<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, 1996
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 latest practicable date.
The number of shares of Common Stock, par value $.01 per share, outstanding on
August 5, 1996 was 34,985,835.
<PAGE> 2
HealthCare COMPARE Corp. and Subsidiaries
INDEX
Part I. Financial Information Page Number
-----------
Item 1. Financial Statements
Consolidated Balance Sheets - Assets at June 30, 1996
and December 31, 1995 . . . . . . . . . . . . . . . . . . 3
Consolidated Balance Sheets - Liabilities and Stockholders'
Equity at June 30, 1996 and December 31, 1995 . . . . . . 4
Consolidated Statements of Operations for the three months
ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . 5
Consolidated Statements of Operations for the six months
ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . 6
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . 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
2
<PAGE> 3
PART 1. FINANCIAL INFORMATION
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS June 30, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents . . . . . . . . . . . . . . $ 87,167,000 $ 74,599,000
Short-term investments . . . . . . . . . . . . . . . . 52,383,000 70,634,000
Accounts receivable, less allowances for
doubtful accounts of $2,922,000
and $2,807,000, respectively . . . . . . . . . . . 23,204,000 22,255,000
Other current assets . . . . . . . . . . . . . . . . . 10,406,000 6,434,000
----------- -----------
Total current assets . . . . . . . . . . . . . . . . . 173,160,000 173,922,000
----------- -----------
Long-Term Investments:
Marketable securities . . . . . . . . . . . . . . . . 107,885,000 58,051,000
Other . . . . . . . . . . . . . . . . . . . . . . . . 18,178,000 18,086,000
----------- -----------
126,063,000 76,137,000
----------- -----------
Property and Equipment:
Buildings and improvements . . . . . . . . . . . . . . 36,166,000 32,885,000
Computer equipment and software . . . . . . . . . . . 33,866,000 29,358,000
Office furniture and equipment . . . . . . . . . . . . 18,337,000 17,643,000
----------- -----------
88,369,000 79,886,000
Less accumulated depreciation and
amortization . . . . . . . . . . . . . . . . . . . (42,101,000) (36,472,000)
----------- -----------
Net property and equipment . . . . . . . . . . . . . . 46,268,000 43,414,000
----------- -----------
Other Assets . . . . . . . . . . . . . . . . . . . . . . . 9,560,000 3,721,000
----------- -----------
$355,051,000 $297,194,000
=========== ===========
</TABLE>
3
<PAGE> 4
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, 1996 December 31, 1995
--------------- -----------------
<S> <C> <C>
Current Liabilities:
Accounts payable. . . . . . . . . . . . . . . . . . . . . $ 9,026,000 $ 7,149,000
Accrued expenses. . . . . . . . . . . . . . . . . . . . . 10,794,000 9,649,000
Claims reserves . . . . . . . . . . . . . . . . . . . . . 8,546,000 --
------------ ------------
Total current liabilities . . . . . . . . . . . . . . . 28,366,000 16,798,000
------------ ------------
Non-Current Liabilities 84,000 126,000
------------ ------------
Total liabilities . . . . . . . . . . . . . . . . . . . . 28,450,000 16,924,000
------------ ------------
Commitments and Contingencies . . . . . . . . . . . . . . . . -- --
Stockholders' Equity:
Common stock. . . . . . . . . . . . . . . . . . . . . . . 370,000 366,000
Additional paid-in capital. . . . . . . . . . . . . . . . 118,252,000 104,961,000
Retained earnings . . . . . . . . . . . . . . . . . . . . 248,752,000 210,070,000
Unrealized holding gain (loss) on marketable
securities . . . . . . . . . . . . . . . . . . . . . (366,000) 242,000
Treasury stock, at cost . . . . . . . . . . . . . . . . . (40,407,000) (35,369,000)
------------ ------------
Total stockholders' equity. . . . . . . . . . . . . . . . 326,601,000 280,270,000
------------ ------------
$355,051,000 $297,194,000
============ ============
</TABLE>
4
<PAGE> 5
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended June 30,
--------------------------------
1996 1995
------------- --------------
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . $62,200,000 $53,058,000
---------- ----------
Operating expenses:
Cost of services . . . . . . . . . . . . . . . . . . . 18,366,000 15,470,000
Selling and marketing . . . . . . . . . . . . . . . . 7,319,000 6,472,000
General and administrative . . . . . . . . . . . . . . 3,321,000 2,713,000
Healthcare benefits . . . . . . . . . . . . . . . . . 1,398,000 --
