SOURCE:
American CareSource Holdings, Inc.
2008-08-14 06:05:00
American CareSource Holdings Reports Record Financial Results for 2008 Second Quarter
Company Reports Fourth Consecutive Quarterly Profit of $621 Thousand, or $0.04 per Diluted Share
DALLAS, TX–(EMWNews – August 14, 2008) – American CareSource Holdings, Inc. (
today announced record financial and operational results for the second
quarter and six months ended June 30, 2008. Highlights include:
-- Reported quarterly net income of $621 thousand, or $0.04 per diluted
share, resulting in four consecutive quarters of profit growth.
-- Achieved $13.0 million in revenue for the second quarter, a record
225% increase in revenues compared to the same prior year period,
representing five quarters of sequential revenue growth.
-- Attained gross margins of approximately 15% compared to 13% in the
three months ended June 30, 2007, reflecting continued leverage of
the Company's fixed cost infrastructure.
-- Generated EBITDA, as adjusted, of approximately $879 thousand for
the quarter.
-- EBITDA, as adjusted, (a non-GAAP measure) is defined as income
(loss) from operations less depreciation and amortization,
non-cash warrant and option compensation expense and executive
severance. EBITDA, as adjusted, should be considered in
addition to, but not in lieu of, income (loss) from operations
reported under generally accepted accounting principles (GAAP).
-- The Company finished the quarter with approximately $6.1 million in
cash and cash equivalents on hand and generated approximately $500
thousand in cash from operating activities in the second quarter and
approximately $2.1 million during the first half of 2008.
-- Claims volume increased to approximately 40 thousand for the second
quarter of 2008, up 172% over the second quarter of 2007.
-- Signed new client agreements with Viant Holdings, Inc., one of the
nation's largest PPO networks, and Emerald Health Network, Ohio's
premiere PPO network provider.
-- Signed two new client agreements with Indiana-based union
organizations allowing the Company to penetrate an important union
market in the Midwest.
-- Selected to join the Russell Microcap® Index.
Commenting on today’s announcement, David S. Boone, Chief Executive Officer
of American CareSource, stated, “Our second quarter results demonstrate a
continuation of the strong momentum we are building in the market place.
With these results, we have generated four consecutive quarters of greater
than 100% year-over-year revenue growth and delivered four consecutive
quarters of increasing profitability. We finished the quarter with over $6
million in cash and we continue to generate strong cash flow. Our
investments in technology and people are beginning to pay dividends. Most
importantly, our recent client wins are yet another confirmation of the
value we are adding to our clients and providers as we work to lower the
cost of ancillary healthcare.
“We are achieving the goals we have set for the organization including
delivering improved gross margins. The Company is demonstrating its
ability to scale effectively by absorbing the increasing claim volume
without a corresponding increase in cost. Demand for our comprehensive and
expanding national network of ancillary healthcare services has continued,
unabated and our reputation for being able to offer clients an
ever-increasing range of services with positive economics should fuel this
upward momentum going forward. As a result, we are raising our initial 2008
guidance of $50 million in annual revenues to a range of $50 – $55 million
for the year.
“Reflecting our growth, during the second quarter, we were pleased to
announce new client agreements with Viant Holdings, one of the largest PPO
networks in the United States, as well as Emerald Health Networks, Ohio’s
premier PPO network provider. Additionally, we gained a foothold into the
all-important Midwest union market with the signing of two new client
agreements with Iron Workers Local 295 Trust Fund and Operative Plasterers
and Cement Masons Local 692. We are honored to be working with these two,
key union organizations and, in addition to our more traditional clientele,
hope to sign similar agreements with other unions as time goes on.”
Revenues for the second quarter of 2008 rose 225% to $13.0 million compared
to $4.0 million in the second quarter of 2007. The Company’s second quarter
revenues also represent a 13% improvement over the first quarter of 2008
reported revenues of $11.5 million. For the six months ended June 30, 2008,
the Company reported revenues of $24.5 million, a 291% increase compared to
revenues of $6.3 million in the same period of 2007.
