Team Health Holdings Inc (TMH, Financial) filed Quarterly Report for the period ended 2010-03-31.
Team Health Holdings Inc has a market cap of $1.01 billion; its shares were traded at around $15.62 with a P/E ratio of 12 and P/S ratio of 0.7.
We are a provider of healthcare professionals that serve military personnel and their dependents in military treatment facilities nationwide administered by the U.S. Department of Defense. Our revenues derived from military healthcare staffing totaled $40.7 million and $27.8 million for the three months ended March 31, 2009 and 2010 respectively. These revenues are derived from contracts that are subject to a competitive bidding process.
Approximately $92.5 million of the estimated revenue won by us as part of the militarys contract bidding process in 2009 was awarded to us on a one-year contract basis and will be subject to re-bid and award on or about October 1, 2010. Approximately $65.0 million of the estimated annual revenue won during the 2009 bidding process was awarded to us on a twofive option year contract basis which gives the government the option to exercise available option years each October 1. The government also reserves a portion of its contracts for award to small businesses. We participate in such small business awards to the extent we can serve as a sub-contractor to small businesses that win such bids. Approximately 27.8% of our military staffing revenue for each of the three month periods ended March 31, 2009 and 2010 was derived through a subcontracting agreement with a small business prime contractor.
Our commercial insurance policy for professional liability losses for the period March 12, 1999 through March 11, 2003 included insured limits applicable to such coverage in the period. Effective April 2006, we executed an agreement with the commercial insurance provider that issued the policy that ended March 11, 2003 to increase the existing $130.0 million aggregate limit of coverage. Under the terms of the agreement, we will make periodic premium payments to the commercial insurance company and the total aggregate limit of coverage under the policy will be increased by a portion of the premiums paid. We have committed to fund premiums such that the total aggregate limit of coverage under the program remains greater than the paid losses at any point in time. During fiscal year 2009, we funded a total of $4.6 million under this agreement. For the three months ended March 31, 2010, we funded a total of $0.4 million and have agreed to fund additional payments which will be based upon the level of incurred losses relative to the aggregate limit of coverage at that time.
As of March 31, 2010, the current aggregate limit of coverage under this policy is $156.6 million and the estimated loss reserve for claim losses and expenses in excess of the current aggregate limit recorded by the Company was $7.4 million.
Based on the results of the actuarial study completed in April 2010, we recorded a reduction in professional liability reserves associated with prior year loss estimates in the amount of $7.2 million during the three months ended March 31, 2010. Of the total reserve reduction, approximately $5.4 million was associated with loss estimates established in prior years for the self insurance program covering the loss occurrence periods from March 12, 2003 through December 31, 2009. The remaining reserve reduction of $1.8 million was associated with the estimated losses in excess of the aggregate limit of coverage under the commercial insurance program that ended March 12, 2003.
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Team Health Holdings Inc has a market cap of $1.01 billion; its shares were traded at around $15.62 with a P/E ratio of 12 and P/S ratio of 0.7.
Highlight of Business Operations:
Our net proceeds of approximately $168.5 million from the offering were used for the pro rata redemption of approximately $157.5 million aggregate amount of our 11.25% Senior Subordinated Notes due 2013. We completed the initial $136.9 million redemption on January 25, 2010, and the additional $20.6 million redemption using the over-allotment option proceeds was completed on February 12, 2010.We are a provider of healthcare professionals that serve military personnel and their dependents in military treatment facilities nationwide administered by the U.S. Department of Defense. Our revenues derived from military healthcare staffing totaled $40.7 million and $27.8 million for the three months ended March 31, 2009 and 2010 respectively. These revenues are derived from contracts that are subject to a competitive bidding process.
Approximately $92.5 million of the estimated revenue won by us as part of the militarys contract bidding process in 2009 was awarded to us on a one-year contract basis and will be subject to re-bid and award on or about October 1, 2010. Approximately $65.0 million of the estimated annual revenue won during the 2009 bidding process was awarded to us on a twofive option year contract basis which gives the government the option to exercise available option years each October 1. The government also reserves a portion of its contracts for award to small businesses. We participate in such small business awards to the extent we can serve as a sub-contractor to small businesses that win such bids. Approximately 27.8% of our military staffing revenue for each of the three month periods ended March 31, 2009 and 2010 was derived through a subcontracting agreement with a small business prime contractor.
Our commercial insurance policy for professional liability losses for the period March 12, 1999 through March 11, 2003 included insured limits applicable to such coverage in the period. Effective April 2006, we executed an agreement with the commercial insurance provider that issued the policy that ended March 11, 2003 to increase the existing $130.0 million aggregate limit of coverage. Under the terms of the agreement, we will make periodic premium payments to the commercial insurance company and the total aggregate limit of coverage under the policy will be increased by a portion of the premiums paid. We have committed to fund premiums such that the total aggregate limit of coverage under the program remains greater than the paid losses at any point in time. During fiscal year 2009, we funded a total of $4.6 million under this agreement. For the three months ended March 31, 2010, we funded a total of $0.4 million and have agreed to fund additional payments which will be based upon the level of incurred losses relative to the aggregate limit of coverage at that time.
As of March 31, 2010, the current aggregate limit of coverage under this policy is $156.6 million and the estimated loss reserve for claim losses and expenses in excess of the current aggregate limit recorded by the Company was $7.4 million.
Based on the results of the actuarial study completed in April 2010, we recorded a reduction in professional liability reserves associated with prior year loss estimates in the amount of $7.2 million during the three months ended March 31, 2010. Of the total reserve reduction, approximately $5.4 million was associated with loss estimates established in prior years for the self insurance program covering the loss occurrence periods from March 12, 2003 through December 31, 2009. The remaining reserve reduction of $1.8 million was associated with the estimated losses in excess of the aggregate limit of coverage under the commercial insurance program that ended March 12, 2003.
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