<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
{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 0-15846
HealthCare COMPARE Corp.
(Exact name of registrant as specified in its charter)
Delaware 36-3307583
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
3200 Highland Avenue, Downers Grove, Illinois 60515
(Address of principal executive offices, Zip Code)
(708) 241-7900
(Registrant's phone number, including area code)
__________________________
(Former name, former address and former fiscal year,
if changed since last report)
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
------- -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
The number of shares of Common Stock, par value $.01 per share, outstanding on
August 10, 1995 was 34,306,291.
<PAGE> 2
HealthCare COMPARE Corp. and Subsidiaries
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets - Assets at June 30, 1995
and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Balance Sheets - Liabilities and Stockholders'
Equity at June 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . 4
Consolidated Statements of Operations for the three months
ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 5
Consolidated Statements of Operations for the six months
ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows for the six months
ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 7-8
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . 10-12
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 13
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Exhibit 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15-16
</TABLE>
2
<PAGE> 3
PART 1. FINANCIAL INFORMATION
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS June 30, 1995 December 31, 1994
------------- -----------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents . . . . . . . . . . . . . . $ 30,744,000 $ 29,412,000
Short-term investments . . . . . . . . . . . . . . . . 81,043,000 37,043,000
Accounts receivable, less allowances for
doubtful accounts of $3,606,000
and $3,874,000, respectively . . . . . . . . . . . 23,605,000 24,386,000
Other current assets . . . . . . . . . . . . . . . . . 3,984,000 2,953,000
------------ ------------
Total current assets . . . . . . . . . . . . . . . . . 139,376,000 93,794,000
----------- -----------
Long-Term Investments:
Marketable securities . . . . . . . . . . . . . . . . 55,971,000 62,229,000
Other . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000
----------- -----------
65,971,000 72,229,000
----------- -----------
Property and Equipment:
Buildings and improvements . . . . . . . . . . . . . . 32,676,000 31,940,000
Computer equipment and software . . . . . . . . . . . 25,479,000 25,236,000
Office furniture and equipment . . . . . . . . . . . . 16,818,000 16,235,000
------------ ------------
74,973,000 73,411,000
Less accumulated depreciation and
amortization . . . . . . . . . . . . . . . . . . . (31,372,000) (28,111,000)
------------ ------------
Net property and equipment . . . . . . . . . . . . . . 43,601,000 45,300,000
------------ ------------
Other Assets . . . . . . . . . . . . . . . . . . . . . . . 4,356,000 3,686,000
------------ ------------
$253,304,000 $215,009,000
============ ============
</TABLE>
3
<PAGE> 4
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
June 30, 1995 December 31, 1994
------------- -----------------
<S> <C> <C>
Current Liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . $ 4,630,000 $ 4,938,000
Accrued expenses . . . . . . . . . . . . . . . . . . . . 12,018,000 9,606,000
Income taxes payable . . . . . . . . . . . . . . . . . . 796,000 806,000
------------ ------------
Total current liabilities . . . . . . . . . . . . . . . 17,444,000 15,350,000
Non-Current Liabilities . . . . . . . . . . . . . . . . . . . 146,000 102,000
------------ ------------
Total liabilities . . . . . . . . . . . . . . . . . . . 17,590,000 15,452,000
------------ ------------
Commitments and Contingencies . . . . . . . . . . . . . . . . -- --
Stockholders' Equity:
Common stock . . . . . . . . . . . . . . . . . . . . . . 362,000 360,000
Additional paid-in capital . . . . . . . . . . . . . . . 95,811,000 89,798,000
Retained earnings . . . . . . . . . . . . . . . . . . . 174,763,000 143,533,000
Unrealized holding gain (loss) on marketable
securities . . . . . . . . . . . . . . . . . . . . . 147,000 (935,000)
Treasury stock, at cost . . . . . . . . . . . . . . . . (35,369,000) (33,199,000)
------------ ------------
Total stockholders' equity . . . . . . . . . . . . . . . 235,714,000 199,557,000
------------ ------------
$253,304,000 $215,009,000
============ ============
</TABLE>
4
<PAGE> 5
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended June 30,
-----------------------------------
1995 1994
------------- --------------
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . $53,058,000 $46,038,000
Operating expenses:
Cost of services . . . . . . . . . . . . . . . . . . . 15,470,000 16,281,000
Selling and marketing . . . . . . . . . . . . . . . . 6,472,000 5,422,000
General and administrative . . . . . . . . . . . . . . 2,713,000 2,503,000
Depreciation and amortization . . . . . . . . . . . . 2,717,000 2,444,000
Interest income, net . . . . . . . . . . . . . . . . . (2,011,000) (1,210,000)
----------- -----------
25,361,000 25,440,000
----------- -----------
Income before income taxes . . . . . . . . . . . . . . . . 27,697,000 20,598,000
