<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): FEBRUARY 18, 1997
OXFORD HEALTH PLANS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-19442 06-1118515
(State or other jurisdiction) (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 Connecticut Avenue, Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip Code)
(203) 852-1442
(Registrant's telephone number, including area code)
1
<PAGE> 2
ITEM 5. OTHER EVENTS.
Registrant's Press Release, dated November 6, 1996, is attached as an
Exhibit hereto and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
(99) Press Release dated February 18, 1997
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.
OXFORD HEALTH PLANS, INC.
Date: February 28, 1997 By: /s/ ANDREW B. CASSIDY
------------------------
ANDREW B. CASSIDY
Chief Financial Officer
2
<PAGE> 3
OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Page
Number Description of Document Number
- ------ ----------------------- ------
<S> <C> <C>
(99) Press Release dated February 18, 1997 4
</TABLE>
3
<PAGE> 1
Re: Oxford Health Plans, Inc.
800 Connecticut Avenue
Norwalk, CT 06854
For Further Information:
Stephen F. Wiggins
Chairman and CEO
(203) 852-1442
FOR IMMEDIATE RELEASE
February 18, 1997
OXFORD HEALTH PLANS REPORTS 105 PERCENT EARNINGS INCREASE IN
FOURTH QUARTER
NORWALK, CONNECTICUT, FEBRUARY 18, 1997--Oxford Health Plans, Inc.
(NASDAQ:OXHP) today reported that fourth quarter 1996 net earnings rose 105
percent on a revenue increase of 64 percent when compared with the fourth
quarter of 1995. As in past quarters, the earnings growth was driven by
increased enrollment in the Company's fully insured programs, stable medical
expense trends and sustained improvement in the ratio of administrative expenses
to operating revenues.
Total revenues for the fourth quarter ended December 31, 1996 reached
$880.3 million, a 64 percent increase from $537.4 million a year ago. Operating
earnings jumped 95 percent to $55.8 million compared with $28.6 million in the
fourth quarter of 1995. Net earnings increased 105 percent to $32.0 million, or
$.39 per share, from $15.6 million, or $.21 per share, in the prior year's
fourth quarter.
For the year ended December 31, 1996, the Company's revenues totaled $3.08
billion, a 74 percent increase from $1.77 billion for 1995. Operating earnings
rose to $176.5 million, an increase of 86 percent from $95.1 million in 1995,
while net earnings for the year 1996 increased 90 percent to $99.6 million, or
$1.24 per share, from $52.4 million, or $.71 per share, for the year ended
December 31, 1995.
Oxford's enrollment totaled approximately 1,535,500 members at
December 31, 1996, an increase of more than 93,000 during the fourth quarter of
1996 and approximately 52 percent higher than membership at the end of last
year's fourth quarter. All of this new membership has come from fully insured
enrollment which has continued to grow in the first quarter of 1997. Almost
155,000 net new members have enrolled since the end of December 1996, bringing
total membership to approximately 1,690,000 as of February 1, 1997. The strong
earnings and enrollment growth continue to reflect the popularity and quality of
the Company's products.
-more-
<PAGE> 2
Page 2
Oxford Health Plans, Inc.
February 18, 1997
The Company's medical-loss ratio for fourth quarter of 1996 was 80.0%, as
the Company continues to benefit from better provider contracts and strengthened
medical management programs.
Administrative expenses were 15.4% of operating revenue for the fourth
quarter of 1996, compared with 19.4% for the fourth quarter of 1995.
The Company's year-end balance sheet shows large increases in premiums
receivable and medical costs payable resulting from delays in billing and claims
processing and payment associated with the conversion of certain of the
Company's operations to a new computer system.
Oxford's product lines include traditional health maintenance
organizations, point-of service plans, third-party administration of employer
funded benefit plans, Medicare and Medicaid plans, and dental plans. Oxford
markets its health plans to employers in New York, New Jersey, Pennsylvania,
Connecticut and New Hampshire through its direct sales force and through
independent insurance agents and brokers.
