Matria Healthcare Announces Fifteen New and Expanded Health Enhancement Accounts
Matria Healthcare, Inc. (NASDAQ:MATR) announced today that it has been awarded seven new health enhancement accounts and eight of the Company’s existing accounts have expanded the Matria programs and services provided to their employees and members.
Matria’s new awards of business are with two health plans, three large self-insured employers, one state Medicaid program and one bio-pharma company. Two of the seven new business awards are for the Company’s maternity management programs involving risk assessment, education and case management of high-risk pregnancies. In addition to these seven new clients, Matria’s new business also includes numerous mid-market clients. These smaller self-insured employers have selected the Company’s health enhancement programs and services that are specifically designed for their niche of the self-insured market.
In addition to the new clients awarding business, four existing self-insured employer clients have purchased additional health enhancement programs and services to be offered to their employees and dependents, and three existing healthplan accounts and one existing Third Party Administrator (TPA) account have added new Administrative Services Only (ASO) clients to the list of their clients that utilize Matria’s health enhancement programs and services.
When services are fully implemented, the estimated aggregate annualized value of the new and expanded awards, totals approximately $15.8 million. It is anticipated that all but one of the business awards referenced above will be implemented in the first and second quarters of 2008. The remaining business award is scheduled for implementation early in the third quarter of 2008. These awards of business are in addition to the new and expanded business awards announced in the Company’s October 17, 2007, press release.
In its December 17, 2007 press release, the Company referenced that certain regional health plan and long-term care insurance opportunities and the other opportunities to strategically position Matria’s technology and informatics capabilities were maturing. Only some of those opportunities are included in the business awards that comprise this press release. Those previously referenced opportunities not included in the press release continue to mature and remain as prospective 2008 business opportunities.
Parker H. Petit, Chairman and Chief Executive Officer said, “We continue to grow the Company’s revenue backlog for 2008, and we are pleased with the number of health enhancement opportunities currently within our sales pipeline that we expect to culminate shortly.”
The Company also updated its current schedule of the 2008 revenue backlog for awarded business that will not begin generating revenues until 2008. Including the business awards announced in this press release, Matria’s current 2008 revenue backlog totals approximately $32.9 million. The 2008 revenue backlog represents the annualized expected revenues of new and expanded awards of business announced by the Company that are expected to begin producing revenues in 2008. Potential revenues of unawarded pipeline are not included in the Company’s revenue backlog.
ABOUT MATRIA HEALTHCARE
Matria Healthcare is a leading provider of integrated comprehensive health enhancement programs to health plans, employers and government agencies. Matria is dedicated to developing better educated, motivated and self-enabled healthcare consumers and supporting clinicians in managing the care of their patients. The Company manages major chronic diseases and episodic conditions including diabetes, congestive heart failure, coronary artery disease, asthma, chronic obstructive pulmonary disease, high-risk obstetrics, cancer, musculoskeletal and chronic pain, depression, obesity, and other conditions. Matria delivers programs that address wellness, healthy living, productivity improvement and navigation of the healthcare system, and provides case management of acute and catastrophic conditions. Headquartered in Marietta, Georgia, Matria operates through nearly 50 offices around the United States. More information about Matria can be found online at www.matria.com.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. Such statements include but are not limited to the ability of the Company to secure business awards from its sales pipeline, the ability of the Company to convert awards of business into implemented contracts, the timing of contract implementation, the revenues to be derived from implemented awards, and the continuing demand for the Company’s wellness and disease management programs. These statements are based on current information and belief, and are not guarantees of future performance. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include failure or delays in receiving awards of business from the Company’s sales pipeline, delays or problems in implementation of new disease management and wellness contracts, failure to convert awards of disease management business into implemented contracts or lower than expected revenues therefrom, delays or problems in contract implementation, decreased employer or health plan interest in or demand for the Company’s wellness and disease management programs, developments in the healthcare industry, third-party actions over which Matria does not have control, regulatory requirements applicable to Matria’s business and the risk factors detailed from time to time in Matria’s periodic report and registration statements filed with the Securities and Exchange Commission, including Matria’s Annual Report on Form 10-K for the year ended December 31, 2006. By making these forward-looking statements, Matria does not undertake to update them in any manner except as may be required by Matria’s disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.