Depreciation and amortization . . . . . . . . . . . . 2,938,000 2,717,000
Interest income, net . . . . . . . . . . . . . . . . . (3,053,000) (2,011,000)
---------- ----------
30,289,000 25,361,000
---------- ----------
Income before income taxes . . . . . . . . . . . . . . . . 31,911,000 27,697,000
Income taxes . . . . . . . . . . . . . . . . . . . . . . . (12,179,000) (11,240,000)
----------- -----------
Net income . . . . . . . . . . . . . . . . . . . . . . . . $19,732,000 $16,457,000
========== ==========
Weighted average common and
common share equivalents . . . . . . . . . . . . . . . . 35,789,000 35,006,000
========== ==========
Net income per common share . . . . . . . . . . . . . . . . $ .55 $ .47
========== ==========
</TABLE>
5
<PAGE> 6
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended June 30,
-----------------------------
1996 1995
-------------- --------------
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . $122,185,000 $104,439,000
----------- -----------
Operating expenses:
Cost of services . . . . . . . . . . . . . . . . . . . 36,208,000 32,127,000
Selling and marketing . . . . . . . . . . . . . . . . 14,559,000 12,663,000
General and administrative . . . . . . . . . . . . . . 6,714,000 5,470,000
Healthcare benefits . . . . . . . . . . . . . . . . . 2,228,000 --
Depreciation and amortization . . . . . . . . . . . . 5,698,000 5,366,000
Interest income, net . . . . . . . . . . . . . . . . . (5,905,000) (3,720,000)
----------- -----------
59,502,000 51,906,000
----------- -----------
Income before income taxes . . . . . . . . . . . . . . . . 62,683,000 52,533,000
Income taxes . . . . . . . . . . . . . . . . . . . . . . . (24,001,000) (21,303,000)
----------- -----------
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 38,682,000 $ 31,230,000
=========== ===========
Weighted average common and
common share equivalents . . . . . . . . . . . . . . . . 35,714,000 34,996,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . $ 1.08 $ .89
=========== ===========
</TABLE>
6
<PAGE> 7
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended June 30 ,
----------------------------------
1996 1995
-------------------- --------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers . . . . . . . . . . . . . . . . $120,804,000 $105,370,000
Cash paid to suppliers and employees . . . . . . . . . . . . (56,708,000) (48,334,000)
Healthcare benefits paid . . . . . . . . . . . . . . . . . . (1,835,000) --
Interest received, net . . . . . . . . . . . . . . . . . . . 5,948,000 3,299,000
Income taxes paid, net . . . . . . . . . . . . . . . . . . . (21,352,000) (21,358,000)
----------- -----------
Net cash provided by operating activities . . . . . . . . . 46,857,000 38,977,000
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments . . . . . . . . . . . . . . . . . . (102,967,000) (79,873,000)
Sales of investments . . . . . . . . . . . . . . . . . . . . 82,027,000 43,412,000
Acquisition of businesses, net of cash acquired . . . . . . (10,090,000) --
Purchase of property and equipment . . . . . . . . . . . . . (7,722,000) (3,667,000)
------------ -----------
Net cash used in investing activities . . . . . . . . . . . (38,752,000) (40,128,000)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock . . . . . . . . . . . . . . . . . (5,038,000) (2,170,000)
Proceeds from issuance of common stock . . . . . . . . . . . 9,501,000 4,653,000
------------ -----------
Net cash provided by financing activities . . . . . . . . . 4,463,000 2,483,000
------------ -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . 12,568,000 1,332,000
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD . . . . . . . . . 74,599,000 29,412,000
----------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD . . . . . . . . . . . . $87,167,000 $30,744,000
========== ==========
SUPPLEMENTAL CASH FLOW DATA:
Acquisition of businesses:
Fair value of assets acquired . . . . . . . . . . . . . . . $19,246,000
Cost in excess of net assets acquired . . . . . . . . . . . 3,031,000
Fair value of liabilities assumed . . . . . . . . . . . . . (11,204,000)
Future payments on acquisition . . . . . . . . . . . . . . . (983,000)
------------
Net cash paid . . . . . . . . . . . . . . . . . . . . . . . $10,090,000
==========
</TABLE>
7
<PAGE> 8
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------------
1996 1995
-------------------- --------------------
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,682,000 $31,230,000
---------- ----------