FINANCIAL TABLES FOLLOW
<PAGE> 3
OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings
THREE MONTHS AND YEAR ENDED DECEMBER 31, 1996 AND 1995
(IN THOUSANDS, EXCEPT PER SHARE AND MEMBERSHIP DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
-----------------------------------------------------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Premiums earned $ 863,595 528,009 3,022,168 1,734,098
Third-party administration, net 2,490 2,936 10,401 11,877
Investment income, net 14,236 6,444 42,439 19,392
- -----------------------------------------------------------------------------------------------------------------------------------
Total revenues 880,321 537,389 3,075,008 1,765,367
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Health care services 691,018 406,044 2,421,167 1,344,669
Marketing, general and administrative 133,506 102,759 477,373 325,643
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 824,524 508,803 2,898,540 1,670,312
- -----------------------------------------------------------------------------------------------------------------------------------
Operating earnings 55,797 28,586 176,468 95,055
Equity in net loss of affiliate (1,050) (1,400) (4,600) (3,873)
Other income (expense), net 217 199 181 319
- -----------------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes 54,964 27,385 172,049 91,501
Provision for income taxes 22,966 11,801 72,426 39,103
- -----------------------------------------------------------------------------------------------------------------------------------
Net earnings $ 31,998 15,584 99,623 52,398
===================================================================================================================================
Earnings per common and common equivalent share:
Primary $ .39 .21 1.24 .71
Fully diluted $ .39 .21 1.24 .71
Weighted average common stock and common stock equivalents outstanding:
Primary 81,897 74,624 80,019 73,454
Fully diluted 82,164 74,722 80,643 74,154
</TABLE>
<TABLE>
<CAPTION>
Membership at
December 31 Increase
- ----------------------------------------------------------------
MEMBERSHIP HIGHLIGHTS 1996 1995 (Decrease)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Freedom Plan 1,015,100 680,400 334,700
HMO 192,300 112,000 80,300
Medicare 125,000 67,100 57,900
Medicaid 162,000 105,600 56,400
- --------------------------------------------------------------------------------
Total Fully Insured 1,494,400 965,100 529,300
Self-funded 41,100 42,600 (1,500)
- --------------------------------------------------------------------------------
Total Membership 1,535,500 1,007,700 527,800
================================================================================
</TABLE>
<PAGE> 4
OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996 AND 1995
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
ASSETS
1996 1995
---------------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 72,160 58,450
Short-term investments-available for sale (at market value) 767,312 310,197
Premiums receivable 315,126 96,278
Other receivables 26,343 15,260
Prepaid expenses and other current assets 5,814 3,563
Deferred income taxes 13,771 8,443
- --------------------------------------------------------------------------------------------------------
Total current assets 1,200,526 492,191
Property and equipment, at cost (net of accumulated depreciation and
amortization of $69,739 in 1996 and $30,074 in 1995) 104,954 97,414
Deferred income taxes 5,700 --
Other noncurrent assets 35,559 19,171
- --------------------------------------------------------------------------------------------------------
Total assets $1,346,739 608,776
========================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Medical costs payable $ 624,359 300,508
Trade accounts payable and accrued expenses 51,256 36,508
Income taxes payable 9,902 1,428
Unearned premiums 63,052 50,299
- --------------------------------------------------------------------------------------------------------
Total liabilities 748,569 388,743
Stockholders' equity:
Preferred stock, $.01 par value, authorized 2,000,000 shares -- --
Common stock, $.01 par value, authorized 200,000,000
shares; issued and outstanding 77,376,282 in 1996
and 34,390,401 in 1995 774 343
Additional paid-in capital 391,602 116,639
Retained earnings 195,790 96,167
Unrealized net appreciation of investments 10,004 6,884
- --------------------------------------------------------------------------------------------------------
Total stockholders' equity 598,170 220,033
- --------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $1,346,739 608,776
========================================================================================================
</TABLE>
