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On May 5, 2009,
Catalyst Health Solutions
reported that its Q1 FY09 earnings increased 19.1%, driven by strong revenue growth. Net income increased to $13.82 million or $0.32 per share from $11.60 million or $0.27 per share in the same quarter of the previous year. The latest quarterly earnings matched the consensus estimate of $0.32 per share.
Total revenue (excluding member co-payments) grew 19.5% to $703.27 million from $588.64 million a year ago. Direct expenses spiked 18.8% to $662.14 million from $557.45 million. Selling, general, and administrative expenses increased 33.9% to $19.32 million from $14.43 million due to additional employees, facility and vendor costs to implement and serve new clients, and recent acquisitions. Total operating expenses climbed 19.2% to $681.46 million from $571.88 million. Operating income advanced 30.1% to $21.81 million from $16.76 million in the prior year's quarter.
Total claims processed increased 7.3% to 13.77 million from 12.84 million for the same period in 2008, helped by the addition of new clients. Retail prescriptions increased to 13.27 million from 12.44 in Q1 FY08. Total mail-order prescriptions rose to 507,000 from 402,000 a year ago. Moreover, Catalyst Rx, the pharmacy benefit management subsidiary of Catalyst Health Solutions, extended its PBM contract for one-year with Mississippi's State and School Employees Health Insurance Management Board.
Looking forward to FY09, CHSI reaffirmed its revenue guidance of $3.00 billion and earnings between $1.35 per share and $1.45 per share.