Tag Archive: companies


Hurricane Irene’s Flood Waters Increase Risk for Used Vehicle Buyers

Filed Under: Homeowners Insurance
Nov.08, 2011

If the Price Is Too Good to be True, Beware

DES PLAINES, Ill., Nov. 8, 2011 /CHICAGOPRESSRELEASE.COM/ — As East Coast residents begin to rebuild and recover from Hurricane Irene and its aftermath, the National Insurance Crime Bureau (NICB) wants consumers all across the country to be alert for flood vehicles that could begin to appear on the used car market.

From Maine to North Carolina, an analysis of insurance claims processed by NICB member companies shows that during last August alone, 11,789 flood vehicle-related claims were processed.  This compares with 994 processed in August of 2010.

New Jersey generated the most claims—4,121—followed by New York (2,809) and North Carolina (2,585).

Although a flood-damaged vehicle can be an attractive purchase for a savvy consumer, it can lead to costly repairs and, potentially, life-threatening injuries. Most consumers do not have the training or the experience to spot flood vehicles.  Moreover, their judgment may be swayed by a price that is just too good to pass up.  But, like the old saying goes, if it sounds too good to be true, it probably is.

The one word that separates a good buy from a scam is disclosure.  As long as a seller discloses the fact that a vehicle is a flood vehicle, then there is no fraud.  The trouble comes when a seller hides the fact that a vehicle has been declared as such and that fact is hidden from prospective buyers.

People who fraudulently traffic in flood vehicles are good at cleaning them up and presenting them for sale as perfectly fine used vehicles.  To entice buyers even more, they are priced well below retail.  That’s a clue for you to slow down and get some expert advice.  It’s always good to hire a trusted technician to examine any used vehicle you intend to purchase—particularly if the sale is from a private party advertising online.

After Hurricane Katrina devastated New Orleans and sections of the Gulf Coast, NICB created VINCheck(SM), a free consumer protection service aimed at preventing this kind of fraud.  VINCheck allows anyone to check a vehicle identification number against the millions of claim records processed by participating NICB member insurance companies. If the vehicle was ever declared as salvage, a flood vehicle, or is an unrecovered stolen vehicle and reported by a participating insurer, you will be advised of that information in seconds.

In addition, consumers are encouraged to use additional sources of vehicle history information, including the National Motor Vehicle Title Information System (NMVTIS) which was designed to protect consumers from fraud and unsafe vehicles.  NMVTIS can be accessed at www.vehiclehistory.gov. 

It’s worth repeating that flood vehicle sales are perfectly legal when all parties are aware of the flood history.  Many people buy them knowing that they will need to rebuild or replace affected parts.  Yet even after that kind of post-sale investment, consumers can have a very good vehicle for a lot less than retail.  But you have to know the vehicle’s history.

NICB recommends that consumers follow these tips to avoid getting ripped off by flood vehicle fraud:

  • Select a reputable car dealer.
  • Inspect the vehicle for water stains, mildew, sand or silt under the carpets, floor mats, headliner cloth and behind the dashboard.
  • Check for recently shampooed carpet.
  • Inspect the interior upholstery and door panels for fading.
  • Check for rust on screws in the console or areas where water normally doesn’t reach.
  • Check for mud or grit in the spare tire compartment, alternator crevices, behind wiring harnesses, around the small recesses of starter motors, power steering pumps and relays.
  • Check inside the seatbelt retractors by pulling the seatbelt all the way out and inspect for moisture, mildew or grime.
  • Check door speakers as they will often be damaged due to flooding.
  • Have a certified mechanic inspect the vehicle prior to purchasing it.
  • Ask about the vehicle’s history.  Ask whether it was in any accidents or floods.
  • Inspect the title and ownership papers for any potential salvage fraud.
  • Conduct a title search of the vehicle.
  • Look under the hood for signs of oxidation.  Pull back rubber boots around electrical and mechanical connections and look for these indicators:
    • Ferrous materials will show signs of rust
    • Copper will show a green patina
  • Aluminum and alloys will have a white powder and pitting.
  • Trust your instincts.  If you don’t like the answers or the deal sounds too good to be true, walk away!

    • If you suspect flood vehicle fraud, call the NICB Hotline at 1-800-TEL-NICB (1-800-835-6422).  You may also text your information to TIP411, keyword “FRAUD” and remain anonymous if you so desire.

    About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation’s leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, training, legislative advocacy and public awareness.  The NICB is supported by more than 1,100 property and casualty insurance companies and self-insured organizations.  NICB member companies wrote over $319 billion in insurance premiums in 2010, or approximately 80 percent of the nation’s property/casualty insurance.  That includes more than 94 percent ($152 billion) of the nation’s personal auto insurance.  To learn more visit www.nicb.org.

    SOURCE National Insurance Crime Bureau


    http://www.nicb.org

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    Economy picks up but hiring outlook stays cloudy (AP)

    Filed Under: Insurance News
    Nov.03, 2011

    WASHINGTON – Companies are more productive, fewer people are seeking unemployment benefits and service companies are adding jobs.

    Ideally, those trends could signal stronger growth, followed by more hiring. Yet until consumers consistently spend more, businesses are unlikely to hire enough to drive down unemployment.

    But more consumers need jobs and raises to keep spending enough to help the economy grow. The paradox has kept the economy from thriving more than two years after the recession officially ended.

    It’s also why economists think the unemployment rate stayed at 9.1 percent for a fourth straight month in October. The government will issue the October jobs report Friday.

    “We’re creating jobs, but it’s not enough to … increase wages measurably,” said Ellen Zentner, an economist at Nomura Securities.

    Thursday data reinforced that message. Weekly applications for unemployment benefits dropped to a seasonally adjusted 397,000, the Labor Department said. It’s only the third time since April that applications have fallen below 400,000.

    Still, applications would need to fall below 375,000 to signal sustained job gains. They haven’t been at that level since February.

    Services companies, which employ about 90 percent of the work force, hired more in October after cutting jobs in the previous month, according to a survey by the Institute for Supply Management.

    Overall growth for the service sector — which covers businesses from restaurants and hotels to financial services firms and retail companies — was mostly unchanged from September’s slow pace.

    Companies ordered more factory goods in September for a third straight month, the Commerce Department said. The gain occurred largely because businesses spent more on industrial machinery, computers and software. It’s a sign that in the sluggish economy, many companies are investing in equipment but not in new hires.

    Businesses are getting more out their existing work forces while paying less to employ them. Worker productivity rose in the July-September quarter by the most in a year and a half, the Labor Department said. At the same time, labor costs fell.

    The jump in productivity was due largely to the economy’s best quarterly growth in a year without much change in hiring or hours worked.

    Higher productivity is generally a good thing. It can raise standards of living by enabling companies to pay workers more without raising their prices and increasing inflation. But without strong and sustained customer demand, companies are unlikely to hire.

    Consumers helped drive this summer’s growth by increasing their spending at triple the rate from spring.

    When demand rises and productivity is low, it’s usually a sign that businesses have reached the limit on the work they can squeeze from their work forces. That often leads some to hire more workers, if they want to grow.

    But economists worry that consumers won’t be able to sustain this summer’s spending binge. In the July-September quarter, they spent more while earning less. They used their savings to make up the difference. Without more jobs and higher wages, consumers are likely to pare spending in the months ahead.

