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This call is being webcast. Shortly after it ends, see version on the Investor Relations page of the company's website at www.triplesmanagement.com. If you don't have a copy of today's news release already, you can find one on the company's website or you can call my mobile phone at 312-543-6708 and I’ll make sure you get one immediately and I will also make sure that you're on our distribution list going forward.With that, I’d like to turn the call over to Ramon. Ramon, please go ahead. Ramon Ruiz-Comas Thank you, Kathy. I would like to welcome everyone to our call today. Let me begin today with reviewing a strong first quarter highlights. Then I will take a few moments to provide our perspective on the newly enact health care reform legislation and its potential impact on our business, and that appears to be the forefront of everyone thought to see. Thereafter, I will turn the call over to Juan-Jose to take you through the details of the quarter. I’m very pleased with the quarter and believe it follows well for the full-year. We post solid revenue on membership growth in our Managed Care segment. We’re especially pleased with the membership increase in our commercial business, which was up 24.5% and we are extremely proud of our nearly 98% retention rate and recording our strong marketplace. Premiums for the first quarter rose to $494.2 million, up 9.5% compared with the prior year. The increase resulted primarily from the higher commercial membership reflecting organic growth on the La Cruz Azul acquisition as well as higher premium rate across all business. Adjusted net income for the quarter rose to $10.8 million or $0.37 per diluted share, compared with $8.2 million or $0.27 per diluted share for the same period last year. The balance sheet remains healthy, our capital is above required on a statutory basis and our cash flow continues to be excellent.
On the cost front, we achieved a MLR of 90% in the Managed Care segment, a year-over-year improvement of 150 basis points, which is inline with our internal expectations. Effective March 1, 2010, we introduced new premium for a local government employees, group contracts, which is taking to consideration last year’s experience. The full effect of the reprising will be realized in our second quarter. Our effort to manage pharmacy benefit is also resulting intangible savings by substituting OTC for prescription drugs and increasing generic usage among seven of all our initiative.During the year, we will start reviewing the credentialing of (inaudible) facility and expect to not only scale back our network, but also negotiate lower fees. Lastly, I believe that we are [literally] incorporated the effect of swine flu in our 2010 pricing, not only we have seen leader impact from swine flu so far this year. [Career] reports are underway to restructure our medical division, starting to improve our wellness and disease program, establishing a vocational and media campaign and constantly seeking ways to improve the quality of care for all our members, while most generally keeping cost under the control. I am also please to report that our IT system integration is on schedule. Recently, we went live with our first rollout, which includes our all management team and employee with the no major implementation or operational issues. Our next phase will begin this summer when we expect our migration to include our rollout to small accounts. We continue to expect that the new IT system should be fully implemented by the end of 2011. Let me now switch gears to other healthcare reform. As you know, President Obama signed a bill into law in March. However, there is still a significant lack of clarity of many of the legislation components or more specifically the rules and regulations that will be rolled out in the next two years. Because our business is concentrating Puerto Rico, we believe that many of the change will not affect growth in the same way as our US peers over the affirmation timeframe. Read the rest of this transcript for free on seekingalpha.com