Aveta Reports 2006 Second Quarter Results

Membership Grows 31 Percent; Second Quarter Earnings of $0.19 Per Share


NEW YORK, Aug. 17, 2006 (PRIMEZONE) -- Aveta Inc., a company that is a leader in Medicare Advantage and in addressing the healthcare needs of the chronically ill, reported today that revenues for the second quarter of 2006 totaled $354.0 million, an increase of 45.9% over pro forma revenues of $242.7 million for the second quarter of 2005. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 5.1% to a record $38.5 million in Q2 2006, compared to pro forma EBITDA of $36.7 million in Q2 2005. Adjusted second quarter earnings were $0.21 per share excluding stock option expense. Net income for the quarter was $15.1 million or $0.19 per share which includes $0.02 per share for stock option expense. Aveta's membership base of enrolled Medicare beneficiaries grew by more than 11,000 during the second quarter of 2006 to a total of 154,000, up 31% from the corresponding pro forma figure for the second quarter of 2005.

For the first six months of 2006, revenues totaled $647.7 million, up 44.6% from pro forma revenues of $447.8 million for the first six months of 2005. Year-to-date 2006 EBITDA totaled $69.8 million, an increase of 27.5% over pro forma EBITDA of $54.8 million for the first six months of 2005. Adjusted earnings for the first six months of 2006 were $0.39 per share, excluding stock option expenses. Earnings per share including stock option expense totaled $0.35 on net income of $27.3 million for the first six months of 2006.

Premium revenues from the company's core managed care businesses, which focus on meeting the healthcare needs of seniors and the chronically ill, totaled $344.5 million in the second quarter of 2006, up 46.8% over the corresponding pro forma figure for the second quarter in 2005. Premium revenues accounted for more than 97% of the company's total revenues. For the first six months of 2006, premium revenues reached $629.4 million, an increase of 45.7% from pro forma premium revenues of $432.1 million for the corresponding period of 2005.

Medical costs totaled $272.4 million for the quarter, representing a medical loss ratio of 79.1%, compared to a pro forma medical loss ratio of 77.7% in the second quarter of 2005. Year-to-date, the company's medical loss ratio stands at 79.3% for the first six months of 2006, compared to a pro forma medical loss ratio of 80.3% for the first six months of 2005.

Administrative expenses were $43.0 million in the second quarter of 2006, representing an administrative expense ratio of 12.2%, compared to a pro forma administrative expense ratio of 9.7% in the second quarter of 2005. For the first six months of 2006, Aveta's administrative expense ratio was 12.0%, compared to 10.3% for the first six months of 2005. The increase in administrative expenses reflects higher sales and marketing costs for membership growth and costs associated with corporate infrastructure development following Aveta's acquisition of its operating companies in Puerto Rico, California and Illinois.

"Aveta's strong growth in membership and revenues reflects our continued focus on better meeting the healthcare needs of seniors and the chronically ill," said Daniel E. Straus, Chief Executive Officer of Aveta. "Aveta will continue to leverage its expertise in community based medical management, which integrates healthcare prevention and treatment at the local level, to strengthen our position in the Medicare Advantage markets we serve."

"Our operating companies in Puerto Rico, California and Illinois all posted solid gains during the second quarter," continued Mr. Straus. "Aveta's leadership position in Puerto Rico, where our MMM subsidiary was the pioneer in introducing Medicare Advantage to the island, will be further strengthened by the recent closing of our acquisition of PMC Medicare Choice. PMC Medicare Choice will add some 70,000 Medicare beneficiaries to Aveta's senior enrollment and will further enhance our ability to deliver quality care to seniors there."

About Aveta Inc.

Aveta is one of the largest companies focusing on Medicare Advantage and a leader in addressing the unique healthcare needs of the chronically ill. Caring for more than 220,000 Medicare beneficiaries, Aveta is the 3rd largest for-profit Medicare Advantage enterprise, and operates more Chronic Special Needs Plans (SNPs) than any other company. Aveta has a successful track record of managing care for seniors achieved through its core competency of community medical management. Aveta is headquartered in Fort Lee, New Jersey and currently has operating subsidiaries in Southern California, Puerto Rico, and Illinois.


                       AVETA INC. AND SUBSIDIARIES
                    Condensed Statements of Income (a)
                               Unaudited

 ($ in 000s)               Quarter Ended June 30,     YTD June 30,
                              2006       2005       2006       2005
                             Actual    Pro Forma   Actual    Pro Forma
                            --------   --------   --------   --------
 Premium revenue            $344,460   $234,569   $629,391   $432,066
 Management fees & other       7,193      6,933     14,336     13,837
 Investment income             2,371      1,192      3,985      1,909
                            --------   --------   --------   --------
 Total Revenue              $354,024   $242,694   $647,712   $447,812
                            --------   --------   --------   --------
 Medical costs               272,366    182,295    499,317    346,846
 Selling, general and
  administrative              43,032     23,625     77,934     46,258
 Depreciation &
  amortization                 4,783      3,760      9,286      7,760
                            --------   --------   --------   --------
 Total Operating Expenses   $320,181   $209,680   $586,537   $400,864
                            --------   --------   --------   --------
 Operating income             33,843     33,014     61,175     46,948
 Interest expense              5,983      3,850     12,251      7,213
 Stock option and related
  expense                      2,311        314      4,749        628
 Minority interests              459        590      1,021        981
                            --------   --------   --------   --------
 Pre-tax Income             $ 25,090   $ 28,260   $ 43,154   $ 38,126
 Taxes                        10,024     15,156     15,828     19,520
                            --------   --------   --------   --------
 Net income                 $ 15,066   $ 13,104   $ 27,326   $ 18,606
                            --------   --------   --------   --------

