6705 Rockledge Dr., Suite 900
Bethesda, Md. 20817
301-581-0600
www.cvty.com
Founded: 1986
Revenue: $5.31 billion
Net income: $337.12 million
Earnings per share: $3.72
Dividend: NA
Stockholder equity: $1.21 billion
Auditor: Ernst & Young LLP
Stock: CVH (NYSE)
Assets: $2.34 billion
Market capitalization: $7.14 billion
52-week high: $72.59 (4/6/2005)
52-week low: $36.99 (10/19/2004)
CEO: Dale B. Wolf
President: Thomas P. McDonough
Employees: 10,280
Local employees: 217
DESCRIPTION: Coventry Health Care operates health maintenanceorganizations, preferred provider organizations and other health careplans, including Carelink Health Plans, Group Health Plan andHealthAmerica. At the end of 2004, Coventry's employer- andgovernment-funded health plans had 2.51 million members in 13 statesin the mid-Atlantic, Midwest, Southeast and Rocky Mountains.Coventry's target customers are small and medium-size employers.
DEVELOPMENTS: Coventry's president and chief executive of eightyears, Allen F. Wise, retired in September and was replaced byexecutive vice president and chief financial officer Dale B. Wolf.While some analysts speculated that Wolf would entertain sellingCoventry, the company has stayed on the buying end of transactions.
Coventry is betting that bulking up will give it more leverage indealing with vendors and keeping costs down, while offering moreoptions to members.
Last fall, Coventry agreed to pay $1.8 billion to acquire FirstHealth Group Corp. of Downers Grove, Ill., in a deal that wouldextend Coventry's reach to 50 states. First Health had a rough year.Its stock plunged in April 2004 after company officials, citingincreased competition, had to lower quarterly and full-year revenueand profit forecasts. The First Health acquisition, which closed inJanuary, was Coventry's fourth since 2002.
Health care mergers do not always produce the promised synergiesand cost savings, but Coventry has turned around troubled plans andkept costs down by centralizing administration.
For the 12 months ending Dec. 31, 2004, profit was $337 million,up from $250 million for 2003, and revenue was $5.31 billion, up from$4.54 billion.
7902 Westpark Dr.
McLean, Va. 22102
703-273-7500
www.sunriseseniorliving.com
Founded: 1981
Revenue: $1.46 billion
Net income: $50.69 million
Earnings per share: $2.24
Dividend: NA
Stockholder equity: $523.52 million
Auditor: Ernst & Young LLP
Stock: SRZ (NYSE)
Assets: $1.09 billion
Market capitalization: $1.01 billion
52-week high: $50.23 (4/6/2005)
52-week low: $30.00 (5/4/2004)
Chairman and CEO: Paul J. Klaassen
President: Thomas B. Newell
Employees: 35,000
Local employees: 4,200
DESCRIPTION: Sunrise Senior Living is the nation's biggest housingprovider for the elderly. It operates 380 communities with a totalcapacity of 43,000 residents in the United States, Canada, Germanyand Britain.
DEVELOPMENTS: Sunrise pushed to build facilities, with 33properties under construction in the United States and Europe, wherethe company hopes to capitalize on growing demand for assisted livingand dementia care centers.
At year's end, the company established a trust that will controlat least 24 properties in Canada. Called the Sunrise Senior LivingReal Estate Investment Trust, it entered into a 30-year contract withSunrise, which will manage the current properties and other units theREIT acquires over time.
The company agreed to pay $508 million in January 2005 to buymanagement interests in 19 senior living communities from FountainsContinuum of Care Inc. of Tucson. That deal will increase capacityand revenue under management by 10 percent when it closes by themiddle of the year, Treasurer Kenneth J. Abod said.
In November, a former caregiver at a Sunrise facility inAlexandria who fell asleep on the job was sentenced to 45 days injail after pleading guilty to a misdemeanor charge of neglecting anincapacitated resident, according to prosecutors. Police who answereda 911 call said they found a man lying on the floor calling for helpand another patient having trouble with a catheter. The company saidit fired the worker and another employee who did not show up for workthat day.