    That may already be happening. Shoppers slowed their spending in October, according to monthly revenue results reported by retailers Thursday. Costco, Macy’s, Saks and Target are among the companies that reported results that fell slightly below Wall Street analysts’ expectations.

    Weaker sales figures at big chain stores open for more than a year is a bad sign ahead of the winter holiday shopping season.

    Federal Reserve Chairman Ben Bernanke said Wednesday that growth is likely to be “frustratingly slow,” after the Fed sharply lowered its economic projections for the next two years.

    The Fed now says the economy will likely expand no more than 1.7 percent for all of 2011. That’s down from its June forecast of 2.7 percent to 2.9 percent. And it predicted growth of only 2.5 percent to 2.9 percent next year, nearly a percentage point lower than its June estimate.

    The Fed said it doesn’t expect the unemployment rate to be any lower this year. And it sees unemployment averaging 8.6 percent by the end of next year.

    ___

    AP Economics Writer Martin Crutsinger contributed to this report.

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    SXC Health Solutions Announces Record Third Quarter Financial Results

    Filed Under: Insurance News
    Nov.03, 2011

    LISLE, IL, Nov. 3, 2011 /CHICAGOPRESSRELEASE.COM/ – SXC Health Solutions Corp. (“SXC” or the
    “Company”) (NASDAQ: SXCI, TSX: SXC), a leading provider of technology
    and pharmacy benefit management (PBM) services, announces its financial
    results for the three-month and nine-month periods ended September 30,
    2011.

    Q3 2011 Highlights

    • Revenue grew 163% on a year over year basis to $1.3 billion, compared to
      $489.9 million in Q3 2010
    • Gross profit increased 56% to $82.3 million, compared to $52.9 million
      in Q3 2010
    • Net income increased 56% to $25.3 million, or $0.40 per share
      (fully-diluted), compared to $16.2 million, or $0.26 per share
      (fully-diluted), in Q3 2010
    • Adjusted EBITDA¹ increased 58% to $48.0 million, compared to $30.4
      million in Q3 2010
    • Non-GAAP adjusted earnings per share¹ (fully-diluted), which excludes
      all transaction-related amortization, increased 57% to $0.44, compared
      to $0.28 in Q3 2010
    • Adjusted prescription claim volume¹ for the PBM segment was 23.3
      million, compared to 11.9 million in Q3 2010
    • Transaction processing volume for the HCIT segment was 100.1 million in
      the quarter
    • Generic dispense rate increased to 78% compared to 76% in Q3 2010
    • Successfully converted two HCIT clients to PBM services in the quarter
    • Launched the industry’s first automated, enhanced Coordination of
      Benefits service in the State Fee-For-Service Medicaid market
    • Completed the acquisitions of PTRX, Inc., a full-service pharmacy
      benefit manager, and SaveDirectRx, Inc., its exclusive mail-order
      pharmacy provider, both previous clients of SXC, subsequent to the end
      of the period
    • Signed a five-year HCIT contract renewal with Catalyst Health Solutions,
      Inc. (NASDAQ: CHSI), subsequent to the end of the period
    • Ranked 1st in FORTUNE Magazine’s 2011 “100 Fastest-Growing Companies” list

    “Q3 was another strong quarter for SXC. Cash flow from operations was
    strong and we achieved record EBITDA growth. We just posted our best
    sales year in SXC’s history – more than $1.4 billion of new sales,
    adding over 1 million new lives under management. The Company is very
    well positioned moving forward,” said Mark Thierer, Chairman and CEO of
    SXC.

    Subsequent to the end of the quarter, Cigna announced the acquisition of
    HealthSpring, SXC’s largest customer based on revenues.  HealthSpring
    is in the first year of a five-year contract, which has a base three
    year term with two one-year extensions.  SXC has met the performance
    obligations under the contract and expects to service HealthSpring for
    the duration of the agreement.

    Financial Review
    Revenue and Gross Profit segmented by PBM and HCIT:
    SXC evaluates segment performance based on revenue and gross profit.
    Reconciliations of the Company’s business segments to the consolidated
    financial statements for the three and nine months ended September 30,
    2011 and 2010 are as follows:

    Three months ended September 30, (unaudited, in thousands)

        PBM   HCIT   Consolidated
        2011   2010   2011   2010   2011   2010
    Revenue   $ 1,256,369   $    463,042   $    30,921   $    26,880   $ 1,287,290   $    489,922
    Cost of  revenue 1,188,197   423,773   16,751   13,285   $ 1,204,948   437,058
    Gross profit $      68,172   $      39,269   $    14,170   $    13,595   $      82,342   $      52,864
    Gross profit % 5.4%   8.5%   45.8%   50.6%   6.4%   10.8%

    Nine months ended September 30,  (unaudited, in thousands)

        PBM   HCIT   Consolidated
        2011   2010   2011   2010   2011   2010
    Revenue   $ 3,511,148   $ 1,341,839   $    85,833   $    79,677   $ 3,596,981   $ 1,421,516
    Cost of  revenue 3,330,886   1,225,620   45,973   39,064   3,376,859   1,264,684
    Gross profit $    180,262   $    116,219   $    39,860   $    40,613   $    220,122   $    156,832
    Gross profit % 5.1%   8.7%   46.4%   51.0%   6.1%   11.0%

    Revenue
    Q3 2011 PBM revenue was $1.3 billion, compared to $463.0 million in Q3
    2010. PBM revenue for the year-to-date (YTD) period was $3.5 billion,
    compared to $1.3 billion in the prior period. The increase in revenue
    on a year over year basis is primarily due to new customer starts,
    including HealthSpring on January 1, 2011 and Optima on April 1, 2011,
    as well as revenues generated from the acquisition of MedfusionRx, LLC (“MedfusionRx”).

    Q3 2011 HCIT revenue was $30.9 million, compared to $26.9 million in Q3
    2010.  For the YTD period, HCIT revenue was $85.8 million, compared to
    $79.7 million in the prior period. The increase was primarily due to an
    increase in revenues earned from professional services and transaction
    processing as a result of increased utilization of these services by
    HCIT clients.

    Gross Profit
    Consolidated gross profit for Q3 2011 was $82.3 million, an increase of
    $29.5 million compared to $52.9 million in Q3 2010.  For the YTD
    period, consolidated gross profit was $220.1 million, an increase of
    $63.3 million compared to $156.8 million in the prior period.  The
    increase is primarily due to incremental revenues from new customer
    starts and the MedfusionRx acquisition. Consolidated gross profit as a percentage of revenue was
    6.4% in Q3 2011, compared to 10.8% in Q3 2010 and 6.1% compared to
    11.0% for the YTD 2011 and 2010 periods, respectively.  Gross profit as
    a percentage of revenue has decreased due to new business wins carrying
    a lower gross profit percentage than the historical rates for the PBM
    segment.

    PBM gross profit percentage increased in Q3 2011 compared to Q2 2011 due
    to higher utilization of generics and specialty medications.  The gross
    profit per adjusted prescription claim increased to $2.93 compared to
    $2.65 in the subsequent quarter.  Additionally, gross profit increased
    due to the recognition of $1.0 million in non-recurring revenue within
    the HCIT segment.

    Selling, General and Administration (“SG&A”) Costs
    SG&A costs for Q3 2011 were $33.8 million, compared to $21.6 million in
    Q3 2010. SG&A costs for the YTD period were $93.4 million, compared to
    $64.4 million in the prior period. The change in SG&A costs compared to
    prior periods was due to increased resources to support the Company’s
    organic growth, increased stock-based compensation cost, and additional
    operating costs related to the MedfusionRx and MedMetrics acquisitions.

