HMS fourth quarter revenues increase 31.4% to $87.2 million

HMS Holdings Corp. today announced financial results for its fourth quarter and full year ended December 31, 2010.

Revenue for the fourth quarter of 2010 increased 31.4% to $87.2 million, compared with $66.3 million for the same period a year ago. Net income increased 32.5% to $12.4 million or $0.43 per diluted common share for the fourth quarter of 2010, compared to net income of $9.3 million or $0.33 per diluted common share during the fourth quarter of the prior year.

For the full year 2010, the Company reported revenue of $302.9 million, a 32.1% increase over 2009 revenue of $229.2 million. Also for the full year, the Company reported net income increased 33.4% to $40.1 million or $1.41 per diluted common share, versus net income of $30.0 million or $1.09 per diluted common share in the prior year. Earnings per diluted common share increased 30.3% and 29.4% for the fourth quarter and full year, respectively.

"HMS continues on a trajectory of growth, with strong quarterly and full year results," said Bill Lucia, CEO. "We have a robust, growing core business, but we've also proven that we can add new products and enter new markets via product development and acquisition to further diversify our revenue and sustain our level of growth in both revenue and EPS."

"Healthcare reform provides HMS with many opportunities to help public and private healthcare payors to control costs, even in advance of 2014 when many of the regulations become effective," Lucia added. "The early adoption of new eligibility rules by states, the new procurements by states for Medicaid Recovery Audit Contractors, and recent activity around the development of healthcare exchanges all call out for HMS's expertise."