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Friday March 27, 4:38 pm Eastern Time
Company Press Release
Medix Resources Reports 1997 Fourth Quarter And
Year-End Results
DENVER--(BW HealthWire)--March 27, 1998--Medix Resources, Inc. (Nasdaq: MDIX - news),
formerly International Nursing Services, Inc., today announced financial results for the fourth quarter
and fiscal year ended December 28, 1997.
Revenues for the 1997 fourth quarter increased 32% to $5,113,000, compared with $3,860,000 for the
three months ended December 28, 1996. The company reported a 1997 fourth quarter net loss of
$469,000 and a net loss applicable to common stockholders of $849,000 ($0.07 per share on 12,404,577
weighted average shares outstanding), compared with a net loss of $1,090,000 and a net loss applicable
to common stockholders of $1,138,000 ($0.23 per share on 5,000,025 weighted average shares
outstanding) for the 1996 fourth quarter. The 1997 fourth quarter included a preferred stock dividend of
$5,000 (stated rate) and $375,000 (imputed discount with warrant reprice), compared with a preferred
stock dividend of $48,000 (stated rate) for the 1996 fourth quarter. The 1997 fourth quarter also
included a gain of $231,000 on the sale of the company's New York operations. Excluding this gain, the
net loss for the quarter would have been $700,000.
For the year ended December 28, 1997, revenues increased 74% to $24,875,000, compared with
$14,259,000 for the year ended December 29, 1996. The company reported a fiscal year 1997 net loss
of $515,000 and a net loss applicable to common stockholders of $1,487,000 ($0.15 per share on
9,848,824 weighted average shares outstanding), compared with a net loss of $1,207,000 and a net loss
applicable to common stockholders of $2,595,000 ($0.57 per share on 4,517,111 weighted average
shares outstanding) for fiscal year 1996. The year ended December 28, 1997 included a preferred stock
dividend of $44,000 (stated rate), $553,000 (imputed discount) and $375,000 (imputed discount with
warrant reprice), compared with a preferred stock dividend of $92,000 (stated rate) and $1,737,000
(imputed discount). Fiscal year 1997 also included a gain of $422,000 on the sale of the company's
Medicare division and New York operations. The net loss for the year, excluding this gain, would have
been $937,000.
The increase in revenues during fiscal year 1997 can be attributed to the company's acquisition of Ellis
Health Services, Inc., STAT Health Care Services, Inc. and TherAmerica. These acquisitions
contributed $2,018,000, $5,072,000 and $8,387,000 to 1997 revenues, respectively. Revenues from the
company's travel nursing division, established in the 1996 fourth quarter, increased to $1,349,000 from
the $24,000 reported in 1996.
The company signed a definitive agreement in October 1997 for the sale of the company's Ellis Home
Care and STAT Health Care Services offices in Yonkers and New York City, respectively. The
definitive agreement is subject to several conditions to closing, including regulatory approval by the
State of New York to the transfer of the necessary licenses.
While selling, general and administrative expense (SG&A) increased 39% to $5,670,000 in 1997, SG&A
as a percentage of sales decreased from 29% in 1996 to 23% in 1997 due to economies of scale and
the reduction of managerial and administrative staff in the company's corporate and branch offices.
John P. Yeros, chairman, stated, ''During the year, we took several steps to support our goal of
creating stockholder value. Internally, we diversified and expanded the company's supplemental staffing
services business, and externally, we completed the acquisition of Cymedix Lynx Corporation.
Following the acquisition of Cymedix, the company changed its name to Medix Resources to create
market identification as a medical resources company and to reinforce our evolving growth strategy.
Along with the sale of the company's New York-based Paxxon offices, we also sought to strengthen
our capital structure. In June 1997, we secured a $5.0 million revolving credit facility, and in November
1997 we repaid the balance of a $1.0 million bridge financing. We believe these combined initiatives will
establish a stronger foundation for future growth.''
''Since the commercial introduction of our Internet-based medical communications product Cymedix
Lynx, we have seen growing interest from various sectors of the medical community. Our recent
participation in the Health Information Management Society Symposium in Orlando was very
successful, and negotiations with several interested parties are in process. We believe that the Cymedix
Lynx product offers a superior alternative to traditional methods of medical record-keeping, and
addresses an unmet need in the growing marketplace for medical information management technology.''
Medix Resources, Inc. is a healthcare services company with two synergistic lines of business. The
company provides skilled nursing, therapy, rehabilitation and other medical personnel for flexible staffing
in home care, and in a broad spectrum of healthcare and educational facilities. Through its wholly
owned subsidiary, Cymedix Lynx Corporation, the company also offers Cymedix Lynx, a secure,
patent-pending medical communications product that makes use of the Internet to facilitate more
cost-efficient patient care.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The statements
contained in this release which are not historical facts contain forward-looking information with respect
to plans, projections and/or future performance of the Company, the occurrence of which involve
certain risks and uncertainties detailed in the Company's filings with the Securities and Exchange
Commission.
MEDIX RESOURCES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended |
