PacifiCare Reports 29% Revenue Boost

PacifiCare Health Systems Inc., the health management company, said Tuesday that its revenue for its second quarter ending March 31 increased 29% from the same time a year ago.

Company revenues were $714 million compared to $555 million for the same period a year earlier, according to PacifiCare. Quarterly earnings were $20.8 million, or 75 cents a share, as compared to $15.2 million, or 54 cents a share, in the prior year.

Total membership in the HMO increased 18% to 1.2 million.

“Overall I’d say it was a strong quarter. The revenues and earnings were both higher than expected. A lot of excitement about PacifiCare is the expansion into the Pacific Northwest and Texas and Florida,” said Thomas Hodapp, an analyst with Robertson Stephens & Co. in San Francisco, which recommends purchase of the stock. “What they are finding in California is that it continues to be a very competitive pricing environment.”

For the first six months, net income was $41.2 million, or $1.48 per share, on revenue of $1.36 billion. This compared to profit of $25.9 million, or 93 cents per share, on revenue of $1.03 billion, a year earlier.

PacifiCare stock prices were initially boosted by the news, but then closed at $53.50 a share on the Nasdaq market, down 75 cents a share.

During the quarter, PacifiCare finalized the purchase of Preferred Health Resources in Seattle, giving the company a greater presence in the Pacific Northwest.

PacifiCare Earnings

In the second quarter ended March 31, PacifiCare Health Systems Inc. reported that revenue increased 29% to $714.4 million compared to $555.1 million for the same period a year earlier. Figures in thousands of dollars, except per-share data:

2nd qtr 2nd qtr 6 months 6 months 1993 1994 1993 1994 Revenue $555,125 $714,424 $1,039,882 1,360,172 Net income $15,176 $20,844 $25,877 $41,241 Per share 0.54 0.75 0.93 1.48

Source: PacifiCare Health Systems Inc.