    Adjusted EBITDA¹
    Q3 2011 adjusted EBITDA increased 58% to $48.0 million, compared to
    $30.4 million in Q3 2010. Adjusted EBITDA for the YTD period was $124.6
    million, compared to $89.6 million in the prior period. The growth in
    adjusted EBITDA was due primarily to new contract wins, HCIT-to-PBM
    conversions and additional business generated from the acquisitions of
    MedfusionRx and MedMetrics.

    Net Income
    The Company reported Q3 2011 net income of $25.3 million, or $0.40 per
    share (fully-diluted), compared to $16.2 million, or $0.26 per share
    (fully-diluted), in Q3 2010. Net income for the YTD period was $65.1
    million, or $1.03 per share (fully-diluted), compared to net income in
    the prior period of $48.1 million, or $0.77 per share (fully-diluted).

    Non-GAAP Adjusted EPS¹ excludes amortization of intangible assets, net of tax.  The Company
    reported Q3 2011 adjusted EPS of $0.44 per share (fully-diluted),
    compared to $0.28 per share (fully-diluted), in Q3 2010.  Adjusted EPS
    for the YTD period was $1.15 per share (fully-diluted), compared to the
    prior period of $0.83 per share (fully-diluted).

    Cash from Operations
    For Q3 2011, the Company generated $85.3 million of cash from
    operations, compared to $26.1 million generated in cash from operations
    during Q3 2010. For the YTD period, SXC generated cash from operations
    of $84.7 million, compared to $62.9 million in the prior period. The
    increased transaction volume in the PBM segment, propelled by new
    customer starts during 2011, as well as the additional business
    generated as a result of the Company’s recent acquisitions, were the
    primary drivers of increased operating cash flow during the Q3 and YTD
    periods.

    At September 30, 2011 and December 31, 2010, SXC had cash and cash
    equivalents totalling $405.1 million and $321.3 million, respectively. 
    The Company believes that its cash on hand, together with cash
    generated from operating activities, will be sufficient to support
    planned operations for the foreseeable future.  Subsequent to the end
    of the quarter, the Company utilized $77 million of cash on hand to
    close the acquisitions of PTRX and SaveDirectRx.

    2011 Full Year Financial Guidance
    With today’s announcement, SXC is revising certain of its 2011 full year
    financial targets:

    • Revenue of $4.7 to $4.8 billion, versus prior estimate of $4.6 to $4.7
      billion.  The mid-point of the range implies an increase of $100
      million versus the prior estimate’s mid-point.
    • Adjusted EBITDA1 of $172 to $173 million, versus prior estimate of $168 to $172 million.
      The mid-point of the range implies an increase of $2.5 million versus
      the prior estimate’s mid-point.
    • GAAP EPS (fully-diluted) of $1.46 to $1.47, versus prior estimate of
      $1.43 to $1.47. The mid-point of the range implies an increase of
      $0.015 versus the prior estimate’s mid-point.
    • Adjusted EPS1 (fully-diluted) of $1.62 to $1.63 versus prior estimate of $1.58 to
      $1.62 (excluding all transaction-related amortization).  The mid-point of the range implies an increase of $0.025 versus the
      prior estimate’s mid-point.

    Notice of Conference Call
    SXC will host a conference call on Thursday, November 3, 2011, at 8:30
    a.m. ET to discuss its financial results.  Mark Thierer, Chairman and
    CEO, and Jeff Park, EVP and CFO, will co-chair the call. All interested
    parties can join the call by dialing 1-888-231-8191 or 647-427-7450.
    Please dial in 15 minutes prior to the call to secure a line. The
    conference call will be archived for replay until Thursday, November
    10, 2011 at midnight. To access the archived conference call, please
    dial 1-855-859-2056 or 416-849-0833 and enter the reservation code
    20404937.

    A live audio webcast of the conference call will be available at www.sxc.com and www.newswire.ca.  Please connect at least 15 minutes prior to the conference call to
    ensure adequate time for any software download that may be required to
    join the webcast.  An archived replay of the webcast will be available
    for 365 days.

    1Non-GAAP Financial Measures
    SXC reports its financial results in accordance with generally accepted
    accounting principles in the United States (“GAAP”). SXC’s management
    also evaluates and makes operating decisions using various other
    measures. Two such measures are adjusted EPS and adjusted EBITDA, which
    are non-GAAP financial measures. SXC’s management believes that these
    two measures provide useful supplemental information regarding the
    performance of SXC’s business operations.

    Adjusted EPS adds back the impact of all amortization of intangible
    asset expenses, net of tax. Amortization of intangible asset expense
    arises from the acquisition of intangible assets in connection with the
    Company’s business acquisitions. SXC excludes acquisition-related
    amortization expense from non-GAAP adjusted EPS because it believes (i)
    the amount of such expenses in any specific period may not directly
    correlate to the underlying performance of SXC’s business operations
    and (ii) such expenses can vary significantly between periods as a
    result of new acquisitions and full amortization of previously acquired
    intangible assets. Investors should note that the use of these
    intangible assets contributes to revenue in the periods presented as
    well as future periods and should also note that such expenses will
    recur in future periods.

    Adjusted EBITDA is a non-GAAP measure that management believes is a
    useful supplemental measure of operating performance prior to interest
    income, interest expense and other expense, income taxes, depreciation,
    amortization and stock-based compensation expenses. Management believes
    it is useful to exclude these expenses as they are essentially fixed
    amounts that cannot be influenced by management in the short term. In
    addition, management believes it is useful to exclude stock-based
    compensation as this is a non-cash expense.

    The 2011 full year guidance of adjusted EBITDA was computed using the
    Company’s estimated 2011 earnings before interest, taxes, depreciation
    and amortization as well as estimated stock-based compensation expense
    of approximately $9 million. Adjusted EPS was computed by taking the
    Company’s GAAP EPS (fully-diluted) guidance and adding back the
    expected impact of all acquisition-related amortization expense
    totaling approximately $17 million less an estimated 34% tax rate.

    Adjusted prescription claim volume equals SXC’s Mail Service
    prescriptions multiplied by three, plus its retail and specialty
    prescriptions. The Mail Service prescriptions are multiplied by three
    to adjust for the fact that they typically include approximately three
    times the amount of product days supplied compared with retail
    prescriptions.

    Management believes that adjusted EPS, adjusted EBITDA and adjusted
    prescription claim volume provide useful supplemental information to
    management and investors regarding the performance of the Company’s
    business operations and facilitate comparisons to its historical
    operating results. Management also uses this information internally for
    forecasting and budgeting as it believes that the measures are
    indicative of the Company’s core operating results. Note, however, that
    these items are performance measures only, and do not provide any
    measure of the Company’s cash flow or liquidity. Non-GAAP financial
    measures should not be considered as a substitute for measures of
    financial performance in accordance with GAAP, and investors and
    potential investors are encouraged to review the reconciliations of
    adjusted EPS and adjusted EBITDA to their most directly comparable GAAP
    measure.

