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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended JUNE 30, 1995, or
[ ] Transition report pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
------------------------------
COMMISSION FILE NUMBER 1-13340
------------------------------
MID ATLANTIC MEDICAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of
incorporation or organization)
52-1481661
(IRS Employer Identification Number)
4 TAFT COURT, ROCKVILLE, MARYLAND
(Address of principal executive offices)
20850
(Zip code)
(301) 294-5140
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
The number of shares outstanding of each of the issuer's classes of
common stock was 46,239,812 shares of common stock, par value $.01,
outstanding as of June 30, 1995.
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<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MID ATLANTIC MEDICAL SERVICES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS (Note 1)
(in thousands except share amounts)
<TABLE>
<CAPTION>
(Unaudited) (Note)
June 30, 1995 December 31, 1994
------------ ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 8,866 $ 17,054
Short-term investments 170,356 136,901
Accounts receivable, net of allowance of $3,617 and $3,591 57,883 37,031
Prepaid expenses, advances and other 8,082 5,743
Deferred income taxes 10,925 15,540
----------- -----------
Total current assets 256,112 212,269
Property and equipment, net of accumulated
depreciation of $12,368 and $10,622 35,389 33,668
Statutory deposits 10,051 9,877
Other assets 12,138 12,708
---------- -----------
Total assets $ 313,690 $ 268,522
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 574 $ 726
Short-term borrowings 962 1,048
Accounts payable 14,086 17,565
Income taxes payable 2,589
Medical claims payable 100,878 85,014
Deferred premium revenue 8,786 13,344
----------- -----------
Total current liabilities 125,286 120,286
Notes payable 5,150 5,331
Deferred income taxes 1,086 1,579
----------- -----------
Total liabilities 131,522 127,196
----------- -----------
Stockholders' equity (Notes 2 and 3)
Common stock, $.01 par, 100,000,000 shares authorized; 46,285,752 issued
and 46,239,812 outstanding at June 30, 1995; 45,663,527 issued and
45,617,587 outstanding at December 31, 1994 463 456
Additional paid-in capital 36,513 29,431
Treasury stock (33) (33)
Unrealized gains and (losses) on investments, net of tax of $478 and $(1,490) 732 (2,278)
Retained earnings 144,493 113,750
----------- -----------
Total stockholders' equity 182,168 141,326
----------- -----------
Total liabilities and stockholders' equity $ 313,690 $ 268,522
=========== ===========
</TABLE>
Note: The balance sheet at December 31, 1994 has been extracted from the
audited financial statements at that date.
See accompanying notes to these financial statements.<PAGE>
<PAGE> 3
MID ATLANTIC MEDICAL SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands except share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
June 30, June 30,
1995 1994
------------ ------------
<S> <C> <C>
Revenue
Premium $ 224,747 $ 178,542
Fee and other 3,857 2,208
Home health services 4,124
Investment 2,788 1,053
----------- -----------
Total revenue 235,516 181,803
----------- -----------
Expense
Medical 185,991 147,156
Home health patient services 2,559
Administrative (including interest expense of $225 and $165) 24,926 15,480
----------- -----------
Total expense 213,476 162,636
----------- -----------
Income before income taxes 22,040 19,167
Provision for income taxes (8,215) (7,283)
----------- -----------
Net income $ 13,825 $ 11,884
=========== ===========
Income per common and common equivalent share:
Net income $ .29 $ .25
=========== ===========
Weighted average common and common equivalent shares outstanding 47,638,652 47,306,044
=========== ===========
</TABLE>
See accompanying notes to these financial statements.<PAGE>
<PAGE> 4
MID ATLANTIC MEDICAL SERVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands except share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, June 30,
1995 1994
------------ ------------
<S> <C> <C>
Revenue
Premium $ 435,201 $ 354,850
Fee and other 7,700 4,419
Home health services 9,466
Investment 4,137 2,304
----------- -----------
Total revenue 456,504 361,573
----------- -----------
Expense
Medical 352,487 288,631
Home health patient services 6,776
Administrative (including interest expense of $542 and $359) 47,937 32,070