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Depreciation and amortization . . . . . . . . . . . . . . . . 5,698,000 5,366,000
Change in provision for uncollectible receivable . . . . . . 115,000 (268,000)
Amortization of bond premiums . . . . . . . . . . . . . . . . 871,000 632,000
Tax benefit from stock options exercised . . . . . . . . . . 3,794,000 1,362,000
Unrealized holding (gain) loss on marketable
securities . . . . . . . . . . . . . . . . . . . . . . . . 385,000 (732,000)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . (211,000) (99,000)
Changes in Assets and Liabilities:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . (1,064,000) 1,049,000
Other current assets . . . . . . . . . . . . . . . . . . . . 405,000 (1,031,000)
Accounts payable and accrued expenses . . . . . . . . . . . . (296,000) 2,104,000
Claims reserves . . . . . . . . . . . . . . . . . . . . . . . (42,000) --
Income taxes payable . . . . . . . . . . . . . . . . . . . . (281,000) (10,000)
Non-current assets and liabilities . . . . . . . . . . . . . (1,199,000) (626,000)
---------- ----------
TOTAL ADJUSTMENTS . . . . . . . . . . . . . . . . . . . . . . . . 8,175,000 7,747,000
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . $46,857,000 $38,977,000
=========== ==========
</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, 1995.
Accordingly, footnote disclosures which would substantially duplicate the
disclosures contained in the December 31, 1995 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. On February 1, 1996, the Company acquired American Life and Health
Insurance Company and its subsidiary Cambridge Life Insurance Company for
approximately $11.2 million in cash of which $7.1 million was paid at
closing, $3.1 million was paid in the second quarter of 1996 and $1.0
million will be paid when certain contingencies are resolved. The
acquisition was accounted for by the purchase method and, accordingly, the
results of operations of the acquired businesses have been included in the
accompanying consolidated financial statements from the date of
acquisition. The estimated fair market value of net assets acquired was
$8,042,000, net of cash acquired. The excess of purchase price over
estimated fair market value has been allocated to goodwill which is being
amortized over 20 years. The pro forma effect of the acquisition on the
consolidated results of the Company are not material.
3. The Company's investments in marketable securities which are classified as
available for sale had a net unrealized loss in market value of $608,000,
net of deferred income taxes, for the six months ended June 30, 1996. The
net unrealized loss at June 30, 1996, included as a component of
stockholders' equity, was $366,000, 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 interest in the limited
partnership at June 30, 1996, as reported by the partnership, was
$11,207,000. In the third quarter of 1995, the Company invested in another
limited partnership which invests in equipment which is leased to third
parties. This investment is accounted for on the equity method since the
Company owns 20% of the limited partnership's assets. The Company's
proportionate share of the partnership's income was $150,000 for the six
months ended June 30, 1996 and is included in interest income.
4. On August 8, 1996, the Company announced that the Board of Directors had
approved the repurchase of up to 5,000,000 shares, or 15% of the Company's
then outstanding Common Stock. Purchases may be made from time to time,
depending on the current market conditions and other relevant factors. The
Company had previously repurchased 1,655,000 shares. During 1996, the
Company has repurchased approximately 777,000 shares. Such shares are
reported at cost and can be used for general corporate purposes.
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, 1996 increased 17% to
$9,142,000 and $17,746,000, respectively, from the comparable periods of 1995.
The Company's revenues consist of fees for cost management services provided
under contracts which typically require clients to pay based upon a percentage
of savings or on a predetermined contractual basis (fee-based revenue). The
Company also derives revenues based on a fixed monthly fee for each
participant, excluding covered dependents, in a client-sponsored health care
plan (capitated revenue). As a result of the Company's acquisition of a life
and health insurance company, the Company also derives an immaterial amount of
premium revenue on life and health insurance contracts.
