APPROXIMATE FACILITY LOCATION SQUARE FEET - -------- -------- ----------- Executive Offices - Leased (1) Newburgh, New York 11,500 Sales Office - Leased (2) Albany, New York 1,800 Sales Office - Leased (2) Bronx, New York 10,000 Sales Office - Leased (3) New Haven, Connecticut 3,800
The preparation of the consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the understanding of the Company's financial condition and results and require management's most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
WellCare's principal source of revenue is premiums earned from the WellCare HMOs. Other revenue consists principally of interest income. Premiums earned represented 99.5% of the Company's total revenue for the year ended December 31, 2001. Premiums from subscribers are recorded as revenue in the period that subscribers are entitled to service. Premiums received in advance are deferred.
Ongoing studies for the Company's Medicaid, Medicare, and commercial lines of businesses provide the Company with the tools to estimate the percentage of pended claims to be paid relative to submitted charges. All claims paid, payable and pended are evaluated weekly and a projection of ultimate payables is estimated. Moreover, procedures are in place whereby the actual runoff of claims for each of the last twelve months versus the reserve for IBNR and the paid, pended, and payable claims are reviewed for accuracy as compared to the original projections. Additionally, this data is monitored and analyzed allowing the Company's internal actuary and management the ability to monitor profitable contracts and consistently assess the need for a loss contract provision. These procedures are intended to allow the Company to continually estimate its unknown claims reserves more effectively.
Expenses: Hospital services 42.1 41.7 33.6 Physician services 21.6 30.9 52.5 Other medical services 20.1 16.5 4.4 -------- -------- -------- Total medical expenses 83.8 89.1 90.5
General and administrative expenses (1) 17.5 16.9 21.1 Interest and other expenses 0.7 0.2 3.2 -------- -------- -------- Total expenses 102.0 106.2 114.8 -------- -------- -------- Loss before income tax benefit and extraordinary item (2.0) (6.2) (14.8) Income tax benefit - - (2.0) -------- -------- -------- Net loss before extraordinary item (2.0) (6.2) (12.8) Extraordinary gain, net of tax - - 14.2 -------- -------- -------- Net (loss) income (2.0) (6.2) 1.4 Preferred stock deemed dividend - - (2.6) -------- -------- -------- Net loss available to common shareholders (2.0)% (6.2)% (1.2)% ======== ======== ========
(1) Includes management fee expenses to affiliate. (2) Total medical expenses as a percentage of premiums earned reflect the combined rates of Commercial, Medicaid, Full Risk Medicare and Medicare supplemental members. (3) General and administrative expenses as a percentage of total revenue.
Depreciation and Amortization. Depreciation and amortization decreased $0.7 million from $1.1 million in 1999 to $0.4 million in 2000. The decrease was primarily a result of the Patel Transaction in 1999. At which time, the Company transferred ownership of the two real properties securing two mortgages to their respective lenders in lieu of foreclosure. Additionally, included in GHI's purchase of the Company's commercial line of business in New York were certain equipment and furniture and fixtures.
Interest Expense. Interest expenses decrease $3.4 million to $0.2 million in 2000 from $3.6 million in 1999. The interest expense of $3.6 million in 1999 was attributed to the subordinated convertible debt inducement as a result of the Patel Transaction. At which time, the Company transferred ownership of the two real properties securing two mortgages to their respective lenders in lieu of foreclosure.
Cash Flows. For the year ended December 31, 2001, operating activities utilized $0.9 million of cash. The net loss adjusted for non-cash items such as depreciation, amortization, and other non-cash charges utilized $1.5 million of cash. Net increase in operating liabilities provided $0.6 million of cash. Investing activities utilized approximately $30,000 of cash, consisting of capital expenditures. Financing activities provided $3.1 million of cash principally from proceeds of notes payable to affiliate.
The Company's consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred recurring losses from operations, has a working capital deficit, a shareholders' deficiency, failed to achieve the minimum statutory equity requirements of the State of New York Insurance Department and has failed to maintain the minimum risk based capital requirements of the State of Connecticut Insurance Department. These factors raise substantial doubt about its ability to continue as a going concern. The Company continues to explore the possibility of raising funds through available sources including but not limited to the equity and debt markets. It is uncertain whether the Company will be successful at raising funds through these sources.