2 Bethesda Metro Center, Suite 1200
Bethesda, Md. 20814
301-986-0701
www.hanger.com
Founded: 1861
Revenue: $568.72 million
Loss: $23.39 million
Loss per share: $1.30
Dividend: NA
Stockholder equity: $152.02 million
Auditor: PricewaterhouseCoopers LLP
Stock: HGR (NYSE)
Assets: $703.31 million
Market capitalization: $129.74 million
52-week high: $18.89 (4/23/2004)
52-week low: $4.15 (8/13/2004)
Chairman and CEO: Ivan R. Sabel
President and COO: Thomas F. Kirk
Employees: 3,227
Local employees: 225
DESCRIPTION: Hanger Orthopedic is a network of more than 600medical offices in 44 states and the District that calls itself theworld's top provider of prosthetic patient-care services -- helpingpeople with artificial limbs and braces. Hanger has three businesses:caring for patients, distributing braces and prosthetic devices, andmaking the devices.
DEVELOPMENTS: Hanger executives had planned to spend 2004 focusedon acquisitions. Instead, in May, they watched the company's stockplummet after a Hanger employee in a West Hempstead, N.Y., practicewent on television saying she witnessed co-workers filing fraudulentclaims with insurance companies for orthopedic products and services.Hanger suspended trading for a few hours and was hit with severalshareholder lawsuits.
The U.S. attorney's office for the Eastern District of New York inJune subpoenaed Hanger officials for information regarding 14 patientcare centers in downstate New York, including the West Hempsteadoffice. The U.S. attorney later amended the subpoenas to cover onlythe West Hempstead location, company officials said. The company saidit has turned over requested information.
An outside firm hired by Hanger to investigate the billingallegations concluded in August that any billing problems wereisolated at West Hempstead.
Hanger's troubles did not end there. In August, the companydelayed release of its second-quarter earnings by a week. Inreleasing the earnings, Hanger officials announced that whileinstalling a new billing system, they found that they had to restateexpenses for the past three years, cutting earnings over the periodby $2 million.
For 2004, the company reported a net loss of $23.4 million,compared with a profit of $15.6 million in 2003.
800 King Farm Blvd.
Rockville, Md. 20850
301-548-2900
www.healthextras.com
Founded: 1999
Revenue: $521.33 million
Net income: $16.38 million
Earnings per share: 45 cents
Dividend: NA
Stockholder equity: $147.65 million
Auditor: PricewaterhouseCoopers LLP
Stock: HLEX (Nasdaq)
Assets: $244.25 million
Market capitalization: $638.88 million
52-week high: $17.87 (3/18/2005)
52-week low: $10.82 (4/16/2004)
Chairman: Thomas L. Blair
CEO: David T. Blair
Employees: 231
Local employees: 90
DESCRIPTION: HealthExtras manages pharmacy benefits for HMOs,unions, employers and governments, processing claims and handlingmail orders for 3 million members.
DEVELOPMENTS: HealthExtras largely switched from sellingsupplemental insurance to managing pharmacy benefits five years ago.
In 2004, the company saw its profit and revenue grow as itexpanded with new clients and an acquisition. HealthExtras in Maylanded a contract to be the pharmacy benefits manager for the stateof Louisiana, the company's largest win to date. In June,HealthExtras announced it was acquiring Managed Healthcare SystemsInc., a Florida pharmacy benefits company specializing in workers'compensation and hospice care benefits, for $40 million.
In October, HealthExtras announced it would offer 5 million sharesof common stock. The public offering raised $55 million, which willbe used to pay off debt and fund future acquisitions, companyofficials said.
Its 2004 performance 'positioned the Company to deliver 40 percentgrowth in 2005,' chief executive David T. Blair said in a statementwhen the company announced its fourth-quarter earnings.
12120 Sunset HIlls Rd.
Suite 600
Reston, Va. 20190
703-464-6300
www.prainternational.com
Founded: 1996
Revenue: $307.64 million
Net income: $20.75 million
Earnings per share: $1.02
Dividend: NA
Stockholder equity: $150.38 million
Auditor: PricewaterhouseCoopers LLP
Stock: PRAI (Nasdaq)
Assets: $337.34 million
Market capitalization: $586.93 million
52-week high: $28.30 (2/4/2005)
52-week low: $19.00 (11/17/2004)
President and CEO: Patrick Donnelly
CFO and SVP: J. Matthew Bond
Employees: 2,500
Local employees: 50
DESCRIPTION: PRA International provides drug development servicesto biotech and pharmaceutical companies, by managing human trials,filing regulatory documents and monitoring drug safety during tests.
DEVELOPMENTS: After pulling back in 1997, PRA entered the publicmarkets in November with an initial public offering that raised $68.4million. Executives are planning to use the proceeds to fundexpansion operations in Asia and South America.