Income taxes . . . . . . . . . . . . . . . . . . . . . . . (11,240,000) (8,336,000)
----------- -----------
Net income . . . . . . . . . . . . . . . . . . . . . . . . $16,457,000 $12,262,000
=========== ===========
Weighted average common and
common share equivalents . . . . . . . . . . . . . . . . 35,006,000 35,053,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . $ .47 $ .35
=========== ===========
</TABLE>
5
<PAGE> 6
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended June 30,
--------------------------------------
1995 1994
------------- -----------
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . $104,439,000 $89,033,000
Operating expenses:
Cost of services . . . . . . . . . . . . . . . . . . . 32,127,000 31,909,000
Selling and marketing . . . . . . . . . . . . . . . . 12,663,000 10,691,000
General and administrative . . . . . . . . . . . . . . 5,470,000 5,162,000
Depreciation and amortization . . . . . . . . . . . . 5,366,000 4,759,000
Interest income, net . . . . . . . . . . . . . . . . . (3,720,000) (2,399,000)
------------ -----------
51,906,000 50,122,000
------------ -----------
Income before income taxes . . . . . . . . . . . . . . . . 52,533,000 38,911,000
Income taxes . . . . . . . . . . . . . . . . . . . . . . . (21,303,000) (15,570,000)
------------ -----------
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 31,230,000 $23,341,000
============ ===========
Weighted average common and
common share equivalents . . . . . . . . . . . . . . . . 34,996,000 35,332,000
============ ===========
Net income per common share . . . . . . . . . . . . . . . . $ .89 $ .66
============ ===========
</TABLE>
6
<PAGE> 7
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended June 30,
--------------------------------------
1995 1994
------------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers . . . . . . . . . . . . . . . . $105,370,000 $ 90,203,000
Cash paid to suppliers and employees . . . . . . . . . . . . (48,334,000) (46,276,000)
Interest received, net . . . . . . . . . . . . . . . . . . . 3,299,000 3,427,000
Income taxes paid, net . . . . . . . . . . . . . . . . . . . (21,358,000) (13,269,000)
----------- ------------
Net cash provided by operating activities . . . . . . . . . 38,977,000 34,085,000
----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments . . . . . . . . . . . . . . . . . . (79,873,000) (45,796,000)
Sales of investments . . . . . . . . . . . . . . . . . . . . 43,412,000 41,714,000
Purchase of property and equipment . . . . . . . . . . . . . (3,667,000) (3,524,000)
----------- ------------
Net cash used in investing activities . . . . . . . . . . . (40,128,000) (7,606,000)
----------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sales of put options on common stock . . . . . -- 778,000
Purchase of treasury stock . . . . . . . . . . . . . . . . . (2,170,000) (27,264,000)
Proceeds from issuance of common stock . . . . . . . . . . . 4,653,000 2,310,000
----------- ------------
Net cash provided by (used in) financing activities . . . . 2,483,000 (24,176,000)
----------- ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . 1,332,000 2,303,000
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD . . . . . . . . . 29,412,000 23,425,000
----------- ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD . . . . . . . . . . . . $ 30,744,000 $ 25,728,000
============ ============
</TABLE>
7
<PAGE> 8
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended June 30,
------------------------------------
1995 1994
------------ -----------
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31,230,000 $23,341,000
----------- -----------
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Depreciation and amortization . . . . . . . . . . . . . . . . 5,366,000 4,759,000
Change in provision for uncollectible receivables . . . . . . (268,000) 302,000
Amortization of bond premiums . . . . . . . . . . . . . . . . 632,000 626,000
Tax benefit from stock options and unrealized
holding (gain) loss on marketable securities, net . . . . . 630,000 1,423,000
(Gain) loss on sale of investments . . . . . . . . . . . . . (99,000) 128,000
Changes in Assets and Liabilities:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . 1,049,000 1,018,000
Other current assets . . . . . . . . . . . . . . . . . . . . (1,031,000) 580,000
Other assets . . . . . . . . . . . . . . . . . . . . . . . . (670,000) 9,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . (308,000) (280,000)
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . 2,412,000 1,281,000
Income taxes payable . . . . . . . . . . . . . . . . . . . . (10,000) 878,000
Other liabilities . . . . . . . . . . . . . . . . . . . . . . 44,000 20,000
----------- -----------
TOTAL ADJUSTMENTS . . . . . . . . . . . . . . . . . . . . . . . . 7,747,000 10,744,000
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . $38,977,000 $34,085,000
=========== ===========
</TABLE>
8
<PAGE> 9
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. The unaudited financial statements herein have been prepared by the Company
pursuant to the rules and regulations of the Securities and Exchange
Commission. The accompanying interim financial statements have been
prepared under the presumption that users of the interim financial
information have either read or have access to the audited financial
statements for the latest fiscal year ended December 31, 1994.