On October 3, 2001 SFAS No. 144, "Accounting for the Impairment or Disposal of Long-lived Assets" ("SFAS 144"), was approved by the FASB. SFAS 144 addresses the financial accounting and reporting of the impairment or disposal of long-lived assets. This statement supercedes SFAS No. 121, "Accounting for the Impairment of Long-lived Assets and for Long-Lived Assets to be Disposed of" and will be effective January 1, 2002. The Company is assessing the impact, if any, that SFAS 144 will have on its consolidated financial statements.
Independent Auditors' Reports 26 Consolidated Balance Sheets - December 31, 2001 and 2000 28 Consolidated Statements of Operations for the years ended December 31, 2001, 2000, and 1999 29 Consolidated Statements of Shareholders' Deficiency for the years ended December 31, 2001, 2000, and 1999 30 Consolidated Statements of Cash Flows for the years ended December 31, 2001, 2000, and 1999 32 Notes to Consolidated Financial Statements 33
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2001 and 2000, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly in all material respects the information set forth therein.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company's recurring losses from operations, working capital deficit, shareholders' deficiency, failure to achieve the minimum statutory equity requirements of the State of New York Insurance Department, and failure to maintain the minimum risk based capital requirements of the State of Connecticut Insurance Department raise substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Deloitte & Touche LLP Certified Public Accountants Orlando, Florida March 8, 2001
We have audited the accompanying consolidated statements of operations, shareholders' deficiency and cash flows of the WellCare Management Group, Inc. and subsidiaries (the "Company") for the year ended December 31, 1999. We have also audited the financial statement schedules for the year ended December 31, 1999 listed in the accompanying index. These consolidated financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audit.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company's recurring losses from operations, working capital deficit, shareholders' deficiency and failure to maintain 100% of the contingent reserve requirement of the New York State and Connecticut State Departments of Insurance raise substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ In Thousands)
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ In Thousands, Except Per Share Amounts)
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIENCY ($ In Thousands)
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ($ In Thousands)
Well Care of New York, Inc. ("WCNY"), a wholly owned subsidiary, operates as an HMO in New York State. WCNY has a certificate of authority under Article 44 of the New York State Public Health Law to operate in 25 counties in the Greater Hudson River Valley, Capital District, Southern Tier and New York/Westchester County. WCNY is a mixed IPA/Direct Contract model HMO. Under this type of arrangement, agreements are entered into with regional health care delivery networks currently organized as independent practice associations ("IPAs" or "Alliances"), which in turn contract with providers to render health care services to HMO enrollees. The HMO also contracts directly with individual primary care physicians or physician groups for health care services not contracted through the IPAs.
FirstChoice HealthPlans of Connecticut, Inc. ("FirstChoice"), a wholly owned subsidiary of WCNY, operates as an IPA model HMO in the state of Connecticut. Under this type of arrangement, agreements are entered into with IPAs and Physician Hospital Organizations ("PHOs") and individual physicians for the provision of all medical care to FirstChoice's enrollees for a specified fee for services rendered. FirstChoice is approved to operate statewide in Connecticut. Effective October 1, 2000, FirstChoice closed on its transaction with HealthChoice of Connecticut, Inc., ("HealthChoice") to acquire the assets of HealthChoice's Medicaid line of business, known as PreferredOne, for a purchase price of $1.00 (one dollar) (See Note 16). FirstChoice, which was licensed solely as a commercial health maintenance organization in the state of Connecticut, covering about 4,200 members, received all necessary regulatory approval effective October 1, 2000 to assume the responsibility for approximately 24,000 adult and child members of HealthChoice's Medicaid business.