----------- -----------
Total expense 407,200 320,701
----------- -----------
Income before income taxes 49,304 40,872
Provision for income taxes (18,561) (15,531)
----------- -----------
Net income $ 30,743 $ 25,341
=========== ===========
Income per common and common equivalent share:
Net income $ .65 $ .54
=========== ===========
Weighted average common and common equivalent shares outstanding 47,619,657 47,180,672
=========== ===========
</TABLE>
See accompanying notes to these financial statements.<PAGE>
<PAGE> 5
MID ATLANTIC MEDICAL SERVICES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ending
June 30, 1995
------------
<S> <C> <C>
Cash flows provided by operating activities:
Net income $ 30,743
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization $ 2,799
Provision for bad debts 26
Provision for deferred income taxes 2,153
Loss on sale and disposal of assets 71
Increase in accounts receivable (20,878)
Increase in prepaid expenses, advances, and other (2,339)
Decrease in accounts payable (3,479)
Increase in medical claims payable 15,864
Decrease in deferred premium revenue (4,558)
Decrease in income taxes payable (2,589)
-----------
Total adjustments (12,930)
-----------
Net cash provided by operating activities 17,813
Cash flows used in investing activities:
Purchases of short-term investments (193,346)
Sales of short-term investments 164,870
Purchases of property and equipment (3,987)
Purchases of statutory deposits (303)
Sales of statutory deposits 129
Purchases of other assets (576)
Proceeds from sale of assets 542
-----------
Net cash used in investing activities (32,671)
Cash flows provided by financing activities:
Principal payments on notes payable (419)
Exercise of stock options 2,850
Stock option tax benefit 4,239
-----------
Net cash provided by financing activities 6,670
-----------
Net decrease in cash and cash equivalents (8,188)
Cash and cash equivalents at beginning of period 17,054
-----------
Cash and cash equivalents at end of period $ 8,866
===========
</TABLE>
See accompanying notes to these financial statements.<PAGE>
<PAGE> 6
MID ATLANTIC MEDICAL SERVICES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ending
June 30, 1994
------------
<S> <C> <C>
Cash flows provided by operating activities:
Net income $ 25,341
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization $ 2,213
Provision for bad debts 250
Provision for deferred income taxes 408
Loss on sale and disposal of assets 938
Increase in accounts receivable (6,727)
Increase in prepaid expenses, advances, and other (6,754)
Increase in accounts payable 2,439
Increase in medical claims payable 518
Increase in deferred premium revenue 1,500
Decrease in income taxes payable (3,054)
-----------
Total adjustments (8,269)
-----------
Net cash provided by operating activities 17,072
Cash flows used in investing activities:
Purchases of short-term investments (85,551)
Sales of short-term investments 74,006
Purchases of property and equipment (3,420)
Purchases of statutory deposits (5,219)
Sales of statutory deposits 2,392
Purchases of other assets (2,001)
Proceeds from sale of assets 565
-----------
Net cash used in investing activities (19,228)
Cash flows provided by financing activities:
Principal payments on notes payable (326)
Exercise of stock options 4,171
Stock option tax benefit 7,428
-----------
Net cash provided by financing activities 11,273
-----------
Net increase in cash and cash equivalents 9,117
Cash and cash equivalents at beginning of period 973
-----------
Cash and cash equivalents at end of period $ 10,090
===========
</TABLE>
See accompanying notes to these financial statements.<PAGE>
<PAGE> 7
MID ATLANTIC MEDICAL SERVICES, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
INTRODUCTION
Mid Atlantic Medical Services, Inc. (MAMSI) is a holding company whose
subsidiaries are active in managed health care and other health
insurance related activities. MAMSI delivers health care services
principally through health maintenance organizations (HMOs). The HMOs,
MD-Individual Practice Association, Inc. (M.D. IPA), Optimum Choice,
Inc. (OCI) and Optimum Choice of the Carolinas, Inc. (OCIC), arrange for
health care services to be provided to a voluntarily enrolled population
for a predetermined, prepaid fee, regardless of the extent or nature of
services provided to the enrollees. The HMOs offer a full complement of
health benefits, including physician, hospital and prescription drug
services.