Accordingly, footnote disclosures which would substantially duplicate the
disclosures contained in the December 31, 1994 audited financial statements
have been omitted from these interim financial statements. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. Although the Company believes that the disclosures are
adequate to make the information presented not misleading, it is suggested
that these interim financial statements be read in conjunction with the
financial statements and the notes thereto included in the Company's latest
Annual Report on Form 10-K.
2. The Company's investments in marketable securities which are classified as
available for sale had a net gain in market value of $1,082,000, net of
deferred income taxes, for the six months ended June 30, 1995. The net
unrealized gain at June 30, 1995, included as a component of stockholders'
equity, was $147,000, net of deferred income taxes. The Company's
$10,000,000 investment in a limited partnership is carried at cost. The
current value of the Company's share in the limited partnership at June 30,
1995, as reported by the partnership, was $9,505,000.
3. Commitments and Contingencies
Litigation: In April 1993, seven lawsuits were filed in the United States
District Court for the Northern District of Illinois alleging violations of
Federal securities laws by the Company and two of its executive officers.
The plaintiffs allege, among other things, that the defendants made false
and misleading statements regarding the Company's financial prospects for
1993, which they further allege resulted in the price of the Company's
common stock being inflated during the period in question. The plaintiffs
seek compensatory damages, pre-and post-judgement interest, and the costs
and disbursements of the lawsuits, including reasonable attorneys' and
experts' fees. The lawsuits have been consolidated and in May, 1993, the
defendants filed a motion to dismiss the consolidated complaint. The
plaintiffs filed a motion for class certification in June, 1993, and
defendants have filed their opposition to class certification. In November
1993, the presiding Magistrate Judge recommended that the consolidated
complaint be dismissed and subsequently stayed all proceedings involving
class certification and discovery. Plaintiffs appealed the Magistrate's
ruling to the presiding Federal Judge who, in June, 1994, affirmed the
dismissal of the complaint. In August 1994, the Federal Judge entered an
order allowing the plaintiffs to file an amended complaint, and in February
1995, the Federal Judge denied the Company's motion to dismiss the
plaintiffs' amended complaint. The presiding Federal Judge has since
certified, for review by the Seventh Circuit Court, the issue of whether
the amended complaint should be dismissed. The Seventh Circuit Court
accepted the certification and the matter has been duly briefed before the
Appellate Court and is awaiting an argument and a ruling. Management
believes that the plaintiffs' claims are without merit and is vigorously
contesting these actions. However, the ultimate outcome of the litigation
cannot presently be determined. Accordingly, no provision for liability,
if any, that may result upon resolution of the matter has been made in the
financial statements.
9
<PAGE> 10
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(UNAUDITED)
RESULTS OF OPERATIONS
Revenues for the three and six months ended June 30, 1995 increased
$7,020,000 (15%) and $15,406,000 (17%), respectively, from the comparable
periods of 1994. The Company's revenues consist of fees for cost management
services provided under contracts which typically require clients to pay based
upon a percentage of savings or on a predetermined contractual basis (fee-based
revenue). The Company also derives revenues based on a fixed monthly fee for
each participant, excluding covered dependents, in a client-sponsored health
care plan (capitated revenue). The fee varies based upon the programs
selected. Fee-based revenue has increased substantially from 1989 to the
present as COMPARE has significantly expanded its PPO networks.