In June 1999, Kiran C. Patel, M.D. ("Dr. Patel"), the principal owner of Well Care HMO, Inc., a Florida corporation, an entity previously unrelated to WellCare, purchased a fifty-five (55%) percent ownership interest in the Company for $5.0 million (the "Patel Transaction"). As part of the purchase transaction, Dr. Patel received 100,000 shares (the "Shares") of a newly authorized series of senior convertible preferred stock ("Series A Convertible Preferred Stock"), which provided Dr. Patel with 55% of WellCare's voting power. The preferred stock was subject to mandatory conversion into common stock upon the amendment of WellCare's certificate of incorporation to increase the number of authorized shares of common stock from 20 million shares to 75 million shares. Due to the excess of the fair value of the underlying common stock, which totaled approximately $8 million over the purchase price, the Company recorded a deemed dividend on the preferred stock totaling approximately $3 million. For financial statement purposes, the issuance of the common stock in exchange for the preferred stock has been reflected as of December 31, 1999; however, the physical transfer took place in April 2000. The shares are subject to anti-dilution rights, whereby upon conversion Dr. Patel will generally preserve his 55% interest in WellCare until there are 75 million shares of common stock issued and outstanding. In order to preserve his 55% interest, Dr. Patel will be required to pay the par value ($0.01 per share) for each common share subsequently purchased.
As a condition to the closing of the Patel Transaction, the holders of 680,747 shares of Class A common stock, which has ten votes per share, agreed to convert their shares into shares of common stock on a share-for-share basis. Mr. Robert W. Morey, the holder of 313,555 share of Class A common stock outstanding, gave a two year proxy in favor of Dr. Patel to vote Mr. Morey's shares of Class A common stock which expired in June 2001.
The Company's consolidated financials are presented on the going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred recurring losses from operations, has a working capital deficit, a shareholders' deficiency, failed to achieve the minimum statutory equity requirements of the State of New York Insurance Department and has failed to maintain the minimum risk based capital requirements of the State of Connecticut Insurance Department. These factors raise substantial doubt about its ability to continue as a going concern.
Over the next fiscal year, management is focusing on its marketing efforts to increase membership of its Medicaid and Child Health Plus products. The Medicaid and Child Health Plus products have proven to be profitable in past years. The Company also received approval to market Family Health Plus, a new program established by the state of New York in October 2001. Additionally, over the next fiscal year, management is focusing on restructuring certain provider contracts for its Medicaid book of business in Connecticut. The Company's contracted rate with Yale PHO and Yale Bridgeport Hospital ("Yale") were excessive compared to the premiums the Company received from the State of Connecticut Department of Social Services for its HUSKY products. As a result of the Yale contracts, the Company lost an estimated $2.5 million during 2001. Management has taken steps in correcting this situation and has terminated the Company's contract with Yale effective March 31, 2002. The Company currently is not marketing its Medicare products and does not intend to market these products in the near future. The Company also does not have plans to market its Commercial products. Additionally, the Company believes that it will be able to capitalize on the efficiencies in claims processing and administrative services through its management agreement with CHM. However, there is no assurance that the Company will be able to achieve its recovery plan.
In the event of a cash shortage, the Company will have to implement various cost cutting measures, including but not limited to reducing its work force and reducing commissions to brokers and agents. The Company may have to obtain financing through external sources. The Company continues to explore the possibility of raising funds through available sources including but not limited to the equity and debt markets. However, resources for raising external capital are limited due to the Company's past history and the overall market sensitivity of the HMO business.
The consolidated financial statements do not include any adjustments to reflect the possible future effect on the recoverability of assets and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
Principles of Consolidation - The accompanying consolidated financial statements include the Company's wholly owned subsidiaries, WCNY and FirstChoice (the "WellCare HMOs"). All significant intercompany accounts and transactions have been eliminated.
Restricted Cash - Restricted cash includes amounts in escrow with a provider and statutory cash reserves required by the State of New York Insurance Department.
Property and Equipment - Property and equipment is stated at cost net of accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years. During 2000, the Company changed the estimated useful life of certain property and equipment from five years to a range of three to ten years. The Company believes that estimated useful lives ranging from three to ten years more appropriately reflect the timing of the economic benefits to be received from such assets. During 2000, the impact to operations due to the change in estimated useful lives was a decrease in depreciation expense by approximately $521,000.
