HMS first quarter revenue increases 27% to $82.5 million

HMS today announced financial results for its first quarter ended March 31, 2011.

For the first quarter of 2011 revenue increased 27% to $82.5 million, compared with $65.0 million for the same period a year ago. Net income for the quarter was $9.8 million or $0.34 per fully diluted share compared to net income of $7.6 million or $0.27 per fully diluted share for the same period a year ago.

"We are pleased to be starting off the year with a strong first quarter, and we believe our sales pipeline bodes well for 2011 and beyond" said Bill Lucia, Chief Executive Officer of HMS. "In our core business we were awarded significant contracts in both our Government and Managed Care markets, entering new states and adding more than two million Medicaid lives to our portfolio."

Lucia added, "The demand for our services is increasing as states begin to early adopt elements of the Affordable Care Act in advance of 2014 through a wide range of initiatives that include expanded Medicaid eligibility and implementation of insurance exchanges. Reform is also resulting in a faster-than-anticipated shift in Medicaid lives from fee for service to managed care, and we're prepared to absorb those lives."

"We're particularly excited about our expanding footprint in the program integrity arena, where we've been named a Medicaid Recovery Audit Contractor (RAC) in eight states. A number of our existing state clients have obtained permission from the Center for Medicare & Medicaid Services (CMS) to use our current contractual relationship to meet the new RAC requirement. Given the breadth of our Medicaid presence and the people, process and technology we bring to the programs, we're confident that states will continue to leverage the value HMS generates on their behalf."

"Given our history of performance and the outlook for our company, we are confident in our ability to continue to create significant value for our shareholders. With this in mind, we are pleased to announce that our Board of Directors has approved a three-for-one stock split, subject to shareholder approval of a proposed amendment to our Certificate of Incorporation to increase the number of shares of common stock that we are authorized to issue. We will be seeking shareholder approval of the proposed amendment at our 2011 Annual Meeting of Shareholders in July."