    Adjusted EPS and adjusted EBITDA do not have standardized meanings
    prescribed by GAAP. The Company’s method of calculating these items may
    differ from the methods used by other companies and, accordingly, may
    not be comparable to similarly titled measures used by other companies.
    Reconciliations of adjusted EBITDA to net income and GAAP EPS
    (fully-diluted) to adjusted EPS (fully-diluted) are shown below:

    Adjusted EBITDA Reconciliation                
    (in thousands)                
          Three Months Ended   Nine Months Ended
          September 30,    September 30, 
          2011   2010   2011   2010
          (unaudited)   (unaudited)
    Net Income (GAAP)    $ 25,266    $ 16,176    $ 65,102    $ 48,113
    Add:                
      Amortization of Intangible Assets   3,899   1,942   11,125   5,915
                       
      Depreciation of Property & Equipment   2,235   2,077   6,815   6,312
                       
      Stock-Based Compensation   2,404   1,646   6,507   4,527
                       
      Interest Income   (115)   (199)   (375)   (524)
                       
      Interest Expense and Other Expense, Net 1,221   373   2,351   1,343
                       
      Income Tax Expense   13,112   8,427   33,091   23,931
                       
    Adjusted EBITDA    $ 48,022    $ 30,442    $ 124,616    $ 89,617
    Adjusted EPS Reconciliation                              
    (in thousands, except per share data)                              
        Three Months Ended September 30,   Nine Months Ended September 30,
        2011   2010   2011   2010
        Operational Results   Per Diluted Share   Operational Results   Per Diluted Share   Operational Results   Per Diluted Share   Operational Results   Per Diluted Share
        (unaudited)   (unaudited)
                                     
    Net Income (GAAP) $ 25,266   $ 0.40   $ 16,176   $ 0.26   $ 65,102   $ 1.03   $ 48,113   $ 0.77
                                     
    Amortization of Intangible Assets 3,899   0.06   1,942   0.03   11,125   0.18   5,915   0.09
                                     
    Tax Effect of Reconciling Item (1,333)   (0.02)   (666)   (0.01)   (3,749)   (0.06)   (1,964)   (0.03)
                                     
    Non-GAAP Net Income $ 27,832   $ 0.44   $ 17,452   $ 0.28   $ 72,478   $ 1.15   $ 52,064   $ 0.83

    About SXC Health Solutions Corp.
    SXC Health Solutions Corp. is a leading provider of pharmacy benefits
    management (PBM) services and Health Care Information Technology (HCIT)
    solutions to the healthcare benefits management industry. The Company’s
    product offerings and solutions combine a wide range of PBM services
    and software applications, application service provider (ASP)
    processing services and professional services, designed for many of the
    largest organizations in the pharmaceutical supply chain, such as
    health plans, employers, federal, provincial, and, state and local
    governments, pharmacy benefit managers, retail pharmacy chains and
    other healthcare intermediaries. SXC is headquartered in Lisle,
    Illinois with multiple locations in the US and Canada.

    For more information please visit www.sxc.com.

    Forward-Looking Statements
    Certain statements included herein, including those that express
    management’s expectations or estimates of our future performance,
    constitute “forward-looking statements” within the meaning of
    applicable securities laws.   Forward-looking statements are
    necessarily based upon a number of estimates and assumptions that,
    while considered reasonable by management at this time, are inherently
    subject to significant business, economic and competitive uncertainties
    and contingencies.   We caution that such forward-looking statements
    involve known and unknown risks, uncertainties and other risks that may
    cause our actual financial results, performance, or achievements to be
    materially different from our estimated future results, performance or
    achievements expressed or implied by those forward-looking
    statements.   Numerous factors could cause actual results to differ
    materially from those in the forward-looking statements, including
    without limitation, our ability to achieve increased market acceptance
    for our product offerings and penetrate new markets; consolidation in
    the healthcare industry; the existence of undetected errors or similar
    problems in our software products; our ability to identify and complete
    acquisitions, manage our growth and integrate acquisitions; our ability
    to compete successfully; potential liability for the use of incorrect
    or incomplete data; the length of the sales cycle for our healthcare
    software solutions; interruption of our operations due to outside
    sources; our dependence on key customers; maintaining our intellectual
    property rights and litigation involving intellectual property rights;
    our ability to obtain, use or successfully integrate third-party
    licensed technology; compliance with existing laws, regulations and
    industry initiatives and future change in laws or regulations in the
    healthcare industry; breach of our security by third parties; our
    dependence on the expertise of our key personnel; our access to
    sufficient capital to fund our future requirements; and potential
    write-offs of goodwill or other intangible assets.      This list is not exhaustive of the factors that may affect any of our
    forward-looking statements.  Other factors that should be considered
    are discussed from time to time in SXC’s filings with the U.S.
    Securities and Exchange Commission, including the risks and
    uncertainties discussed under the captions “Risk Factors” and
    “Management’s Discussion and Analysis of Financial Condition and
    Results of Operations” in our 2010 Annual Report on Form 10-K and
    subsequent Form 10-Qs, which are available at www.sec.gov.  Investors
    are cautioned not to put undue reliance on forward-looking statements. 
    All subsequent written and oral forward-looking statements attributable
    to SXC or persons acting on our behalf are expressly qualified in their
    entirety by this notice.  We disclaim any intent or obligation to
    update publicly these forward-looking statements, whether as a result
    of new information, future events or otherwise.  

    Certain of the assumptions made in preparing forward-looking information
    and management’s expectations include: maintenance of our existing
    customers and contracts, our ability to market our products
    successfully to anticipated customers, the impact of increasing
    competition, the growth of prescription drug utilization rates at
    predicted levels, the retention of our key personnel, our customers
    continuing to process transactions at historical levels, that our
    systems will not be interrupted for any significant period of time,
    that our products will perform free of major errors, our ability to
    obtain financing on acceptable terms and that there will be no
    significant changes in the regulation of our business.

    SXC HEALTH SOLUTIONS CORP.
    Consolidated Balance Sheets
    (in thousands, except share data)
               
               
          September 30, 2011   December 31, 2010
          (unaudited)    
    ASSETS
               
    Current assets        
      Cash and cash equivalents   $ 405,111   $ 321,284
      Restricted cash   14,971   13,790
      Accounts receivable, net of allowance for doubtful accounts of  $3,215
    (2010 – $3,553)     		  217,791   122,175
      Rebates receivable   32,439   34,249
      Prepaid expenses and other current assets   6,676   10,173
      Inventory   15,222   8,736
      Deferred income taxes   5,583   6,647
        Total current assets   697,793   517,054
               
        Property and equipment, net of accumulated depreciation of $40,628 (2010
    – $35,861)      		  17,146   20,896
        Goodwill   229,193   220,597
        Other intangible assets, net of accumulated amortization of  $42,812
    (2010 – $31,687)     		  49,657   56,282
        Other assets   3,309   1,961
    Total assets   $ 997,098   $ 816,790
               
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
               
    Current liabilities        
      Accounts payable   $ 15,092   $ 30,930
      Accrued liabilities and other current liabilities   69,471   61,038
      Pharmacy benefit management rebates payable    58,866   61,364
      Pharmacy benefit claims payable    190,210   84,599
        Total current liabilities   333,639   237,931
               
    Deferred income taxes   13,890   15,111
    Other liabilities   10,091   10,492
        Total liabilities   357,620   263,534
               
