Plantation, April 1, 2013 (GLOBE NEWSWIRE) -- Health Revenue Assurance Holdings, Inc. (OTCBB: HRAA), a provider of technology and revenue integrity solutions for healthcare organizations, announced its financial results for the fourth quarter and full year ended December 31, 2012.
Fourth Quarter and Full Year 2012 Highlights:
- Total quarterly revenue of $2,187,237 increased 421% as compared to $419,495 for the prior year's fourth quarter;
- Total yearly revenue of $5,806,848 increased 305% versus revenues of $1,432,773 for the full year of 2011;
- Cash balance of $893,458 at the end of 2012 as compared to a cash balance of $198,500 in the same period of 2011;
Andrea Clark, HRAA's Chairman, CEO and Founder stated, "The fourth quarter was another successful quarter for HRAA as we continue to deliver strong results reflected by the record revenues we have achieved. The quarter was also marked with a significant milestone for the Company as we recorded the first sale of our ICD-Visualizerä software solution. This revolutionary product has helped our client to mitigate their risk in preparation for the upcoming mandated switch from ICD-9 to ICD-10 in October of 2014.
Clark concluded, "In the fourth quarter, we also introduced our second software solution package, Readmissions Visualizerä. This product provides hospitals worldwide with the ability to view current inpatient and historical readmissions information through an intuitive web interface for the purpose of decreasing readmissions within the healthcare system. The demand for readmission analysis is rapidly growing as seen under the Affordable Care Act as 2,217 hospitals were penalized under this program and 307 hospitals were ordered to pay 1% of the Medicare reimbursement for 2012. As we continue to execute on our business plan, we look forward to providing best-of-breed software solutions as well as auditing, consulting and coding services that help maintain revenue integrity throughout the healthcare system."
Fourth Quarter 2012 Financial Results
For the fourth quarter of 2012, total revenues were $2,187,237, an increase of $1,767,742 or 421%, from revenues of $419,495 for the fourth quarter of 2011.
Adjusted EBITDA (loss) was ($147,265) for the quarter ended December 31, 2012 compared to adjusted EBITDA (loss) of ($481,608) for the same quarter in 2011.
Operating expenses were $1,242,496 for the fourth quarter of 2012, which are roughly in line from operating expenses of $1,251,158 for the prior year's fourth quarter. Company had an operating loss in the fourth quarter of 2012 of ($151,831), compared to an operating loss of ($1,052,991) for the prior year's fourth quarter.
The Company recorded a net loss of ($233,733), or ($0.01) per basic and diluted share, for the fourth quarter of 2012, as compared to a net loss of ($1,063,385), or ($0.06) per basic and diluted share, for the fourth quarter of 2011.
Full Year 2012 Results
For the full year ended December 31, 2012, total revenues were $5,806,848, an increase of $4,374,075 or 305%, from revenues of $1,432,773 for the full year of 2011.
Adjusted EBITDA (loss) was ($941,356) for the full year ended December 31, 2012 compared to adjusted EBITDA (loss) of ($292,496) for the same period of 2011.
Operating expenses were $3,968,971 for the full year ended December 31, 2012, compared to operating expenses of $2,101,506 for the same period in 2011. The Company had an operating loss for the full year ended December 31, 2012 of ($992,131), compared to an operating loss of ($1,142,453) for the same period in 2011.
The Company recorded a net loss of ($1,457,470), or $(0.04) per basic and diluted share, for the full year ended December 31, 2012 as compared to a net loss of $(1,171,921) or $(0.08) per basic and diluted share, for the same period in 2011. The net loss for 2012 is due primarily to increased compensation and related expenses associated with the buildup of the Company's management, sales and administrative staff in anticipation of growth in business volume.
Conference Call
The Company will be holding a conference call on Tuesday, April 2, 2013, at 5:30pm ET (2:30pm Pacific Time) to review the fourth quarter and full year 2012 results. Robert Rubinowitz, President and Chief Operating Officer of Health Revenue Assurance Holdings, Inc., will be on-line to discuss these results.
To listen in, please call one of the following teleconferencing numbers at least 5 minutes before the conference call commences.
Toll-Free: 1-888-427-9376
Toll: 1-719-325-2494
Passcode: 4956943
A telephone replay of the call will be available by contacting HRAA's office at 1-954-472-2340.
