United American Healthcare Corporation (Nasdaq: UAHC) today announced financial results for the Company's fiscal fourth quarter and full year ended June 30, 2009.
Revenues for the fourth quarter were $3.3 million, down $3.2 million, or 49 percent, compared with revenues of $6.4 million for the fourth quarter of the prior fiscal year. The decline was primarily the result of the complete transfer of TennCare enrollees served by the Company's subsidiary, UAHC Health Plan of Tennessee (UAHC-TN), to other managed care organizations on November 1, 2008, and the discontinuance of UAHC-TN's managed care services as a TennCare contractor.
Total expenses increased $1.1 million, or 16 percent, to $7.9 million in the fiscal 2009 fourth quarter, compared with $6.8 million in the prior fiscal year's fourth quarter. The expenses for the quarter included increased legal and related settlement expenses, which more than offset reductions in marketing, general and administrative expenses. For the fourth quarter of fiscal 2009, the Company reported a net loss of $4.5 million, or ($0.53) per basic share, compared with a net loss of $0.6 million, or ($0.08) per basic share, in the comparable quarter a year ago. The loss in the most recent quarter was primarily a result of the loss of TennCare revenue, and the increase in legal expenses and settlement costs associated with recent litigation.
"As we move beyond the expiration of the TennCare contract and wind down the CMS Medicare business, our focus will remain on reducing costs and conserving our resources as we evaluate strategic alternatives for the Company," said William C. Brooks, President and CEO of United American Healthcare. "Although our review has taken more time than anticipated, we will continue these efforts as we work to identify the most appropriate strategy for the benefit of our shareholders."