Other MAMSI subsidiaries include Alliance PPO, Inc., a preferred
provider organization marketing non-risk products to self-insured
employers, indemnity carriers and other health care purchasing groups,
and Mid Atlantic Psychiatric Services, Inc., which provides specialized
non-risk mental health services. MAMSI Life and Health Insurance
Company develops and markets indemnity health and group life products to
support MAMSI's managed care products and also to provide ancillary
products to MAMSI's customers. HomeCall, Inc., FirstCall, Inc., and
HomeCall Infusion Services, Inc. provide in-home medical care including
skilled nursing, infusion and therapy to both MAMSI's HMO members and
other payors.
NOTE 1 - FINANCIAL STATEMENTS
The consolidated balance sheet of MAMSI and its subsidiaries (the
Company) as of June 30, 1995, the consolidated statements of operations
for the three and six months ended June 30, 1995 and 1994, and the
consolidated statements of cash flows for the six months ended June 30,
1995 and 1994 have been prepared by MAMSI without audit. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
Certain information and disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. These financial statements
should be read in conjunction with the financial statements and notes
thereto included in the Company's December 31, 1994 audited consolidated
financial statements. The results of operations for the three and six
month periods ended June 30 are not necessarily indicative of the
operating results for the full year.
Certain balances in the 1994 financial statements have been reclassified
to conform to the 1995 presentation.
NOTE 2 - STOCK OPTION PLANS
In 1995, the stockholders of MAMSI ratified the 1995 Non-Qualified Stock
Option Plan whereby options for the purchase of up to 3,000,000 shares
may be granted to officers and employees of the Company. Options under
this plan are exercisable at 100% of the fair market value per share on
the date the options are granted.<PAGE>
<PAGE> 8
NOTE 3 - COMMON STOCK
On April 17, 1995, the stockholders of MAMSI approved an increase in the
number of authorized shares of common stock from 60,000,000 to
100,000,000.<PAGE>
<PAGE> 9
MID ATLANTIC MEDICAL SERVICES, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THE THREE MONTHS ENDED JUNE 30, 1995 COMPARED WITH THE THREE MONTHS
ENDED JUNE 30, 1994
Consolidated net income of the Company was $13,825,000 and $11,884,000
for the second quarter of 1995 and 1994, respectively, an increase of 16
percent. Earnings per share on net income increased 16 percent from
$.25 in the second quarter of 1994 to $.29 in the second quarter of
1995. The increase in earnings is primarily attributable to an increase
in membership, offset by an increase in administrative expenses due to
increased sales, expansion into new geographic territories, and the
Company's increased hiring of sales personnel.
Revenue for the three months ended June 30, 1995 increased approximately
$53.7 million or 30 percent over the three months ended June 30, 1994.
Premium revenue increased approximately $46.2 million or 26 percent over
the same period in 1994. A 26 percent increase in average HMO
enrollment (approximately 120,600 additional average HMO members per
month) resulted in an increase of approximately $46.7 million in premium
revenue and a relatively insignificant decrease in average premiums per
HMO enrollee reduced premium revenue by approximately $.5 million.
Premiums per enrollee have essentially remained flat due to the
competitiveness of the marketplace and management's plan to increase
market share. Fee and other revenue increased $1.6 million or 75
percent primarily due to membership increases in preferred provider
organization (PPO) and administrative services only (ASO) products.
Total PPO and ASO membership grew from 660,000 at June 30, 1994 to
821,100 at June 30, 1995, an increase of 24 percent. Service revenue
from the Company's new home health care subsidiaries contributed $4.1
million in revenue in the second quarter of 1995.
The Company currently has the largest HMO and managed care enrollment in
its service area, and also the largest network of contract providers of
medical care. Because of the full range of managed care products,
service reputation, strong provider delivery system, trained sales
force, and competitive premiums, management believes that the Company
will continue to increase its membership during the remainder of 1995.