               
    Shareholders’ equity         
      Common shares: no par value, unlimited shares authorized; 62,287,716
    shares issue and outstanding at September 30, 2011 (December 31, 2010 -
    61,602,997 shares)     		  393,616   381,736
      Additional paid-in capital   34,213   24,973
      Retained earnings   211,649   146,547
        Total shareholders’ equity   639,478   553,256
               
    Total liabilities and shareholders’ equity    $ 997,098    $ 816,790
     SXC HEALTH SOLUTIONS CORP. 
    Consolidated Statements of Operations
    (in thousands, except  share and per share data)
                         
          Three Months Ended September 30,   Nine Months Ended September 30,  
          2011   2010   2011   2010  
          (unaudited)   (unaudited)  
    Revenue:                  
      PBM   $ 1,256,369   $ 463,042   $ 3,511,148   $ 1,341,839  
      HCIT   30,921   26,880   85,833   79,677  
    Total revenue   1,287,290   489,922   3,596,981   1,421,516  
                         
    Cost of revenue:                  
      PBM   1,188,197   423,773   3,330,886   1,225,620  
      HCIT   16,751   13,285   45,973   39,064  
    Total cost of revenue    1,204,948   437,058   3,376,859   1,264,684  
    Gross profit   82,342   52,864   220,122   156,832  
                         
    Expenses:                  
      Product development costs   3,598   3,075   10,624   9,169  
      Selling, general and administrative   33,773   21,607   93,440   64,403  
      Depreciation of property and equipment   1,588   1,463   4,764   4,482  
      Amortization of intangible assets   3,899   1,942   11,125   5,915  
          42,858   28,087   119,953   83,969  
    Operating income   39,484   24,777   100,169   72,863  
                         
    Interest income   (115)   (199)   (375)   (524)  
    Interest expense and other expense, net   1,221   373   2,351   1,343  
    Income before income taxes    38,378   24,603   98,193   72,044  
    Income tax expense (benefit):                   
      Current   14,289   8,837   34,587   21,575  
      Deferred   (1,177)   (410)   (1,496)   2,356  
          13,112   8,427   33,091   23,931  
    Net income   $ 25,266   $ 16,176   $ 65,102   $ 48,113  
                         
    Earnings per share:                   
      Basic     $ 0.41    $ 0.27    $ 1.05    $ 0.79  
      Diluted    $ 0.40    $ 0.26    $ 1.03    $ 0.77  
                         
    Weighted average number of shares used in computing earnings per share:                  
      Basic   62,271,267   60,820,197   62,050,573   60,569,027  
      Diluted   63,070,519   62,929,186   62,907,064   62,558,202  
     SXC HEALTH SOLUTIONS CORP. 
    Consolidated Statements of Cash Flows
    (in thousands)
                         
                         
          Three Months Ended September 30,   Nine Months Ended September 30,  
          2011   2010   2011   2010  
          (unaudited)   (unaudited)  
    Cash flows from operating activities:                
      Net income $ 25,266   $ 16,176   $ 65,102   $ 48,113  
      Items not involving cash:                  
        Stock-based compensation 2,404   1,646   6,507   4,527  
        Depreciation of property and equipment 2,235   2,077   6,815   6,312  
        Amortization of intangible assets 3,899   1,942   11,125   5,915  
        Deferred lease inducements and rent (150)   (127)   (397)   (365)  
        Deferred income taxes (1,177)   (410)   (1,496)   2,356  
        Tax benefit on option exercises (304)   (483)   (9,322)   (6,071)  
      Changes in operating assets and liabilities,
      net of effects from acquisitions:     		                 
        Accounts receivable 9,211   (6,561)   (93,838)   (13,185)  
        Rebates receivable 5,017   (3,158)   4,616   (20,459)  
        Restricted cash (9)   (10)   (1,181)   (162)  
        Prepaid expenses and other current assets 1,201   221   (1,742)   (1,350)  
        Inventory (2,999)   297   (6,486)   (825)  
        Income tax  11,725   582   24,586   7,692  
        Accounts payable (23,430)   1,397   (17,107)   (288)  
        Accrued liabilities 4,895   357   (1,308)   (6,693)  
        Pharmacy benefit claims payable 45,282   7,914   105,611   19,160  
        Pharmacy benefit management rebates payable 2,528   4,213   (5,304)   17,177  
        Other   (286)   -   (1,469)   1,020  
          Net cash provided by operating activities 85,308   26,073   84,712   62,874  
                         
    Cash flows from investing activities:                
      Acquisitions 564   -   (12,421)   -  
      Purchases of property and equipment (978)   (507)   (3,073)   (4,033)  
      Proceeds from sale of short term investments -   -   -   6,828  
      Purchases of short term investments -   -   -   (2,208)  
        Net cash (used) provided by investing activities (414)   (507)   (15,494)   587  
                         
    Cash flows from financing activities:                
      Tax benefit on option exercises 304   483   9,322   6,071  
      Proceeds from exercise of options 185   313   5,291   5,040  
        Net cash provided by financing activities 489   796   14,613   11,111  
                         
    Effect of foreign exchange on cash balances     21   75   (4)   119  
                         
    Increase in cash and cash equivalents     85,404   26,437   83,827   74,691  
                         
    Cash and cash equivalents, beginning of period     319,707   352,624   321,284   304,370  
                         
    Cash and cash equivalents, end of period     $ 405,111   $ 379,061   $ 405,111   $ 379,061  

    SOURCE SXC Health Solutions Corp.

    SXC Health Solutions Announces Record Third Quarter Financial Results | Chicago Press Release Services – Chicago’s leading press release newswire service; professional press release services, press release distribution and newswire services.



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    Stock market rebounds after a two-day slump (AP)

    Filed Under: Insurance News
    Nov.02, 2011

    NEW YORK – Stock indexes rose Wednesday after a steep two-day drop as international leaders scrambled to save a week-old plan to prevent a financial crisis in Europe. Strong corporate earnings and a bump up in hiring by private companies also helped turn markets around.

    The Dow Jones industrial average gained 127 points, or 1.1 percent, to 11,785 as of 1 p.m. Eastern. The Dow lost 573 points the previous two days after the brokerage MF Global collapsed and Greece’s prime minister surprised markets and his own government with a call to put unpopular austerity measures to a public vote.

    The Standard and Poor’s 500 rose 21 points, or 1.7 percent, to 1,239. The Nasdaq composite gained 32, or 1.2 percent, to 2,638.

    The fear of a wider financial crisis eased Wednesday as the euro rose against the dollar and Treasury prices slipped. A revolt in George Papandreou’s government could scuttle the Greek referendum, which is seen as a relief to investors because it would keep the bailout plan intact. Papandreou faces a confidence vote on Friday.

    Should voters reject the austerity plan, it could lead to a messy default on Greece’s debt that would send shock waves through Europe’s financial system and likely cause massive losses for banks that hold Greek bonds. Only last week European leaders agreed to a wide-ranging plan to shore up European banks and heavily indebted countries like Greece and Italy.

    Papandreou traveled to France Wednesday and is scheduled to meet with leaders of the Group of 20 nations Thursday and Friday. France and Germany are expected to insist that a bailout plan reached last Thursday is the best way to solve Europe’s debt problems and avoid a financial crisis.

    In the U.S., an increase in hiring helped lift stock prices. Automatic Data Processing said company payrolls rose by 110,000 in October, more than economists had expected. Most of the gains came from the service industry. ADP also revised its survey results for September higher. Investors see ADP’s report as a precursor to the government’s broader employment report, which is due out Friday.

