1999 behind us. Hitting bottom and moving forward.
Shareholders meeting next to approve the merger.
Larger float after that to allow institutions to buy.
biz.yahoo.com
HealthAxis Inc. Reports Results for Fourth Quarter and Year
Quarter-to-Quarter Growth Rate Up +100% at Consumer Services Group Application Solutions
Group (Formerly Insurdata) Not Consolidated in 4th Quarter Numbers
EAST NORRITON, Pa.--(BW HealthWire)--March 30, 2000-- HealthAxis Inc. (NASDAQ: HAXS - news) today reported a net loss for the fourth quarter
ended December 31, 1999, of $10,065,000, or ($0.78) per share on a fully diluted basis, on $166,000 of revenue. The company's net loss included a net loss from
its discontinued operations of $411,000, which were the insurance activities of the company's former insurance subsidiaries. For the corresponding 1998 quarter, the
company reported a net loss of $8,828,000, or ($.85) per share on a fully diluted basis, which included a net loss from its discontinued operations of $7,571,000.
For the year ended December 31, 1999, the company reported a net loss of $46,601,000, or ($3.80) per share on a fully diluted basis, on $291,000 of revenue.
The company's net loss included a loss from its discontinued operations of $18,315,000, the majority of which was a realized loss of $10,263,000 on the sale of its
former insurance subsidiary, Provident Indemnity Life Insurance company. The 1999 year end results compare to a net loss of $12,410,000, or ($1.20) per share,
for 1998. The year ended December 31, 1998, included a net loss from discontinued operations of $6,748,000.
HealthAxis.com merged with Insurdata Incorporated in a transaction that closed on January 7, 2000. The results released today, both for the fourth quarter and the
full year 1999, reflect only HealthAxis.com's Consumer Services Group's online insurance sales. If consolidated, after giving effect to the Insurdata Incorporated
merger, HealthAxis.com's full year 1999 revenues would have been $43.1 million.
HealthAxis.com's Consumer Services Group doubled its ``in-force' business from the third to the fourth quarter of 1999. As of the close of the fourth quarter,
HealthAxis.com reported over 2,000 ``in-force' policies. In-force policies measure the actual number of policies against which commissions are being received from
carrier partners.
``The fact that we were able to double our quarter-to-quarter in-force business, despite the fourth quarter's overlap with the holiday shopping season -- a
traditionally poor period for insurance sales -- signals just how quickly HealthAxis.com is gaining ground in the growing online health insurance market,' said Michael
Ashker, chief executive officer of both HealthAxis Inc. and HealthAxis.com. ``Fourth quarter results reflect not only the final quarter of the old year, but the end of
an old era.'
``1999 was a historic year for the company,' Ashker continued. ``We formally launched our online service and sold the world's first-ever online health insurance
policy. We disposed of the last vestiges of the former Provident American Corporation's legacy insurance operation. We signed the merger with Insurdata
Incorporated which has given our company unmatched technology strength. These major steps, combined with the tireless efforts of the HealthAxis.com team, have
positioned the company as the leader in providing Internet connectivity for healthcare payers. As a result of these accomplishments, we are moving forward in the
best position for growth in the company's history.'
About HealthAxis.com
HealthAxis.com, Inc. is the leading provider of Internet solutions for healthcare insurance marketing, sales and payer connectivity. HealthAxis.com is the only
e-healthcare company servicing both the consumer and business-to-business marketplaces with health plan solutions. The Company's consumer Web site,
www.healthaxis.com, is a fully transactional, online health insurance agency targeting the individual and small group markets. The Company's proprietary workflow
and business application software, built around an application service provider model, enables healthcare payers -carriers, third party administrators and large,
self-funded groups -- to more efficiently capture, process and share health plan data over the Internet. HealthAxis.com is headquartered in suburban Philadelphia,
with significant operations in Dallas, as well as offices in eight other locations both domestic and abroad. The company employs over 350 IT professionals.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made by the company, which are not historical facts may be
considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon
a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and
uncertainties and may be affected by various factors, which may cause actual results to differ materially from those in the forward-looking statements. For further
information which could cause actual results to differ from the company's expectations as well as other factors which could affect the company's financial statements,
please refer to HealthAxis Inc.'s (previously Provident American Corporation) reports filed with the Securities and Exchange Commission.
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HealthAxis Inc. and Subsidiaries
Consolidated Condensed Statements of Operations
(000's omitted)
Three Months Twelve Months
Ended December 31, Ended December 31,
1999 1998 1999 1998
Revenue $ 166 $ -- $ 291 $ --
Expenses 14,779 2,012 35,329 5,902
Operating Loss (14,613) (2,012) (35,038) (5,902)
Interest income (expense) (600) 182 (925) (222)
Net loss before
minority interest (15,213) (1,830) (35,963) (6,124)
Minority interest in
net loss of subsidiary (5,559) (716) (7,747) (716)
Net loss in continuing
operations (9,654) (1,114) (28,216) (5,408)
Net loss in discontinued
operations (411) (7,571) (18,315) (6,748)
Net loss (10,065) (8,685) (46,531) (12,156)
Dividends on preferred stock 0 143 70 254
Net loss applicable to
common stock ($10,065) ($ 8,828) ($46,601) ($12,410)
Loss per share of common
(basic and diluted)
Continuing operations ($ 0.75) ($ 0.12) ($ 2.31) ($ 0.55)
Discontinued operations ($ 0.03) ($ 0.73) ($ 1.49) ($ 0.65)
Net Loss ($ 0.78) ($ 0.85) ($ 3.80) ($ 1.20)
Weighted average common
shares outstanding 12,970 10,331 12,260 10,331
HealthAxis Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(000's omitted)
December 31, December 31,
1999 1998
Assets
Cash and cash equivalents $58,069 $ 1,724
Other assets 21,533 22,844
Total assets $79,602 $24,568
Liabilities and Stockholders' Equity
Current liabilities $ 7,096 $ 8,387
Convertible debentures 25,019 0
Other long term liabilities 7,215 6,749
Minority interest in HealthAxis.com, Inc. 27,652 3,937
Stockholders' equity 12,620 5,495
Total Liabilities and Stockholders' Equity $79,602 $24,568
Contact:
Investor Contact
HealthAxis.com
Deidre Holt, 610-275-3800
dholt@healthaxis.com
or
Media Contact
Schwartz Communications, Inc.
Michele M. Meagher/Jason Morris, 781-684-0770
healthaxis@schwartz-pr.com |
