LV insurer sees profit decline in quarter

Sierra Health Services Inc. of Las Vegas reported a profit for the first quarter excluding non-recurring charges of $8.1 million or 30 cents per share, a decline from $12.2 million or 44 cents in the year-ago quarter.

Analysts had predicted a profit in the range of 31 cents per share. Sierra stock declined 12 cents this morning to $12.63.

Revenue rose 51 percent from the 1998 quarter to $318.1 million thanks to growth in core markets, the start of operations for Sierra's military health services subsidiary and the acquisition of a Texas health plan. Revenue increased 6 percent from the fourth quarter of 1998.

A one-time after-tax charge of $8.8 million or 33 cents per share was taken in the quarter primarily to cover the costs of closing a hospital and exiting the Mohave County (Ariz.) Medicare market there. Including the charge, the company reported a loss of $706,000, or 3 cents per share.

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