WEB NEWS Research
Pacific Health Care (OOTC:PFHO) ($4.80, $15.3M market cap), a specialty workers' compensation managed care company, announced Q4 2018 results:
Sales of $1.8 million vs $1.7 million in the prior year
EPS of $0.09 vs $0.08 in the prior year
Full year 2018 sales of $6.7 million vs $6.5 million in the prior year
EPS of $0.42 vs $0.30 in the prior year
The press release offers no commentary from management (which is the norm). We have had a long history with PFHO and added the stock to our Mock Takeover Portfolio in May 2018. To see our full history of coverage on PFHO, please go here .
Comments & Business Outlook
NEWPORT BEACH, California, May 29, 2015 (GLOBE NEWSWIRE ) -- Pacific Health Care Organization, Inc., (the "Company") (OTCQB: PFHO), a specialty workers' compensation managed care company providing a range of services primarily to California employers and claims administrators announced today that its board of directors has voted to extend the duration of the Company's existing share repurchase program an additional six months, through November 30, 2015. This is the only change to the share repurchase program. The Company has correspondingly extended its 10b5-1 plan with Alpine Securities Corporation.
Since inception of the share repurchase program in December 2014, the Company has repurchased 4,710 shares, or approximately 6 percent of the outstanding common stock of the Company, for $169,118. The Company has $330,882 left in the plan for future purchases of common stock under the current authorization.
Under the share repurchase program the Company is authorized to repurchase outstanding shares in open market or privately negotiated transactions. The share repurchase program may be modified, suspended or discontinued at any time without prior notice.
Comments & Business Outlook
Reported Q1 2015 Results
The Company reported total revenue of $2,369,098 for the firstquarter ended March 31, 2015 as compared with $2,028,669 of totalrevenue for the quarter ended March 31, 2014.
The Company reported net income of $508,241 or $0.64 per basicand fully diluted share for the quarter ended March 31, 2015 ascompared to net income of $446,561 or $0.56 per basic and fullydiluted share for the first quarter ended March 31, 2014.
Comments & Business Outlook
Notable Share Transactions
NEWPORT BEACH, California, Nov. 26, 2014 (GLOBE NEWSWIRE ) -- Pacific Health Care Organization, Inc., (the "Company") (OTCQB: PFHO), a specialty workers' compensation managed care company providing a range of services primarily to California employers and claims administrators, today announced that its board of directors has approved the repurchase of up to $500,000 of the Company's outstanding common stock. The Company expects the shares of common stock will be repurchased from time to time in either open market or private transactions in accordance with applicable insider trading and other securities laws and regulations at then-prevailing market prices.
The Company is repurchasing shares principally to offset potential dilution to shareholders in connection with possible future equity security grants to Company employees and consultants it wishes to reward for their performance or to provide additional incentive for future employee performance, as well as to enhance the Company's ability to attract and retain employees in the future through grants of equity interests in the Company. The repurchase program will be funded primarily from existing cash balances and working capital.
On November 25, 2014, the Company adopted a 10b5-1 plan (the "Plan") with Alpine Securities Corporation, under which the Company may repurchase its shares at times when the Company might otherwise be precluded from doing so under insider trading laws. This Plan has been established pursuant to, and as part of, the Company's share repurchase program. The timing and extent of repurchases under the Rule 10b5-1 plan are subject to Securities and Exchange Commission regulations as well as certain price, market volume and timing constraints specified in the Plan. The term of the Plan commences on December 1, 2014 and is expected to continue for a period of six months, although the Plan may be modified, suspended or terminated at any time without prior notice.
The Company also announced today that its board of directors approved 12% pay increases for certain company employees and a consultant including its Chief Executive Officer and Chief Financial Officer. These pay increases will become effective January 1, 2015.
Comments & Business Outlook
Pacific Health Care Organization, Inc. Condensed Consolidated Statements of Operations
(Unaudited)
For three months ended
September 30,
For nine months ended
September 30,
2014
2013
2014
2013
Revenues:
Depreciation and amortization
General and administrative
)
Total other income (expense)
)
Basic and fully diluted earnings per share:
Earnings per share amount
Weighted average common shares outstanding
Comments & Business Outlook
Second Quarter 2014 Results
Pacific Health Care Organization, Inc. Condensed Consolidated Statements of Operations
(Unaudited)
For three months ended
June 30,
For six months ended
June 30,
2014
2013
2014
2013
Revenues:
Depreciation and amortization
General and administrative
Total other income (expense)
Basic and fully diluted earnings per share:
Earnings per share amount
Weighted average common shares outstanding
Comments & Business Outlook
First Quarter 2014 Results
Total revenues for the first quarter 2014 were $2,028,669, compared to $1,384,110 for the same period in 2013, an increase of $644,559 or 47 percent.
