LOS ANGELES, Nov. 22, 2004 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced unaudited results for the third quarter of its fiscal year ended September 30, 2004.
Net revenues were $3,754,149 for the three month period ended September 30, 2004, reflecting an increase of 325% or $2,871,084, as compared to revenues of $883,065 for the three months ended September 30, 2003. Revenues in 2004 increased primarily as a result of new business and revenues from acquisitions completed since June, 2003. The net loss reported for the three months ended September 30, 2004 was $1,023,073, or a basic and fully diluted net loss per share of $0.01, compared to a net income of $1,090,306, or a basic net income per share of $0.11 and fully diluted net income per share of $0.02 for the three months ended September 30, 2003.
Commenting on the results, Michael Manahan, chief financial officer of PracticeXpert, stated, "Our results continue to demonstrate significant improvement in revenues and operations. Comparisons of net income between 2004 and 2003 are difficult as the net income in the 2003 quarter included an extraordinary gain of $3,433,069 related to discontinued operations. Also in analyzing the results in 2004, it is important to note that the net loss included depreciation and amortization of $624,063 primarily related to the amortization of client lists, and a one-time expense of $180,000 related to the acquisition of Cancer Care Network.
"Further, during the quarter it was discovered that the accounting treatment for certain consumable products related to one of the Company's contracts was not adequately matching expenses with revenues. As a result, approximately $240,000 of expenses were included in the third quarter, which should have been expensed in the second quarter. Also, approximately $140,000 of expenses were expensed in the third quarter representing consumable products on hand at the end of the quarter. Going forward, the Company is adopting a new method of accounting for these products, that will more accurately match revenues with expenses. This issue is more fully discussed in the Management Discussion and Analysis included in our 10QSB filing for the period ended September 30, 2004, which is available on our website at www.practicexpert.com, through the SEC, or by direct request to the Company."
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "If you add back the one time charges and the timing issues related to consumable purchases, we were approximately breakeven for the quarter. While the results for the quarter are an improvement, we are aggressively pursuing strategies that will allow us to reduce costs and consolidate operations across all of our divisions. Such back office functions as accounting, IT support, systems and network management and cash management are well along in the centralization process. Further, we have a number of initiatives relating to work flow improvement and more effective labor utilization under way. And we continue to look at ways to utilize our own technology, and other technology products, to improve our service while reducing our costs. We believe laying the foundation for best practices and optimal operating efficiencies now will assist in driving maximum cash flow from the companies we anticipate acquiring in the future."
About PracticeXpert, Inc.
PracticeXpert, Inc. is in the business of providing "turn-key" administrative services to, as well as developing and deploying systems, technologies and services designed to improve operational efficiencies, reduce billing errors and enhance cash flow for, medical practitioners. Our services revolve around our flagship Revenue Management System, PXpert(tm), and include medical billing and accounts receivable management, practice management, transcription, and consulting. Where applicable, 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.
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PRACTICEXPERT, INC.
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED
SEPTEMBER 30, 2004 AND 2003
(Unaudited)
For the three month periods For the nine month periods
ended September 30, ended September 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Net revenues:
Medical
billings
and related
services $ 2,377,333 $ 883,065 $ 5,064,230 $ 2,325,710
Management
services 1,376,816 -- 2,311,328 --
------------ ------------ ------------ ------------
Total net
revenue 3,754,149 883,065 7,375,558 2,325,710
Operating
expenses:
Medical
billings
and related
services 3,540,800 1,468,192 7,659,038 3,374,522
Management
services 1,261,147 -- 1,740,542 --
------------ ------------ ------------ ------------
Total
operating
expenses 4,801,947 1,468,192 9,399,580 3,374,522
------------ ------------ ------------ ------------
Loss from
operations (1,047,798) (585,127) (2,024,022) (1,048,812)
Non-operating
Income
(expense):
Legal
settlement -- 52,326 (75,750) 52,326
Gain on
settlement
of debts 85,488 -- 70,988 (116,761)
Gain (loss)
on
disposal
of asset -- -- (1,706) 32,478
Impairment
of
goodwill -- (1,684,290) -- (1,684,290)
Interest
income 130 927 321 3,182
Interest
expense (46,987) (22,236) (206,555) (69,468)
------------ ------------ ------------ ------------
Total
non-
operating
income
(expense) 38,631 (1,653,273) (212,702) (1,782,533)
------------ ------------ ------------ ------------
Loss from
continuing
operations
before
income
taxes and
discontinued
operations (1,009,167) (2,238,400) (2,236,724) (2,831,345)
Income taxes -- 11,841 6,400 19,090
------------ ------------ ------------ ------------
Loss from
continuing
operations (1,009,167) (2,250,241) (2,243,124) (2,850,435)
Operation
from
subsidiary
to be
disposed
Loss from
operation
to be
disposed,
net (13,288) (4,793) (54,327) (4,793)
Discontinued
operations
Gain on
disposal
of
subsidiary,
net -- 3,433,069 -- 3,433,069
------------ ------------ ------------ ------------
Net income
(loss) (1,022,455) 1,178,035 (2,297,451) 577,841
Dividend
requirement
for preferred
stock (618) (87,729) (63,740) (296,356)
------------ ------------ ------------ ------------
Net income
(loss)
applicable
to common
share-
holders $ (1,023,073) $ 1,090,306 $ (2,361,191) $ 281,485
============ ============ ============ ============
Basic
weighted
average
number of
common
stock
outstanding* 112,072,024 9,586,905 69,294,002 8,807,296
============ ============ ============ ============
Diluted
weighted
average
number of
common stock
outstanding* 112,072,024 46,000,057 69,294,002 44,378,790
============ ============ ============ ============
Basic net
income
(loss)
per share $ (0.01) $ 0.11 $ (0.03) $ 0.03
============ ============ ============ ============
Diluted net
income
(loss) per
share $ (0.01) $ 0.02 $ (0.03) $ 0.01
============ ============ ============ ============