Catalyst Health Solutions, Inc. (NASDAQ:CHSI), a pharmacy
benefit management company, today announced its financial results
for the quarter ended March 31, 2009. The Company reported revenue
of $703.3 million and net income of $13.8 million, or $0.32 per
diluted share compared to quarterly revenue of $588.6 million and
net income of $11.6 million, or $0.27 per diluted share in the
prior year.
�We are pleased with the Company�s financial performance; first
quarter earnings and revenues reached our financial targets,�
stated David T. Blair, Chief Executive Officer of Catalyst. �Driven
by new business wins and expanding operating margins, the Company
continues to produce significant earnings growth.�
The Company confirms that it is tracking towards its previously
stated guidance of $3.0 billion in revenue and earnings between
$1.35 and $1.45 per share.
In addition, the Company has sold new business representing
approximately 100,000 lives with mid-year effective dates. �Looking
forward we are encouraged by steady sales momentum across all of
our market segments and our industry-leading client retention
continues to validate our strategy of providing superb customer
service,� added Blair.
First Quarter
Results
Revenue for the first quarter increased by $114.7 million, or
19.5%, to $703.3 million from $588.6 million in the prior year�s
comparable quarter. Total claims processed in the first quarter
increased to 13.8 million from 12.8 million for the same period in
2008. The increase in prescription volume was primarily due to the
addition of new clients.
Gross profit for the first quarter increased $9.9 million, to
$41.1 million or 5.8% of revenue compared to $31.2 million, or 5.3%
of revenue, in the first quarter of the prior year.
First quarter operating income increased 30.1% to $21.8 million
from $16.8 million in the first quarter of 2008. The increase in
operating income was primarily due to the increase in gross profit,
offset by a $4.9 million increase in selling, general and
administrative expenses. The increase in selling, general and
administrative expenses was primarily associated with initiatives
to support the Company�s continued growth, such as additional
employee, facilities and vendor costs to implement and serve new
clients, as well as consolidating the results from the Company�s
recent acquisitions.
Net income for the first quarter of 2009 was $13.8 million, or
$0.32 per diluted share, compared to the prior year�s net income of
$11.6 million, or $0.27 per diluted share.
About Catalyst Health Solutions, Inc. (www.chsi.com):
Catalyst Health Solutions, Inc. is built on strong, innovative
principles in the management of prescription drug benefits and
provides an unbiased, client-centered philosophy resulting in
industry-leading client retention rates. The Company's subsidiaries
include Catalyst Rx, a full-service pharmacy benefit manager
serving more than five million lives in the United States and
Puerto Rico; HospiScript Services, LLC, one of the largest
providers of pharmacy benefit management services to the hospice
industry; and Immediate Pharmaceutical Services, Inc., a
fully-integrated prescription mail service facility in Avon Lake,
Ohio. The Company's clients include self-insured employers
including state and local governments, managed care organizations,
unions, hospices, third-party administrators and individuals.
This press release may contain �forward-looking statements� as
defined in the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks and uncertainties that
might materially affect our results, particularly those risks
referred to in our Annual Report on Form 10-K for the year ended
December 31, 2008 under �Item 1A. Risk Factors.� Readers are urged
to carefully review and consider the various disclosures made in
our Annual Report on Form 10-K and our other filings with the
Securities and Exchange Commission that attempt to advise
interested parties of the risks and uncertainties that may affect
our business. Catalyst Health Solutions, Inc. does not undertake
any obligation to update forward-looking statements, whether as a
result of new information, future events, or other
developments.
�
CATALYST HEALTH SOLUTIONS, INC. and Subsidiaries �
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except per share data) (Unaudited) � � �
For the
three months ended March 31, 2009 �
2008
Revenue (excludes member co-payments of $202,425 and $190,612 for
the three months ended March 31, 2009 and 2008, respectively) $
703,272 $ 588,644 Direct expenses 662,142 557,451 Selling, general
and administrative expenses 19,319 14,429 Total operating expenses
681,461 571,880 Operating income 21,811 16,764 Interest and other
income (expense), net 193 1,862 Income before income taxes 22,004
18,626 Income tax expense 8,186 7,022 Net income $ 13,818 $ 11,604
� Net income per share, basic $ 0.32 $ 0.27 Net income per share,
diluted $ 0.32 $ 0.27 Weighted average shares of common stock
outstanding, basic 42,935 42,219 Weighted average shares of common
stock outstanding, diluted 43,631 43,384 � �
CATALYST HEALTH
SOLUTIONS, INC. and Subsidiaries �
CONSOLIDATED
SELECTED INFORMATION (In thousands, except percentages)
(Unaudited) � � �
For the three months ended March
31, 2009 �
2008 Retail prescriptions 13,265
12,438 Total mail-order prescriptions 507 402 Total prescriptions
13,772 12,840 Total adjusted prescriptions(1) 14,786 13,644
Adjusted mail-order penetration
%(2)
10% 9% Generic utilization % 67% 62%
Gross profit
$41,130
$31,193
Operating income 21,811 16,764 Depreciation & amortization
2,745 2,057 �
(1) Adjusted prescription volume equals
the number of mail-order prescriptions multiplied by 3, plus retail
prescriptions. Mail-order prescriptions are multiplied by 3 to
adjust for the fact that they include approximately 3 times the
number of product days supplied compared with retail
prescriptions.
(2) The percentage of adjusted
mail-order prescriptions to total adjusted prescriptions.
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