Net income was $446,561, or $0.56 per basic and fully diluted share for the first quarter ended March 31, 2014 compared to net income of $203,885, or $0.25 per basic and fully diluted share for the same quarter last year.
Comments & Business Outlook
Fourth Quarter 2013 Results
The company reported revenue of $1.9 million compared to $1.3 million for the same quarter 2012.
The company reported EPS of $0.51 compared to $0.23 for the same quarter 2012.
Comments & Business Outlook
Third Quarter 2013 Results
Total revenues for the third quarter 2013 were $1,703,570, compared to $1,326,801 for the same period in 2012, an increase of $376,769 or 28 percent.
The Company reported net income of $333,042, or $0.42 per basic and fully diluted share for the third quarter ended September 30, 2013 compared to net income of $ 186,573, or $0.23 per basic and fully diluted share, for the third quarter ended September 30, 2012.
Research
11/13/2013 Alert Update
GeoBargain on the Radar PFHO engages in managing and administering health care organizations and managed provider networks in the state of California. Shares of PFHO hit a new 52 week high of $17.70 in today's trading session. We have mentioned PFHO in a number of our premium emails. We first made note of the company on our Tier 1 Pink Sheet Screen on 3/19/12 when the stock was trading at $1.81, and added to our open long positions on 5/16/2012 when the stock was trading at $3.77. We are still long this name. PFHO is another multi-bagger for GeoInvesting, at current prices near a 9-bagger.
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Comments & Business Outlook
Second Quarter 2013 Results
The Company reported net income of $288,543, or $0.36 per basic and fully diluted share for the second quarter ended June 30, 2013 compared to net income of $186,382, or $0.23 per basic and fully diluted share, for the second quarter ended June 30, 2012.
Total revenues for the second quarter 2013 were $1,592,608, compared to $1,123,911 for the same period in 2012, an increase of $468,597 or 42 percent.
"We are encouraged by the effects of our strategic planning and believe that we are now beginning to reap the benefits of expanding our marketing efforts in the form of solid growth in revenues. With our achievements in our second quarter we should yield satisfactory results in the remaining quarters of the year. Of course, we cannot be certain that our growth rate will continue at the current rate and we continue to simplify and align our operations to better adapt to market fluctuations," commented Tom Kubota, chief executive officer.
Comments & Business Outlook
(Unaudited)
For three months ended
March 31,
2013
2012
Revenues:
HCO fees
$ 246,689 $ 198,257
MPN fees
205,741 183,036
Other
931,680 684,164
Total revenues
1,384,110 1,065,457
Expenses:
Depreciation
10,808 5,793
Consulting fees
99,481 95,816
Salaries & wages
500,336 425,594
Professional fees
75,778 49,088
Insurance
58,180 45,737
Outsource service fees
139,257 64,051
Data maintenance
27,737 6,831
General & administrative
128,973 105,773
Total expenses
1,040,550 798,683
Income from operations
343,560 266,774
Other income (expense)
Interest income
459 190
Rental income
- 750
Interest (expense)
(723 ) (230 )
Total other income (expense)
(264 ) 710
Income before taxes
343,296 267,484
Income tax provision
139,411 111,113
Net income
$ 203,885 $ 156,371
Basic and fully diluted earnings per share:
Earnings per share amount
$ .25 $ .19
Weighted average common shares outstanding
802,424 802,424
Comments & Business Outlook
(Unaudited)
For three months ended
June 30,
For six months ended
June 30,
2012
2011
2012
2011
Revenues:
Depreciation & amortization
Loss on disposal of assets
Total other income (expense)
Basic and fully diluted earnings per share:
Earnings per share amount
Weighted average common shares outstanding
Revenue
The total number of employee enrollees increased 27% during three months ended June 30, 2012 compared to June 30, 2011 Total revenues increased 81% to $1,123,911. As of June 30, 2012, we had approximately 403,000 total enrollees. Enrollment consisted of approximately 64,000 HCO enrollees and 339,000 MPN enrollees. By comparison as of June 30, 2011 we had approximately 318,000 total enrollees, including approximately 49,300 HCO enrollees and approximately 268,700 MPN enrollees.
