||Christine Rogers Saenz (investor relations)
||Francesca Marraro (media relations)
HMS HOLDINGS CORP. ANNOUNCES Q4 AND FULL YEAR 2008 RESULTS
AND MANAGEMENT TRANSITION; RAISES 2009 EPS GUIDANCE TO $1.00
William C. Lucia to become CEO; Robert M. Holster continues as Chairman
NEW YORK, N.Y., February 20, 2009HMS Holdings Corp. (NASDAQ: HMSY) today announced financial
results for its fourth quarter and full year ended December 31, 2008.
Revenue for the fourth quarter of 2008 increased 26% to $52.4 million, compared with $41.7 million
for the same period a year ago. HMSY reported net income of $7.1 million or $0.26 per diluted
common share for the fourth quarter of 2008, compared to net income of $4.0 million or $0.15 per
diluted common share during the fourth quarter of the prior year.
For the full year 2008, the Company reported revenue of $184.5 million, a 26% increase over 2007
revenue of $146.7 million. Also for the full year, the Company reported net income of $21.4
million or $0.80 per diluted common share, versus net income of $15.0 million or $0.57 per diluted
common share in the prior year. Earnings per diluted common share increased 73% and 40% for the
fourth quarter and full year, respectively.
The Company raised 2009 guidance to $218 million in revenue and $1.00 in fully diluted earnings per
The Company also announced that current President and Chief Operating Officer William C. Lucia will
become Chief Executive Officer on March 1, 2009. Current Chairman and CEO Robert M. Holster will
continue as Chairman.
HMS is reporting another year of record revenue growth and profitability, and expects continuing
strong performance given the expansion of the government healthcare programs we serve, said
Holster. So we believe it is the right time to initiate a management transition for which the
Company has been preparing for several years. Within weeks of returning to HMS in 2001, I asked
Bill Lucia to take responsibility for our government healthcare cost containment division. In the
years since, his strategic vision, capacity for product innovation and extraordinary attention to
client service has led to an almost ten-fold increase in the size of that business, which had
become by late 2005 HMSs sole focus.
Lucia added, Bob and I and our Board of Directors are confident that HMS has the management
structure, product pipeline and technology in place to drive the company forward. We will continue
to focus on delivering consistent, predictable growth to our investors.
Lucia, 51, joined HMS in 1996 after more than a decade of senior management experience in the
insurance industry. He was appointed President of the Companys Health Management Systems, Inc
subsidiary in 2001 and was appointed President and Chief Operating Officer of the parent company in
Holster, 62, rejoined HMS in April of 2001 as President and Chief Operating Officer. He was
appointed Chief Executive Officer in May 2005 and elected Chairman in April 2006. He will continue
to serve as Chairman until March of 2011. In addition to his duties as Chairman, he will be
assisting the Company with corporate development, legal and regulatory affairs, and investor
HMS will be hosting its fourth quarter 2008 conference call and webcast with the investment
community on Friday, February 20, 2009 at 9:00 am Eastern Time. The conference call number is
US/Canada: (866) 394-8630 Intl/Local Dial-In: (706) 758-0082 Conference ID: 82192441. A slide
presentation will accompany the conference call and may be accessed through our website at