    The Dow fell off of its high for the day after the Federal Reserve said that it would not take any additional steps to help the economy at this time. The central bank said that the U.S. economy has strengthened and consumers have increased spending. It left open the possibility of further measures to boost the economy. The Dow had been up nearly 200 points before the announcement.

    Bank of America rose 2.6 percent, the largest gain among the 30 stocks in the Dow. MasterCard gained 6.8 percent after reporting that quarterly earnings soared 38 percent. The results beat analysts’ expectations.

    Small stocks rose more than the overall market, a sign that investors were taking on more risk. The Russell 2000 index jumped 1.4 percent.

    The yield on the 10-year Treasury note rose to 2.01 percent, up from 1.96 percent late Tuesday.

    Among companies reporting quarterly earnings, EOG Resources Inc. rose 11.3 percent, the largest gain in the S&P 500 index. The oil and gas company reported third-quarter earnings that beat analysts’ expectations after posting a loss a year ago.

    JDS Uniphase Corp. jumped 8.5 percent, after the technology company’s earnings surpassed estimates.

    Comcast rose 1.1 percent after the country’s largest cable company reported relatively strong results compared to its peers. It also signed up more customers for Internet service.

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    Fixing the Economy: Helping the Homeowners (ContributorNetwork)

    Filed Under: Insurance News
    Nov.01, 2011

    In response to criticism, the Obama Administration has provided another stimulus to help homeowners stay in their homes. Since the start of the housing crisis and subsequent recession, the U.S. government has committed over $12.5 trillion dollars to help banks, insurance companies, and manufacturing companies, according to an article from the New York Times.

    One obscure proposal floating around the offices of Representatives Holt (D-N.J.) and Ryan (R-Wis.) and Senator McCain (R-Ariz.) that appears to be gaining traction involves helping homeowners directly through government loans. The proposal requires the federal government provide loans of up to $100K to homeowners who have a primary mortgage on the home in which they live. The loan cannot exceed the outstanding balance on this primary mortgage and can only be used to pay down the principal on the primary mortgage. Furthermore, every primary mortgage would be modified to a new 30-year fixed mortgage at an interest rate of 4.5 percent. Under the proposal, homeowners would lose their mortgage deduction from their taxes for a fixed period of time that is based on the loan amount. Upon sale of the home, any leftover proceeds goes to pay back the government loan.

    According to the Census Office, there are approximately 60 million homeowners who have a mortgage. It is estimated that 11 million of these homeowners owe more than the current value of their home. The fundamentals of the proposal has the federal government on the hook for a maximum of $6 trillion if all homeowners owed more than $100,000 and took advantage of the program, but it is more likely to cost closer to the $1.1 trillion corresponding to those homeowners who are currently underwater on their mortgage,due to the penalties of participating in the program.

    The average outstanding mortgage is $186,000 as reported by Federal Reserve in combination with the Census Bureau information. If a homeowner who has an underwater mortgage accepts the government loan, there could be a significant reduction in the monthly payment. For a mortgage with an interest rate of 5 percent, the average savings per month would be $537 with the savings being larger at higher interest rates. In addition, with the reduction of the mortgage rate to 4.5 percent, an additional savings of ~$50 would be obtained from an average mortgage. It is presumed that these savings will be used by the homeowner to purchase goods that will lead to an increase in demand, which will eventually lead to an increase in jobs.

    In return, the government would receive additional income tax revenue because of the loss of the mortgage deduction for these homeowners. This could generate over $330 billion in tax revenue from the homeowners, covering almost one-third of the loans outstanding. Furthermore, if the savings per month are used to purchase taxable items, this would potentially generate an additional $3 billion in sales taxes for the states. It is also believed that additional corporate taxes would be generated but the amount is unknown.

    Finally, it is believe that this proposal would help to stabilize the housing market. By bringing a large percentage of homeowners who are underwater to a breakeven prospect would create a greater freedom for the American worker to seek better employment opportunities by reducing the number of foreclosed/abandon properties on the market. It is expected that this in turn would allow for increase productivity as workers would not be stuck in an unsatisfying employment position due to an unstable housing market.

    Given the delicate nature of the current economy, common sense appears to dictate that everything is under consideration.

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    Revamped Foodservice Offerings Play Role in Recreation Industry Recovery, Says Technomic

    Filed Under: Insurance News
    Oct.31, 2011

    CHICAGO, Oct. 31, 2011 /CHICAGOPRESSRELEASE.COM/ — It is rare for a 2.6 percent decrease in sales to be considered good news, but in the case of the recreation foodservice segment, last year’s decrease was actually a big improvement over the prior year’s nominal decline of 10 percent. The industry, hit hard by the recession’s lingering effects, has continued to struggle as discretionary spending remains down from pre-recession levels. The recreation segment had retail-sales-equivalent food and non-alcoholic beverage revenues of $15.8 billion dollars in 2010. One way the industry is seeking to restore profitability is by expanding and tailoring their foodservice offerings to attract those customers venturing out and seeking the most bang for their buck.

    “The recreation segment continues to evolve from a sector with very limited foodservice opportunities to one in which foodservice plays a vital role in attracting and retaining customers,” says Technomic Director Mary Chapman. “In many cases, their core business—from slot machines to museum exhibits—has been suffering, and restaurants are a key way to help build bottom lines. This creates a lot of opportunity for smart foodservice operators, contract management companies and food manufacturers.”

    To help those companies understand where opportunities lie in the recreation industry, Technomic has developed the Recreation Foodservice Report.

    Interesting findings include:

    Casinos/Gaming: After two years of revenue declines, the gaming industry is starting to show signs of growth. Las Vegas, in particular, is benefiting: For the past 16 consecutive months, the number of visitors to Sin City has increased, according to the Las Vegas Convention and Visitors Authority. New regions such as Pennsylvania have also seen growth. Restaurant operators, including celebrity chefs, play a large role in attracting consumers to casinos and keeping them on premise.

    Cruise Ships: The number of worldwide cruise-ship passengers increased steadily between 2007 and 2009, reaching 13.4 million in 2009—up a modest 3.0 percent over 2008. Cruise ships have been segment pioneers in leveraging foodservice as a lure to new passengers, not only by adding celebrity-chef-designed restaurants but also by creating cooking-class cruises with demonstrations by culinary experts.

    Theme/Amusement Parks: Beyond the economic slump, parks are at the mercy of the weather, tourism rates and competition for less-expensive forms of family entertainment. Operators are working to underscore the unique and special qualities of going to a theme park versus other entertainment venues, efforts that often include aggressive promotions involving lodging and food packages, discounts for prepaid food and all-you-can-eat special deals.

    Stadiums/Arenas: Attendance is down in some but not all markets for major sports, and this remains one of the segment’s strongest subsections. Every other category would love to build foodservice revenues as stadiums have done. Concessions have been improved; popular brand names are common; full-service restaurants are proliferating; and the quality of in-suite catering matches that of fine-dining restaurants.

    Sports Clubs: Memberships in city, golf and yacht clubs are down. The number of golf rounds being played is also down. As a result, food-and-beverage revenues (which account for almost 30 percent of an average private club’s income) have declined.

    Movie Theaters: Movie theaters are a bright spot in the recreation segment. Movie theaters are not only surviving a tough economic environment, they are succeeding. Despite the growth of Red Box vending machines, movies by-mail and streaming options, and myriad online video sites, box-office sales have grown by 20% nominally from 2005 to 2010. “Dinner and a movie” promotions are growing in popularity and many theater operators have added their own restaurants and lounges.

