Thursday March 9, 12:46 pm Eastern Time
Company Press Release
Dynamic Healthcare Technologies, Inc. Reports Fourth Quarter and Year-end Earnings
LAKE MARY, Fla.--(BUSINESS WIRE)--March 9, 2000--Dynamic Healthcare Technologies, Inc., (Nasdaq:DHTI - news) today announced earnings for the fourth quarter and year ended December 31, 1999. The company reported revenues of $35,143,000 for the year ended December 31, 1999, an increase of $9,314,000, or 36%, compared to revenues of $25,829,000 for the prior year. For the year ended December 31, 1999, the company reported earnings of $854,000 or $.04 per common share, compared to a net loss of $(9,013,000) or $(0.50) for the prior year.
The company also reported revenues of $7,873,000 for the quarter ended December 31, 1999. This in an increase of $2,724,000 or 52.9% compared to $5,149,000 for the same quarter in 1998. Absent the one time charge taken during the third quarter of 1999 in connection with the previously announced corporate realignment plan, the company reported its fourth consecutive quarter of profitability, posting net earnings of $134,000 for the quarter ended December 31, 1999. This compares to a net loss of $(3,794,000) for the same quarter of 1998, and represents a $3,928,000 improvement in quarterly operating results.
During 1997 and 1998, the company introduced new technology product releases in virtually every market segment in which it competes. Lengthy initial sales cycles, characteristic of the industry, impacted 1998 performance, while record fourth quarter 1998 sales bookings resulted in increased system implementations during 1999. This revenue increase, together with cost savings attributed to the re-engineering, realignment and cost reduction plans implemented in 1998 and 1999, combined to produce a $9,867,000 improvement in operating results during 1999.
Mitchel J. Laskey, president and CEO of Dynamic, commented, ``Operating profitably was a key objective, as was overcoming the impact of delayed sales decisions resulting from customer and prospect Y2K remediation efforts. It is important to note that, during 1999, the company generated $854,000 in net earnings while incurring approximately $3,762,000 in non-cash charges. Additionally, we reported our fifth consecutive quarter of generating cash from operations. In 2000, our focus is on continuing our e-business initiatives to web enable our clinical systems and to introduce alternative distribution channels for our products.'
Dynamic Healthcare Technologies is a leading provider of Internet and image-, voice-, and web-enabled information systems for clinical services departments and facilities. The company's product line is a suite of solutions for anatomic pathology, radiology, laboratory, surgical services and health information management. The company began converging traditional clinical applications with emerging Internet technologies in 1999, thereby positioning for a leadership role in the e-Health business to business (B2B) marketplace. Dynamic's e-Health solutions enable authorized health professionals to use the company's systems over the Internet, thereby extending their reach to remote hospitals, outreach service locations, reference labs, physician offices and homes. Dynamic information systems are installed in more than 650 customer locations across the United States and Canada. The company is headquartered in the greater Orlando area and has a key operations and development center near Boston.
Dynamic Healthcare Technologies' conference call to review financial results for the year ended December 31, 1999 will be held on Thursday, March 9. A playback will be available from 1:00 P.M. March 9 until 5:30 P.M. March 13, EST and can be accessed by calling 1-888-568-0866.