In 1993, MAMSI invited the National Committee for Quality Assurance
(NCQA) to evaluate the Company's methodologies in an effort to receive
NCQA accreditation. NCQA accreditation is a voluntary process. The
Company did not meet certain of NCQA's criteria and, therefore, did not
receive NCQA accreditation. MAMSI believes that it has adopted
methodologies and programs designed to respond to NCQA's assessment
which should result in MAMSI's meeting NCQA criteria. The Company
believes that the failure to receive NCQA accreditation will not have an
adverse effect on its business or financial condition.<PAGE>
<PAGE> 10
Medical expenses as a percentage of premium revenue (medical loss ratio)
was relatively unchanged at 82.8 percent for the second three months of
1995 as compared to 82.4 percent for the comparable period of 1994 and,
on a per member per month basis, medical expenses similarly remained
flat. Although medical costs on a per member per month basis remained
stable in the current period compared to the prior year period,
management does not believe that this necessarily represents a
sustainable trend. The medical cost factor of total medical costs may
increase in future periods due to inflationary pressures and/or the
Company may experience increased utilization by its membership.
Over the past two years, the Company has achieved either year over year
reductions in the quarterly medical loss ratio or, as in the current
quarter, this ratio has remained stable when compared to the similar
period in 1994. These results reflect the efficacy of managed care cost
controls and state of the art utilization management programs developed
and expanded by the Company. In order to continue to reimburse
providers at a fair level in a manner consistent with the current
medical environment, the Company has implemented the Medicare Resource
Based Relative Value Scale methodology of provider reimbursement
effective July 1, 1995. This new methodology, which applies generally
to specialist health claims, will result in the lowering of some
reimbursement levels, mainly those having to do with office and
hospital-based procedures, while increasing payments for many evaluation
and management tasks. Management believes that this change will allow
the Company to continue to be competitive within its marketplace.
Administrative expenses as a percentage of revenue (administrative
expense ratio) increased from 8.5 percent in the second quarter of 1994
to 10.6 percent in the second quarter of 1995. Administrative expenses
increased 61 percent, from $15.5 million to $24.9 million in the second
quarter of 1994 and 1995, respectively. The increase in the
administrative expense ratio is primarily attributable to expenses of
the Company's home health care subsidiaries, which were not present in
1994, the Company's territorial expansion into additional service areas
within currently served states and also expansion into the new states of
North Carolina and Pennsylvania, and also the continued implementation
of its plan to significantly increase its employee sales force. The
Company plans to continue to reduce the percentage of new sales made by
insurance brokers by continuing to increase its internal sales force.
Investment income increased $1.7 million or 165 percent, primarily due
to significantly greater invested balances and an increase in realized
gains on sales of marketable equity securities.
The net margin rate decreased from 6.5 percent in the second quarter of
1994 to 5.9 percent in the current quarter. This decrease is primarily
due to increased administrative expenses.<PAGE>
<PAGE> 11
THE SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO THE SIX MONTHS ENDED JUNE
30, 1994
The Company's consolidated net income for the six months ended June 30,
1995 increased 21 percent to $30,743,000 from $25,341,000 for the six
months ended June 30, 1994. Earnings per share on net income rose from
$.54 in the first six months of 1994 to $.65 for the same period in
1995, an increase of 20 percent. The increase in earnings is primarily
attributable to an increase in membership, offset by an increase in the
administrative expense ratio.
Revenue for the six months ended June 30, 1995 increased approximately
$94.9 million or 26 percent over the six months ended June 30, 1994.
Premium revenue increased approximately $80.4 million over the same
period in 1994. A 23 percent increase in average HMO enrollment
resulted in an increase of approximately $82.2 million in premium
revenue and a relatively insignificant decrease in average premiums per
HMO enrollee reduced premium revenue by approximately $1.8 million. Fee
and other revenue increased $3.3 million or 74 percent primarily due to
increases in fee revenue from PPO and ASO only products. Service
revenue from the Company's new home health care subsidiaries contributed
$9.5 million in revenue in the first six months of 1995.
The medical loss ratio decreased from 81.3 percent in the first six
months of 1994 to 81.0 percent for the same period in 1995. Medical
expenses on a per member per month basis decreased 1 percent for the
comparable period.
