HMS Holdings Corp. Announces Share Repurchase Program
NEW YORK -- October 30, 2012
HMS Holdings Corp. (NASDAQ: HMSY) today announced that its Board of Directors
has authorized the repurchase of up to $50.0 million of the company's common
stock from time to time on the open market or in privately negotiated
transactions, for a period of up to two years.
Commenting on the repurchase, Bill Lucia, Chief Executive Officer of HMS
Holdings, said, "This share repurchase program demonstrates our continued
confidence in the company’s long-term strategic growth plan and reflects our
strong belief in the intrinsic value of the company’s common stock."
The timing and amount of any shares repurchased will be determined by the
company's management based on its evaluation of market conditions and other
factors. Repurchases may also be made under a Rule 10b5-1 plan, which would
permit shares to be repurchased when the company might otherwise be precluded
from doing so under insider trading laws. The repurchase program may be
suspended or discontinued at any time. Any repurchased shares will be
available for use in connection with its stock plans and for other corporate
The repurchase program will be funded using the company's cash balances. As of
September 30, 2012, the company had cash, cash equivalents and temporary
investments of approximately $127.0 million.
HMS Holdings had approximately 86.7 million shares of common stock outstanding
as of September 30, 2012.
About HMS Holdings Corp.
HMS Holdings Corp., through its subsidiaries, is the nation's leader in
coordination of benefits and program integrity services for healthcare payers.
HMS's clients include health and human services programs in more than 40
states; commercial programs, including commercial plans, employers, and over
140 Medicaid managed care plans; the Centers for Medicare and Medicaid
Services (CMS); and Veterans Administration facilities. As a result of the
Company's services, clients recovered over $2.5 billion in 2011, and saved
nearly $7 billion through the prevention of erroneous payments.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Such statements
give our expectations or forecasts of future events; they do not relate
strictly to historical or current facts. Forward-looking statements can be
identified by words such as “anticipates,” “estimates,” “expects,” “projects,”
“intends,” “plans,” “believes,” “will,” “target,” “seeks,” “forecast” and
similar expressions and references to guidance. In particular, these include
statements relating to future actions, business plans, objects and prospects,
future operating or financial performance and statements regarding the
company's intention to repurchase shares of its common stock from time to time
under the stock repurchase program, the intended use of any repurchased shares
and the source of funding. Forward-looking statements are based on our current
expectations and assumptions regarding our business, the economy and other
future conditions. Should known or unknown risks or uncertainties materialize,
or should underlying assumptions prove inaccurate, actual results could differ
materially from past results and those anticipated, estimated or projected. We
caution you therefore against relying on any of these forward-looking
Factors that could cause or contribute to such differences include, but are
not limited to: regulatory actions, budgetary pressures and political
influences that could affect the procurement practices and operations of
healthcare organizations and agencies, reducing demand for our services; our
ability to continue to secure contracts through the competitive bidding
process and any related protests and to accurately predict the cost and time
to complete such contracts; our ability to retain clients or the loss of one
or more major clients; client dissatisfaction or early termination of
contracts triggering significant costs or liabilities; the development by
competitors of new or superior products or services; the emergence of new
competitors, or the development by our clients of in-house capacity to perform
the services we offer; all the risks inherent in the development,
introduction, and implementation of new products and services; our ability to
manage our growth and its demands on our resources and infrastructure; our
ability to successfully integrate our acquisitions; our compliance with the
covenants and obligations under the terms of our credit facility and our
ability to generate sufficient cash to cover our interest and principal
payments thereunder; variations in our results of operations; negative results
of government reviews, audits or investigations to verify our compliance with
contracts and applicable laws and regulations; changing conditions in the
healthcare industry which could simplify the payment process and reduce the
need for and price of our services; our ability to continue to secure
contracts through the competitive bidding process and to accurately predict
the cost and time to complete such contracts; our failure to comply with laws
and regulations governing health data or to protect such data from theft and
misuse; and, our ability to maintain effective information systems and protect
them from damage or interruption. A further description of these and other
risks, uncertainties, and related matters can be found in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2011, which is available at
www.hms.com under the “Investor Relations” tab. Any forward-looking statements
made by us in this press release speak only as of the date of this press
release. Factors or events that could cause actual results to differ may
emerge from time to time and it is not possible for us to predict all of them.
We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by law.
HMS Holdings Corp.
Christine Saenz, 212-857-5986
Francesca Marraro, 212-857-5442
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