The following tables set forth information with respect to the types
and sources of the Company's revenues for the three and six months ended June
30, 1995 and 1994:
<TABLE>
<CAPTION>
TYPES OF REVENUE
($ in thousands)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------------- ---------------------------------------
1995 % 1994 % 1995 % 1994 %
---- - ---- - ---- - ---- -
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fee-based Revenue $46,839 88% $39,430 86% $ 91,116 87% $75,631 85%
Capitated Revenue 6,219 12 6,608 14 13,323 13 13,402 15
------- --- ------- --- -------- --- ------- ---
Total $53,058 100% $46,038 100% $104,439 100% $89,033 100%
======= === ======= === ======== === ======= ===
<CAPTION>
SOURCES OF REVENUE
($ in thousands)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------------------- ------------------------------------
1995 % 1994 % 1995 % 1994 %
---- - ---- - ---- - ---- -
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PPO Services $41,034 77% $34,628 75% $80,092 77% $66,421 75%
Utilization Management
Services 6,610 12 6,213 13 13,069 12 12,567 14
Fee Schedule Services 4,054 8 3,497 8 8,458 8 6,675 7
Government Contract
Services 1,360 3 1,700 4 2,820 3 3,370 4
------- --- ------- --- ------- --- ------- ---
Total $53,058 100% $46,038 100% $104,439 100% $89,033 100%
======= === ======= === ======== === ======= ===
</TABLE>
10
<PAGE> 11
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(UNAUDITED) (CONT'D.)
The growth in revenue during the three and six months ended June 30,
1995 from the comparable periods of 1994 is primarily attributable to the
expansion and development of the Company's PPO services. PPO revenue increased
$6,406,000 (18%) and $13,671,000 (21%), respectively, from the same periods of
1994. This growth is the result of new client additions and increased
utilization of the PPO network by existing clients. Revenue from utilization
management (U/M) services increased $397,000 (6%) and $502,000 (4%) for the
three and six months ended June 30, 1995, respectively, from the comparable
periods in 1994. Revenue from fee schedule services increased $557,000 (16%)
and $1,783,000 (27%) for the three and six months ended June 30, 1995,
respectively, from the comparable periods in 1994 due to new client additions
and increased revenue from several existing clients the most significant being
General Motors which added additional states for these services. Government
contract revenue decreased $340,000 (20%) and $550,000 (16%) from the same
periods in 1994 due to a relative shift of the use of resources in this area to
new contract proposal activity which is not recoverable under the Company's
current cost reimbursement contract.
Cost of services decreased $811,000 (5%) for the three months ended
June 30, 1995 and increased $218,000 (1%) for the six months ended June 30,
1995 from the comparable periods of 1994. Cost of services consists primarily
of salaries for personnel involved in PPO administration, development and
expansion, utilization management programs, fee schedule and other cost
management services offered by the Company. To a lesser extent, cost of
services includes telephone expenses, facility expenses and information
processing costs. The largest component of the decrease in these costs for the
three months ended June 30, 1995 is attributable to the consolidation of the
Company's various California operations into one facility and the elimination
of redundant expenditures. For the six months ended June 30, 1995, expenses
increased 1% on a 17% revenue increase due to the above-mentioned
consolidations and the fixed cost nature of the PPO business.
Selling and marketing costs increased $1,050,000 (19%) and $1,972,000
(18%) for the three and six months ended June 30, 1995 from the same periods of
1994, primarily as a result of the hiring of additional sales personnel.
General and administrative costs for the three and six months ended
June 30, 1995 increased $210,000 (8%) and $308,000 (6%), respectively, from the
comparable periods of 1994. This increase is primarily attributable to
increased professional services being provided to the Company.
Depreciation and amortization expenses increased $273,000 (11%) and
$607,000 (13%) for the three and six months ended June 30, 1995 from the
comparable periods of 1994, principally as a result of shortening the useful
life of certain computer hardware and software in order to reflect current
estimated useful lives and plans for replacement.
Interest income for the three and six months ended June 30, 1995
increased $801,000 (66%) and $1,321,000 (55%), respectively, from the same
periods in 1994 due to a 50% increase in the amount of cash equivalents and
investments since June 30, 1994.
11
<PAGE> 12
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(UNAUDITED) (CONT'D.)
Primarily as a result of the growth in revenues from the Company's PPO
services at a more rapid pace than related expenses, and to a lesser extent,
expense reductions due to the consolidation of operations in California, net
income for the three and six months ended June 30, 1995 increased $4,195,000
(34%) and $7,889,000 (34%), respectively, from the comparable periods of 1994.
LIQUIDITY AND CAPITAL RESOURCES
The Company had $121,932,000 in working capital at June 30, 1995
compared with working capital of $78,444,000 at December 31, 1994. Cash
equivalents and short- and long-term investments increased to $177,758,000 at
June 30, 1995 from $138,684,000 at December 31, 1994, primarily as the result
of cash provided by operating activities and, to a lesser extent, cash received
upon the exercise of stock options. Through the first six months of the year,
operating activities provided $38,977,000 of cash with $2,170,000 being
utilized to repurchase shares of the Company's common stock (shares used by
employees to finance the exercise of stock options).