The administrative expense ratio for the first six months of 1995
increased to 10.5 percent as compared to 8.9 percent for the comparable
period in 1994. The reasons for this increase are consistent with the
items discussed in the quarterly analysis.
The net margin rate declined slightly to 6.7 percent for the first six
months of 1995 as compared to 7.0 percent for the comparable period in
1994, principally due to increased administrative expenses.
LIQUIDITY AND CAPITAL RESOURCES
The Company's business is not capital intensive and the majority of the
Company's expenses are payments to health care providers, which
generally vary in direct proportion to the premium revenues received by
the Company. Although medical utilization rates vary by season, the
payments for such expenses lag behind cash inflow from premiums because
of the lag in provider billing procedures. In the past, the Company's
cash requirements have been met principally from operating cash flow and
it is anticipated that this source will continue to be sufficient in the
future.
Cash and short-term investments increased from $154.0 million at
December 31, 1994 to $179.2 million at June 30, 1995, primarily due to
operating profits and proceeds from the exercise of employee stock
options. Accounts receivable increased from $37.0 million at December
31, 1994 to $57.9 million at June 30, 1995, primarily due to the
significant increase in membership during the first six months of 1995
combined with a lower than normal balance in receivables at December 31,
1994 due to a higher volume of payments made by employer groups during
the last half of December, 1994.<PAGE>
<PAGE> 12
Prepaid expenses increased from $5.7 million at December 31, 1994 to
$8.1 million at June 30, 1995, primarily due to estimated income tax
deposits in excess of estimated current income tax liabilities. Current
deferred income taxes decreased from $15.5 million at December 31, 1994
to $10.9 million at June 30, 1995, primarily due to the change in the
accrued tax effect of recording unrealized gains and losses on the
Company's short-term investments and also due to the reduction of
certain prior year deferred tax assets in the estimated tax provision.
Accounts payable decreased from $17.6 million at December 31, 1994 to
$14.1 million at June 30, 1995, primarily due to the payment in 1995 of
compensation related items and also the previously disclosed settlement
relating to the Company's contract with the United States Office of
Personnel Management (OPM), which was accrued in 1994. Medical claims
payable increased from $85.0 million at December 31, 1994 to $100.9
million at June 30, 1994, primarily due to the significant increase in
membership and related claim volume during the first six months of 1995.
At June 30, 1995, the Company had long-term debt of approximately $5.2
million principally related to its owned buildings. The Company
currently anticipates prepayment of this mortgage debt, without
prepayment penalty, during the third quarter of 1995. The Company has
access to total revolving credit facilities of $9.5 million, which is
used to provide short-term capital resources for routine cash flow
fluctuations. At June 30, 1995, approximately $962,000 was drawn
against the lines-of-credit.
Following is a schedule of the short-term capital resources available to
the Company (in thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
------------ ------------
<S> <C> <C>
Cash and cash equivalents $ 8,866 $ 17,054
Short-term investments 170,356 136,901
Working capital advances to Maryland hospitals 4,053 3,982
----------- -----------
Total available liquid assets 183,275 157,937
Credit line availability 8,538 8,452
----------- -----------
Total short-term capital resources $ 191,813 $ 166,389
=========== ===========
</TABLE>
The Company believes that the cash flow generated from operations along
with its current liquidity and borrowing capabilities are adequate for
both current and planned expanded operations. Capital expenditures will
be made during 1995 to enhance the Company's computer systems and to
establish additional sales offices. The Company may also commit capital
for the purchase of an additional office building for operational
expansion in the future.<PAGE>
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
No material legal proceedings were commenced during the quarter ended
June 30, 1995 and no material developments occurred in any of the
previously disclosed proceedings during such quarter except as discussed
below.
On July 18, 1995, a class action complaint was filed in the United
States District Court for the District of Maryland against MAMSI and
nine present and former executive officers and directors. The complaint
alleges that MAMSI failed to disclose promptly the denial of
accreditation by the National Committee for Quality Assurance of MAMSI's
health maintenance organizations and that the named officers and
directors sold shares of MAMSI common stock during the period March 1,
1995 through June 15, 1995 while in possession of material non-public
information concerning such denial. The complaint seeks money damages
in an unspecified amount from MAMSI and the officers and directors.
