HLEX Healthextras (MM)

HealthExtras, Inc. (NASDAQ:HLEX), a pharmacy benefit management company, today announced its financial results for the first quarter ended March 31, 2008. First Quarter Highlights Net income for the first quarter 2008 was $11.6 million or $0.27 per diluted share, a 20% increase over comparable first quarter 2007 earnings of $9.7 million or $0.23 per share. Revenues for the first quarter 2008 totaled $588.6 million, a 45% increase over first quarter 2007 revenues of $406.4 million. The number of prescriptions processed during the first quarter of 2008 increased to 12.8 million from 9.7 million in the first quarter 2007 and operating profit per prescription was up sequentially to $1.31. During the first quarter of 2008, the Company generated $34.8 million in cash from operations and incurred non-cash charges for depreciation, amortization and equity-based compensation of $3.3 million. �We are pleased with the Company�s performance,� stated David T. Blair, Chief Executive Officer of HealthExtras. �The Company continues to produce significant revenue and earnings growth driven by strong client retention and new business additions.� During the quarter, the Company sold new business representing 300,000 lives with mid-2008 effective dates. �The substantial sales results reflect ongoing market recognition of our client service strategy and we are encouraged by sales momentum across all of our market segments,� added Blair. During the first quarter of 2008, the company completed the implementations of Medical Card Systems Commercial and Medicare Part D businesses. These, and other new contracts which were implemented in the second half of 2007, represent the addition of approximately 6 million claims on an annualized basis. Revenue increased sequentially in the first quarter 2008 over a historically strong fourth quarter. �While successfully implementing new business was our primary focus this quarter, we are pleased to report significant new sales and expanding operating margins. Clearly, the Company is well positioned for a successful 2008 and beyond,� added Blair. About HealthExtras (www.healthextras.com): HealthExtras, Inc. is a full-service pharmacy benefit management company. Its clients include self-insured employers, including state and local governments, third-party administrators, managed care organizations, unions and individuals. The Company's integrated pharmacy benefit management services marketed under the name Catalyst Rx include: claims processing, benefit design consultation, drug utilization review, formulary management, drug data analysis services and mail order services. Additionally, the Company operates a national retail pharmacy network with over 60,000 participating pharmacies. This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve a number of risks and uncertainties. Factors that we have identified that might materially affect our results are discussed in our Annual Report on Form 10-K for the year ended December 31, 2007 under "Item 1.A Risk Factors." Readers are urged to carefully review and consider the various disclosures made in our Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and uncertainties that may affect our business. � HEALTHEXTRAS, INC. and Subsidiaries � CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) � For the three months ended March 31, 2008 � 2007 Revenue (excludes member co-payments of $190,612 and $156,069 for the three months ended March 31, 2008 and 2007, respectively) $ 588,644 � $ 406,372 � Direct expenses 557,451 378,814 Selling, general and administrative expenses � 14,429 � � 12,812 � Total operating expenses � 571,880 � � 391,626 � Operating income 16,764 14,746 Interest income 1,897 1,331 Interest expense (36 ) (36 ) Other income � 1 � � 1 � Income before minority interest and income taxes 18,626 16,042 Minority interest � - � � 31 � Income before income taxes 18,626 16,011 Income tax expense � 7,022 � � 6,302 � Net income $ 11,604 � $ 9,709 � � Net income per share, basic $ 0.27 $ 0.24 Net income per share, diluted $ 0.27 $ 0.23 Weighted average shares of common stock outstanding, basic 42,219 40,952 Weighted average shares of common stock outstanding, diluted 43,384 42,765