The following table sets forth information with respect to the sources of
the Company's revenues for the three and six months ended June 30, 1996 and
1995:
<TABLE>
<CAPTION>
SOURCES OF REVENUE
($ in thousands)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------------- ------------------------------------------
1996 % 1995 % 1996 % 1995 %
----- - ---- - ------- - ---- -
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PPO Services $48,024 77% $41,034 77% $ 94,125 77% $80,092 77%
Fee Schedule Services 6,414 10 4,054 8 12,674 10 8,458 8
Clinical Management
Services 5,301 9 6,610 12 10,774 9 13,069 12
Premiums, Net 1,871 3 -- -- 3,252 3 - -
Government Contract
Services 590 1 1,360 3 1,360 1 2,820 3
------- ---- ------- --- -------- ---- ------- ---
Total $62,200 100% $53,058 100% $122,185 100% $104,439 100%
======= === ====== === ======== === ======= ===
</TABLE>
The growth in revenue during the three and six months ended June 30, 1996
from the comparable periods of 1995 is primarily attributable to the expansion
and development of the Company's PPO services. PPO revenue increased
$6,990,000 (17%) and $14,033,000 (18%), respectively, from the same periods of
1995. This growth is the result of new client additions and increased
utilization of the PPO network by existing clients. Revenue from fee schedule
services increased $2,360,000 (58%) and $4,216,000 (50%), respectively, for the
three and six months ended June 30, 1996 from the comparable periods in 1995
due to new client additions and increased revenue from several existing
clients.
Revenue from clinical cost management services decreased $1,309,000 (20%)
and $2,295,000 (18%), respectively, for the three and six months ended June 30,
1996 from the comparable periods in 1995. Premium revenue was generated by the
small health and life insurance companies acquired by the Company during the
first quarter of 1996. Government contract revenue decreased $770,000 (57%)
and $1,460,000 (52%), respectively, from the same periods in 1995 due to the
successful completion of the regional review portion of the Company's CHAMPUS
contract.
10
<PAGE> 11
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(UNAUDITED)
- --------------------------------------------------------------------------------
Cost of services increased $2,896,000 (19%) and $4,081,000 (13%) for the
three and six months ended June 30, 1996 from the comparable periods of 1995.
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 increase in these costs is primarily
attributable to expenses incurred in the development of the Company's
risk-based products.
Selling and marketing costs increased $847,000 (13%) and $1,896,000 (15%),
respectively, for the three and six months ended June 30, 1996 from the same
periods of 1995, primarily as a result of the hiring of additional sales
personnel. To a lesser extent, the increase relates to commissions paid to
agents and third party administrators by the Company's insurance entities.
General and administrative costs for the three and six months ended June
30, 1996 increased $608,000 (22%) and $1,244,000 (23%), respectively, from the
comparable periods of 1995. This increase is primarily attributable to the
general insurance expenses incurred by the Company's insurance entities. To a
lesser extent, the increase relates to salaries and benefits incurred in the
executive and administrative areas of the Company.
Healthcare benefits represent losses incurred by insureds of the Company's
insurance entities. The loss ratio (losses as a percent of premiums) was 75%
and 69%, respectively, for the three and six months ended June 30, 1996. Due
to the small size of the business currently, this expense will be very volatile
and will continue to be volatile until the Company has been able to institute
all of its managed care services and controls.
Depreciation and amortization expenses increased $221,000 (8%) and $332,000
(6%), respectively, for the three and six months ended June 30, 1996 from the
comparable periods of 1995. Depreciation expense as a percent of revenue
remained constant at 5%.
Interest income for the three and six months ended June 30, 1996 increased
$1,042,000 (52%) and $2,185,000 (59%) from the same periods in 1995 due to a
49% increase in the amount of cash equivalents and investments since June 30,
1995.
Net income for the three and six months ended June 30, 1996, increased
$3,275,000 (20%) and $7,452,000 (24%), respectively, from the comparable
periods of 1995. This increase is due primarily to the revenue growth as well
as efficiencies achieved in the Company's operations.
LIQUIDITY AND CAPITAL RESOURCES
The Company had $144,794,000 in working capital at June 30, 1996 compared
with working capital of $157,124,000 at December 31, 1995. The decrease is
primarily attributable to the purchase of the insurance entities which had
negative working capital of approximately $5,500,000 at date of purchase as
well as for purchases of longer term investments used to maximize investment
income. Cash equivalents and short and long-term investments increased
11
<PAGE> 12
HEALTHCARE COMPARE CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(UNAUDITED)
- --------------------------------------------------------------------------------
to $265,613,000 at June 30, 1996 from $221,370,000 at December 31, 1995,
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 $46,857,000 of
cash.