PRA impressed analysts with its ability to dominate certain drugsectors, especially treatments for cancer. Of the firm's new businessin 2004, two-thirds was cancer-related. PRA has also aggressivelycourted biotech customers. They represent a sector of the drug-development business where research spending is increasing, unlike inthe big pharmaceutical companies. More than 50 percent of PRA'srevenue comes from biotech companies.
The firm's drug safety group saw a more than 40 percent increasein revenue during 2004, as concerns about the safety of drugsmounted. And early this year, the group was bolstered by the Food andDrug Administration's creation of an independent office aimed atstrengthening the agency's response to safety issues.
7201 Wisconsin Ave.
Suite 703
Bethesda, Md. 20814
301-215-7777
www.chindex.com
Founded: 1981
Revenue: $101.58 million
Loss: $3.94 million
Loss per share: 74 cents
Dividend: NA
Stockholder equity: $21.05 million
Auditor: BDO Seidman LLP
Stock: CHDX (Nasdaq)
Assets: $52.09 million
Market capitalization: $31.56 million
52-week high: $14.50 (4/14/2004)
52-week low: $5.65 (8/11/2004)
President and CEO: Roberta Lipson
EVP: Lawrence Pemble
Employees: 759
Local employees: 17
DESCRIPTION: Chindex provides Western health care products andservices in China. It operates a hospital in Beijing and one inShanghai, serving mainly expatriates and well-to-do locals.
DEVELOPMENTS: Chindex, which bills itself as the largestindependent U.S. distributor in China, is still feeling the effectsof the 2003 severe acute respiratory syndrome outbreak. The epidemicled to new government approval procedures that contributed to thedelay in the opening of Chindex's second hospital in Shanghai. Thehospital, scheduled to open last summer, opened in October.
Its medical equipment division, which sells Johnson & Johnson andSiemens Medical Solutions brand devices, and its health care productsdivision also posted losses. But during 2004, revenue began returningto pre-SARS levels.
The company also raised $13.5 million through the sale of 1.5million shares to institutional investors. Chindex used the money tocomplete the Shanghai facility, to introduce Chindex-branded personal-care products to retail pharmacies and to expand distributionchannels for the medical equipment business.
Chindex officials remained optimistic about future growth and weremoving ahead with plans for a third hospital in Xiamen, a wealthycoastal city where many foreign corporations have offices. InFebruary of this year, a German subsidiary of Chindex also won a $6.5million contract to supply medical equipment to hospitals in twoChinese provinces.
1302 Concourse Dr.
Suite 204
Linthicum, Md. 21076
410-694-0500
www.dialysiscorporation.com
Founded: 1976
Revenue: $40.99 million
Net income: $2.21 million
Earnings per share: 25 cents
Dividend: NA
Stockholder equity: $13.33 million
Auditor: Moore Stephens PC
Stock: DCAI (Nasdaq)
Assets: $26.49 million
Market capitalization: $144.77 million
52-week high: $35.00 (3/2/2005)
52-week low: $3.75 (6/1/2004)
President and CEO: Stephen W. Everett
VP, Operations: Michael Rowe
Employees: 301
Local employees: 47
DESCRIPTION: The company owns kidney dialysis centers in Virginia,Georgia, Maryland, New Jersey, Ohio, Pennsylvania and South Carolina.DCA also provides dialysis in hospitals on a contract basis. It owns23 dialysis centers and operates two others.
DEVELOPMENTS: Continuing its rapid expansion of recent years, thecompany extended its reach by buying or building a flurry of dialysiscenters in 2004. The expansion reflected the growing need of an agingpopulation for outpatient dialysis to treat chronic kidney failureand other kidney diseases. In February, the company opened a facilityin Warsaw, its first center in Virginia, as part of its expansion inthe mid-Atlantic region. A month later, DCA opened a dialysis centerin Aiken, S.C., its first in the state. That was followed by theopening of a facility in Pottstown, Pa., its sixth in the state. InJune, the company announced the development of a center in Ashland,its second in Virginia. Also that month, DCA announced the opening ofa center in Rockville, its second in Maryland.
The company bought two facilities in Pennsylvania in September andannounced the development of another in Cincinnati in October inconjunction with the University of Cincinnati's College of Medicine.The company kicked off 2005 much the same way, announcing in Januarythat three more facilities are under development in South Carolina.The company has funded its growth in part through its own cash flowas well as from financing from its parent company, Medicore Inc. ofHialeah, Fla., which owns 57 percent of DCA. The construction of afacility costs up to about $1 million, and acquiring an existingcenter can be more expensive.
In March, DCA announced that it would buy its parent company in astock deal valued at about $152 million.
