LOS ANGELES, April 18, 2005 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced its results for the year ended December 31, 2004.
Net revenues were $11,096,512, an increase of 228% or $7,717,254, for the year ended December 31, 2004, as compared to revenues of $3,379,258 for the year ended December 31, 2003. Revenues in 2004 increased over 2003 primarily as a result of acquisitions that occurred during the year, in addition to new business generated by the Company's sales and marketing activities.
Operating expenses for the year ended December 31, 2004 were $15,040,965, compared to $5,812,756 for the year ended December 31, 2003. Operating expenses increased in 2004 over 2003 due to expenses related to servicing new business and due to the operating expenses of companies acquired during the year. Also, during the year expenses increased as the Company expanded its business unit support services, such as sales and marketing, human resources, accounting and IT support.
The net loss for the year ended December 31, 2004 was $4,263,138, or a basic and diluted net loss per common share of $0.05, compared to a net income of $623,414, or a basic net income per common share of $0.07 and a fully diluted net income per common share of $0.01, for the year ended December 31, 2003.
The net loss for 2004 includes $2,187,487 in depreciation, amortization and asset impairment charges, primarily related to the amortization and annual valuation of client lists. Also, during the year the Company made the decision to write-off $416,827 in capitalized software costs. Although the Company's proprietary software is still in use, the costs associated with independently valuing the future economic benefit of this software, in management's opinion, outweighed the benefit of maintaining the software as a reported asset. Operating costs included $250,750 relating to the settlement of a legal action against the Company. During the year the Company expensed $149,139 in loan fees, primarily related to terminated credit facilities. Included in the net loss are $564,812 in expenses paid through the issuance of restricted common stock.
The net income for the year ended December 31, 2003 included a one-time gain of $3,433,069 on the disposal of subsidiaries and their related discontinued operations.
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "We continue to see strong growth in our revenues, both from acquisitions, as well as from internally generated sales. With the acquisition of Cancer Care Network in May 2004, it gave us the critical mass to begin the process of developing many of the support mechanisms and corporate infrastructure needed to effectively manage and grow our operations, and to assimilate new acquisitions as they occur. We are still very committed to our goal of becoming one of the leading providers of integrated administrative services to physicians, and we believe that during 2004 we make significant progress in moving closer to our goal."
About PracticeXpert, Inc.
PracticeXpert is a national provider of turn-key practice management services and software solutions that improve operational efficiencies and enhance cash flow for private practice physicians, medical clinics and outpatient facilities. PracticeXpert's services include practice management, medical billing, accounts receivable management, transcription, consulting, seminars and financial services. Software systems include practice management software and electronic medical records software. PracticeXpert bundles its software applications with its billing and other practice management services to provide a complete and integrated solution for 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.
SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATION (a)
FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003
2004 2003
------------ ------------
Total net revenue $ 11,096,512 $ 3,379,258
Total operating
expenses 15,040,965 5,812,756
------------ ------------
Loss from operations (3,944,453) (2,433,498)
Total non-operating
income (expense) (182,755) (52,536)
------------ ------------
Loss from continuing
operations before
income taxes and
discontinued
operations (4,127,208) (2,486,034)
Income taxes 5,600 2,400
------------ ------------
Loss from continuing
operations (4,132,808) (2,488,434)
Discontinued
operations --
Gain (loss) on
disposal of
subsidiary, net (66,590) 3,433,069
------------ ------------
Net income (loss) (4,199,398) 944,635
Dividend requirement
for preferred stock (63,740) (321,221)
------------ ------------
Net income (loss)
applicable to
common shareholders $ (4,263,138) $ 623,414
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Basic weighted
average number of
common stock
outstanding (a) 80,670,149 9,545,365
============ ============
Basic net income
(loss) per share $ (0.05) $ 0.07
============ ============
Diluted weighted
average number of
common stock
outstanding (a) 80,670,149 45,009,233
============ ============
Diluted net income
(loss) per share $ (0.05) $ 0.01
============ ============
(a) See 2004 10KSB for complete audited financial statements.