Restructuring Charges Weigh on PacifiCare’s Net Income

PacifiCare Health Systems Inc. posted lower earnings for the fiscal year that included charges related to restructuring and its decision to scrap plans to launch its Secure Horizons program for Medicare recipients in Florida.

The managed health-care services company reported that net income for the fiscal year ended Sept. 30 totaled $72 million, or $2.27 a share, down from $108.1 million, or $3.62 a share, for the previous year. Net income for the most recent fiscal period included $62 million in after-tax charges.

Revenue advanced 24% to $4.6 billion from $3.7 billion, and total membership grew 16% to more than 2 million from 1.76 million the previous year. In August, the firm said it would acquire Santa Ana-based FHP International Corp.

Fourth-quarter net income dropped to $3.5 million, or 11 cents a share, from $30.4 million, or 98 cents a share, for the like period last year. Revenue increased 20% to $1.2 billion from $1 billion.