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Ben R. Leedle, Jr., president and chief executive officer of Healthways, Inc. (NASDAQ: HWAY), today announced financial results for the third quarter ended September 30, 2012. Total revenues were $166.6 million for the quarter compared with $176.2 million for the third quarter of 2011. Net income for the third quarter of 2012 was $5.0 million, or $0.15 per diluted share, compared with $9.5 million, or $0.28 per diluted share, for the third quarter of 2011.
Leedle commented, “We are pleased by our third-quarter results. Our results exceeded our expectations as we benefited from earlier than expected recognition of performance-based fees, which helped to partially offset the impact of the continued wind-down of the Cigna contract. For the third quarter, the Cigna wind-down resulted in comparable-quarter and sequential-quarter declines in revenue from Cigna of $19 million and $5 million, respectively. Excluding the effect of this wind-down, revenues for the third quarter of 2012 increased 6% from the third quarter of 2011 (see pages 8 and 9 for a reconciliation of GAAP and non-GAAP measures).
COMPARISON OF COMPONENTS OF NET INCOME PER DILUTED SHARE
Three Months Ended
Nine Months Ended
Net income per diluted share
(1) Figures may not add due to rounding.
Strong Business Development Momentum Drives New, Expanded and Extended Contracts
“We are also very pleased with our continued strong business development momentum during the second half of 2012,” Leedle noted. “The third quarter was one of our most successful contracting periods ever, with 30 signed contracts: 12 were with new customers, eight were expanded and extended, and 10 more were extended. Further, our business development momentum is continuing in the fourth quarter, with an additional eight contracts already executed and more signed contracts expected before year end.