Impairment of Long-Lived Assets - The Company evaluates the recoverability of the net carrying value of its property and equipment, and other long-lived assets by comparing the carrying values to the estimated future undiscounted cash flows. A deficiency in these cash flows relative to the carrying amounts is an indication of the need for a write-down due to impairment. The impairment write-down would be the difference between the carrying amounts and the fair value of these assets. Impairment would be recognized by a charge to operations.
Reinsurance - The WellCare HMOs insure excess loss for health care claims under policies with a reinsurance company. Under the excess loss reinsurance policies, recoveries are made for annual claims of each member in excess of the deductible established in the policies, subject to certain limitations. The Company's deductibles were $85,000 and $125,000 for the FirstChoice commercial and Medicaid lines of business, respectively, and $115,000 and $100,000 for WCNY's Medicaid and Medicare lines of business, respectively, during fiscal year 2001.
Income Taxes - The Company accounts for income taxes under the asset and liability method as required by SFAS No. 109, "Accounting for Income Taxes". Under this method, deferred income taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The effect of a tax rate change on deferred taxes is recognized in operations in the period that the change in the rate is enacted.
New Accounting Pronouncements - In July 2001, the Financial Accounting Standards Board ("FASB") issued SFAS No. 141, "Business Combinations" ("SFAS 141"). SFAS 141 requires the purchase method of accounting for business combinations initiated after June 30, 2001 and eliminates the pooling-of- interests method. Goodwill and certain intangible assets with indefinite useful lives will remain on the balance sheet and not be amortized. The Company implemented SFAS 141 on July 1, 2001 and has determined that there is no impact on its consolidated financial position or results of operations.
On October 3, 2001 SFAS No. 144, "Accounting for the Impairment or Disposal of Long-lived Assets" ("SFAS 144") was approved by the FASB. SFAS 144 addresses the financial accounting and reporting of the impairment or disposal of long-lived assets. This statement supercedes SFAS No. 121, "Accounting for the Impairment of Long-lived Assets and for Long-Lived Assets to be Disposed of," will be effective January 1, 2002. The Company is assessing the impact, if any, that SFAS 144 will have on its consolidated financial statements.
Reclassifications - Certain amounts in the 2000 and 1999 consolidated financial statements have been reclassified to conform to the 2001 presentation.
December 31, --------------------------- 2001 2000 ----------- ------------ Reinsurance receivables $ 233 $ 102 Pharmacy rebate receivables 53 125 Claims refund receivables 227 - Vendor receivables 327 265 Other 252 299 ----------- ------------ Total other receivables $ 1,092 $ 791 =========== ============
December 31, --------------------------- 2001 2000 ----------- ------------ Computer hardware and software $ 1,061 $ 3,421 Furniture, fixtures, and equipment 593 1,385 Vehicles 9 - ----------- ------------ Total 1,663 4,806 Less accumulated depreciation 1,384 4,166 ----------- ------------ Property and equipment, net $ 279 $ 640 =========== ============
Depreciation expense for the years ended December 31, 2001, 2000, and 1999 was approximately $391,000, $420,000, and $1,147,000, respectively.
Years ended December 31, ---------------------------- 2001 2000 ------------ ------------ Balance, beginning of year $ 16,187 $ 14,386 Claims incurred: Current year 81,170 69,840 Prior year 276 (286) Reinsurance pool assessment 141 501 ------------ ------------ Total incurred 81,587 70,055 Claims paid and settled related to: Current year (64,502) (55,472) Prior year (15,624) (12,782) Reinsurance pool payment (111) - ------------ ------------ Total paid (80,237) (68,254) ------------ ------------ Balance, end of year $ 17,537 $ 16,187 ============ ============
During 2001 and 2000, the Company experienced unfavorable and favorable claims expense related to its estimated reserves for claims payable at December 31, 2000 and 1999, respectively. The accompanying financial statements reflect a $276,000 increase and $286,000 decrease in medical expenses for 2001 and 2000, respectively, relating to a change in estimate on the prior years' claims liabilities.
