Safeguard, ANAHEIM
Nature of business: Provider of managed health care dental plans
Total employees: 375
In Orange County: 190
Stock listing in The Times: On Nasdaq “SafHlt”
Ticker symbol: “SFGD”
Friday’s stock close: $15.00
One-week change: Up $0.75
Analyst review: “Safeguard is the the largest publically traded dental HMO with 665,000 members and 3,000 dental providers in 13 states. It also owns and operates 26 dental offices in California. In addition to its prepaid dental program, Safeguard owns a traditional indemnity insurance company which offers indemnity programs for customers desiring the freedom to choose their dentist. We are very confident in Safeguard’s potential for growth in revenues and earnings in fiscal 1994 and have estimated earnings per share of $1.08 on revenues of $69 million. Safeguard remains a very strong value play with over $18 million of cash on the books and no long term debt.”
--Matthew Spotswood, analyst, Dakin Securities, San Francisco
Revenue
‘89: 62.0
‘90: 60.0
‘91: 61.0
‘92: 61.0
‘93: 63.0
Profits
In millions of dollars
‘89: 3.1
‘90: 1.4
‘91: 2.6
‘92: 3.9
‘93: 4.0
Corporate outlook: “We are continueing to see the results of our significant investment in increased sales and marketing staff during 1993. These efforts have produced the largest number of new members in the last five years, and contributed to the largest quarterly revenue increase in three years.”
--Steven J. Baileys, president/COO
RETURN ON STOCKHOLDER INVESTMENT: 5-YEAR SUMMARY
Fiscal year ended Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 ’89 ’90 ’91 ’92 ’93 52-week high $9.50 $8.75 $8.88 $14.75 $13.75 52-week low $4.75 $4.00 $4.12 $8.25 $7.75 Book value per share $3.06 $3.47 $3.85 $4.85 $5.63 Price per share $8.88 $4.75 $8.25 $9.25 $13.75 Net earnings (loss) per share $0.65 $0.31 $0.56 $0.83 $0.83 Price-to-earnings ratio 14:1 15:1 15:1 11:1 17:1 Avg. return on investor equity 21% 9% 14% 17% 18%
For information call or write, Safeguard Health Enterprises Inc.: 505 N. Euclid St. Anaheim, CA 92803. (714) 778-4517
Source: Safeguard Health Enterprises ; Bloomberg Business News
