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Last updated on April 24, 2014 at 17:35 EDT

Triple-S Management Corporation Reports Second Quarter 2012 Results

August 1, 2012

SAN JUAN, Puerto Rico, Aug. 1, 2012 /PRNewswire/ — Triple-S Management Corporation (NYSE:GTS), the leading managed care company in Puerto Rico, today announced consolidated revenues of $623.0 million and operating income of $24.2 million for the three months ended June 30, 2012. Net income was $17.0 million, or $0.60 per diluted share, which includes an after tax net investment gain of $0.4 million, or $0.02 per share.

June-Quarter Consolidated Highlights

  • Total consolidated operating revenues were $622.7 million;
  • Operating income was $24.2 million;
  • Consolidated loss ratio was 85.2%;
  • Medical loss ratio (MLR) was 88.7%;
  • Managed Care member month enrollment increased 111.0%;
  • Medicare member month enrollment rose 16.9%.

Ramon M. Ruiz-Comas, President and Chief Executive Officer of Triple-S Management Corporation, commented, “We were pleased with our solid second quarter results, achieving membership growth in each of our three managed care businesses while maintaining control of our operating expenses. Our Life and Property and Casualty Insurance segments also posted solid performance consistent with our expectations.

“Within our Medicare business, we are making progress in our efforts to better assess the health risk of our patient population. Moreover, we continue working on the main issues that caused the shortfall at American Health last quarter, and a number of key initiatives are being implemented. We are in the midst of renegotiations with American Health’s PBM, and have submitted bids for the 2013 open enrollment season, which take into account the increased pharmacy utilization that we have been experiencing. Our purchase of American Health provided us with a solid foothold in the growing Medicare Advantage business and remains an integral component of our long-term strategy. We are committed to this market and believe that we have the brand recognition, products and physician network necessary to exploit this opportunity,” continued Mr. Ruiz-Comas.

“We believe that having a strong, diversified and seasoned management team is instrumental to our long-term success. Recently, Amílcar L. Jordan joined Triple-S Management as Vice President and Chief Financial Officer, bringing over 27 years of financial industry and risk management experience. We look forward to his ongoing contributions as we continue to build and deliver shareholder value,” concluded Mr. Ruiz-Comas.

