PacifiCare Health Systems / Cypress

Nature of business: Owns and operates health maintenance organizations. Total employees: 2,793 In Orange County: 2,098 Stock listing in The Times: On Nasdaq “PacifCa” Ticker symbol: “PHSY A&B;” Friday’s stock close: $31.25 One-week change: Down $0.25

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Analyst review: “In our opinion, Pacificare is one of the nation’s best managed and best-positioned HMOs. The company is benefitting from the national trend among corporations to find more cost-effective alternatives to their health-care benefit programs. It has consistently generated 30%-plus enrollment in its Secure Horizons program and solid internal commercial enrollment growth of 6%-9% annually. With the company focused on gaining share in existing markets and expanding into new markets, we believe that it will continue to generate strong enrollment growth. Fourth-quarter results are due out soon and we are predicting earnings per share of $2.15, up from $1.78 last year.”--Todd B. Richter, analyst, Dean Witter Reynolds Inc, New York

Revenue (in millions of dollars)

3 quarters Fiscal year ending ’90 ’91 ’92 ’92 ’93 976 1,242 1,686 1,232 1,616

Profits (in millions of dollars)

3 quarters Fiscal year ending ’90 ’91 ’92 ’92 ’93 17.6 25.7 43.6 31.5 45.6

Corporate outlook: “We are an organization of dedicated people committed to improving the quality of the lives we touch. We plan to continue our strategy of controlled regional growth, with an eye always focused on being the market leader in whatever area we serve. We also plan to increase our emphasis on preventive care and wellness-oriented programs.”--Alan Hoops, president/CEO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ended Sept. 30 Sept. 30 Sept. 30 3 qtrs. ’90 ’91 ’92 ’92 52-week high $30.38 $42.50 $62.50 $62.50 52-week low $12.00 $12.50 $21.50 $21.50 Book value per share $3.02 $4.29 $7.96 $8.29 Price per share $14.75 $21.75 $38.00 $29.00 Net profit per share $0.74 $1.10 $1.78 $1.31 Price-to-earnings ratio 20:1 20:1 22:1 16:1 Avg. return on investor equity 29% 30% 29% 29%

Fiscal year ended 3 qtrs. ’93 52-week high $57.50 52-week low $25.50 Book value per share $10.97 Price per share $38.00 Net profit per share $1.64 Price-to-earnings ratio Avg. return on investor equity 27%*

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For more information call or write, PacifiCare Health Systems: 5995 Plaza Drive, Cypress, CA 90630-5028. (714) 952-1121

Source: PacifiCare Health Systems; Bloomberg Business News.

Researched by JANICE L. JONES / Los Angeles Times