MDF post strong Q4 (0.05) and 2007 result (0.11) Revenue up 22%
I'm bullish again on this stock (though have always been long even when I'm bearish on this one)
not sure what the stock price do today. usually after earning they dropped but I won't be surprised if it goes up today after a strong result (even if the general market is down)
Milder flu in florida might help their net income to be higher.
Stan
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Metropolitan Health Networks Reports 2007 Results of Operations
Tuesday March 4, 7:00 am ET
Net Income Improves to $5.9 Million on 22% Year over Year Revenue Growth
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Metropolitan Health Networks, Inc. (AMEX:MDF - News), a leading provider of healthcare services in Florida, today announced the financial results for their fourth quarter and year ended December 31, 2007.
Total revenue for 2007 increased 22% to $277.6 million as compared to $228.2 million for 2006. Net income for the year amounted to $5.9 million or $0.12 per basic share and $0.11 per diluted share as compared to $473,000 or $0.01 per basic and diluted share in 2006. 2007 results included a segment profit before allocated overhead and income taxes for the Company’s core PSN business segment of $29.2 million and a segment loss before allocated overhead and income taxes for the Company’s Medicare Advantage HMO of $10.5 million. Corporate overhead totaled $9.3 million.
Revenue for the fourth quarter of 2007 increased 25% to $69.9 million as compared to $55.7 million for the same period of 2006. Net income for the quarter was $2.6 million or $0.05 per basic and diluted share as compared to a net loss of $2.7 million, or $0.05 per basic and diluted share for the same period in 2006. Fourth quarter 2007 results included a segment profit before allocated overhead and income taxes for the Company’s core PSN business of $7.9 million and a segment loss before allocated overhead and income taxes of $1.8 million for the HMO. Corporate overhead was $2.1 million in the quarter.
Year over year, the company reported a 67% increase in cash and equivalents to $38.7 million at December 31, 2007. Working capital increased by $9.7 million, or 49%, in 2007 to a total of $29.2 million at year-end. Shareholders’ equity improved from $30.9 million at December 31, 2006 to $38.3 million at December 31, 2007, and the company has no long-term debt.
Metropolitan served a total of 31,600 Medicare Advantage customers in December 2007 with 6,200 enrolled in the company’s HMO and 25,400 being served by the PSN segment. These numbers compare to total December 2006 customers of 29,400, with 3,800 and 25,600 customers for the HMO and PSN segments, respectively.
Michael Earley, Chairman and Chief Executive Officer of Metropolitan Health Networks, commented, “2007 was a year of marked improvement in the financial results for Metropolitan. Our core PSN business, accounting for 80.2% of our 2007 revenues, continues to perform as well as it ever has in terms of profitability and cash flow. These results were impacted to a lesser extent in 2007 by improvement in the management of medical expenses and operational growth at METCARE Health Plans, Inc., our own Medicare Advantage HMO, and its AdvantageCaresm product. Our consolidated medical expense ratio was 86.7% in 2007, 85.2% in the PSN and 92.9% in the HMO. This represents an improvement in the PSN medical expense ratio of 3.1% and in the HMO of approximately 9.6% versus 2006. We believe that the changes undertaken during 2007 will continue to improve results as we move through 2008.”
Earley continued, “The December customer numbers noted above do not include the new members recruited during the open enrollment period that began on November 15, 2007. We served a total of 32,800 customers in January 2008, with 6,900 in our HMO and 25,900 in the PSN. Based on our current sales activity we anticipate that the April 1, 2008 enrollment in our HMO will reach approximately 7,500 customers. This projected enrollment takes into account an estimate of future disenrollments and cancellations that are caused by a variety of reasons. The current Medicare Advantage open enrollment extends through March 31, 2008.”
Looking to the future, Earley stated, “We continue to work very hard to maintain and to improve the performance of our core PSN business. We see opportunities to grow that business and are pursuing them. With regard to the HMO, we are continuing to pursue our strategy of taking this business and its products to Florida’s underserved non-urban markets, but we are aggressively challenging and changing our medical management strategies. In addition to medical expenses, we are working to reduce our overall cost structure and make our marketing approach more efficient. We look forward to reporting our progress throughout 2008