The net increase in HCO and MPN enrollees of approximately 14,700 and 70,300, respectively from June 30, 2011 to June 30, 2012, was mainly the result of increased enrollment realized by our existing customers and the addition of four new HCO customers and three new MPN customers. Even though HCO enrollment increased approximately 22% year-on-year, compared to the quarter ended March 31, 2012, HCO enrollment decreased by 1,000 enrollees. By comparison, MPN enrollment increased by 16,000 enrollees quarter-on-quarter. While the economic slowdown impacted our revenue throughout fiscal 2011, we anticipate revenue will continue to be moderately higher throughout fiscal 2012.
In the current economic environment, we anticipate businesses will continue to seek ways to reduce their workers’ compensation program costs. As a result, we expect to experience client turnover, in the form of existing employer clients seeking to terminate or renegotiate the scope and terms of existing services. We also anticipate our market may shrink as some employers seek to reduce their costs by managing their workers’ compensation care services in-house. In response to the changing market, we have sought to expand our marketing efforts for some of the additional services we now offer our clients. As a result, during the quarter ended June 30, 2012, we realized increases in our MBR and UR services fee revenues.
Comments & Business Outlook
Revenues
HCO fees
$ 770,303 $ 607,450
MPN fees 627,341 605,238
Other 1,434,149 402,971
Total revenues
2,831,793 1,615,659
Expenses
Depreciation
13,595 5,691
Consulting fees
358,996 273,684
Salaries & wages
1,132,351 692,337
Professional fees
212,572 190,519
Insurance
151,227 105,495
Outsource service fees
190,917 24,302
Data maintenance
57,445 75,325
General & administrative
392,407 329,535
Total expenses
2,509,510 1,696,888
Income (loss) from operations
322,283 (81,229 )
Other income (expense)
Loss on disposal of assets
(1,564 ) -
Interest income
957 1,712
Rental income
250 -
Interest (expense)
(1,192 ) (1,606 )
Total other income (expense)
(1,549 ) 106
Income (loss) before income tax provision
320,734 (81,123 )
Income tax provision (benefit)
122,499 (21,190 )
Net income (loss)
$ 198,235 $ (59,933 )
Basic and fully diluted earnings per share:
Earnings per share amount
$ .25 $ (0.08 )
Weighted average common shares outstanding
802,424 802,424
GeoTeam ® Note : 2011 vs. 2010 Fourth Quarter EPS: $0.07 vs. $0.05
The total number of employee enrollees increased 29% during 2011 compared to 2010. Total revenues during the same period increased 75% to $2,831,793. As of December 31, 2011, we had approximately 370,000 total enrollees. Enrollment consisted of approximately 65,000 HCO enrollees and 305,000 MPN enrollees. By comparison as of December 31, 2010 we had approximately 286,000 enrollees, including approximately 46,000 HCO enrollees and approximately 240,000 MPN enrollees. The net increase in HCO and MPN enrollees of approximately 19,000 and 65,000, respectively, was mainly the result of adding three HCO and three MPN major customers during 2011. Although the economic slowdown impacted us in 2010 and 2011, there are signs that our revenues during 2012 will continue to grow. Our business generally has a long sales cycle, typically in excess of one year. Once we have established a customer relationship, our revenue adjusts with the growth or retraction of our customers’ managed headcount volume. New customers are added throughout the year and other customers terminate from the program for a variety of reasons. In the current economic environment, we anticipate businesses will continue to seek ways to further reduce their workers’ compensation program costs . Even though the HCO and MPN programs have been shown to create a favorable return on investment for employers (as our services are a significant component of the employers’ loss prevention programs), it is always a challenge to justify our fees to our customers , especially in this economy. In order to convince employers that HCO and/or MPN fees are well-spent, we must continue to provide a framework for expeditiously returning employees back to work at the lowest cost. As a result, we may experience some client turnover in the form of existing employer clients seeking to terminate or renegotiate the scope and terms of existing services. We also anticipate our market may shrink as some employers seek to reduce their costs by managing their workers’ compensation care services in-house. Total revenues increased 75% during 2011 to $2,831,793. When compared to 2010, revenues for HCO, MPN and other revenues increased by 27%, 4% and 256%, respectively. The primary reason for the growth in other revenues category was the increased revenues in generated from MBR, and UR revenues resulting from MMC taking over the responsibilities of overseeing and managing the utilization review and medical bill review business previously managed by Medex.
