Healthaxis Inc. Reports Fourth Quarter 2000 Results
EAST NORRITON, Pa., Feb 20, 2001 (BUSINESS WIRE) -- Healthaxis Inc. (NASDAQ: HAXS chart, msgs) today reported operating results for the fourth quarter, and year ended December 31, 2000.
Operating revenues for the quarter and year were $10,042,000 and $42,796,000 respectively. For the comparable periods in 1999, the Company had no revenue. (Comparable 1999 operating revenues for Insurdata Incorporated, which was merged into Healthaxis on January 7, 2000, were $11,126,000 and $42, 897,000, respectively.)
Operating expenses for the quarter and year, before stock based compensation, depreciation, and amortization, were $11,655,000 and $51,322,000, respectively. For the corresponding 1999 periods, operating expenses, before stock based compensation, depreciation, and amortization, were $3,442,000, and $8,859,000, respectively. The large increase in operating expenses is the result of the Insurdata merger.
The operating loss for the quarter and year, before stock based compensation, depreciation, and amortization, was ($1,613,000), or ($.12) per share on a fully diluted basis, and ($8,526,000), or ($.65) per share on a fully diluted basis, respectively. For the corresponding 1999 periods, the operating loss, before stock based compensation, depreciation, and amortization, was ($3,442,000), or ($.27) per share on a fully diluted basis, and ($8,859,000), or ($.72) per share on a fully diluted basis, respectively.
The net loss applicable to common stock for the quarter and year was ($4,190,000), or ($0.32) per share on a fully diluted basis, and ($35,016,000), or ($2.68) per share on a fully diluted basis, respectively. For the corresponding 1999 periods, the net loss applicable to common stock for the quarter and year was ($10,065,000), or ($0.78) per share on a fully diluted basis, and ($46,601,000), or ($3.80) per share on a fully diluted basis, respectively.
For a more detailed analysis, a summary table of financial results is attached.
On June 30, 2000, Healthaxis entered into an agreement with Digital Insurance, Inc. to sell its retail operations. The net effect of the transaction was a gain of $.04 per share in the 4th quarter 2000 and a loss of ($.66) per share for the year. This compares to a loss of ($.54) and ($3.05) per share respectively for the comparable periods in 1999 reflecting the spin-off of Healthaxis' insurance operations.
On December 1, 2000, Healthaxis made payment of $4.25 million in cash, to Hannover Life Reassurance Company of America, to retire a $6.175 million outstanding liability under a Settlement and Release Agreement with Healthaxis, Inc. Pursuant to this Settlement and Release Agreement, HAI was released from all liability under a guaranty agreement and a related stock pledge agreement with Hannover Life. For a more detailed explanation of this transaction, refer to the Form 8-K filed with the SEC on Dec 14, 2000. In connection with this settlement, the Company has recorded an extraordinary gain for debt forgiveness in the amount of $1,925,000, or $ .15 per share on a fully diluted basis, for the quarter and twelve months ended December 31, 2000. For the corresponding 1999 periods, the Company had no extraordinary gains.
The Company currently anticipates that it will attain positive cash flow in the third quarter of 2001, unless deteriorating economic conditions significantly change our customers' buying habits. The Company ended the year 2000 with more than $17 million in cash on hand. This was down from the $21 million balance, previously projected, due to the payment of $4.25 million in cash to Hannover Life Reassurance Company of America on December 1, 2000, as discussed above.
Subsequent to the fourth quarter, the merger of Healthaxis, Inc., and Healthaxis.com, Inc., was completed on January 26, 2001. Additionally, James W. McLane assumed the positions of President and CEO of the Company on February 1, 2001.
James W. McLane, the newly elected President and CEO of Healthaxis Inc., stated: "With the financial complexities related to the merger of Healthaxis Inc. and Healthaxis.com, Inc. now behind us, the new integrated company is focusing all of its energy and resources on growing the top line, improving productivity and achieving positive cash flow and earnings. The appropriate management adjustments and additions are being made, and the company is concentrating on delivering on its promises to its customers, its employees and its shareholders. My positive view of the market opportunity and potential for the company has not changed."
The Company's management will host a conference call to review results and answer questions. The conference call will be held today (Feb 20) at 2:00 P.M. EST. Investors wishing to participate should call 800/815-2528, or 706/679-3660 for International callers, and request the Healthaxis IR Call. A replay will be available for 10 days at: 800/642-1687 and 706/645-9291 for International callers. The access code (for replay only) is 157625.
Additionally, today's call will be broadcast on the Internet, and remain available in archives for 30 days, by WebRadio at: webradio.com.
About Healthaxis Inc.
For over 20 years, Healthaxis Inc., through its operating subsidiaries, has been driven by the overwhelming challenge of solving the administration, processing, and distribution inefficiencies that plague the healthcare industry. Customers have relied on Healthaxis to develop state-of-the-art software solutions to reduce costs and improve productivity. Today, Healthaxis continues to develop innovative solutions that offer businesses a distinct strategic advantage by quickly and efficiently connecting payers, providers, administrators, brokers, employers, and consumers. In addition, Healthaxis technology will help its customers stay compliant with evolving federal regulations such as HIPAA. Healthaxis products and services support customers by easily integrating flexible Internet-based applications - matching the customer's way of doing business. |