 Other Operating and
  Financial Information:
 Membership  (in 000s)
  Senior                       153.5      117.1      153.5      117.1
  Commercial                   200.1      208.1      200.1      208.1
 EBITDA (b)                 $ 38,534   $ 36,672   $ 69,823   $ 54,779
 Medical Loss Ratio             79.1%      77.7%      79.3%      80.3%
 Administrative Cost Ratio      12.2%       9.7%      12.0%      10.3%
 Total Cash and
  Investments               $259,494   $119,874   $259,494   $119,874
 Total Assets               $688,911   $389,054   $688,911   $389,054
 Total Debt                 $299,250   $148,279   $299,250   $148,279
 Shareholders' Equity       $ 68,151   $ 98,342   $ 68,151   $ 98,342
 Earnings per share-
  Diluted                   $   0.19        N/A   $   0.35        N/A
 Adjusted Earnings per
  share-Diluted (c)         $   0.21        N/A   $   0.39        N/A
 Weighted Average Common
  Shares Outstanding-
  Diluted                     78,062        N/A     78,008        N/A

 Note a: The financial information for 2005 was prepared on a pro 
 forma basis as if Aveta Inc. owned all of its operating subsidiaries 
 for the entire year of 2005. NAMM California and NAMM Illinois were 
 acquired by Aveta in August 2005.

 Note b: EBITDA reflects net income with the following items added 
 back: interest expense, taxes, depreciation and amortization, 
 noncash stock options and related charges and restructuring charges 
 included in selling, general and administrative expenses.

 Note c: 2006 Adjusted Earnings per Share is prior to noncash stock 
 option related expense of $2,311 pre-tax, or $1,387 after tax for 
 the quarter ended June 30, 2006 and expense of $4,749 pre-tax, or 
 $ 2,849 after tax for the YTD ended June 30, 2006


                     AVETA, INC. AND SUBSIDIARIES
    (Formerly known as Aveta Holdings, LLC and Green Field, II, LLC)
                     CONSOLIDATED BALANCE SHEETS
              As of June 30, 2006 and December 31, 2005

                           (In thousands)


                                            June 30,     Dec. 31,
                                             2006         2005
                                           ---------    ---------
                                           Unaudited

 Assets
 Current assets:
  Cash and cash equivalents                $ 181,887    $  67,135
  Investments                                 77,607       38,930
                                           ---------    ---------
  Total cash and investments                 259,494      106,065
 Premiums receivable, net                     82,773       48,271
 Deferred income taxes                        10,038        2,241
 Prepaid expenses and other current assets     6,781        4,760
 Prepaid taxes                                 6,108           --
                                           ---------    ---------
  Total current assets                     $ 365,194    $ 161,337
 Property and equipment, net                   8,902        8,093
 Goodwill                                    210,781      218,955
 Other intangible assets, net                 92,158       99,483
 Debt issue costs, net                         8,186        8,734
 Other assets                                  3,690        2,166
                                           ---------    ---------
  Total assets                             $ 688,911    $ 498,768
                                           =========    =========
 Liabilities and Stockholders' Equity and 
  Members' Equity
 Current liabilities:
  Medical claims liabilities               $ 116,433    $  91,559
  Accounts payable and accrued expenses       36,425       26,626
  Current maturities of long-term debt         3,100        4,200
  Income taxes payable                        20,131       11,403
  Due to Aveta Health, Inc.                    4,256        4,315
  Other current liabilities                   25,746           --
  Unearned premiums                           82,919           --
                                           ---------    ---------
   Total current liabilities               $ 289,010    $ 138,103
 Long-term debt, excluding current
  installments                               296,150      282,800
 Deferred income taxes                        34,747       38,096
 Minority interests                              853        1,548
                                           ---------    ---------
  Total liabilities                        $ 620,760    $ 460,547
                                           ---------    ---------
 Stockholders' equity and members' equity:
  Preferred stock, par value $0.001 per 
   share, 5,000,000 shares authorized; 
   -0- shares issued and outstanding              --           --
  Common Stock, par value $0.001 per
   share, 250,000,000 shares authorized, 
   91,779,775 and 88,000,000 shares issued 
   and outstanding at June 30, 2006 and
   December 31, 2005 respectively                 92           88
  Additional paid in capital                 217,226      166,712
  Retained earnings                           26,443         (885)
  Accumulated other comprehensive income      (1,122)         (56)
  Less treasury stock at cost, 13,750,000 
   and 10,000,000 shares at June 30, 2006 
   and December 31, 2005, respectively      (174,488)    (126,900)
  Unearned compensation                           --         (738)
                                           ---------    ---------
  Total stockholders' equity and members' 
   equity (deficit)                        $  68,151    $  38,221
                                           ---------    ---------
  Total liabilities, minority interest,
   and stockholders' equity and members' 
   equity                                  $ 688,911    $ 498,768
                                           =========    =========

            

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