    Museums: Attendance is down for all fine-arts categories, and museums also are being pinched by reduced donations and civic support. However, museums have been among the leaders in upgrading foodservice over the past decade, often with the help of national or local celebrity chefs.

    Bowling and Entertainment Centers: A few chains, such as AMF 300 and Splitsville, are moving ahead with plans to open centers where quality dining is the primary draw and bowling alleys are secondary. When the economy brightens, many other centers will follow the lead of these companies. In the meantime, operators are offering family packages and adult-focused theme nights to court customers.

    Zoos, Race Tracks and Others: Zoos, aquariums, horse and auto racing tracks, fairs and other entertainment attractions have seen declining admissions. These sectors have responded by reducing ticket prices to draw traffic, promoting foodservice facilities as an important reason to visit, and offering more trend-forward food and beverages to create a sense of excitement.

    Technomic’s Recreation Foodservice Report provides an in-depth understanding of recreation foodservice’s major components: casinos, cruise lines, theme/amusement parks, stadiums and arenas, sports clubs, movie theaters, bowling centers, museums, zoos and race tracks. For each of these categories, major players are identified and the present and future role of foodservice is analyzed.

    To purchase or learn more about this report please visit Technomic.com or contact one of the individuals listed below. 

    Contacts
    Press Inquiries: Mary Chapman, 312-506-3871, or mchapman@technomic.com 
    Purchasing Details: Patrick Noone, 312-506-3852, or pnoone@technomic.com

    About Technomic

    Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.

    (Logo: http://photos.CHICAGOPRESSRELEASE.COM.com/prnh/20110428/CG90692LOGO)

    SOURCE Technomic


    http://www.technomic.com

    Revamped Foodservice Offerings Play Role in Recreation Industry Recovery, Says Technomic | Chicago Press Release Services – Chicago’s leading press release newswire service; professional press release services, press release distribution and newswire services.



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    Cytogel Pharma, LLC. Announces Presentation at the American Society of Anesthesiologists meeting in Chicago on October 18, 2011, Describing Results…

    Filed Under: Insurance News
    Oct.28, 2011

    DARIEN, Conn., Oct. 28, 2011 /CHICAGOPRESSRELEASE.COM/ — Cytogel Pharma, LLC. is pleased to announce today the presentation at the American Society of Anesthesiologists of study results and completed analysis of a Phase I study of Cyt-1010.  Cyt-1010 is a proprietary compound and a chemically stabilized analogue of endomorphin 1, a naturally occurring pain modulator.  This trial was designed as a safety study in normal healthy volunteers with additional pharmacodynamic end points.  At the doses tested (up to 0.15 mg/kg) Cyt-1010 was generally well tolerated, and no severe adverse events or evidence of respiratory depression were reported.  The trial included additional tests to measure sensitivity to painful stimuli and statistically significant prolongation of the threshold time for cold pain sensation was recorded at a dose of 0.1 mg/kg.  Cyt-1010 is being developed for the treatment of acute and chronic pain conditions, including neuropathic pain and post-operative pain.

    About Cytogel Pharma 

    Cytogel Pharma, LLC. is a biopharmaceutical development company based in Darien, Connecticut, focused on developing promising early-stage programs that offer significant potential both as platform technologies and high value product candidates. The company’s portfolio includes novel analgesic product candidates and broadly useful polymer and hydrogel drug delivery platform technologies. Cytogel will develop products from these platform technologies to the point of demonstrated value and then license these products to other larger companies for the full scientific and clinical development and subsequent commercialization.  To learn more about Cytogel, please visit our website at www.cytogelpharma.com.

    CONTACT: C. Dean Maglaris, 203-966-9867

    SOURCE Cytogel Pharma, LLC.


    http://www.cytogelpharma.com

    Cytogel Pharma, LLC. Announces Presentation at the American Society of Anesthesiologists meeting in Chicago on October 18, 2011, Describing Results From its First Human Study, Part of the Phase I Program for Cyt-1010 | Chicago Press Release Services – Chicago’s leading press release newswire service; professional press release services, press release distribution and newswire services.



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    Flagstar’s DocVelocity 3.0 Wins "Release of the Year" Award from Mortgage Technology Magazine

    Filed Under: Insurance News
    Oct.24, 2011

    TROY, Mich., Oct. 24, 2011 /CHICAGOPRESSRELEASE.COM/ — DocVelocity 3.0 was named “Release of the Year” by Mortgage Technology magazine at the publication’s recent annual Tech Awards ceremony in Chicago.

    DocVelocity is a Web-based paperless processing system for mortgage bankers and brokers developed by a wholly owned subsidiary of Flagstar Bancorp, Inc. (NYSE: FBC). The Release of the Year Award recognizes a new software, platform, alliance, or initiative that is expected to have the broadest future impact on the mortgage industry. DocVelocity previously won the award in 2008, its first year of operation.

    Additionally, in 2010 DocVelocity was named a finalist for two other awards by Mortgage Technology magazine: the 10X award and the Lasting Impact award, both of which relate to the power of the technology to affect mortgage lending.

    The 3.0 version of DocVelocity offers two new features: DocVelocity Threads and an enhanced desktop functionality. Threads is an online customer portal that connects everyone involved in the processing of a loan, from the originator’s staff to the borrower and third parties such as the title and appraisal companies.

    The new 3.0 desktop combines the scalability and flexibility of a Web-based application with the speed and power of a desktop application, thus making it faster and more efficient for users to navigate and organize documents.

    “This award affirms that we are successfully helping customers work more efficiently, while giving them a competitive advantage in this increasingly demanding lending environment,” said Jason Dufner, director, product development, at DocVelocity. “Our 3.0 version revolutionizes how users navigate and organize loan documents, creating unprecedented collaboration among all parties in the process.”

    About DocVelocity

    DocVelocity is the flagship product of Paperless Office Solutions, Inc., a wholly owned subsidiary of Flagstar Bancorp. For more information, please call (877) 362-8356 or visit docvelocity.com.

    About Flagstar Bancorp, Inc.

    Flagstar Bancorp is the parent of Flagstar Bank, which is a full-service financial services company offering a range of products and services to consumers, businesses, and homeowners. With $12.7 billion in total assets at June 30, 2011, Flagstar is the largest publicly held savings bank headquartered in the Midwest. As of June 30, 2011, Flagstar operated 162 branches in Michigan, Indiana, and Georgia, and it subsequently entered into agreements to sell or lease its 27 branches in Georgia and 22 branches in Indiana. Flagstar also operated, at June 30, 2011, 30 home loan centers in 15 states, and a total of four commercial banking offices in Massachusetts, Connecticut, and Rhode Island. Flagstar Bank originates loans nationwide and is one of the leading originators of residential mortgage loans. For more information, please visit flagstar.com.

    SOURCE Flagstar Bancorp, Inc.


    http://www.flagstar.com

    Flagstar’s DocVelocity 3.0 Wins “Release of the Year” Award from Mortgage Technology Magazine | Chicago Press Release Services – Chicago’s leading press release newswire service; professional press release services, press release distribution and newswire services.



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    IBM bumps guidance again, but revenue falls short (AP)

    Filed Under: Insurance News
    Oct.17, 2011

    SAN FRANCISCO – IBM again demonstrated its skill at wringing profit from its software and services juggernauts.