Selected Quarterly Details

  • Pro Forma Net Income was $16.6 million, or $0.58 Per Diluted Share. Weighted average shares outstanding were 28.5 million. This compares with pro forma net income of $11.4 million, or $0.39 per diluted share, in the corresponding quarter of 2011, based on weighted average shares outstanding of 29.0 million.
  • Consolidated Premiums Increased 14.2%, to $582.2 Million. The increase was principally due to a higher member month enrollment in the Medicare business and the overall increase in premiums per member per month.
  • Consolidated Administrative Service Fees Rose 297.1%, to $27.8 Million. The significant increase in service fees was driven by the addition of the Medicaid ASO business (miSalud), effective November 1, 2011.
  • Managed Care Membership. Our Managed Care membership grew by 112.3% year-over-year, reflecting the addition of the miSalud business, in which self-insured membership was 889,091 at the end of the quarter. Medicare membership increased 17.3%, to 122,151. Fully insured Commercial membership was down 0.2% from the same period last year.
  • Managed Care MLR Increased 70 Basis Points, to 88.7%. The increased MLR results from a higher MA member month enrollment, which business has an inherently higher MLR than the Commercial business, and to higher-than-expected utilization and cost trends in the Medicare business, primarily at American Health, partially offset by the higher Medicare risk score adjustments received in 2012.
  • Consolidated Loss Ratio Increased 130 Basis Points, to 85.2%. The higher consolidated loss ratio mainly reflects the 70-basis-point increase in the Managed Care MLR and an increase in the claims incurred in the Life segment, resulting from a higher loss ratio in the Cancer business and an increase in the liability for future policy benefits. The loss ratio in the Property and Casualty Insurance segment, although lower than in the first quarter of 2012, also experienced year-over-year increases.
  • Consolidated Operating Expense Ratio Rose 20 Basis Points, to 16.8%. The higher consolidated operating expense ratio is due to the increase in self-insured contracts associated with our participation in the miSalud business.
  • Consolidated Operating Income Increased 55.1%, to $24.2 Million. The increase reflects the contribution from the miSalud business, the higher Medicare risk score adjustments received in 2012, and the improved operating income of the Property and Casualty segment, partly offset by the increased MLR in the Medicare business.
  • Consolidated Operating Income Margin Was 3.9%. The 100-basis-point improvement in the consolidated operating margin is primarily the result of the increased profitability in our Managed Care and Property and Casualty Insurance segments.
  • Consolidated Effective Tax Rate Was 22.0%. The consolidated income tax expense rose by $1.9 million, or 65.5%, reflecting the increased taxable income in the Managed Care segment, which operates at a higher effective rate.
  • Parent Company Information. As of June 30, 2012, Triple-S Management had $50.7 million in parent company cash, cash equivalents, and investments.
                                  Pro Forma Net
                                      Income
                                   -------------
    (Unaudited)                      Three months         Six months
                                   ended June 30,       ended June 30,
                                   --------------       --------------
    (dollar amounts in millions)               2012  2011                2012  2011
    ---------------------------                ----  ----                ----  ----
    Net income                                $17.0 $17.1               $24.5 $27.4
    Less pro forma adjustments:
                                  Net realized
                                  investment
                                  gains, net of
                                  tax                 0.4          5.9          1.8  10.9
                                  Net unrealized
                                  trading
                                  investments,net
                                  of tax                -         (0.1)           -  (1.1)
                                  Derivative
                                  loss, net of
                                  tax                   -         (0.1)           -  (0.3)
                                  Charge related
                                  to change in
                                  enacted tax
                                  rate                  -            -            -  (6.4)
                                      Pro forma net
                                       income       $16.6        $11.4        $22.7 $24.3
                                      ------------- -----        -----        ----- -----
                                      Diluted pro
                                       forma net
                                       income per
                                       share        $0.58        $0.39        $0.80 $0.84
                                 ---------------    -----        -----        ----- -----

Six-Month Recap

For the six months ended June 30, 2012, consolidated operating revenues increased 17.1%, to $1.21 billion, primarily reflecting higher member month enrollment in the Medicare and Commercial segments, the addition of the miSalud business, and the receipt of higher Medicare risk score adjustments in 2012 when compared with the prior year. Consolidated claims incurred for the six-month period were $971.9 million, up 17.0% year-over-year. The six-month consolidated loss ratio increased 250 basis points to 86.0%, while the MLR rose 190 basis points, to 89.6%. This increase was driven by a higher MA member month enrollment and higher-than-expected utilization and cost trends in the Medicare business, primarily at American Health. Consolidated operating expenses for the six months ended June 30, 2012 were $204.8 million and the operating expense ratio was 17.3%. Pro forma net income for the six-month period was $22.7 million, or $0.80 per diluted share, based on weighted average shares outstanding of 28.5 million, compared with $24.3 million, or $0.84 per diluted share, based on weighted average shares outstanding of 29.0 million at the same time last year.

Segment Performance

Triple-S Management operates in three segments: 1) Managed Care, 2) Life Insurance, and 3) Property and Casualty Insurance. Management evaluates performance based primarily on the operating revenues and operating income of each segment. Operating revenues include premiums earned, net, administrative service fees and net investment income. Operating costs include claims incurred and operating expenses. The Company calculates operating income or loss as operating revenues minus operating expenses. Operating margin is defined as operating income or loss divided by operating revenues.