About HRAA
HRAA (OTCBB: HRAA) is a leading provider of revenue integrity technology and services for healthcare organizations across the US, interpreting data to ensure that healthcare is efficient and effective for everyone. Founded in 2001 and based out of Plantation, FL, HRAA combines years of industry expertise with best-in-breed technology to create market leading business intelligence products and consulting services to improve the healthcare delivery experience for doctors, nurses and patients. HRAA offers the only full suite of solutions needed to keep up with the ever-changing healthcare industry, which include: data analytics software, business intelligence technology, medical coding, auditing, education, revenue cycle consulting, and ICD-10 transition solutions. For more information please visit: http://www.hraa.com
Caution Regarding Forward Looking Statements
Certain statements in this news release and such conference call are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, growing revenues and profits through organic growth and acquisitions, attracting new business that will increase HRAA's revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of HRAA's selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in HRAA's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
-Tables Follow-
| HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| For the Year-Ended | ||||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Revenues | $ | 5,806,848 | $ | 1,432,773 | ||||
| Cost of Revenues | 2,830,008 | 473,719 | ||||||
| Gross Profit | 2,976,840 | 959,054 | ||||||
| Operating Expenses | ||||||||
| Selling and administrative expenses (includes stock compensation of $0 and $818,595 in 2012 and 2011, respectively) | 3,853,820 | 1,976,655 | ||||||
| Research and development | 64,386 | 93,489 | ||||||
| Depreciation and amortization | 50,765 | 31,362 | ||||||
| Total Operating Expenses | 3,968,971 | 2,101,506 | ||||||
| Operating Loss | (992,131 | ) | (1,142,453 | ) | ||||
| Other Income (Expense) | ||||||||
| Other income | 10 | -- | ||||||
| Interest expense | (465,349 | ) | (29,468 | ) | ||||
| Total Other Income (Expense), net | (465,339 | ) | (29,468 | ) | ||||
| Income (Loss) before provision for income taxes | (1,457,470 | ) | (1,171,921 | ) | ||||
| Provision for income taxes | -- | -- | ||||||
| Net Income (Loss) | $ | (1,457,470 | ) | $ | (1,171,921 | ) | ||
| Net Loss Per Share | ||||||||
| basic and diluted | $ | (0.04 | ) | $ | (0.08 | ) | ||
| Weighted Average Number of Shares Outstanding | ||||||||
| basic and diluted | 32,730,809 | 14,450,235 | ||||||
| HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Cash | $ | 893,458 | $ | 198,500 | ||||
| Accounts receivable | 1,246,814 | 143,557 | ||||||
| Prepaid expenses | 3,600 | 24,512 | ||||||
| Other current assets | 688 | 5,842 | ||||||
| Total Current Assets | 2,144,560 | 372,411 | ||||||
| Property and Equipment, net | 365,017 | 352,499 | ||||||
| Software | 258,933 | -- | ||||||
| Other assets | 8,871 | 8,865 | ||||||
| Finance costs, net | 2,477 | 2,803 | ||||||
| Total Other Assets | 270,281 | 11,668 | ||||||
| Total Assets | $ | 2,779,858 | $ | 736,578 | ||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||
| Accounts payable | $ | 207,741 | $ | 195,901 | ||||
| Due to officer | 75,000 | -- | ||||||
| Accrued expenses | 64,077 | 23,266 | ||||||
| Accrued payroll | 412,186 | 73,685 | ||||||
| Loan payable to factor | 827,075 | -- | ||||||
| Accrued interest | 4,524 | -- | ||||||
| Line of credit, current portion | 25,000 | 98,500 | ||||||
| Capital Leases, current portion | 16,923 | -- | ||||||
| Notes payable, current portion, net of discount | 202,557 | -- | ||||||
| Long term debt, current portion | 37,513 | 283,640 | ||||||
| Advances on convertible promissory notes | -- | 170,000 | ||||||
| Settlement Payable | 115,278 | -- | ||||||
| Unearned revenue | -- | 32,988 | ||||||
| Total Current Liabilities | 1,987,874 | 877,980 | ||||||
| Capital Leases (net of current portion) | 23,974 | -- | ||||||
| Line of credit (net of current portion) | 125,000 | -- | ||||||
| Notes payable (net of current portion), net of discount | 273,751 | -- | ||||||
| Long term debt (net of current portion) | 181,457 | 218,417 | ||||||
| Total Liabilities | $ | 2,592,056 | $ | 1,096,397 | ||||
| Commitments and Contingencies (see Note 11) | ||||||||
| Stockholders' Equity (Deficit): | ||||||||
| Common stock ($0.001 par value, 75,000,000 shares authorized, | ||||||||
| 39,054,867 shares and 16,499,021 issued and outstanding at | ||||||||
| December 31, 2012 and 2011, respectively) | 39,055 | 16,499 | ||||||
| Additional paid-in capital | 2,738,545 | 751,010 | ||||||
| Subscription receivable | (5,000 | ) | -- | |||||
| Accumulated deficit | (2,584,798 | ) | (1,127,328 | ) | ||||
| Total Stockholders' Equity (Deficit) | 187,802 | (359,819 | ) | |||||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 2,779,858 | $ | 736,578 | ||||