LOS ANGELES, Calif., Nov. 28, 2005 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPTE) today announced its results for the three and nine months ended September 30, 2005.
Net revenue was $4,598,432 for the three months ended September 30, 2005 compared to net revenue of $3,754,149 for the three months ended September 30, 2004. Revenues in the 2005 period were greater primarily as a result of new business, the acquisition of PracticeOne in January, 2005, and as a result of an agreement to manage a cancer treatment center in Yakima, Washington (the "Yakima facility").
Operating expenses for the three months ended September 30, 2005 were $7,770,494 compared to $4,801,947 for the three months ended September 30, 2004. Operating expenses increased due to servicing new businesses, the added costs from the operations of recently acquired businesses and the Yakima facility, costs associated with the amortization of acquired client lists and software, and sales and marketing initiatives.
The company reported a net loss of $3,429,437, or a basic and fully diluted net loss per common share of $0.02, for the three months ended September 30, 2005 compared to a net loss of $1,023,073, or a basic and fully diluted net loss per common share of $0.01, for the three months ended September 30, 2004. The net loss for the current three month period includes expenses of $1,173,041 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.
Net revenue was $15,306,107 for the nine months ended September 30, 2005 compared to net revenue of $7,375,558 for the nine months ended September 30, 2004. Revenues in the 2005 period were greater primarily as a result of new business, the acquisition of PracticeOne in January, 2005, and the management services agreement for the Yakima facility.
Operating expenses for the nine months ended September 30, 2005 were $20,702,404 compared to $9,399,580 for the nine months ended September 30, 2004. Operating expenses increased due to servicing new businesses, the added costs from the operations of recently acquired businesses and the Yakima facility, costs associated with the amortization of acquired client lists and software, and sales and marketing initiatives.
The company reported a net loss of $2,438,012, or a basic and fully diluted loss per common share of $0.02, for the nine months ended September 30, 2005 compared to a net loss of $2,361,191, or a basic and fully diluted net loss per common share of $0.03, for the nine months ended September 30, 2004.
The net loss for the current nine month period includes expenses of $3,032,806 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 operating expenses include $796,000 of operating expenses of PracticeOne, which were reimbursed to the company and have been recorded as a reduction in goodwill in the acquisition of PracticeOne. The company recorded a one-time gain of $3,300,000 on the conversion of a promissory note.
The Company reported that due to continuing losses it is in the process of reducing operating expenses, consolidating operations and facilities, terminating unprofitable service contracts and implementing other cost saving measures. It is also deploying its own practice management software throughout its facilities, which will allow for the replacement of more expensive software from outside providers. As part of these measures, the company has terminated the contract to manage the Yakima facility, a contract which has proven to be unprofitable, effective November 23, 2005.
Jonathan Doctor, President and CEO of PracticeXpert, Inc. said, "I urge all of our shareholders to study in detail our Form 10-QSB for the period ended September 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:PXPTE), 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 NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
NINE MONTHS ENDED THREE MONTHS ENDED
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net revenues $15,306,107 $ 7,375,558 $ 4,598,432 $ 3,754,149
Operating
expenses 20,702,404 9,399,580 7,770,494 4,801,947
----------- ----------- ----------- -----------
Loss from
operations (5,396,297) (2,024,022) (3,172,062) (1,047,798)
Non-operating
Income
(expense):
Gain on
settlement
of debts 39,196 70,988 -- 85,488
Loss on
disposal of
asset -- (1,706) -- --
Legal
settlement (12,000) (75,750) (12,000) --
Interest
income 1,672 321 (99) 130
Interest
expense (369,080) (206,555) (242,259) (46,987)
----------- ----------- ----------- -----------
Total
non-operating
income
(expense) (340,213) (212,702) (254,358) 38,631
----------- ----------- ----------- -----------
Loss before
income tax (5,736,510) (2,236,724) (3,426,420) (1,009,167)
Income taxes 1,502 6,400 3,017 --
----------- ----------- ----------- -----------
Loss before
extraordinary
items (5,738,012) (2,243,124) (3,429,437) (1,009,167)
Extraordinary
items
Loss from
operations to
be disposed,
net -- (54,327) -- (13,288)
Gain on
conversion of
note 3,300,000 -- -- --
----------- ----------- ----------- -----------
Net loss (2,438,012) (2,297,451) (3,429,437) (1,022,455)
Dividend
requirement for
preferred stock -- (63,740) -- (618)
----------- ----------- ----------- -----------
Net loss
applicable to
common
shareholders $(2,438,012) $(2,361,191) $(3,429,437) $(1,023,073)
=========== =========== =========== ===========
Basic & diluted
weighted
average number
of common stock
outstanding 129,691,036 69,294,002 139,395,571 112,072,024
=========== =========== =========== ===========
Basic net loss
per share $ (0.02) $ (0.03) $ (0.02) $ (0.01)
=========== =========== =========== ===========
Fully diluted
net loss per
share $ (0.02) $ (0.03) (0.02) $ (0.01)
=========== =========== =========== ===========