    (Unaudited)                                                                                                 Three months ended June 30,                      Six months ended June 30,
                                                                                                                ---------------------------                      -------------------------
    (dollar amounts in millions)                            2012           2011  Percentage Change                       2012        2011  Percentage Change
    ---------------------------                             ----           ----  -----------------                       ----        ----  -----------------
    Premiums earned, net:
                                           Managed Care:
                                           Commercial                    $242.8             $232.4         4.5%                                       $484.4                       $468.8            3.3%
                                           Medicare                       285.7              226.4        26.2%                     539.9              420.5                         28.4%
                                           Medicaid                                             -        (0.1)       (100.0%)                             -                          2.7        (100.0%)
                                                                                              ---        ----                                           ---                          ---
                                               Total Managed
                                                Care                      528.5              458.7        15.2%                   1,024.3              892.0                         14.8%
                                           Life Insurance                  30.7               27.9        10.0%                      60.7               54.9                         10.6%
                                           Property and Casualty           23.6               23.9       (1.3%)                      45.8               49.5                        (7.5%)
                                           Other                           (0.6)              (0.7)     (14.3%)                      (1.3)              (1.3)                         0.0%
                                                                                                          ----                                                                       ----
                                                                   Consolidated
                                                                   premiums
                                                                   earned, net              $582.2      $509.8           14.2%                      $1,129.5                       $995.1           13.5%
                                                                  -------------             ------      ------           ----                       --------                       ------           ----
    Operating revenues:
                                           Managed Care                  $561.3             $471.5        19.0%                  $1,089.7             $916.6                         18.9%
                                           Life Insurance                  35.9               32.4        10.8%                      70.8               63.8                         11.0%
                                           Property and Casualty           25.9               26.2       (1.1%)                      50.3               54.1                        (7.0%)
                                           Other                           (0.4)              (0.7)     (42.9%)                      (1.1)              (1.4)                      (21.4%)
                                                                                                          ----                                                                       ----
                                                                   Consolidated
                                                                   operating
                                                                   revenues                 $622.7      $529.4           17.6%                      $1,209.7                     $1,033.1           17.1%
                                                                  -------------             ------      ------           ----                       --------                     --------           ----
    Operating income:
                                           Managed Care                   $18.6               $9.0       106.7%                     $26.0              $21.4                         21.5%
                                           Life Insurance                   4.0                3.6        11.1%                       8.4                7.9                          6.3%
                                           Property and Casualty            3.5                2.0        75.0%                       2.1                3.0                       (30.0%)
                                           Other                           (1.9)               1.0     (290.0%)                      (3.4)               1.7                      (300.0%)
                                                                                                           ---                                                                        ---
                                                                   Consolidated
                                                                    operating
                                                                    income                   $24.2       $15.6           55.1%                         $33.1                        $34.0          (2.6%)
                                                                  -------------              -----       -----           ----                          -----                        -----          -----
    Operating margin:
                                           Managed Care                     3.3%               1.9%                   140 bp                            2.4%                         2.3%         10 bp
                                           Life Insurance                  11.1%              11.1%                     0 bp                           11.9%                        12.4%        -50 bp
                                           Property and Casualty           13.5%               7.6%                   590 bp                            4.2%                         5.5%       -130 bp
                                           Consolidated                     3.9%               2.9%                   100 bp                            2.7%                         3.3%        -60 bp
    Depreciation and amortization expense                   $5.9           $5.4                9.3%                     $11.8       $10.6               11.3%
    -------------------------------------                   ----           ----                ---                      -----       -----               ----

