HealthWise of America, a Nashville, Tenn.-based HMO company, has approved a three-for-two stock split. The split will be paid in the form of a 50% stock dividend. The distribution of shares will be on May 26 to shareholders of record on May 12. The split will increase the number of HealthWise's outstanding common shares, which are traded on the over-the-counter market, to 6 million. Also, HealthWise reported its best quarter ever for earnings. For its first quarter ended March 31, the company reported a 57% rise in profits to $1.4 million, or 33 cents per share, compared with $896,000, or 19 cents per share, in the year-ago period. Revenues grew 50% to $38.5 million.
Medaphis Corp., an Atlanta-based provider of business management services, recorded a 93% surge in net income for the first quarter ended March 31, to $3.5 million, or 24 cents per share, from $1.8 million, or 17 cents per share, a year ago. Revenue increased 43% to $53.3 million. The increase in net income per share was achieved despite a 36% jump in the average shares outstanding resulting from the company's December 1993 offering of common stock. As of March 31, Medaphis had nearly 15 million shares outstanding, compared with 11 million in the year-ago period. Medaphis assists providers in converting medical services into cash and reducing administrative costs. It serves some 7,450 physicians and 420 hospitals in 45 states.
Rural/Metro Corp., a Scottsdale, Ariz.-based operator of ambulance companies, intends to raise approximately $22.5 million in a proposed sale of 1.75 million shares of stock. The company will sell 1.3 million shares of common stock, while another 150,000 shares will be sold by its employee stock ownership plan, and 300,000 shares will be sold by other stockholders. Proceeds to the company will be used to retire $5.5 million borrowed as part of its pending acquisition of a Rochester, N.Y., ambulance service. The rest will be used for working capital. For the year ended June 30, 1993, the company reported $2.6 million in net income, or 63 cents per share, compared with $1.3 million, or 33 cents per share, the previous year. Revenues rose 23% to $84 million. Furman Selz and William Blair & Co. are underwriting the offering. Rural/Metro Corp. provides ambulance and fire protection services to 70 communities in six states.
Mallinckrodt Medical, St. Louis, recently won three contracts potentially worth a total of $17 million. Mallinckrodt will supply members of the Sisters of Charity of Leavenworth (Kan.) Health Services Corp. with contrast media, point-of-care testing systems and radiopharmaceuticals. Also, 216-bed Irving (Texas) Healthcare System and Health Services Corporation of America, a Cape Girardeau, Mo.-based purchasing group, expanded contracts to include new Mallinckrodt Medical products.
Sterling Winthrop has launched a new division to sell generic injectable drugs. The New York-based company already is a leading manufacturer of name-brand injectable drugs. The first product of its new subsidiary is a pre-operative sedative. The subsidiary, Kanetta Pharmacal, plans to introduce about a dozen products this year and expects to sell 30 products by 1995.