Magellan Health Services, Farmington, Conn., which emerged from Chapter 11 bankruptcy in January 2004, said improved efficiency helped the behavioral-healthcare provider continue its turnaround. The company reported net income of $88.4 million, or $2.43 per share, exceeding early-year expectations, for the year ended Dec. 31, 2004. With a reorganization benefit, the company earned $451.8 million, or $10.86 per share, in 2003. Revenue for 2004 was $1.8 billion, up from $1.5 billion in the previous year. For the fourth quarter, Magellan had net income of $20.5 million, or 56 cents per share, on revenue of $445.2 million. That compared with net income of $499.9 million, or $12.01 per share, on revenue of $337.8 million in the 2003 quarter. Magellan raised its 2004 net-income guidance to between $80 million and $100 million in July 2004, up from an earlier estimate of $36 million to $56 million. -- by Joseph Mantone
Magellan records profitable 2004 after reorganization
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