ProxyMed, Inc. Announces 1999 Second Quarter Results - Electronic Prescriptions Up 22% - - Significant Business Relationships Signed in Second Quarter -
July 29, 1999 07:30 AM
FT. LAUDERDALE, Fla., July 29 /PRNewswire/ -- ProxyMed, Inc. PILL , a leading provider of internet and private network-based healthcare connectivity services, today reported results for its second quarter and six month periods ended June 30, 1999.
Revenues for the second quarter of 1999 increased 11.9% to $11,004,339 compared to revenues of $9,837,055 reported in the same period of 1998. For the current quarter, the Company's loss from operations before interest, taxes, depreciation and amortization EBITDA) was $879,422 compared to an EBITDA profit of $39,173 for the same period in 1998. The 1999 period includes certain "one-time" charges totaling $481,000 ($0.03 per diluted share) relating to activities in the quarter that are not considered part of comparable operations. The Company's loss per share (excluding acquisition- related charges) was $0.07 per diluted share, compared to a loss per diluted share of $0.03 reported in the second quarter of 1998. The loss per share on a reported basis (including acquisition-related amortization charges of $3,049,120 and $1,561,262 in the 1999 and 1998 quarters, respectively) was a net loss of $0.25 per diluted share, versus a net loss of $0.19 per diluted share for the second quarter of 1998. Weighted average shares outstanding were 17,913,831 and 15,134,640 during the 1999 and 1998 periods, respectively.
For the first half of 1999 revenues increased 52.6% to $22,371,648 versus revenues of $14,664,971 reported in the first half of 1998. The Company's EBITDA loss was $1,319,699 (including the $481,000 of "one-time" charges discussed above) compared to a $1,030,813 loss on an EBITDA basis for the same period in 1998. The Company's loss per share for the six-month period (excluding acquisition-related charges) was $0.12 per diluted share, compared to a loss per diluted share of $0.15 reported in the first half of 1998. The loss per share on a reported basis (including acquisition-related amortization charges of $5,854,712 and $1,806,431 in the 1999 and 1998 periods, respectively) was a net loss of $0.45 per diluted share, versus a net loss of $0.34 per diluted share for the corresponding period of 1998. Weighted average shares outstanding were 17,866,363 and 13,496,493 during the 1999 and 1998 periods, respectively.
During the second quarter, ProxyMed significantly strengthened its position as a leading provider of on-line clinical and financial healthcare transactions to the healthcare marketplace. During the quarter the Company:
-- Entered into an agreement with IDX.com for ProxyMed to provide exclusive connectivity to IDX's 118,000 physicians, connecting these physicians to ProxyMed's network of pharmacies, clinical laboratories and payors. Today, ProxyMed processes approximately 10 million transactions annually for IDX physician customers. This volume is expected to triple in the year 2000.
-- Announced on June 16 1999, the general release of its enhanced prescription management software application, PreScribe 2000. ProxyMed has targeted specific markets with weekly sponsored seminars for physicians and their office staff. To date, PreScribe 2000 has been introduced to 171 physician offices in four seminars, and in just five weeks has been purchased by 73 of these offices representing 151 doctors.
-- Entered into a multi-year strategic licensing agreement with MOON Communications, a subsidiary of Sabratek Corporation (Nasdaq: SBTK) for the integration of ProxyNet services into the MOON web portal, OneMedPlace.com. This agreement demonstrates early acceptance and recognition of ProxyMed's value in back-end connectivity for Internet-based healthcare information sites while allowing ProxyMed the flexibility to continue pursuing additional affiliate agreements.
Bennett Marks, Co-President and CFO, said, "We are pleased with the second quarter results. We posted a solid financial performance compared to both last years quarter and the first quarter of 1999. In addition, we processed 35% more transactions compared to the second quarter of 1998 on a proforma basis. We continued to build momentum in the quarter, adding 11 new payors representing 6 million members, four regional practice management system vendors, one new pharmacy chain, 25 clinical labs, 3 IPAs and 780 new physicians using our services."
