LOS ANGELES, Aug. 22, 2005 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT) today announced its results for the three and six months ended June 30, 2005.
Net revenue was $5,683,574 for the three months ended June 30, 2005 compared to net revenue of $2,742,020 for the three months ended June 30, 2004. Revenues in the 2005 period were greater primarily as a result of new business, and as a result of the acquisition of Cancer Care Network in May 2004, and PracticeOne in January 2005.
Operating expenses for the three months ended June 30, 2005 were $6,993,101 compared to $3,232,089 for the three months ended June 30, 2004. Operating expenses increased in 2005 over 2004 due to expenses related to servicing new business, the added costs from the operations of new acquisitions, costs associated with the amortization of acquired client lists and software, new sales and marketing initiatives and expenses related to the continued pursuit of acquisition opportunities.
The Company reported net income of $1,928,562, or a basic and fully diluted net income per common share of $0.01, for the three months ended June 30, 2005 compared to a net loss of $615,409, or a basic and fully diluted net loss per common share of $0.01, for the three months ended June 30, 2004.
The net income for the current three month period includes expenses of $1,009,615 in depreciation, amortization and the write-down in value of intangible assets to estimated realizable value, primarily related to acquired client lists and acquired software. In addition, the net income includes $433,790 of operating expenses relating to the operations of PracticeOne, which was acquired in January 2005. Under the terms of the purchase agreement, the previous owners are obligated to reimburse us for these operating expenses. However, upon the advice of our independent auditors, we have determined that the proper treatment for these expenses is to include them on the income statement as expenses, and to credit the cash payments from the previous owners of PracticeOne against the goodwill of the business. Net income also includes a one-time gain of $3,300,000 on the conversion of note.
Net revenue was $10,707,675 for the six months ended June 30, 2005 compared to net revenue of $3,671,491 for the six months ended June 30, 2004. Revenues in the 2005 period were greater primarily as a result of new business, and as a result of the acquisition of Cancer Care Network in May 2004, and PracticeOne in January 2005.
Operating expenses for the six months ended June 30, 2005 were $12,931,910 compared to $4,685,098 for the six months ended June 30, 2004. Operating expenses increased in 2005 over 2004 due to expenses related to servicing new business, the added costs from the operations of new acquisitions, costs associated with the amortization of acquired client lists and software, new sales and marketing initiatives and expenses related to the continued pursuit of acquisition opportunities.
The Company reported net income of $991,425, or a basic and fully diluted net income per common share of $0.01, for the six months ended June 30, 2005 compared to a net loss of $1,338,118, or a basic and fully diluted net loss per common share of $0.03, for the six months ended June 30, 2004.
The net income for the current six month period includes expenses of $1,859,765 in depreciation, amortization and the write-down in value of intangible assets to estimated realizable value, primarily related to acquired client lists and acquired software. In addition, the net income includes $796,000 of operating expenses relating to the operations of PracticeOne, which was acquired in January 2005. Under the terms of the purchase agreement, the previous owners are obligated to reimburse us for these operating expenses. However, upon the advice of our independent auditors, we have determined that the proper treatment for these expenses is to include them on the income statement as expenses, and to credit the cash payments from the previous owners of PracticeOne against the goodwill of the business. Net income also includes a one-time gain on the conversion of note of $3,300,000.
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "In the first two quarters of 2005 we generated almost as much revenue as we reported for the entire 2004 fiscal year. But as importantly, during the second quarter we completed a reorganization of the Company into five business units that deliver five distinct products and services to our customers. We believe that under this new organizational structure we will be better equipped to deliver a higher level of customer service, to manage costs, and to assimilate new business. The first half of 2005 involved a tremendous amount of groundwork to achieve this reorganization and to provide much needed infrastructure in our Company. We now look forward to the balance of 2005 and 2006 as we target to continue growth in revenues, and as we focus on achieving positive cash flow and profitability.
"I urge all of our shareholders to study in detail our Form 10-QSB for the period ended June 30, 2005, as filed with Securities and Exchange Commission, because it includes more detailed information than is included in this press release. And, of course, please feel free to contact the Company directly, if you have any further questions or comments."
About PracticeXpert, Inc.
PracticeXpert provides turn-key practice management services and technology solutions to medical practitioners that improve operational efficiencies and enhance cash flow. PracticeXpert offerings include medical billing, accounts receivable management, practice management, transcription, consulting, seminars, practice management software, electronic medical records software and related services. PracticeXpert bundles its technology applications with its billing and other practice management services to provide a complete and integrated solution to its physician customers. 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.
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2005 AND 2004
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net revenues $ 5,683,574 $ 2,742,020 $10,707,675 $ 3,671,491
Operating expenses 6,993,101 3,232,089 12,931,910 4,685,098
----------- ----------- ----------- -----------
Loss from
operations (1,309,527) (490,069) (2,224,235) (1,013,607)
Non-operating
Income (expense):
Gain (loss) on
settlement of
debts -- (14,500) 39,196 (14,500)
Loss on disposal
of asset -- -- -- (1,706)
Legal settlement -- -- -- (75,750)
Miscellaneous -- 19,800 -- --
Interest income 932 136 1,771 191
Interest expense (66,757) (130,776) (126,821) (163,224)
----------- ----------- ----------- -----------
Total
non-operating
income
(expense) (65,826) (125,340) (85,855) (254,989)
----------- ----------- ----------- -----------
Loss before income
tax (1,375,353) (615,409) (2,310,090) (1,268,596)
Income taxes (3,915) -- (1,515) 6,400
----------- ----------- ----------- -----------
Loss before
extraordinary
items (1,371,438) (615,409) (2,308,575) (1,274,996)
Extraordinary
items
Gain on
conversion of
note 3,300,000 -- 3,300,000 --
----------- ----------- ----------- -----------
Net income (loss) 1,928,562 (615,409) 991,425 (1,274,996)
Dividend
requirement for
preferred stock -- -- -- (63,122)
----------- ----------- ----------- -----------
Net income (loss)
applicable to
common
shareholders $ 1,928,562 $ (615,409) $ 991,425 $(1,338,118)
=========== =========== =========== ===========
Basic weighted
average number of
common stock
outstanding 130,814,566 72,854,984 128,725,142 47,669,948
=========== =========== =========== ===========
Basic net income
(loss) per share $ 0.01 $ (0.01) $ 0.01 $ (0.03)
=========== =========== =========== ===========
Fully diluted
income (loss) per
share $ 0.01 $ (0.01) $ 0.01 $ (0.03)
=========== =========== =========== ===========