The Company believes that its working capital, long-term investments,
and cash generated from future operations will be sufficient to fund the
Company's anticipated operations and expansion plans.
12
<PAGE> 13
PART II
Item 4. Submission of Matters to a Vote of Security Holders
At the Annual Meeting of Stockholders of the Company on May 24,
1995, all directors of the Company were re-elected. The Company's 1995
Stock Option Plan was approved with a total of 20,529,652 shares cast
in favor of the proposal, 4,412,132 shares cast against and 1,189,831
shares abstaining. In addition, there were 4,799,243 broker non-votes.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11 - Computation of Primary Earnings Per Common Share
(b) Exhibit 11 - Computation of Fully Diluted Earnings Per Common
Share
13
<PAGE> 14
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 the
undersigned thereunto duly authorized.
HealthCare COMPARE Corp.
Dated: August 11, 1995 /s/James C. Smith
----------------------------
James C. Smith President and
Chief Executive Officer
Dated: August 11, 1995 /s/Joseph E. Whitters
----------------------------
Joseph E. Whitters
Chief Financial Officer
(Principal Financial and
Accounting Officer)
14
<PAGE> 1
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES EXHIBIT 11
COMPUTATION OF PRIMARY EARNINGS PER COMMON SHARE
(UNAUDITED)
________________________________________________________________________________
<TABLE>
<CAPTION>
Three Months Ended June 30,
---------------------------
1995 1994
------------ ------------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,457,000 $12,262,000
=========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . 34,206,000 35,247,000
Other issuances of common stock . . . . . . . . . . . . . . 17,000 10,000
Purchases of treasury stock . . . . . . . . . . . . . . . . -- (656,000)
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . 783,000 452,000
----------- -----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,006,000 35,053,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . . . . $ .47 $ .35
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended June 30,
------------------------------------
1995 1994
----------- -----------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $31,230,000 $23,341,000
=========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . 34,034,000 35,033,000
Other issuances of common stock . . . . . . . . . . . . . . 196,000 154,000
Purchases of treasury stock . . . . . . . . . . . . . . . . (55,000) (375,000)
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . 821,000 520,000
----------- -----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 34,996,000 35,332,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . . . . $ .89 $ .66
=========== ===========
</TABLE>
15
<PAGE> 2
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES EXHIBIT 11
COMPUTATION OF FULLY DILUTED EARNINGS PER COMMON SHARE
(UNAUDITED)
________________________________________________________________________________
<TABLE>
<CAPTION>
Three Months Ended June 30,
-------------------------------
1995 1994
----------- -----------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,457,000 $12,262,000
========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . . . . . . . . . . . . . . . 34,206,000 35,247,000
Other issuances of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000 10,000
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (656,000)
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . . . . . . . . . . . . . . . 783,000 452,000
----------- ----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,006,000 35,053,000
========== ==========
Net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .47 $ .35
========== ==========
<CAPTION>
Six Months Ended June 30,
--------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31,230,000 $23,341,000
========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . . . . . . . . . . . . . . . 34,034,000 35,033,000
Other issuances of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196,000 154,000
Purchases of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55,000) (375,000)
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . . . . . . . . . . . . . . . 839,000 520,000
----------- -----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,014,000 35,332,000
========== ==========
Net income per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .89 $ .66
========== ==========
</TABLE>
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<CASH> 30,744
<SECURITIES> 137,014
<RECEIVABLES> 27,211
<ALLOWANCES> (3,606)
<INVENTORY> 0
<CURRENT-ASSETS> 139,376
<PP&E> 74,973
<DEPRECIATION> (31,372)
<TOTAL-ASSETS> 253,304
<CURRENT-LIABILITIES> 17,444
<BONDS> 0
<COMMON> 362
0
0
<OTHER-SE> 235,352
<TOTAL-LIABILITY-AND-EQUITY> 253,304
<SALES> 0
<TOTAL-REVENUES> 55,069
<CGS> 0
<TOTAL-COSTS> 24,655
<OTHER-EXPENSES> 2,717
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 27,697
<INCOME-TAX> 11,240
<INCOME-CONTINUING> 16,457
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,457
<EPS-PRIMARY> 0.47
<EPS-DILUTED> 0.47
</TABLE>
