UMCI should gap up nicely in the a.m.
United Medicorp Announces Sixth Consecutive Profitable Quarter
DALLAS, Aug. 25 /PRNewswire/ -- Boosted by increased medical claim processing volume, advance funding and consulting services,
United Medicorp, Inc. (OTC Bulletin Board: UMCI - news) announced today its sixth consecutive profitable quarter.
Revenues for the second quarter ended June 30, 1998 were $1,120,278, up 89 percent compared with $592,512 for the corresponding quarter
a year ago. Net income for the second quarter was $95,647 compared to net income of $7,077 for the corresponding quarter a year ago.
Earnings per share for the second quarter were $0.0034, compared to per share earnings of $0.0003 for the corresponding quarter a year ago.
Revenues for the six months ended June 30, 1998 were $2,388,859 up 129 percent compared with $1,042,799 for the corresponding
six-month period a year ago. Net income for the current six-month period was $268,111 compared to net income of $7,798 for the
corresponding six-month period a year ago. Earnings per share for the current six-month period was $0.0096, compared to per share earnings
of $0.0003 for the corresponding six-month period a year ago.
Ken Culver, Vice President and Chief Financial officer, stated that ''UMC experienced another strong quarter well in excess of our plan
primarily due to revenues earned in the current quarter as a result of the unusually large volume of physician and hospital claims placed with
UMC during the first quarter of 1998. Although claim volume placed in the second quarter of 1998 was comparable to claim volume placed in
the second quarter of 1997, current second quarter revenues were favorably impacted by the carry-over affect of the unusually large first quarter 1998 claim placements. Current second quarter revenues were also favorably impacted by approximately $70 thousand due to
non-recurring advance funding and consulting activities. As expected, physician billing revenues declined 31 percent in the current second
quarter as compared to the first quarter of 1998. We estimate that physician billing revenues in the second half of 1998 will be approximately 55 percent of those revenues earned in the first six months of 1998. We estimate that total revenues for the remainder of 1998, excluding revenues from Allied Health Options, Inc., UMC's newly acquired subsidiary, will decrease by approximately 19 percent as compared to the first half of 1998 primarily due to the leveling off of physician claim volume placements and an anticipated decrease in consulting and advance funding activities.''
Based in Dallas, Texas, United Medicorp, Inc., provides medical insurance claims processing, accounts receivable management, and
collection agency services to healthcare providers nationwide. United Medicorp also provides receivables funding and interim staffing services to healthcare business offices.
Except for the historical information contained in this news release, the matters discussed may include forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that forward-looking statements include the intent, belief, or current expectations of the Company and members of its senior management team, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, the ability to retain the two major customer contracts upon which the current earnings of UMC and UMY are primarily
dependent, the efficiency of the Company's billing and accounts receivable management services operations, continued availability of credit on terms and conditions acceptable to the Company, continued services of existing key employees and Directors, availability of qualified new employees to staff the Company's operations, on-going management initiatives designed to reduce costs and enhance efficiencies, prospectivechanges in laws, regulations, or policies affecting the healthcare industry and or operations of the Company, and Year 2000 compliance of the Company's and significant third parties' computer systems. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
SOURCE: United Medicorp, Inc. |
