ALTA Health Strategies Inc. reported net earnings increased 130 percent in 1990 to a record $3.96 million or 54 cents per share, up from $1.722 million or 24 cents per share in 1989.
Net earnings for the fourth quarter increased 189 percent to $1.08 million or 15 cents per share, up from $375,000 or 5 cents per share for the last quarter of 1989.Revenues for 1990 increased 16 percent to a record $131 million, compared to $112.75 million for the previous year.
The company said it raised $15.16 million in its recent initial public offering. A spokesman said the proceeds were used primarily to reduce indebtedness. He said future net earnings will therefore benefit from lower interest expense.
"In 1990, ALTA generated the highest revenue and earnings in its history while making significant investments in our integrated claims administration, utilization review and preferred provider services," said W. Terry Nofsinger, president and chief executive officer.
"We are pleased with our success in achieving our strategic operational and financial goals in 1990 and feel that our investments position us to continue our growth in 1991 and beyond. As health-care costs continue to escalate, we see an increasing demand for our integrated managed care services. We are enthusiastic and excited by the company's prospects for 1991."
ALTA Health Strategies Inc. is a managed health care company providing integrated claims administration, utilization review and other services designed to control employer health care costs. The company's primary markets are employers with self-funded or insured health care benefit plans who are seeking managed health care alternatives.