Disease-management company Healthways, Franklin, Tenn., ended the third quarter with higher revenue and income compared with the same three months a year ago, but performance for the first nine months of the year continues to lag behind 2013.
The company this summer reached a settlement with activist investors over its board composition. Its second-largest investor, North Tide Capital, put forward its own list of board candidates but withdrew them in a deal that allowed North Tide to nominate three directors and created a strategic review committee on the board.
Healthways' revenue in the third quarter increased 11.4% from the prior year to $185.7 million. Expenses climbed 11% to $178.1 million, giving the company operating income of $7.6 million. That's up sharply—24%—from operating income of $6.1 million the same quarter a year ago.