6 million shares in its initial public offering Jan. 26, 1990; net proceeds: $4.2 million.
For more information call or write, TriCare Inc.: 17101 Armstrong Ave., Suite 200, Irvine, Calif. 92714-5717. (714) 250-4092
Source: TriCare Inc.