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 21,
1996, all directors of the Company were re-elected. The number of
votes cast for and withheld for each director was as follows:
For Withheld
------------------- ----------------
Robert J. Becker, M.D. 26,607,259 366,993
Michael J. Boskin 26,561,819 412,433
Daniel Brunner 26,617,119 357,133
Robert S. Colman 26,630,619 343,633
Ronald H. Galowich 26,618,169 356,083
Burton W. Kanter 26,630,619 343,633
Thomas J. Pritzker 26,609,319 364,933
David E. Simon 23,958,368 3,015,884
James C. Smith 26,618,319 355,933
Certain amendments to the Directors' Option Plan were approved
with 25,116,617 shares cast for the amendments, 1,529,867 shares cast
against and 104,706 shares abstaining. In addition, there were
223,062 broker non-votes.
Item 6. Exhibits and Reports on Form 8-K
Exhibits:
(a) Exhibit 11 - Computation of Primary Earnings Per
Common Share
(b) Exhibit 11 - Computation of Fully Diluted Earnings
Per Common Share
Reports on Form 8-K:
None
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 9, 1996 /s/James C. Smith
-------------------------------------------
James C. Smith
President and Chief Executive Officer
Dated: August 9, 1996 /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,
---------------------------
1996 1995
------------ -----------
<S> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,732,000 $16,457,000
========== ==========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . 34,936,000 34,206,000
Other issuances of common stock . . . . . . . . . . . . . . 27,000 17,000
Purchases of treasury stock . . . . . . . . . . . . . . . . -- --
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . 826,000 783,000
----------- ----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,789,000 35,006,000
========== ==========
Net income per common share . . . . . . . . . . . . . . . . . . . $ .55 $ .47
============= =============
<CAPTION>
Six Months Ended June 30,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,682,000 $31,230,000
=========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . 34,635,000 34,034,000
Other issuances of common stock . . . . . . . . . . . . . . 335,000 196,000
Purchases of treasury stock . . . . . . . . . . . . . . . . (85,000) (55,000)
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . 829,000 821,000
----------- -----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,714,000 34,996,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . . . . $ 1.08 $ .89
=========== ===========
</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,
----------------------------------
1996 1995
---------- -----------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,732,000 $16,457,000
=========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . 34,936,000 34,206,000
Other issuances of common stock . . . . . . . . . . . . . . 27,000 17,000
Purchases of treasury stock . . . . . . . . . . . . . . . . -- --
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . 841,000 783,000
----------- -----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,804,000 35,006,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . . . . $ .55 $ .47
=========== ===========
<CAPTION>
Six Months Ended June 30,
---------------------------------
1996 1995
----------- ----------
<S> <C> <C>
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,682,000 $31,230,000
=========== ===========
Weighted average number of common shares
outstanding:
Shares outstanding from beginning of period . . . . . . . . 34,635,000 34,034,000
Other issuances of common stock . . . . . . . . . . . . . . 335,000 196,000
Purchases of treasury stock . . . . . . . . . . . . . . . . (85,000) (55,000)
Common Stock Equivalents:
Additional equivalent shares issuable from
assumed exercise of common stock options . . . . . . . . . 865,000 839,000
----------- -----------
Weighted average common and common share
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . 35,750,000 35,014,000
=========== ===========
Net income per common share . . . . . . . . . . . . . . . . . . . $ 1.08 $ .89
=========== ===========
</TABLE>
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 87,167
<SECURITIES> 170,268
<RECEIVABLES> 26,126
<ALLOWANCES> (2,922)
<INVENTORY> 0
<CURRENT-ASSETS> 173,160
<PP&E> 88,369
<DEPRECIATION> (42,101)
<TOTAL-ASSETS> 355,051
<CURRENT-LIABILITIES> 28,366
<BONDS> 0
<COMMON> 370
0
0
<OTHER-SE> 326,231
<TOTAL-LIABILITY-AND-EQUITY> 355,051
<SALES> 0
<TOTAL-REVENUES> 62,200
<CGS> 0
<TOTAL-COSTS> 27,404
<OTHER-EXPENSES> 2,938
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 31,911
<INCOME-TAX> 12,179
<INCOME-CONTINUING> 19,732
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,732
<EPS-PRIMARY> .55
<EPS-DILUTED> .55
</TABLE>
