Magellan Health Services reported net income of $20.1 million, or 59 cents per share, for its second quarter ended March 31, compared with a loss of $15.1 million, or 53 cents per share, in the year-ago quarter. The Atlanta-based behavioral healthcare company reported an 18% increase in revenues to $355 million.
For the six months, the company reported net income of $29.8 million, or 99 cents per share, compared with a net loss of $14.8 million, or 53 cents per share, in the year-ago period. Revenues rose 15% to $650.6 million.
The prior-year losses reflected nonoperating charges associated with the company's bankruptcy reorganization in 1992 and creation of an employee stock option plan in 1988. In addition, the per-share figures were affected by growth in the number of shares to 34.7 million from 28.9 million because of new shares issued to Fort Worth investor Richard Rainwater and the assumed conversion of shares owned by Green Spring Health Services, a managed-care company in which Magellan purchased a majority stake.
Magellan owns 96 hospitals and provides managed behavioral healthcare services to more than 12 million people.