FHP International Posts Higher Income for Fiscal Year

FHP International Corp. posted higher net income and sales for the fiscal year ended June 30.

The health care services company, which announced early last month that it has signed an agreement to be acquired by rival PacifiCare Health Systems Inc., recorded net income of $44.2 million, or 43 cents a share, which included reserve charges of $45 million. In the previous year, FHP had net income of $37.3 million, or 29 cents a share, which included a restructuring charge of $75.1 million. Revenue rose 8% to $4.2 billion from $3.9 billion.

Total membership grew nearly 7% to 1.9 million from 1.78 million during the year.

For the fourth quarter, net income totaled $21.4 million, or 35 cents a share, contrasted with a year-earlier net loss of $33.2 million, or 97 cents a share. Revenue rose 10% to $1.1 billion from $1 billion.

During the quarter, the company completed the sale of its hospital and surrounding campus in Salt Lake City to Paracelsus Healthcare Corp. for $70 million. Proceeds from the sale have been used to pay down debt.

The company said its proposed acquisition by Cypress-based PacifiCare had no effect on its results for the most recent fiscal year.