HMS reports financial results for fourth-quarter and full-year ended December 31, 2009

HMS (NASDAQ: HMSY) today announced financial results for its fourth quarter and full year ended December 31, 2009.

“We expanded our product portfolio, entered new markets and completed two acquisitions to further diversify our business. The high levels of expenditure growth in Medicaid and the demand for healthcare cost containment programs continue to drive our growth.”

Revenue for the fourth quarter of 2009 increased 26.5% to $66.3 million, compared with $52.4 million for the same period a year ago. Net income increased 32.1% to $9.3 million or $0.33 per diluted common share for the fourth quarter of 2009, compared to net income of $7.1 million or $0.26 per diluted common share during the fourth quarter of the prior year.

For the full year 2009, the Company reported revenue of $229.2 million, a 24.3% increase over 2008 revenue of $184.5 million. Also for the full year, the Company reported net income increased 40.6% to $30.0 million or $1.09 per diluted common share, versus net income of $21.4 million or $0.80 per diluted common share in the prior year. Earnings per diluted common share increased 27% and 36% for the fourth quarter and full year, respectively.

“HMS completed another strong quarter to close full year 2009 with record increases in revenue and earnings,” said Bill Lucia, CEO. “We expanded our product portfolio, entered new markets and completed two acquisitions to further diversify our business. The high levels of expenditure growth in Medicaid and the demand for healthcare cost containment programs continue to drive our growth.”