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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): APRIL 30, 1998
OXFORD HEALTH PLANS, INC.
(Exact name of registrant as specified in its charter)
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Delaware 0-19442 06-1118515
(State or other jurisdiction) (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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800 Connecticut Avenue, Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip Code)
(203) 852-1442
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
The Company's revised earnings press release dated April 30, 1998 is
attached as an Exhibit hereto and incorporated herein by reference.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release dated April 30, 1998
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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: April 30, 1998 By: /s/ BRENDAN R. SHANAHAN
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BRENDAN R. SHANAHAN
Vice President and Controller
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit Page
Number Description of Document Number
- - ------- ----------------------- ------
99 Press Release dated April 30, 1998 4
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EXHIBIT 99
OXFORD LETTERHEAD
For Further Information:
Investor Contact: Mitch Truwit
(203) 851-1986
Media Contact: Madeline Hardart
(212) 885-0417
FOR IMMEDIATE RELEASE
NOTE TO EDITORS: OXFORD RE-RELEASES ITS FIRST QUARTER 1998
RESULTS WITH THE ACCOMPANYING FINANCIAL TABLES
NORWALK, CT, APRIL 30, 1998--Oxford Health Plans, Inc. (NASDAQ:OXHP) reported on
April 27th that it incurred a first quarter 1998 net loss of $45.3 million, or
57 cents per share, compared to net income of $34.4 million, or 44 cents per
share (42 cents per diluted share), in the first quarter of 1997. First quarter
1998 results were adversely affected by a nonrecurring after-tax restructuring
charge of $16.3 million, or 20 cents per share, for severance and other costs
expected to be incurred in connection with the restructuring of certain
administrative and management functions. Total revenues for the first quarter
ended March 31, 1998 reached $1.2 billion, a 24 percent increase from $987.3
million a year ago.
Oxford's enrollment totaled approximately 2,096,000 members at March 31,
1998, an increase of almost 88,000 during the first quarter of 1998 and nearly
21 percent higher than membership at the end of last year's first quarter.
The Company's medical-loss ratio for the first quarter of 1998 was 87.9%
compared with 80.2% in the first quarter of 1997. Administrative expenses,
exclusive of the nonrecurring restructuring charge, were 16.5% of operating
revenue for the first quarter of 1998 compared with 15.4% for the first quarter
of 1997 and 17.6% for the full year 1997.
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, Illinois, Florida and New Hampshire through its direct sales force
and through independent insurance agents and brokers.
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 1998 and December 31, 1997
(In thousands, except share data)
ASSETS
Mar. 31, Dec. 31,
1998 1997
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Current assets: (Unaudited)
Cash and cash equivalents $ 61,053 4,141
Short-term investments-available-for-sale, at market value 635,270 635,743
Premiums receivable 289,549 275,646
Other receivables 53,484 45,418
Prepaid expenses and other current assets 20,849 10,097
Refundable income taxes 71,603 120,439
Deferred income taxes 31,866 38,092
- - ---------------------------------------------------------------------------------------------------------------------
Total current assets 1,163,674 1,129,576
Property and equipment, at cost, net of accumulated depreciation and
amortization of $139,999 in 1998 and $125,926 in 1997 151,492 147,093
Deferred income taxes 117,846 86,406
Other noncurrent assets 38,409 34,914
- - ---------------------------------------------------------------------------------------------------------------------
Total assets $1,471,421 1,397,989
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 200,000 -
Medical costs payable 739,195 762,959
Trade accounts payable and accrued expenses 176,262 152,152
Unearned premiums 46,897 124,603
Deferred income taxes 7,798 9,059
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Total current liabilities 1,170,152 1,048,773
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Shareholders' equity:
Preferred stock, $.01 par value, authorized 2,000,000 shares - -
Common stock, $.01 par value, authorized 400,000,000
shares; issued and outstanding 79,514,037 in 1998
and 79,474,439 in 1997 795 795
Additional paid-in capital 437,983 437,653
Accumulated deficit (140,800) (95,498)
Unrealized net appreciation of investments 3,291 6,266
- - ---------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 301,269 349,216
- - ---------------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $1,471,421 1,397,989
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended March 31, 1998 and 1997
(In thousands, except per share and membership data)
(Unaudited)
Revenues: 1998 1997
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Premiums earned $1,213,085 970,115
Third-party administration, net 5,002 3,076
Investment and other income, net 8,353 14,124
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Total revenues 1,226,440 987,315
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Expenses:
Health care services 1,066,437 777,736
Marketing, general and administrative 201,033 149,784
Restructuring charges 25,000 -
- - ---------------------------------------------------------------------------------------------------------------
Total expenses 1,292,470 927,520
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Operating earnings (loss) (66,030) 59,795
Interest expense on notes payable (3,666) -
Equity in net loss of affiliate - (900)
- - ---------------------------------------------------------------------------------------------------------------
Earnings (loss) before income taxes (69,696) 58,895
Income tax expense (benefit) (24,394) 24,516
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Net earnings (loss) (45,302) 34,379
===============================================================================================================
Earnings (loss) per common and common
equivalent share:
Basic $ (0.57) .44
Diluted $ (0.57) .42
Weighted average common stock and
common stock equivalents outstanding:
Basic 79,488 77,843
Diluted 79,488 82,337
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Membership at
March 31
- - ----------------------------------------------------------------------------------------------- Increase
Membership Highlights 1998 1997 (Decrease)
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Freedom Plan 1,400,200 1,143,500 256,700
HMO 280,900 224,300 56,600
Medicare 162,600 134,600 28,000
Medicaid 183,500 189,900 (6,400)
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Total Fully Insured 2,027,200 1,692,300 334,900
Self-funded 68,500 46,500 22,000
- - ---------------------------------------------------------------------------------------------------------------
Total Membership 2,095,700 1,738,800 356,900
===============================================================================================================
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