    The success of those divisions has made IBM Corp. one of the most-copied technology companies. It was a key reason that IBM beat analysts’ net income forecasts for the third quarter and raised its earnings outlook for the full year. Neither was surprising for a company that rarely lets down its Wall Street constituents.

    But some investors were left with a more unflattering impression from a different and unexpected part of IBM’s report Monday.

    IBM’s revenue narrowly missed the average forecast, reviving questions about the company’s ability to bring in enough new business to fuel its expected growth.

    Global companies such as IBM face dangers on multiple fronts as the American economy struggles, debt fears threaten Europe and even some hot emerging markets show signs of cooling off. Sales to corporations and government agencies are at the heart of IBM’s business model. But some fear that they may spend less on IBM products and services if demand for their products stays depressed and government budget woes continue.

    The revenue miss apparently fed those fears and helped drive down IBM’s stock price $7.32, or 3.9 percent, to $179.27 after the results came out. The shares had ended regular trading Monday down $3.94, or 2.1 percent, at $186.59 on a weak day for the market overall.

    Most of the questions on IBM’s conference call with analysts covered macroeconomic concerns. But some of the share price decline likely was caused by investors cashing in on recent gains. IBM’s stock hit its 52-week high on Friday on expectations about the results.

    IBM executives insist the company’s focus on long-term contracts insulates it from economic swings. The company said it is ahead of its own aggressive forecasts. IBM has disclosed a goal of hitting $20 per share in adjusted earnings by 2015, a rare example of a long-term earnings target made public by a major company.

    For the three months that ended Sept. 30, IBM said net income was $3.84 billion, or $3.19 per share, up 7 percent from $3.59 billion, or $2.82 per share, a year ago. Excluding one-time items, it earned $3.28 per share, 6 cents per share more than analysts surveyed by FactSet forecast on average.

    Revenue rose 8 percent to $26.16 billion, slightly less than the $26.26 billion that analysts had expected.

    Revenue rose in each of IBM’s three biggest divisions, but more slowly than in the previous quarter.

    Services revenue rose 8 percent, software revenue rose 13 percent, and hardware revenue rose 4 percent. In the second quarter, services revenue rose 10 percent, software revenue rose 17 percent, and hardware revenue grew 17 percent.

    The company now expects adjusted earnings of at least $13.35 per share for the year. The previous forecast was for at least $13.25 per share. Investors have come to expect regular forecast bumps. IBM, which is based in Armonk, N.Y., has raised its full-year profit forecast in each of the last 10 quarters.

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    MARC USA Makes Bold Move in Chicago

    Filed Under: Insurance News
    Oct.17, 2011

    Jean McLaren Promoted to New Corporate CMO Role in Move to Build Future

    PITTSBURGH, Oct. 17, 2011 /CHICAGOPRESSRELEASE.COM/ — Signaling its commitment to build its leadership and business, independent full service marketing and advertising firm MARC USA has hired veteran agency leader Mark Modesto and highly awarded creative director John Immesoete to lead its Chicago office. Jean McLaren, president of MARC USA’s Chicago office for the past eight years, has been elevated to a new corporate role as chief marketing officer for the agency.

    (Photo: http://photos.CHICAGOPRESSRELEASE.COM.com/prnh/20111017/CL87151-a )

    (Photo: http://photos.CHICAGOPRESSRELEASE.COM.com/prnh/20111017/CL87151-b )

    (Photo: http://photos.CHICAGOPRESSRELEASE.COM.com/prnh/20111017/CL87151-c )

    “Proof that independent companies are the engines of the economy, this move underscores MARC USA’s ongoing expansion and our goal to accelerate further with the addition of proven industry leaders and innovators — Mark Modesto, who successfully integrated the two Chicago offices of Draft and FCB into one of the largest integrated advertising agencies, and one of the industry’s most celebrated creative directors, John Immesoete,” explained Michele Fabrizi, president and CEO of MARC USA.

    Mark Modesto joins MARC USA as president of the Chicago office. He was most recently president of DraftFCB North America and had worked at its predecessor agency Foote Cone & Belding where he started in account management in 1980. While at DraftFCB, Modesto built its far-reaching digital capabilities, oversaw the creation of integrated multidisciplinary client teams, built international capabilities and served as the worldwide executive management director on important agency accounts including SC Johnson, one of his first agency clients.

    Bill Perez, who worked with Modesto for 15-plus years as CEO of SC Johnson, said, “Mark understands the importance of building a true partnership with his clients. He gets the fast-changing dynamics of the advertising industry and how to help marketers invest in solutions that meet both immediate and long term goals. I expect to hear great things from MARC Chicago under his leadership.”

    Also joining Modesto in the Chicago office is John Immesoete as SVP, executive creative director. One of the most highly awarded creative directors and copywriters of all time, Immesoete has more than 25 years of experience creating award-winning work that has defined and built major brands. Before embarking on a successful directing career, Immesoete was group creative director at DDB Chicago where he ran the Anheuser-Busch and McDonald’s accounts. While there, Immesoete and his teams created some of the most memorable ad campaigns of all time for Budweiser and Bud Light, including many well-known Super Bowl ads and Bud Light’s “Real Men of Genius” — one of the most awarded ad campaigns of all time, including the first ever Cannes Radio Grand Prix. 

    “Independent agencies are driving innovation in our industry because they have the flexibility and resources to invest in their agency and clients. MARC USA in particular has excelled at a time of unprecedented change,” said Modesto. “To be part of MARC USA’s strategy for the future and to partner with one of Chicago’s all-time best creative directors is a fantastic opportunity.”

    John Immesoete echoed, “I think the most exciting work is taking place today at independent agencies like MARC USA where full integration is not hampered by silos or egos and the most amazing work is being done. I’m looking forward to being part of the new age of creative story-telling and working with the team at MARC USA.”

    MARC USA has quietly built one of the most successful mid-sized, full-service marketing agencies in the industry with headquarters in Pittsburgh and offices in Chicago and Miami. The independent agency was founded in 1955, and its clients include such well-known companies as Macy’s, True Value, Rite Aid, Cooper Tire, Pennsylvania Lottery and the top malls in the General Growth Properties portfolio.

    “MARC USA is in the unique position of being able to invest in great talent, and Mark and John are at the top of the list as the best in our industry,” explained Tony Bucci, chairman of MARC USA. “I know our Chicago office and our agency overall will benefit from their expertise. They are great additions to our leadership team.”

    Fabrizi added, “As Jean McLaren takes on the new role of agency-wide CMO, you can be sure you’ll be hearing a lot more about us. She helped grow the Chicago office business with such clients as Macy’s, General Growth Properties and, most recently, Carle Foundation Hospital and the Health Alliance Plan. She will now extend her focus across the agency.”

    McLaren will continue to be based in Chicago as she oversees the agency’s business development and marketing initiatives.

    About MARC USA

    MARC USA is a national full-service integrated marketing communications firm known for creating game-changing business solutions through big ideas, insight and the creative application of new technology. With offices in Chicago, Miami and Pittsburgh, more than 200 employees and more than $300 million in annual billings, it is one of the largest independent agencies in the country. Services include advertising, strategic planning, research, public relations, media planning and buying, interactive marketing, social media, direct and customer relationship marketing, and sales promotion. 

    SOURCE MARC USA

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