A.D.A.M., Inc. Reports Fourth Quarter and Full Year 2006 Results
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Tuesday March 20, 7:00 am ET
A.D.A.M. Completes Acquisition of Online Benefits, Inc., Reports Yearly Revenue Increase of 64%
ATLANTA--(BUSINESS WIRE)--A.D.A.M., Inc. (Nasdaq: ADAM), a leading provider of health information services and benefits management solutions, today reported financial results for the fourth quarter and year ended December 31, 2006.
Financial highlights for the fourth quarter and year include:
* Revenues for the fourth quarter ended December 31, 2006 were $6,835,000 as compared to $2,507,000 in the year-ago period, an increase of 173%. The increase in revenue is attributable to the acquisition of Online Benefits, which was completed in August 2006, growth in A.D.A.M.'s content licensing revenues and growth in sales of A.D.A.M.'s educational and print products.
* Revenues for the year ended December 31, 2006 were $16,505,000 as compared to $10,054,000 in the year-ago period, an increase of 64%. Recurring license revenues accounted for 84% of 2006 total revenues.
* Operating income for the fourth quarter ended December 31, 2006, which included severance costs of $485,000, increased to $1,051,000 or 15.4% of revenues. Adjusted operating income for the quarter was $1,740,000, or 25.5% of revenues.
* Operating income for the year ended December 31, 2006 was $3,132,000 or 19% of revenues. Adjusted operating income for the year was $4,041,000, or 24.5% of revenues.
* Net income for the year ended December 31, 2006 was $2,548,000 or $0.25 per share on a fully diluted basis, compared to net income of $7,062,000, or $0.75 per share on a fully diluted basis, for the year ended December 31, 2005. Net income for the year ended December 31, 2005 included a $5,500,000 tax benefit. Adjusted net income for the year ended December 31, 2006 was $3,457,000 or $0.34 per share on a fully diluted basis, compared to $2,106,000 or $0.22 per share on a fully diluted basis, for the year ended December 31, 2005.
* As of December 31, 2006, cash and investments were approximately $7,240,000. For the year ended December 31, 2006, adjusted EBITDA was $4,913,000, an increase from $2,786,000 for the year ended December 31, 2005.
"Last year was a transformational year for our company. We believe the acquisition of Online Benefits positions us favorably to provide the solutions small and mid-size employers need to deal with rising benefit and healthcare costs," commented Kevin S. Noland, A.D.A.M.'s president and chief executive officer. "The need for information and decision-support tools to enable consumers to become more effective participants in their benefit plan and health and wellness has never been greater, and we see continued demand for these types of services as more employers look for ways to manage costs and improve the productivity of their employees.
"Additionally, we see continued demand in our healthcare markets for content and applications that speak to our client's needs for engaging their members, patients and consumer audiences in their health and wellness. We have a strong pipeline of new products that will drive our long term growth and expand our operating margins, including Benergy 2G!, our next generation consumer benefits and health management portal that we are expecting to release in phases during 2006, with the initial release in the second quarter."
2006 Highlights
* Completed the acquisition and integration of Online Benefits, Inc. in August 2006. Benergy(TM), Online Benefits' principal product, is a scalable benefits management solution for the small to mid-sized employer market. Benergy is distributed by more than 500 benefits brokers throughout the U.S. and is in use by more than 5,000 employers.
* Signed a multi-year distribution agreement with Thomson Micromedex, a Thomson healthcare business. Thomson Micromedex will distribute our health content products to their provider, payer and healthcare IT customers.
* Selected by Walgreen Co. to provide consumer health information on Walgreens.com.
* Launched several new products, including the A.D.A.M. DecisionAssist suite and Health Risk Assessment Reporting Tools to address the needs of the accelerating consumer driven health marketplace. Our DecisionAssist tools help consumers make important decisions about their healthcare options, such as whether to have a particular surgery, proceed with a test, take certain medications or use other healthcare services. Our reporting tools provide vital information about the health of employees, members, or other end users that facilitates healthy employee habits, improvements to workplace productivity, and appropriate utilization of health services. |
