||300 River Place Suite 4950
Detroit, MI 48207
FOR IMMEDIATE RELEASE
United American Healthcare Corporation Announces
Fiscal 2010 Third Quarter Results
DETROIT, May 17, 2010
United American Healthcare Corporation (NASDAQ: UAHC) today announced
financial results for the Companys fiscal third quarter ended March 31, 2010.
Revenues for the third quarter were $14,000, compared with revenues of $2.6 million for the third
quarter of the prior fiscal year. The decline was primarily the result of the discontinuance of
UAHC-TNs Medicaid managed care services as a TennCare contractor as well as the decrease in
enrollment and associated revenue from the wind down of the Companys Medicare Advantage Special
Needs Plan (MA-SNP) contract which expired at the end of calendar 2009.
Total expenses decreased $4.4 million, or 76 percent, to $1.4 million in the fiscal 2010 third
quarter, compared with total expenses of $5.8 million in the prior fiscal years third quarter.
The decrease was primarily related to the absence of medical expenses, as well as a significant
reduction in marketing, general and administrative expenses in the quarter. For the third quarter
of fiscal 2010, the Company reported a net loss of $1.4 million, or ($0.17) per share, compared
with a net loss of $3.0 million, or ($0.35) per share, in the third quarter of fiscal 2009. The
net loss in the most recent quarter was primarily the result of the loss of TennCare revenue and
wind down of the MA-SNP, combined with a significant reduction in total operating expenses.
As United American Healthcare transitioned from our Medicare Advantage business, we continued to
aggressively control our costs and maintain our lean operational structure, said William C.
Brooks, President and CEO of United American Healthcare. Moving forward, we continue to face
significant challenges on a number of fronts, including our continuing efforts to identify
appropriate strategic alternatives for our Company.
For the first nine months of fiscal 2010, revenues were $3.5 million, down $9.9 million, or 74
percent, compared with revenues of $13.4 million for the comparable period of the prior fiscal
year. The decline was primarily the result of the same factors that contributed to the decline in
revenues for the fiscal third quarter. Total expenses for the first nine months of fiscal 2010
decreased $10.5 million, or 58 percent, to $7.7 million, compared with total expenses of $18.2
million for the comparable period in the prior fiscal year. The decrease was primarily related to
a reduction in medical expenses, as well as lower marketing, general and administrative expenses.
For the first nine months of fiscal 2010, the Company reported a net loss of $4.1 million, or
($0.50) per share, compared with a net loss of $4.2 million, or ($0.48) per share, in the first
nine months of fiscal 2009.
As of March 31, 2010, United American Healthcare reported cash, cash equivalents, short-term
marketable securities and restricted marketable securities of $11.8 million, compared to