Triple-S Management Corporation Reports Third Quarter 2008 Results; Board Approves Share Repurchase Authorization of up to $...( net of tax 3.3 ...),Health

net of tax 3.3 (1.8) 3.4 (8.6)

Retroactive Reform

premium adjustment

net of tax - - - (1.2)

Pro forma net

income $18.2 12.9 $40.8 26.2

Diluted pro forma net

income per share $0.57 0.48 $1.27 0.98

Continued Progress for the Nine Months

For the nine months ended September 30, 2008, consolidated operating revenues rose 14.4 percent to $1,310.7 million, primarily reflecting the growth in the managed care segment. Consolidated claims incurred for the nine months ended September 30, 2008 were $1,070.6 million, up 17.0 percent year over year. The consolidated loss ratio increased 210 basis points to 85.2 percent. Nine-month consolidated operating expenses were $185.0 million and the operating expense ratio improved 100 basis points to 14.6 percent. Pro forma net income for the nine months ended September 30, 2008 was $40.8 million, or $1.27 per diluted share, based on weighted average shares outstanding of 32.2 million, compared with $26.2 million, or $0.98 per diluted share, based on weighted average shares outstanding of 26.7 million at the same time last year.

For the nine-month period ended September 30, 2008, net cash used in operating activities amounted to $19.9 million. This is mainly due to the fact that the Company collected in advance $22.8 million in managed care premiums in December 2007 that were recognized in January 2008. In addition, premiums receivable for the managed care segment as of September 30, 2008 increased by approximately $43.8 million, mostly from the Government of Puerto Rico and its instrumentalities, which were subsequently collected. Excluding both situations, cash flow from operations would have been $46.7 million.

As of September 30, 2008, Triple-S Management had $80.5 million in pa
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