This press release contains forward looking statements that involve a number of risks and uncertainties, including, but not limited to, certain areas beyond the Company's control with respect to future business events and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SELECTED FINANCIAL DATA
DYNAMIC HEALTHCARE TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended
Dec. 31, 1998 Dec. 31, 1999
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Operating revenues:
Computer system equipment sales
and support $ 494,196 $ 609,572
Application software licenses 538,432 1,756,181
Software support 2,880,549 2,908,088
Services and other 1,236,266 2,599,147
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Total operating revenues 5,149,443 7,872,988
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Costs and expenses:
Cost of products sold 844,407 942,691
Client services expense 2,608,862 2,651,773
Software development costs 2,025,838 1,899,850
Sales and marketing 2,023,372 1,115,770
General and administrative 1,442,140 1,094,210
Realignment costs - -
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Total costs and expenses 8,944,619 7,704,294
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Operating income (loss) (3,795,176) 168,694
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Other income (expense):
Interest expense and financing costs (47,325) (47,138)
Interest income and other 42,650 15,455
Gain/Loss on disposal of fixed assets 5,802 (3,443)
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Total other income (expense) 1,127 (35,126)
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Net earnings (loss) before income taxes (3,794,049) 133,568
Income taxes - current - -
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Net earnings (loss) $(3,794,049) $ 133,568
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Net earnings (loss) available for common
shareholders $(3,834,049) $ 93,568
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Earnings (loss) per common share - basic $ (0.21) $ -
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Earnings (loss) per common share - diluted $ (0.21) $ -
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Weighted average number of common shares
outstanding 18,252,667 18,793,684
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equivalent shares outstanding
assuming full dilution 18,252,667 18,996,004
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Twelve Months Ended
Dec. 31, 1998 Dec. 31, 1999
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Operating revenues:
Computer system equipment sales
and support $ 2,637,601 $ 4,296,500
Application software licenses 5,396,122 9,745,107
Software support 11,722,897 11,715,631
Services and other 6,072,679 9,386,162
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Total operating revenues 25,829,299 35,143,400
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Costs and expenses:
Cost of products sold 3,242,556 6,237,188
Client services expense 10,958,132 9,880,115
Software development costs 6,646,471 6,787,427
Sales and marketing 9,430,307 6,589,688
General and administrative 4,605,237 4,068,990
Realignment costs - 523,569
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Total costs and expenses 34,882,703 34,086,977
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Operating income (loss) (9,053,404) 1,056,423
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Other income (expense):
Interest expense and financing costs (94,049) (277,075)
Interest income and other 273,826 100,960
Gain/Loss on disposal of fixed assets (139,063) (25,940)
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Total other income (expense) 40,714 (202,055)
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Net earnings (loss) before income taxes (9,012,690) 854,368
Income taxes - current - -
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Net earnings (loss) $(9,012,690) $ 854,368
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Net earnings (loss) available for common
shareholders $(9,080,245) $ 694,368
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Earnings (loss) per common share - basic $ (0.50) $ 0.04
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Earnings (loss) per common share - diluted $ (0.50) $ 0.04
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Weighted average number of common shares
outstanding 18,127,641 18,578,573
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equivalent shares outstanding
assuming full dilution 18,127,641 18,873,701
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CONDENSED BALANCE SHEETS
Assets: Dec. 31, 1998 Dec. 31, 1999
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Current assets:
Cash and cash equivalents $ 1,962,426 $ 1,818,209
Accounts receivable, net 6,847,498 8,590,441
Unbilled receivables 2,578,078 2,989,547
Other current assets 2,464,118 872,922
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Total current assets 13,852,120 14,271,119
Property & equipment, net 5,167,436 4,107,481
Capitalized software development costs, net 9,247,578 9,266,284
Other assets 2,337,146 2,015,041
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$30,604,280 $ 29,659,925
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Liabilities and Shareholders' Equity:
Current liabilities:
Accounts payable and accrued expenses $ 4,231,540 $ 3,041,799
Deferred revenue 6,729,436 6,577,199
Advanced billings 1,828,351 1,387,119
Line of credit 856,000 700,000
Deferred lease incentives 190,231 190,231
Other current liabilities 271,735 297,143
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Total current liabilities 14,107,293 12,193,491
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Deferred lease incentives - non current 982,862 792,632
Other 888,358 752,538
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Total liabilities 15,978,513 13,738,661
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Shareholders' equity:
Series C preferred stock 1,811,327 1,811,327
Common stock 182,713 188,149
Warrants 3,000 3,000
Additional paid-in capital 44,699,416 45,135,109
Deficit (32,070,689) (31,216,321)
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Total shareholders' equity 14,625,767 15,921,264
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$30,604,280 $29,659,925
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The financial data should be read in conjunction with the disclosures contained in the Company's Form 10-K for the year ended December 31, 1998, and with the Company's upcoming Form 10-K filing for the year ended December 31, 1999.
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Contact:
Dynamic Healthcare Technologies, Inc., Lake Mary
Mitchel J. Laskey (investors)
President and CEO
mlaskey@dht.com
or
Chris Willard (media)
Director, Marketing Communications
cwillard@dht.com
800-832-3020 |