    Managed Care Additional Data                                                           Three months ended June
                                                                                                     30,                          Six months ended June 30,
                                                                                         ------------------------                 -------------------------
    (Unaudited)                                                                                 2012          2011                       2012          2011
    ----------                                                                                  ----          ----                       ----          ----
    Member months enrollment:
                                     Commercial:
                                     Fully-insured                           1,459,127     1,459,055                 2,926,275      2,922,436
                                     Self-insured                              672,128       664,056                 1,331,628      1,388,215
                                                                               -------       -------                 ---------      ---------
                                            Total Commercial                               2,131,255     2,123,111                  4,257,903     4,310,651
                                     Medicare:
                                      Medicare
                                      Advantage                                339,026       285,168                   668,970        531,636
                                     Stand-alone PDP                            25,424        26,637                    50,695         53,204
                                         Total Medicare                        364,450       311,805                   719,665        584,840
                                      Medicaid -Self-
                                      insured                                2,641,905                          -                  5,254,863             -

                                      Total member
                                      months                                 5,137,610     2,434,916                10,232,431      4,895,491
                                     -------------                           ---------     ---------                ----------      ---------
    Claim liabilities (in millions)                         $292.3  $262.2   *
    Days claim payable                                                                          58.0          59.4   *
    ------------------                                                                          ----          ----  ---
    Premium PMPM:
                                     Managed Care                              $289.82       $259.03                   $280.94        $254.33
                                        Commercial                              166.40        159.28                    165.53         160.41
                                        Medicare                                783.92        726.09                    750.21         719.00
    Medical loss ratio                                                                          88.7%         88.0%                      89.6%         87.7%
                                     Commercial                                   88.4%         84.9%                     88.9%          87.8%
                                     Medicare Advantage                           88.7%         90.5%                     89.8%          88.8%
                                     Stand-alone PDP                              81.9%         70.6%                     87.3%          78.3%
    Adjusted medical loss ratio                                                                 90.5%         87.2%                      90.0%         86.9%
                                     Commercial                                   86.3%         86.6%                     88.2%          86.5%
                                     Medicare Advantage                           94.4%         87.9%                     91.6%          87.2%
                                     Stand-alone PDP                              84.1%         70.1%                     86.9%          78.4%
                                                                                                                          ----
    Operating expense ratio:
                                     Consolidated                                 16.8%         16.6%                     17.3%          16.7%
                                     Managed Care                                 13.2%         12.6%                     13.5%          12.5%
                                     ------------                                 ----          ----                      ----           ----
    * Information provided as of December 31, 2011.

    Managed Care Membership by Segment As of June 30,
                                       --------------
                                                       2012      2011
                                                       ----      ----
    Members:
            Commercial:
                  Fully-insured                   485,013   486,138
                  Self-insured                    225,102   220,521
                                                              -------
                    Total Commercial              710,115   706,659
            Medicare:
               Medicare Advantage                 113,669    95,351
               Stand-alone PDP                      8,482     8,808
                    Total Medicare                122,151   104,159
            Medicaid -Self-insured                889,091         -
                                                                ---
                       Total members            1,721,357   810,818
            -------------                       ---------   -------

2012 Guidance

The company’s full-year outlook, remains unchanged, except for the consolidated effective tax rate, which was lowered from 25% – 26% to 23% – 24%.

                                            2012 Range
                                            ----------
    Medical enrollment fully-insured      7.2-7.4 million
    (member months)
    Medical enrollment self-insured      12.7-13.0 million
    (member months)
    Consolidated operating revenues                $2.3-$2.4
    (in billions)
    Consolidated loss ratio                      85.0%-86.0%
    Medical loss ratio                           88.8%-89.8%
    Consolidated operating expense
     ratio                                       17.2%-18.2%
    Consolidated operating income
     (in millions)                               $67.0-$77.0
    Consolidated effective tax rate                  23%-24%
    Pro forma earnings per share                 $1.80-$1.85
    Weighted average of diluted
     shares                                             28.5
    outstanding (in millions)

Conference Call and Webcast

Management will host a conference call and webcast on August 1, 2012 at 9:00 a.m., Eastern Time to discuss its financial results for the three months ended June 30, 2012. To participate, callers within the U.S. and Canada should dial 1-877-941-0844, and international callers should dial 1-480-629-9835 about five minutes before the presentation.

