Apr 26 2013
HMS Holdings Corp. (NASDAQ: HMSY) today announced financial results for its first quarter ended March 31, 2013 and provided revised 2013 guidance.
“As we anticipated, our Medicaid coordination of benefits business improved in the first quarter of the year”
For the first quarter of 2013, HMS reported revenue of $116.6 million, an increase of 8.7% compared to revenue of $107.3 million for the same period a year ago. Net income for the quarter was $7.0 million or $0.08 per fully diluted share compared to net income of $7.0 million or $0.08 per fully diluted share for the same period a year ago. Adjusted earnings per share ("EPS") decreased 6.3% year over year to $0.15.
"As we anticipated, our Medicaid coordination of benefits business improved in the first quarter of the year," remarked Bill Lucia, Chief Executive Officer of HMS. "We remain confident in our opportunities for expanded business within the healthcare reform environment, particularly as it relates to Medicaid program growth in 2014 and beyond. At the same time, we face a number of near-term uncertainties, the most significant of which relate to the extended delay in the Medicare Coordination of Benefits award resolution and the reprocurement of the Medicare RAC contract, together with potential changes to that contract's structure. While either of these federal procurements may resolve in our favor, we do not have clarity around the timing or outcome of the resolutions. The financial impact on HMS of these two large procurements will ultimately be determined by CMS timelines and contract transition strategy and may have the effect of shifting any associated revenues partly or wholly out of 2013," Lucia said.
Given this possibility, the Company is lowering 2013 guidance to cover a range of possible revenue and EPS outcomes. For the full year, revenue guidance is revised to $495.0-$525.0 million from $570.0 to $600.0 million, and fully diluted GAAP EPS is revised to $0.57-$0.63 from $0.63-$0.70. Adjusted EPS is revised to $0.89-$0.95 from $0.95-$1.02.
Q1 2013 Conference Call
HMS will report its first quarter 2013 financial and operating results at 9:00 a.m. ET on Friday, April 26, 2013. Individuals can access the webcast at http://investor.hms.com/events.cfm or listen to the call at (877) 303-7208. International participants can listen to the call at (224) 357-2389.
The webcast will be archived on the website at http://investor.hms.com/events.cfm. Individuals can listen to the replay at (855) 859-2056. International participants can listen to the replay at (404) 537-3406. The passcode is 31766466. The replay will be available at Noon ET on April 26 through 11:59 p.m. ET on May 2, 2013.
The HMS Form 10-Q for the quarter ended March 31, 2013 will be filed and available on our website on http://investor.hms.com or about May 10, 2013, and will contain additional information about our results of operations for the fiscal year-to-date. This press release and the interim financial statements herein will be available at http://investor.hms.com for at least a 12-month period. Shareholders and interested investors are welcome to contact Investor Relations at 212-857-5986.
HMS Holdings Corp. (NASDAQ: HMSY), through its subsidiaries, is the nation's leader in coordination of benefits and program integrity services for healthcare payers. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 120 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the company's services, clients recovered over $3.2 billion in 2012, and saved billions more through the prevention of erroneous payments.
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