Earnings out this a.m. ...any comments from those of you more familiar with this company?
Monday February 14, 9:03 am Eastern Time
Company Press Release
MedCom USA Inc. Reports Second Quarter Results
Revenue Growth Continues Working Capital Increases By More Than $2 Million
IRVINE, Calif.--(BW HealthWire)--Feb. 14, 2000--MedCom USA (Nasdaq:EMED - news) Monday announced that revenue for the six month period ended Dec. 31, 1999, increased 154% to $1,963,166 compared with revenue of $772,017 posted for the same six month period ended Dec. 31, 1998 reflecting the company's focus on its medical transaction processing business segment.
Revenue for the three months ended Dec. 31, 1999 was $795,192 as compared with $394,561 for the same quarter of the prior year. Gross profit totaled $1,246,681 for the six months ended Dec. 31, 1999, a 183% increase over gross profit of $440,221 reported for the same period last year.
Gross profit for the three months ended Dec. 31, 1999 was $361,771, an increase of $152,498 over the same period in the prior year.
Net loss for the current six month reporting period was $2,873,334, or $.15 loss per share, as compared with a net loss of $3,040,866, or $.32 loss per share for the comparable six month period in the prior year. The loss for the quarter ended Dec. 31, 1999 was $1,977,165 ($.10 per share) compared with $1,433,128 ($.15 per share) in the prior year.
All of the increase in the loss for the quarter was attributable to equity based compensation, which increased by more than $800,000 in the current quarter as compared with the same period in the prior year.
The company noted that as of Dec. 31,1999, stockholders' equity totaled $5.03 million and net tangible assets reached $4.49 million, compared to $2.85 million and $1.95 million, respectively for the prior year.
The company reported working capital equal to $620,453 as of Dec. 31, 1999 as compared to a deficit of $2,194,225 as of Dec. 31, 1998. This equates to an improvement of over $2.8 million in a one year period.
``We are excited about the prospects for the future in light of our improved financial position and the progress being made in our business operations. The company has not had positive working capital for quite some time. We have significantly strengthened our financial position during the last year.
``Also, the results for the period were in line with our expectations. Our marketing partners are only now beginning to fully promote the MedCard system and certain applications are still under development, including the Internet version of the MedCard system and our auction site.' Stated Mark E. Bennett, president and CEO of MedCom USA
MedCom USA provides innovative solutions for electronically processing transactions within the healthcare industry.
The company's healthcare business units include: MedCard, a service package for physicians, clinics and hospitals that has been endorsed by the New York County and Suffolk County Medical Association; JustMed.com, a pure play Internet healthcare Web site; and Med Store, an e-commerce site for selling home medical equipment (HME) products. MedCom's Internet address is www.justmed.com.
This release contains forward-looking statements that are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
MEDCOM USA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 1999 June 30, 1999
CURRENT ASSETS
Cash and cash equivalents $ 473,845 $ 439,772
Accounts receivables 685,459 250,913
Inventories 436,622 464,074
Prepaid expenses and other current assets 764,103 100,337
Notes receivable, current portion 289,750 150,000
TOTAL CURRENT ASSETS 2,649,779 1,405,096
PROPERTY & EQUIPMENT 1,981,987 2,059,602
OTHER ASSETS 3,258,998 2,910,164
TOTAL ASSETS $7,890,764 $6,374,862
LIABILITIES & STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $1,377,987 $1,271,974
Borrowing under bank line of credit -- 250,000
Current portion of capitalized lease 45,738 43,432
Current portion of long term debt 447,119 519,119
Deferred revenue 48,000 --
Dividends payable 110,482 58,025
TOTAL CURRENT LIABILITIES 2,029,326 2,142,550
LONG TERM LIABILITIES
Deferred revenue 745,500 --
Capitalized lease obligations 85,660 125,706
TOTAL LONG TERM LIABILITIES 831,160 125,706
TOTAL LIABILITIES 2,860,486 2,268,256
TOTAL STOCKHOLDERS EQUITY 5,030,278 4,106,606
TOTAL LIABILITIES & STOCKHOLDERS EQUITY $7,890,764 $6,374,862
MEDCOM USA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
1999 1998 1999 1998
REVENUE
Intelligent Vending
Machines $176,983 $338,407 $472,476 $676,818
Medical Transaction
Processing 618,209 56,154 1,490,690 95,199
TOTAL REVENUES 795,192 394,561 1,963,166 772,017
COST OF SERVICES 433,421 185,288 716,485 331,796
GROSS PROFIT 361,771 209,273 1,246,681 440,221
TOTAL EXPENSES 2,319,767 1,562,106 4,047,829 3,359,606
OPERATING LOSS (1,957,996) (1,352,833) (2,801,148) (2,919,385)
OTHER EXPENSE -- INTEREST
NET 7,221 (80,295) (17,329) (121,481)
LOSS BEFORE INCOME
TAX (1,950,775) (1,433,128) (2,818,477) (3,040,866)
INCOME TAX PROVISION -- -- 2,400 --
NET LOSS (1,950,775) (1,433,128) (2,820,877) (3,040,866)
PREFERRED STOCK DIVIDEND 26,390 -- 52,457 --
NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS (1,977,165) (1,433,128) (2,873,334) (3,040,866)
Basic and Diluted loss per
share $(.10) $(.15) $(.15) $(.32)
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Contact:
Fegen and Associates
Nick Fegen, 515/223-6296
or
Kent Barghols, 515/331-2636
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