To listen to the webcast, participants should visit the “Investor Relations” section of the Company’s Web site at www.triplesmanagement.com several minutes before the event is broadcast and follow the instructions provided to ensure they have the necessary audio application downloaded and installed. This program is provided at no charge to the user. An archived version of the call, also located on the “Investor Relations” section of Triple-S Management’s Web site, will be available about two hours after the call ends and for at least the following two weeks. This news release, along with other information relating to the call, will be available on the “Investor Relations” section of the Web site.

About Triple-S Management Corporation

Triple-S Management Corporation is an independent licensee of the Blue Cross Blue Shield Association. It is the leading player in the managed care industry in Puerto Rico. Triple-S Management also has the exclusive right to use the Blue Cross Blue Shield name and mark throughout Puerto Rico and the U.S. Virgin Islands. With more than 50 years of experience in the industry, Triple-S Management offers a broad portfolio of managed care and related products in the Commercial and Medicare Advantage markets under the Blue Cross Blue Shield brand through its subsidiary Triple-S Salud, Inc. and effective February 2011, also offers non-branded Medicare products through American Health Inc. In addition to its managed care business, Triple-S Management provides non-Blue Cross Blue Shield branded life and property and casualty insurance in Puerto Rico.

For more information about Triple-S Management, visit www.triplesmanagement.com or contact kwaller@allwayscommunicate.com.

Forward-Looking Statements

This document contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information about possible or assumed future sales, results of operations, developments, regulatory approvals or other circumstances. Sentences that include “believe”, “expect”, “plan”, “intend”, “estimate”, “anticipate”, “project”, “may”, “will”, “shall”, “should” and similar expressions, whether in the positive or negative, are intended to identify forward-looking statements.

All forward-looking statements in this news release reflect management’s current views about future events and are based on assumptions and subject to risks and uncertainties. Consequently, actual results may differ materially from those expressed here as a result of various factors, including all the risks discussed and identified in public filings with the U.S. Securities and Exchange Commission (SEC).

In addition, the Company operates in a highly competitive, constantly changing environment, influenced by very large organizations that have resulted from business combinations, aggressive marketing and pricing practices of competitors, and regulatory oversight. The following factors, if markedly different from the Company’s planning assumptions (either individually or in combination), could cause Triple-S Management’s results to differ materially from those expressed in any forward-looking statements shared here:

  • Trends in health care costs and utilization rates
  • Ability to secure sufficient premium rate increases
  • Competitor pricing below market trends of increasing costs
  • Re-estimates of policy and contract liabilities
  • Changes in government laws and regulations of managed care, life insurance or property and casualty insurance
  • Significant acquisitions or divestitures by major competitors
  • Introduction and use of new prescription drugs and technologies
  • A downgrade in the Company’s financial strength ratings
  • Litigation or legislation targeted at managed care, life insurance or property and casualty insurance companies
  • Ability to contract with providers consistent with past practice
  • Ability to successfully implement the Company’s disease management, utilization management and Star ratings programs
  • Ability to maintain Federal Employee Program, Medicare and Medicaid contracts
  • Volatility in the securities markets and investment losses and defaults
  • General economic downturns, major disasters, and epidemics

This list is not exhaustive. Management believes the forward-looking statements in this release are reasonable. However, there is no assurance that the actions, events or results anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on the Company’s results of operations or financial condition. In view of these uncertainties, investors should not place undue reliance on any forward-looking statements, which are based on current expectations. In addition, forward-looking statements are based on information available the day they are made, and (other than as required by applicable law, including the securities laws of the United States) the Company does not intend to update or revise any of them in light of new information or future events.

Readers are advised to carefully review and consider the various disclosures in the Company’s SEC reports.

