Here are the results -- I would hold onto this stock and see how the market reacts to the conference call.
Physician Support Systems Announces 1996 Year End
Results
MT. JOY, Pa., March 20 /PRNewswire/ -- Physician Support Systems Inc today announced
revenues of $21,146,254 for the quarter ended December 31, 1996 and $75,190,943 for the year
ended December 31, 1996. These amounts compare to $13,878,116 and $59,513,733 for the
respective periods in the prior year. Excluding the effects of restructuring and other charges, net
income would have been $30,914 or $0.00 per share for the quarter ended December 31, 1996
and $1,200,009 or $0.14 per share for the year ended December 31, 1996, which is consistent
with the Company's previously announced expectations. This compares to net losses of
$(1,931,985) or $(0.44) per share for the quarter ended December 31, 1995 and $(894,676) or
$(0.26) per share for the year ended December 31, 1995. Including restructuring and other charges,
pro forma net loss was $(6,212,402) or $(0.69) per share for the quarter ended December 31,
1996 and $(9,642,311) or $(1.17) per share for the year ended December 31, 1996 compared to
pro forma net loss of $(1,617,885) or $(0.38) per share for the quarter ended December 31, 1995
and $(941,375) or $(0.27) per share for the year ended December 31, 1995. All amounts included
herein are restated for the Company's 1996 acquisitions of Synergistic Systems, Inc. ("SSI"), EE&C
Financial Services, Inc. ("EE&C") and Revenue Production Management, Inc. ("RPM") that were
accounted for as poolings of interests.
Restructuring and other charges totaled approximately $7,553,000 for the quarter ended December
31, 1996. Included in this amount is approximately $975,000 of merger expenses related to the
Company's pooling of interests with RPM that closed on December 31, 1996 and approximately
$6,578,000 related to the impairment of certain intangible assets at the Company's Spring
Anesthesia Group ("Spring") subsidiary. The Company had previously announced that operating
conditions at Spring had deteriorated significantly in the fourth quarter of 1996, and that management
of the Company's PhyServ Solutions subsidiary, which like Spring, serves only anesthesiologists but
on a profitable basis, was being put in charge of Spring.
"While we are disappointed with the fourth quarter operating results, we are pleased with the
businesses we have acquired in 1996 and believe we have built a company with a broad scope in
terms of geography, services, client base, and technology," said Peter W. Gilson, President of
Physician Support Systems, Inc. "While we expect it to take at least until the end of the year for
PhyServ management to fully implement their systems and operating methodology at Spring, we
believe that the PhyServ management team is positioned to provide a consistent approach to
anesthesiology billing nationwide. In addition, the previously announced closing of our Health
Services, Inc. ("HSI") subsidiary's processing center in Trenton, New Jersey is continuing, with
those clients transitioning to other offices on schedule."
Headquartered in Mt. Joy, Pennsylvania, PHSS is a leading provider of business management
services to hospitals and hospital-affiliated physicians, including accounts receivable, financial,
administrative, strategic and information support services.
This press release contains forward-looking statements that involve a number of risks and
uncertainties. Actual results may differ materially as a result of risks facing the Company. These risks
include the ability of PHSS to grow internally or by acquisitions, political and regulatory pressures or
changes, the ability of the Company to integrate acquired businesses into the PHSS group of
companies, the ability of PhyServ to assimilate Spring, the successful transition of HSI's business to
the Company's other processing centers, competitive action by other companies, changing
conditions in the healthcare industry and other risks referred to in the Company's periodic reports
and registration statement filed with the Securities and Exchange Commission.
PHYSICIAN SUPPORT SYSTEMS, INC.
Three Months and Year Ended December 31, 1996 and 1995
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Revenues $21,146,254 $13,878,116 $75,190,943 $59,513,733
Salaries and
Wages 12,102,063 9,206,654 40,071,577 34,016,350
General and
Administrative 7,428,270 5,675,695 27,251,773 20,455,088
Depreciation &
Amortization 1,316,026 1,105,824 5,209,539 4,464,739
Interest expense
(income), net 256,696 539,239 404,577 1,825,874
Other expense
(income), net (12,005) (2,741) 110,604 (22,734)
Total 21,091,050 16,524,671 73,048,070 60,739,317
Income before merger
costs and
restructuring and
other charges 55,204 (2,646,555) 2,142,873 (1,225,584)
Merger costs 975,000 -- 3,325,000 --
Restructuring and
other charges 6,577,734 -- 9,077,734 --
Income (loss) before
income taxes (7,497,530) (2,646,555) (10,259,861) (1,225,584)
Income taxes (837,157) (299,784) 1,409,101 (486,737)
Net income (loss) (6,660,373) (2,346,771) (11,668,962) (738,847)
Pro forma income
taxes (447,971) (728,886) (2,026,651) 202,528
Pro forma
net income
(loss) ($6,212,402) ($1,617,885) ($9,642,311) ($941,375)
EPS Calculation
Pro forma net
income (loss) ($6,212,402) ($1,617,885) ($9,642,311) ($941,375)
Preferred stock
dividends -- 81,276 36,320 280,980
Available for
common shares ($6,212,402) ($1,699,161) ($9,678,631) ($1,222,355)
Weighted average
shares 9,052,574 4,526,888 8,269,779 4,526,888
Pro forma earnings
(loss) per share ($0.69) ($0.38) ($1.17) ($0.27)
Computation of net income per share before merger costs and restructuring
and other charges:
Income before merger
costs and restructuring
and other charges $55,204 ($2,646,555) $2,142,873 ($1,225,584)
Income taxes 24,290 (714,570) 942,864 (330,908)
Net income 30,914 (1,931,985) 1,200,009 (894,676)
Preferred stock
dividends -- 81,276 36,320 280,980
Available for
common shares $30,914 ($2,013,261) $1,163,689 ($1,175,656)
Weighted average
shares 9,052,574 4,526,888 8,269,779 4,526,888
Earnings per share before
merger costs and restructuring
and other charges $0.00 ($0.44) $0.14 ($0.26)
PHYSICIAN SUPPORT SYSTEMS, INC.
Consolidated Balance Sheet
December 31, 1996
ASSETS
Cash $3,826,018
A/R - Billed 17,458,338
A/R - Unbilled 11,149,811
Other current assets 1,991,689
Total current assets 34,425,856
Property and equipment 9,092,630
Due from related parties 1,054,038
Intangibles 44,556,022
Other assets 2,776,902
Total assets $91,905,448
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $2,135,923
Accrued expenses 16,805,042
Current portion other long-term obligations 969,623
Due from related parties 463,736
Deferred income taxes 31,346
Total current liabilities 20,405,670
Long-term debt 20,017,027
Other long-term obligations 3,676,053
Due to related parties 771,695
Deferred income taxes 1,322,263
Common stock 9,156
Additional paid-in-capital 55,194,229
Retained earnings (9,490,645)
Total liabilities and stockholders' equity $91,905,448
SOURCE Physician Support Systems, Inc. |