The Company reported net income of $621 thousand, or $0.04 per share, for
the three months ended June 30, 2008, compared to a net loss of $716
thousand, or ($0.05) per share, in the same period last year. For the six
months ended June 30, 2008, the Company reported net income of $1.1
million, or $0.07 per diluted share, compared to a net loss of $1.3
million, or ($0.09) per share, for the same period in 2007.
Cash provided by operations was $2.1 million for the six months ended June
30, 2008 versus cash used in operations of ($1.1) million during the same
period in 2008. Factors affecting the improvement in operating cash flows
include earnings growth, accelerated client collections and overall
effectiveness in working capital management. At June 30, 2008, the Company
had approximately $6.1 million in cash and cash equivalents compared to
$4.3 million at December 31, 2007.
Conference Call
As previously announced, American CareSource will hold a conference call to
discuss financial results of the second quarter ended June 30, 2008 as
follows:
Date: Thursday, August 14, 2008 Time: 10:00 a.m. (CT)/11:00 a.m. (ET) Dial-in numbers: 877-397-0286 (U.S. & Canada) or 719-325-4874 Live webcast: www.anci-care.com, under "New & Events"
The teleconference replay will be available two hours after completion
through Thursday, August 21, 2008 at 888-203-1112 (U.S. & Canada) or
719-457-0820. The replay pass code is 3692642. The archived webcast will be
available for one year on the Company’s investor website,
www.anci-care.com, under “News and Events.”
About Ancillary Healthcare Services
American CareSource provides ancillary healthcare services through its
network that offers cost effective alternatives to physician and
hospital-based services. This market is estimated at $574 billion, and has
grown to 30% of total national health expenditures. These providers offer
services in over 30 categories, including laboratories, dialysis centers,
free-standing diagnostic imaging centers, non-hospital surgery centers, as
well as durable medical equipment such as orthotics and prosthetics, and
others.
About American CareSource Holdings, Inc.
American CareSource Holdings, the first national, publicly traded ancillary
care network services company, offers a comprehensive national network of
approximately 2,500 ancillary service providers at over 25,000 sites. The
Company’s ancillary network and management provides a complete outsourced
solution for a wide variety of healthcare payors and plan sponsors
including self-insured employers, indemnity insurers, PPOs, HMOs, third
party administrators and both federal and local governments. For additional
information, please visit www.anci-care.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995:
Any statements that are not historical facts contained in this release,
including with respect to future engagements by clients, revenue growth,
earnings, and guidance are forward-looking statements. It is possible that
the assumptions made by American CareSource Holdings, Inc. for purposes of
such statements may prove to be inaccurate or may not materialize. Actual
results may differ materially from those projected or implied in any
forward-looking statements. Such statements may involve further risks and
uncertainties, including but not limited to those relating to demand for
our services, pricing, market acceptance, our ability to integrate with our
clients, our ability to attract and maintain providers, our ability to
manage growth, the effect of economic conditions, and the affect of
competitive services, risks in product development, the ability to complete
transactions, and other risks identified in this release, and the
Securities and Exchange Commission filings of American CareSource Holdings,
Inc.