-FINANCIAL TABLES ATTACHED-

                                                                              Condensed Consolidated Balance Sheets
                                                                      (Dollar amounts in thousands, except per share data)

                                                                                                                                  Unaudited                               December 31,
                                                                                                                                  June 30,                                        2011
                                                                                                                                        2012
                                                                                                                                        ----
                                 Assets

    Investments                                                                                                                   $1,207,303                                            $1,153,293
    Cash and cash equivalents                                                                                                        164,958                                                71,834
    Premium and other receivables, net                                                                                               322,032                                               287,184
    Deferred policy acquisition costs and value of business acquired                                                                 161,724                                               155,788
    Property and equipment, net                                                                                                       97,476                                                81,872
    Other assets                                                                                                                     130,220                                               130,606
                                                                                                                                     -------                                               -------

                                                                      Total assets                                                                            $2,083,713                                            $1,880,577

                  Liabilities and Stockholders' Equity

    Policy liabilities and accruals                                                                                                 $977,869                                              $836,029
    Accounts payable and accrued liabilities                                                                                         250,712                                               253,202
    Short-term borrowings                                                                                                              2,855                                                     -
    Long-term borrowings                                                                                                             127,250                                               114,387
                                                                                                                                     -------                                               -------

                                                                      Total liabilities                                                                        1,358,686                                             1,203,618
                                                                                                                                                               ---------                                             ---------

    Stockholders' equity:
                                                                      Common stock                                                                                28,397                                                28,365
                                                                      Other stockholders equity                                                                  696,291                                               648,594

                                                                       Total Triple-S Management Corporation
                                                                       stockholders' equity                                                                      724,688                                               676,959
                                                                                                                                                                 -------                                               -------

    Noncontrolling interest in consolidated subsididary                                                                                  339                                                     -
                                                                                                                                         ---                                                   ---

    Total stockholders' equity                                                                                                       725,027                                               676,959
                                                                                                                                     -------                                               -------

    Total liabilities and stockholders' equity                                                                                    $2,083,713                                            $1,880,577
                                                                                                                                  ==========                                            ==========

                                                                Condensed Consolidated Statements of Earnings
                                                            (Dollar amounts in thousands, except per share data)

                                                                            For the Three Months Ended
                                                                                     June 30,                            For the Six Months Ended
                                                                                                                                 June 30,

                                                                        Unaudited              Unaudited             Unaudited           Unaudited
                                                                              2012                  2011                  2012                 2011
                                                                              ----                  ----                  ----                 ----
    Revenues:
                                           Premiums
                                           earned, net                               $582,246                         $509,843                      $1,129,550          $995,114
                                           Administrative
                                           service fees                                27,768                            6,962                          55,292            13,557
                                           Net investment
                                           income                                      11,562                           12,654                          22,754            24,452
                                           Other
                                           operating
                                           revenues                                     1,105                                -                           2,152                 -

                                              Total
                                               operating
                                               revenues                               622,681                          529,459                       1,209,748         1,033,123

                                           Net realized
                                           investment
                                           gains                                          458                            6,995                           2,136            12,888
                                           Net unrealized
                                           investment
                                           loss on
                                           trading
                                           securities                                       -                             (119)                              -            (1,260)
                                           Other income,
                                           net                                           (154)                             466                             916               480

                                             Total revenues                           622,985                          536,801                       1,212,800         1,045,231

    Benefits and expenses:
                                           Claims
                                           incurred                                   496,249                          427,941                         971,893           830,514
                                           Operating
                                           expenses                                   102,268                           85,882                         204,774           168,593

                                               Total
                                                operating
                                                costs                                 598,517                          513,823                       1,176,667           999,107

                                           Interest
                                           expense                                      2,667                            2,957                           5,225             6,084

                                               Total benefits
                                                and expenses                          601,184                          516,780                       1,181,892         1,005,191

                                               Income before
                                                taxes                                  21,801                           20,021                          30,908            40,040

    Income tax expense                                                       4,785                             2,935                          6,392             12,584