Harold Blue, Chairman and CEO, stated, "In the second quarter, we were successful in our efforts to build ProxyMed for continued, strong, long-term growth. We believe the IDX relationship is a watershed agreement that will add millions of dollars of revenue in the short term, with significant recurring revenue growth and lasting value into the future. This agreement establishes ProxyMed as the exclusive provider of healthcare connectivity services to over 20% of the physicians in the United States. In addition to the significant opportunity with IDX, we are continuing to play a leading role in the growing momentum and acceptance of electronic prescriptions, with a sponsored model emerging. Our prescription transactions increased to 538,880 prescriptions in the quarter as compared to 440,646 in the first quarter of 1999. PreScribe 2000 has been well received by the physicians and their staff, is easy to deploy, and is being utilized heavily by these new customers. This early adoption rate signals acceptance of electronic prescription functionality in the doctor's office when delivered with valuable clinical content that improves the efficiency of the office staff while providing better patient care."
ProxyMed, Inc., based in Ft. Lauderdale, Florida, is a leading provider of internet and private network-based healthcare connectivity services. ProxyMed also provides e-commerce systems to physicians, payors, pharmacies, clinical laboratories and managed care organizations.
Note: This News Release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements include assumptions, beliefs and opinions relating to ProxyMed's growth strategy based upon ProxyMed's interpretation and analysis of healthcare industry trends, and management's ability to successfully develop, implement, market and sell its network transaction processing services, software programs, clinical and financial transaction services, and e-commerce systems to physicians and other healthcare providers. This strategy assumes that ProxyMed will be able to successfully develop and execute its strategic relationships, especially with the providers of healthcare information systems, with pharmacy chains and independent pharmacy owners, and with clinical medical laboratories. Many known and unknown risks, uncertainties and other factors, including general economic conditions and risk factors detailed from time to time in ProxyMed's Securities and Exchange Commission filings, may cause these forward-looking statements to be incorrect and may cause actual results to be materially different from any future results expressed or implied by these assumptions, opinions and beliefs. ProxyMed expressly disclaims any intent or obligation to update any forward-looking statements.
More information on ProxyMed is available on its home page at
proxymed.com.
PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
(Excluding Acquisition-Related Charges)
Six Months Three Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
Revenues $22,371,648 $14,664,971 $11,004,339 $9,837,055
Costs and expenses:
Cost of sales 9,210,522 6,112,933 4,376,873 4,343,079
Selling, general and
administrative
expenses 13,999,825 9,582,851 7,025,888 5,454,803
Other expenses 481,000 -- 481,000 --
Depreciation and
amortization (1) 941,072 923,811 477,768 538,307
Total operating costs
and expenses, as
adjusted (1) 24,632,419 16,619,595 12,361,529 10,336,189
Operating loss, as
adjusted (1) (2,260,771) (1,954,624) (1,357,190) (499,134)
Interest income
(expense), net 35,078 (22,502) 16,311 (10,544)
Net loss, as
adjusted (1) $(2,225,693) $(1,977,126) $(1,340,879) $(509,678)
Basic and diluted
loss per share,
as adjusted $(0.12) $(0.15) $(0.07) $(0.03)
Basic and diluted
weighted average
shares outstanding 17,866,363 13,496,493 17,913,831 15,134,640
EBITDA $(1,319,699) $(1,030,813) $(879,422) $39,173
(1) Excludes $5,854,712 and $1,806,431 in the six months ended June 30, 1999 and 1998, and $3,049,120 and $1,561,262 in the quarter ended June 30, 1999 and 1998, respectively, for amortization of acquisition-related intangible assets. The actual reported basic and diluted loss per share is $(0.45) and $(0.34) for the six months ended June 30, 1999 and 1998, and $(0.25) and $(0.19) for the quarter ended June 30, 1999 and 1998, respectively.
PROXYMED, INC. AND SUBSIDIARIES
Balance Sheet Highlights
June 30, 1999 (unaudited)
Cash and cash equivalents $3,788,810
Total assets $44,324,338
Total liabilities $8,104,222
Total stockholders' equity $36,220,116
SOURCE ProxyMed, Inc. |