December 31, -------------------------- 2001 2000 ------------ ------------ Deferred tax assets: Accounts receivable and other receivables -
allowance for bad debt $ - $ 81 Other 717 6,546 Net operating loss carry forward 13,927 13,013 ------------ ------------ Total deferred tax asset before valuation allowance 14,644 19,640 Less valuation allowance 14,644 19,640 ------------ ------------ Net deferred tax asset $ - $ - ============ ============
The following table summarizes the activities related to options during 2001, 2000, and 1999:
2001 2000 1999 ------------ ------------ ------------ Outstanding, beginning of year 4,002,000 4,009,535 598,741 Exercised during the year - - - Terminated during the year - (7,535) (589,206) Granted during the year - - 4,000,000 ------------ ------------ ------------ Outstanding, end of year 4,002,000 4,002,000 4,009,535 ============ ============ ============
At December 31, 2001, there were 4,002,000 options outstanding, of which 1,144,857 options were exercisable, with a weighted average exercise price of $0.375 per share and a weighted average remaining contractual life of eight years.
During 1999 the Company granted 4,000,000 options to purchase common stock at an exercise price of $0.375 per share. The options expire in ten years and vest over a period of seven years.
The Company has adopted the disclosure only provisions of SFAS 123. Accordingly, no compensation cost has been recognized for the options in the accompanying consolidated statements of operations. Had compensation cost for grants made under the Company's 1993 Stock Option Plan been determined based on the fair value at the grant date in a manner consistent with SFAS 123, the Company's pro forma net loss and pro forma net loss per share would be as follows ($ in thousands, except per share amounts):
December 31, ---------------------------- 2001 2000 1999 -------- -------- -------- Net loss available to common shareholders: As reported $ (1,905) $ (4,879) $ (1,435) Pro forma (2,066) (5,032) (1,695)
The Company's common stock shares are subject to anti-dilution rights whereby upon conversion the majority shareholder will generally preserve his 55% interest in WellCare until there are 75 million shares of common stock issued and outstanding. Accordingly, during a year when the Company is in a net income position, earnings per share could potentially be diluted by common stock shares totaling as much as 55% of 75 million shares less the number of shares outstanding at any given point in time.
WCNY and FirstChoice have entered into management agreements with Comprehensive Health Management, Inc. ("CHM"), a company that was established by the majority shareholder to provide management, administrative services, and claims processing services to health maintenance organizations. During September 1999, WCNY and FirstChoice each executed a five-year management agreement with CHM to perform claims processing services, utilization review, payroll services, and most of the administrative functions of the Company, excluding certain marketing functions. CHM is responsible for all the administrative employees' payroll and business expenses. Additionally, CHM is responsible for maintaining the claims related data processing equipment and software.
The management fee for each Company ranged from 9.5% of premium revenue earned when there are less than 40,000 members to 7.5% of premium revenue earned when there are more than 80,000 members. In June 2000, the agreements were amended to better reflect the actual cost of administrative services related to the provision of management services to the Company and other affiliated HMOs. As a result of the amended agreements, the management fee was revised to reflect ranges of 11.5% of premium revenue earned when there are less than 40,000 members and 9.5% of premium revenue earned when there are more than 80,000 members.
Management fees for the years ended December 31, 2001, 2000 and 1999 were approximately $11,186,000, $7,799,000 and $3,046,000, respectively, which were included in general and administrative expenses. At December 31, 2001, CHM owed the Company approximately $59,000. At December 31, 2000, the Company owed CHM approximately $223,000. As a result of the efficiencies gained through the CHM management agreement, the Company's general and administrative expenses as a percentage of total revenue decreased from 21.1% in 1999 to 17.0% in 2000 and 17.5% in 2001.
Under the management services agreement, the Company is responsible for the direct salary cost of their marketing personnel. However, actual payroll processing is administered by CHM. The Company reimbursed CHM approximately $2,609,000, $1,620,000 and $660,000 related to these direct salary costs administered and paid by CHM during 2001, 2000 and 1999, respectively.