    Net income                                                              17,016                            17,086                         24,516             27,456

        Less: Net loss attributable to the                                      19                                 -                             33                  -
    noncontrolling interest

    Net income attributable to TSM                                         $17,035                           $17,086                        $24,549            $27,456
                                                                           -------                           -------                        -------            -------

    Earnings per share attributable to
     TSM:

    Basic net income per share                                               $0.60                             $0.59                          $0.87              $0.95
    Diluted earnings per share                                               $0.60                             $0.59                          $0.86              $0.95
                                                 Condensed Consolidated Statements of Cash Flows
                                              (Dollar amounts in thousands, except per share data)

                                                                                                                             For the Six Months Ended
                                                                                                                                    June 30,
                                                                                                                             Unaudited              Unaudited
                                                                                                                                  2012                    2011
                                                                                                                                  ----                    ----

    Net cash provided by operating activities                                              $125,485                            $77,983
                                                                                           --------                            -------

    Cash flows from investing activities:
                                                     Proceeds from
                                                     investments sold or
                                                     matured:
                                                     Securities
                                                     available for
                                                     sale:
                                                                            Fixed
                                                                            maturities
                                                                            sold                                     55,080                            101,326
                                                                            Fixed
                                                                            maturities
                                                                            matured/
                                                                            called                                   64,292                             51,443
                                                                            Equity
                                                                            securities                               29,217                             14,425
                                                     Securities held
                                                     to maturity:
                                                                            Fixed
                                                                            maturities
                                                                            matured/
                                                                            called                                   10,580                              1,440
                                                          Acquisition of
                                                           investments:
                                                     Securities
                                                     available for
                                                     sale:
                                                                            Fixed
                                                                            maturities                             (114,064)                          (140,417)
                                                                            Equity
                                                                            securities                              (76,134)                           (35,334)
                                                     Securities held
                                                     to maturity:
                                                                            Fixed
                                                                            maturities                                 (560)                              (255)
                                                    Other investments                                      (246)                                 -
                                                     Net inflows
                                                     (outflows) from
                                                     policy loans                                           140                               (215)
                                                     Acquisition of
                                                     business, net of
                                                     cash acquired of
                                                     $816 and $29,370 in
                                                     the three months
                                                     ended March 31,
                                                     2012 and 2011,
                                                     respectively                                        (2,685)                           (54,058)
                                                     Net capital
                                                     expenditures                                        (5,680)                            (8,460)

                                                     Net cash used in
                                                     investing
                                                     activities                                         (40,060)                           (70,105)
                                                                                                        -------                            -------

    Cash flows from financing activities:
                                                     Change in
                                                     outstanding checks
                                                     in excess of bank
                                                     balances                                           (10,135)                           (13,008)
                                                     Proceeds from short-
                                                     term borrowings,
                                                     net                                                  2,855                             42,740
                                                     Repayments of long-
                                                     term borrowings                                       (976)                           (25,820)
                                                     Repurchase and
                                                     retirement of
                                                     common stock                                          (637)                            (1,557)
                                                     Cash settlements of
                                                     stock options                                                       -                             (2,420)
                                                     Proceeds from
                                                     exercise of stock
                                                     options                                                316                                189
                                                     Proceeds from
                                                     policyholder
                                                     deposits                                            19,587                              7,679
                                                     Surrenders of
                                                     policyholder
                                                     deposits                                            (3,311)                            (3,330)

                                                     Net cash provided
                                                     by financing
                                                     activities                                           7,699                              4,473
                                                                                                          -----                              -----

                                                     Net increase in
                                                     cash and cash
                                                     equivalents                                         93,124                             12,351

    Cash and cash equivalents, beginning of period                                           71,834                             45,021
                                                                                             ------                             ------

    Cash and cash equivalents, end of period                                               $164,958                            $57,372
                                                                                           ========                            =======

SOURCE Triple-S Management Corporation


Source: PR Newswire