(Tables to Follow)
AMERICAN CARESOURCE HOLDINGS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
Three months ended Six months ended
June 30, June 30,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net Revenues $ 13,012,528 $ 4,008,288 $ 24,518,203 $ 6,274,857
Cost of revenues 11,110,593 3,478,292 20,911,715 5,579,935
------------ ------------ ------------ ------------
Contribution
margin 1,901,935 529,996 3,606,488 694,922
Selling, general
and administrative
expenses 1,194,504 1,209,740 2,307,358 1,911,272
Depreciation and
amortization 96,606 83,642 188,672 161,715
------------ ------------ ------------ ------------
Total operating
expenses 1,291,110 1,293,382 2,496,030 2,072,987
------------ ------------ ------------ ------------
Operating income
(loss) 610,825 (763,386) 1,110,458 (1,378,065)
------------ ------------ ------------ ------------
Interest income (31,240) (49,758) (71,908) (103,632)
Interest expense 1,606 2,488 3,444 6,449
Debt issuance costs - - - 46,300
------------ ------------ ------------ ------------
Total interest
(income) expense,
net (29,634) (47,270) (68,464) (50,883)
Income (loss)
before income
taxes 640,459 (716,116) 1,178,922 (1,327,182)
Income tax
provision 19,019 - 36,064 -
------------ ------------ ------------ ------------
Net Income (Loss) $ 621,440 $ (716,116) $ 1,142,858 $ (1,327,182)
============ ============ ============ ============
Earnings (loss)
per common share:
Basic $ 0.04 $ (0.05) $ 0.08 $ (0.09)
============ ============ ============ ============
Diluted $ 0.04 $ (0.05) $ 0.07 $ (0.09)
============ ============ ============ ============
Basic weighted
average common
shares outstanding 15,069,007 14,492,863 14,973,213 14,489,806
============ ============ ============ ============
Diluted weighted
average common
shares outstanding 17,435,365 14,492,863 17,343,860 14,489,806
============ ============ ============ ============
Reconciliation of non-GAAP financial measures to reported GAAP financial
measures:
Reconciliation of EBITDA and EBITDA, as adjusted
Three months ended Six months ended
June 30, June 30,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Operating income
(loss) $ 610,825 $ (763,386) $ 1,110,458 $ (1,378,065)
Depreciation and
amortization 96,606 83,642 188,672 161,715
------------ ------------ ------------ ------------
EBITDA 707,431 (679,744) 1,299,130 (1,216,350)
Executive severance - 338,010 21,844 338,010
Non-cash
stock-based
compensation
expense 171,848 165,308 342,601 214,844
------------ ------------ ------------ ------------
EBITDA, as
adjusted $ 879,279 $ (176,426) $ 1,663,575 $ (663,496)
============ ============ ============ ============
AMERICAN CARESOURCE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
June 30,
2008 December 31,
(unaudited) 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 6,077,395 $ 4,272,498
Accounts receivable, net 4,421,223 3,651,203
Prepaid expenses and other current assets 566,952 409,445
------------ ------------
Total current assets 11,065,570 8,333,146
Property and equipment, net 640,115 332,450
Other assets:
Certificate of Deposit, restricted 145,000 145,000
Other non-current assets 456,470 492,977
Intangible assets, net 1,387,447 1,494,238
Goodwill 4,361,299 4,361,299
------------ ------------
Total assets $ 18,055,901 $ 15,159,110
============ ============
LIABILITIES and STOCKHOLDERS' EQUITY
Current Liabilities:
Due to service providers $ 4,225,359 $ 3,344,278
Accounts payable and accrued liabilities 1,605,439 1,320,036
Current maturities of long-term debt 57,718 55,697
------------ ------------
Total current liabilities 5,888,516 4,720,011
Long-term debt 20,967 50,348
Stockholders' equity 12,146,418 10,388,751
------------ ------------
Total liabilities and stockholders' equity $ 18,055,901 $ 15,159,110
============ ============
AMERICAN CARESOURCE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six months ended
June 30,
--------------------------
2008 2007
------------ ------------
Cash flows from operating activities:
Net income (loss) $ 1,142,858 $ (1,327,182)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operations:
Stock-based compensation expense 316,147 206,032
Depreciation and amortization 188,672 161,715
Amortization of debt issuance costs - 46,300
Client management fee expense related
to warrants 26,455 8,812
Changes in operating assets and
liabilities:
Accounts receivable (770,020) (325,268)
Prepaid expenses and other assets 13,876 (366,038)
Accounts payable and accrued
liabilities 285,403 370,967
Due to service providers 881,081 112,983
------------ ------------
Net cash provided by (used in)
operating activities 2,084,472 (1,111,679)
------------ ------------
Cash flows from investing activities:
Investment in software development costs (284,085) -
Additions to property and equipment (105,461) (69,606)
------------ ------------
Net cash used in investing
activities (389,546) (69,606)
------------ ------------
Cash flows from financing activities:
Payments on long-term debt (27,360) (322,572)
Proceeds from exercise of stock options 137,331 2,391
------------ ------------
Net cash provided by (used in)
financing activities 109,971 (320,181)
------------ ------------
Net increase (decrease) in cash and cash
equivalents 1,804,897 (1,501,466)
Cash and cash equivalents at beginning of
period 4,272,498 5,025,380
------------ ------------
Cash and cash equivalents at end of period $ 6,077,395 $ 3,523,914
============ ============
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