ATLANTA, April 15, 2008 (PRIME NEWSWIRE) -- MedAvant Healthcare Solutions (MedAvant) (Nasdaq:PILL), a leader in healthcare technology and transaction services, today announced results for the fourth quarter and full year ended December 31, 2007.
Financial Highlights
--------------------
Fourth Quarter of 2007 compared with Fourth Quarter 2006
-- Net revenue for the fourth quarter ended December 31, 2007, was
$12.8 million, compared with net revenue of $15.8 million for the
fourth quarter ended December 31, 2006.
-- Operating loss for the fourth quarter of 2007 was $0.9 million
compared with an operating loss for the same period in 2006 of
$0.6 million. The 2006 loss included $321,000 of litigation
settlements.
-- Net loss for the fourth quarter of 2007 was $5.3 million,
compared with a net loss of $1.6 million for the fourth quarter
of 2006.
-- The Company recorded fully diluted loss per share of $(0.39) for
the fourth quarter of 2007 compared to $(0.12) for the fourth
quarter of 2006.
Fourth Quarter of 2007 compared with Third Quarter 2007
-- Net revenue for fourth quarter ended December, 2007, was $12.8
million compared with net revenue $12.0 million for third quarter
2007.
-- Operating loss was $0.9 million compared to $3.8 in the third
quarter.
-- Net loss was $5.3 million for the fourth quarter compared to $5.2
million for the third quarter.
Full Year of 2007 compared with the Full Year 2006
-- Net revenue for the full year ended December 31, 2007, was $54.1
million compared with net revenue of $65.5 million for the full
year ended December 31, 2006.
-- Operating loss for the 12-month period was $29.1 million compared
with $3.4 million in the prior year.
-- Net loss for the year ended 2007 was $36.8 million compared with
net loss of $6.6 million in the prior year period. The 2007
amount was impacted by $1.2 million of SFAS 123R expenses.
-- The Company recorded fully diluted loss per share of $(2.72) in
2007 compared to $(0.50) in 2006.
Peter Fleming, Interim Chief Executive Officer for MedAvant, stated, "Subsequent to the fourth quarter, in February of this year we closed the sale of our NPPN business. While we still have work to do to strengthen our financial position, the divestiture improved our balance sheet and significantly honed our business. We are now focused on claims processing, a marketplace that is increasingly insistent on transparency and effective tools to facilitate the exchange of healthcare information. MedAvant is well positioned to process any type of transaction that may flow between payers, providers and eventually patients. The interoperability of the Phoenix platform continues to be well received by customers. In addition to workers compensation, we have identified new market opportunities for electronic attachments and claims pre-adjudication services."
MedAvant will host its earnings conference call at 4:30 p.m. ET. The number to call for this interactive teleconference is 866-831-6247 and the passcode is 59147190. A replay of the conference call will be available through April 29, 2008, by dialing 888-286-8010 and entering the confirmation number 31777119.
The live broadcast of MedAvant's quarterly conference call will be available online at www.medavanthealth.com and www.earnings.com on April 15, 2008, beginning at 4:30 p.m. ET. The online replay will follow shortly after the call and continue for 30 days.
Summary of Financial Results
----------------------------
Statement of Operations (Unaudited)
( in $000's )
Twelve Months Ended December 31,
---------------------------------
2007 2006
--------------- ----------------
Net revenues:
Transaction fees, cost
containment services
and license fees $ 47,978 $ 56,240
Communication devices and
other tangible goods 6,145 9,222
--------------- ---------------
54,123 65,462
--------------- ----------------
Costs and expenses:
Cost of transaction fees,
cost containment services
and license fees, excluding
depreciation and amortization 11,183 13,944
Cost of laboratory communication
devices and other tangible
goods, excluding depreciation
and amortization 3,768 5,389
Selling, general and
administrative expenses 40,351 41,787
Depreciation and amortization 6,417 7,379
(Gain) Loss on disposal of assets (74) 12
Litigation settlements -- 321
Write-off of impaired assets 21,551 --
--------------- ----------------
83,196 68,832
--------------- ----------------
Operating loss (29,073) (3,370)
Interest expense, net 7,715 3,240
--------------- ----------------
Loss before income taxes (36,788) (6,610)
Provision for income taxes -- --
--------------- ----------------
Net loss $ (36,788) $ (6,610)
=============== ================
Basic and diluted weighted
average shares outstanding 13,513,027 13,207,789
=============== ================
Basic and diluted loss
per share $ (2.72) $ (0.50)
=============== ================
Summary Balance Sheet
( in $000's ) December 31, December 31,
2007 2006
--------------- ---------------
Current assets 15,875 17,872
Long-term assets 24,780 54,368
--------------- ---------------
Total assets $ 40,655 $ 72,240
=============== ===============
Current liabilities 46,687 25,508
Long-term liabilities 953 19,308
Stockholders' equity (6,985) 27,424
--------------- ---------------
Total liabilities and
stockholders' equity $ 40,655 $ 72,240
=============== ===============
Summary Statement of Cash Flows (Unaudited)
Twelve Months Ended December 31,
--------------------------------
( in $000's ) 2007 2006
------------ -------------
Net cash used in operating activities $ (46) $ (123)
Net cash used in investing activities (540) (5,482)
Net cash provided by (used in)
financing activities 1,294 741
------------ -------------
Net decrease in cash and
cash equivalents 708 (4,864)
Cash and cash equivalents at
beginning of period 682 5,546
------------ -------------
Cash and cash equivalents at
end of period $ 1,390 $ 682
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About MedAvant Healthcare Solutions
MedAvant is focused on facilitating the exchange of healthcare information so that payers, providers, and patients benefit equally from the sharing of reliable and actionable health data. To enables these services, MedAvant operates PhoenixSM, a highly scalable platform that supports real-time connections between healthcare clients.
For more information, visit http://www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.
The MedAvant Healthcare Solutions logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3540
Forward-Looking Statement
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. Actual results could differ materially from projected results because of factors such as: the soundness of our business strategies relative to the perceived market opportunities; MedAvant's ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to compete effectively on price and support services; MedAvant's ability and that of its business associates to perform satisfactorily under the terms of its contractual obligations, and to comply with various government rules regarding healthcare and patient privacy; entry into markets with vigorous competition, market acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels; the availability of competitive products or services; the continued ability to protect the company's intellectual property rights, implementation of operating cost structures that align with revenue growth; uninsured losses; adverse results in legal disputes resulting in liabilities; unanticipated tax liabilities; the effects of a natural disaster or other catastrophic event beyond our control that results in the destruction or disruption of any of our critical business or information technology systems. Any of these factors could cause the actual results to differ materially from the guidance given at this time. For further cautions about the risks of investing in MedAvant, we refer you to the documents MedAvant files from time to time with the Securities and Exchange Commission, including, without limitation, its most recently filed Annual Report on Form 10-K. MedAvant does not assume, and expressly disclaims, any obligation to update information contained in this document. Although this release may remain available on our website or elsewhere, its continued availability does not indicate that we are reaffirming or confirming any of the information contained herein.