WCNY has entered into various contractual arrangements with a majority of its primary care physicians and specialists through contracts with regional health care delivery networks. These agreements call for capitated IPAs comprised of specialists and primary care physicians. Under the agreements, the Company pays the IPAs for medical services provided by primary care physicians and specialists. The IPAs in turn reimburse those providers for the services that are provided by each physician. ProMedco Hudson Valley ("ProMedco"), an IPA group that WCNY had contracted with, filed bankruptcy in April 2001. Based on the executed contracts with the IPAs, WCNY is not liable for the IPAs' liabilities; however, in the event the IPAs default on their financial obligations, the provider network could be materially affected. This matter did not have a material effect on the Company's provider network.
Pursuant to management agreements with CHM, rental expenses are the responsibility of CHM. At December 31, 2001, the Company is the named lessee on certain non-cancelable operating lease obligations. Accordingly, future minimum lease payments under such non-cancelable operating leases are as follows:
The WellCare HMOs are subject to assessments from various high-risk insurance pools administered by the states of New York and Connecticut. The liabilities related to these pools are not estimable at December 31, 2001. During 2000, the Connecticut Small Employer Health Reinsurance Pool (the "Small Employer Pool") assessed the Company approximately $501,000 relating to 1999 and 1998. This change in estimate was recorded in the Company's 2000 financial statements. During 2001, the Small Employer Pool assessed the Company $141,000 pertaining to 2000. This change in estimate was recorded in the Company's 2001 financial statements.
Furthermore, SB443, entitled, "An Act Concerning Statutory Accounting Procedures", was signed by the Governor of Connecticut on May 1, 2000, which required adoption of the Codification by the State of Connecticut for the preparation of statutory financial statements, effective January 1, 2001. The adoption of Codification has the effect of decreasing FirstChoice's statutory surplus at January 1, 2001 by approximately $689,000, which relates to accounting principles regarding affiliate receivables and provider overpayments.
Effective October 1, 2000, FirstChoice closed on its transaction with HealthChoice of Connecticut, Inc., ("HealthChoice") to acquire the assets of HealthChoice's Medicaid line of business, known as PreferredOne for a purchase price of $1.00 (one dollar). With this acquisition, the Company increased its membership by approximately 24,000 members. The following table illustrates the proforma result if the Company had acquired this line of business as of January 1, 2000 (in thousands, except per share data):
The Company is engaged principally in one line of business, the provision of health care coverage for enrolled members, which represents more than 97% of the consolidated revenues for the years ended December 30, 2001, 2000 and 1999. The Company operates in two geographic areas, the states of New York and Connecticut. The Company manages its business geographically, as the laws governing the HMO industry, which affect its strategy, are state specific. Included in the other segment in 1999 were results of WellCare Administration, Inc. and WellCare Development, Inc. (see Note 1). These two entities were rendered inactive as of June 1999 and were dissolved in October 2000. Significant transactions occurred in 1999, which materially changed the Company's structure and operations (see discussion in Note 1).
The following schedule presents information about the Company's segments as of and for the years ended December 31 (in thousands):
2001 2000 1999 ---------- ---------- ---------- Total Revenues: New York $ 55,664 $ 57,415 $ 80,377 Connecticut 41,549 20,304 29,003 Other 115 885 3,129 ---------- ---------- ---------- Total $ 97,328 $ 78,604 $ 112,509 ========== ========== ==========
Capital Expenditures: New York $ 4 $ 264 $ 56 Connecticut 26 40 - Other - - - ---------- ---------- ---------- Total $ 30 $ 304 $ 56 ========== ========== ==========
Total Assets: New York $ 14,168 $ 10,045 Connecticut 8,238 9,705 Other 191 370 ---------- ---------- Total $ 22,597 $ 20,120 ========== ==========
Selected unaudited data reflecting the Company's consolidated results of operations for each of the last eight quarters are shown in the following table (in thousands, except per share amounts):
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES Schedule I Condensed Financial Information of Registrant Condensed Balance Sheets ($ In Thousands)
THE WELLCARE MANAGEMENT GROUP, INC. AND SUBSIDIARIES Schedule I Condensed Financial Information of Registrant Condensed Statements of Cash Flows ($ In Thousands)