LOS ANGELES, Nov. 20, 2003 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced unaudited results for the third quarter of its fiscal year ended September 30, 2003.
Net revenues were $904,658, an increase of 38% or $248,338, for the three month period ended September 30, 2003, as compared to revenues of $656,320 for the three months ended September 30, 2002. Revenues in 2003 increased primarily as a result of new business. The net income for the three months ended September 30, 2003 was $1,090,306, or a basic net income per share of $0.11 and a diluted net income per share of $0.02, compared to a net income of $281,485, or a basic net income per share of $0.03 and a diluted net income per share of $0.01 for the three months ended September 30, 2002.
The results for the quarter were significantly impacted by two non-recurring transactions. On September 10, 2003, the Company entered into a stock transfer agreement to transfer 100% of the Company's holdings in PTS, Castpro. Com and PTD to Future Options, Inc. Future Options, Inc. assumed full obligations of these entities. The Company recorded $3,433,069 as a gain on disposal of subsidiaries during the period ended September 30, 2003. These subsidiaries were all non-operating subsidiaries and relate to the Company's former discontinued business operations.
Also, on September 30, 2003, the Company purchased the remaining 8% of Practice Xpert Services Corp.'s ("PXSC") outstanding common stock by issuing 472,860 shares of the Company's common stock and 111,736 shares of Preferred Series C stock to the remaining stockholders of PXSC. This additional investment was recorded as goodwill of $1,684,290, and the accounting treatment for this transaction required that the entire amount be written off as impairment of goodwill during the period ended September 30, 2003.
Included in the operating expenses for the quarter were approximately $550,000 in expenses paid for in common stock, including expenses to pay for sales and marketing consulting, employee compensation, legal fees, directors and advisors fees, acquisition consulting, investor relations and interest. This amount included $209,000 relating to an agreement with consultants who provided services to Thaon Communications prior to its acquisition of PracticeXpert.
As of September 30, 2003 the Company had 31 physician practices as customers, which included 60 physicians, and had 28 hand-held devices utilizing its PXpert patient encounter system being used, and paid for, by those customers.
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "We continue to work on executing on our business plan. This quarter saw a number of achievements which take us further along the road.
"We were able to eliminate approximately $4 million in debt relating to discontinued operations from our balance sheet. We anticipate that this 'cleaning up' of our balance sheet will be looked upon favorably by potential investors and funding sources.
"We purchased the remaining 8% of the stock of Practice Xpert Services Corp., making it a 100% owned subsidiary and eliminating any problems that might be associated with a minority interest.
"We acquired Healthcare Billing Solutions in Great Falls, Montana. This was a small acquisition, with only a minimal impact on revenues, but it established our presence in another state, and provides a foundation upon which to build business in that region.
"We began putting together our national sales organization and signed up our first regional sales representative.
"And a number of things that were in the works during the quarter came to fruition shortly after the quarter's end. As previously announced we acquired National Healthcare Management Services in West Virginia, we secured a $2 million revolving credit facility, and we formed a subsidiary and began operations in Texas."
Mr. Doctor added, "We did a lot of 'setting the stage' in the third quarter. As a result we have signed approximately $500,000 in new business in the last two weeks. Further, we continue to work on a number of acquisition opportunities, and look forward to increasing revenues both through our sales and marketing activities, and acquisitions, in the coming quarters.
"Finally, I am pleased to report that both of our two key operating subsidiaries, Healthcare Administrative Management and KR Johnson & Associates, generated positive earnings during the quarter before the addition of corporate overhead."
About PracticeXpert, Inc.
PracticeXpert, Inc., a healthcare technology and services company, is in the business of developing and deploying systems, technologies and services designed to improve operational efficiencies, reduce billing errors and enhance cash flow for medical practitioners. Its services revolve around its flagship patent-pending hand-held patient encounter system, PXper(TM), and include medical billing, collections, transcription, clinical trial accruals, contracting and practice management. To find out more about PracticeXpert, Inc. (OTCBB: PXPT), visit our website at www.practicexpert.com.
Note: Any statements released by PracticeXpert, Inc. that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.
PRACTICEXPERT, INC.
(Formerly, Thaon Communications, Inc.)
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED
SEPTEMBER 30, 2003 AND 2002
(Unaudited)
For the three month periods For the nine month periods
ended September 30, ended September 30,
2003 2002 2003 2002
---------- ----------- ----------- -----------
Net revenue $ 904,658 $ 656,320 $ 2,347,303 $ 1,147,841
Operating
expenses 1,494,578 644,070 3,400,908 1,156,378
---------- ----------- ----------- -----------
Income (loss)
from
operations (589,920) 12,250 (1,053,605) (8,537)
Non-operating
Income
(expense):
Gain (Loss)
on settlement
of debts -- (3,190) (116,761) 302,778
Gain on
legal
settlement 52,326 -- 52,326 --
Gain (Loss)
on disposal
of asset -- -- 32,478 250
Impairment
of goodwill (1,684,290) -- (1,684,290) --
Interest
income 927 43 3,182 1,014
Interest
expense (22,236) (44,241) (69,468) (90,766)
------------ ----------- ------------ ------------
Total
non-operating
income
(expense) (1,653,273) (47,388) (1,782,533) 213,276
------------ ----------- ------------ ------------
Income (loss)
from
continuing
operations
before income
taxes (2,243,193) (35,138) (2,836,138) 204,739
Income taxes 11,841 -- 19,090 2,400
------------ ----------- ------------ -----------
Loss from
continuing
operations (2,255,034) (35,138) (2,855,228) 202,339
Discontinued
operations
Gain on
disposal of
subsidiaries,
net 3,433,069 -- 3,433,069 --
------------ ----------- ------------ -----------
Net income 1,178,035 (35,138) 577,841 202,339
Dividend
requirement
for
preferred
stock (87,729) -- (296,356) --
------------ ----------- ------------ -----------
Net income
applicable
to common
shareholders $ 1,090,306 $ (35,138) $ 281,485 $ 202,339
============ =========== ============ ===========
Basic
weighted
average
number of
common stock
outstanding* 9,586,905 8,311,619 8,807,296 8,311,619
============ =========== ============ ===========
Basic net
income per
share $ 0.11 $ (0.00) $ 0.03 $ 0.02
============ ============ ============ ===========
Diluted
weighted
average
number of
common stock
outstanding* 46,000,057 8,311,619 44,378,790 8,311,619
============ ============ ============ ===========
Diluted net
income
(loss) per
share $ 0.02 $ (0.00) $ 0.01 $ 0.02
============ ============ ============ ==========
* The basic and diluted net loss per share has been
restated to retroactively effect 20:1 reverse split
on July 21, 2003.