MAMSI and the named officers and directors intend to defend vigorously
their conduct and, based upon MAMSI's preliminary review, MAMSI believes
that there is no basis for the allegations against the named officers
and directors and that there will be no material liability to MAMSI. In
addition, the staff of the Securities and Exchange Commission has asked
MAMSI to provide voluntarily certain information concerning the same
events and transactions. MAMSI intends to cooperate fully with the
Commission inquiry.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
An annual meeting of the stockholders of MAMSI was held on April 17,
1995. The following matters were submitted to a vote of the
stockholders during the annual meeting:
(1) The following individuals were elected to the Board of Directors for
a three year term with the indicated votes:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
<S> <C> <C> <C>
Peter L. Flaherty, Jr., M.D. 35,814,107 804,474 None
Walter Girardin 35,826,371 792,210 None
Creighton R. Schneck 35,835,989 782,592 None
Alfred Talamantes 35,839,057 779,524 None
/TABLE
<PAGE>
<PAGE> 14
The following individual was elected to the Board if Directors for a two
year term with the indicated votes:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
<S> <C> <C> <C>
John H. Cook, III, M.D. 35,837,937 780,644 None
</TABLE>
Board members whose term of office continued after the meeting are as
follows:
John L. Child
Mark D. Groban, M.D.
Donald R. Hammett
George T. Jochum
William M. Mayer, M.D.
Stanley F. Smith, R.Ph.
James A. Wild
(2) The adoption of the 1995 Non-Qualified Stock Option Plan was
ratified by a count of 23,509,577 affirmative votes, 5,866,474 negative
votes and 209,978 abstentions.
(3) The adoption of the 1995 Bonus Plan was ratified by a count of
35,516,215 affirmative votes, 879,732 negative votes and 222,634
abstentions.
(4) An increase in the number of authorized shares of common stock of
the Company to 100,000,000 was ratified by a count of 35,591,412
affirmative votes, 848,309 negative votes and 178,860 abstentions.
There were 7,032,552 broker non-votes with respect to the adoption of
the 1995 Non-Qualified Stock Option Plan.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) See the Exhibit Index on page 16 of the Form 10-Q.
(b) There were no reports filed on Form 8-K during the quarter ended
June 30, 1995.<PAGE>
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
undersigned thereto duly authorized.
MID ATLANTIC MEDICAL SERVICES, INC.
--------------------------------------------
(Registrant)
Date: August 11, 1995 Robert E. Foss
--------------------------------------------
Robert E. Foss
Executive Vice President and
Chief Financial Officer<PAGE>
<PAGE> 16
6(a) List of Exhibits.
EXHIBIT INDEX
Location of Exhibit
Exhibit in Sequential
Number Description of Document Numbering System
27 Financial Data Schedule . . . . . . . . . . . . .<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S QUARTERLY REPORT ON FORM 10-Q FOR THE THREE MONTHS ENDED JUNE 30, 1995
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> $8,866
<SECURITIES> 170,356
<RECEIVABLES> 57,883
<ALLOWANCES> 3,617
<INVENTORY> 0
<CURRENT-ASSETS> 256,112
<PP&E> 35,389
<DEPRECIATION> 12,368
<TOTAL-ASSETS> $313,690
<CURRENT-LIABILITIES> $125,286
<BONDS> 5,150
<COMMON> 463
0
0
<OTHER-SE> 181,705
<TOTAL-LIABILITY-AND-EQUITY> $313,690
<SALES> $0
<TOTAL-REVENUES> 456,504
<CGS> 0
<TOTAL-COSTS> 407,200
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 26
<INTEREST-EXPENSE> 542
<INCOME-PRETAX> 49,304
<INCOME-TAX> 18,561
<INCOME-CONTINUING> 30,743
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $30,743
<EPS-PRIMARY> $.65
<EPS-DILUTED> $.65
</TABLE>
