Triple-S Management Corp. (GTS) Tops Q1 EPS by 11c

Triple-S Management Corp. (NYSE: GTS) reported Q1 EPS of $0.25, $0.11 better than the analyst estimate of $0.14. Revenue for the quarter came in at $584.8 million versus the consensus estimate of $585.82 million.

Ramon Ruiz-Comas, President and CEO of Triple-S Management Corporation commented, "Earnings for the first quarter were better than expected and reflect sequential improvement in our business. Our MLR decreased from 88.8% to 86.6%; our consolidated loss ratio fell by 220 basis points and we generated $4.1 million in Managed Care operating income during the period, compared with a $5.0 million operating loss in the fourth quarter of 2013. Overall, we are seeing progress, but we recognize that there is still more work ahead in light of the year-over-year earnings decline."

"Triple-S has initiated a comprehensive strategic review designed to position us more appropriately for the changing healthcare market. We saw progress in MLR trends in the U.S. Virgin Islands, supporting our objective of reaching break even in this geography by the end of 2014. Also in our Commercial business, we implemented a new model to reduce specialty pharmacy costs and began a revision of our pricing structure and underwriting policies to increase profitability. Our efforts to reduce administrative expenses are also producing results. Net of the increase in Medicaid expansion costs and the implementation of new taxes and regulatory fees, Triple-S saw a decline of more than $6 million in administrative expenses compared with the prior quarter. In our Medicare Advantage business, we acquired approximately 6,000 Part D lives from Pharmacy Insurance Company of America (PICA) with no additional personnel, consolidated all Medicare Advantage lives under one pharmacy benefit management company and continued the transition to a pay-for-performance model, which should be completed by year-end. Our management team remains steadfastly committed to taking the corrective actions needed to achieve further improvement in the organization's overall performance," said Ruiz-Comas.

Ruiz-Comas continued, "The Medicaid bid process continues. Based on public information provided by the Puerto Rico Health Insurance Administration (ASES), Triple-S and two other entities are currently in conversations to potentially provide services under an at-risk model. We will provide an update as soon as we have definitive news from ASES."

For earnings history and earnings-related data on Triple-S Management Corp. (GTS) click here.

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