Plantation, FL, May 15, 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 first quarter ended March 31, 2013.
First Quarter Highlights:
- Total quarterly revenue of $2,156,597 increased 256% as compared to $605,830 for the prior year's first quarter;
- Gross profit margins increased 8% this quarter to 54% from 46% last quarter
- Cash balance of $1,062,910 at the end of the first quarter of 2013 as compared to a cash balance of $82,410 in the same period of 2012;
"Our performance in the seasonally slow first quarter exceeded our expectations as we added four new hospitals from the SUMMA Healthcare System, with two licenses being purchased for our revolutionary new software solution, ICDVisualizerTM," stated Andrea Clark, HRAA's Chairman, CEO and Founder. "We continued to expand our coding footprint having now grown from 12 hospital customers in the first quarter of 2012 to a total of 36 in the first quarter of 2013. In the last twelve months, we have grown our organization from 32 to 116 employees to keep up with the growing demands of the marketplace for experienced coders and to prepare for the rollout of ICDVisualizerTM later this quarter. This growth has given us greater organizational efficiencies and economies of scale which have allowed us to enhance our gross profit margins to 54% up from 46% last quarter. We closed the first quarter with the strongest balance sheet in our history and have a solid working capital position that will allow us to execute on our growth plans and accelerate our path to profitability."
Mrs. Clark continued, "As we gear up for the anticipated future growth of HRAA, we made two key managerial additions this quarter which have enabled us to further streamline our business as we progress closer towards the ICD-10 transition. Our new Chief Medical Information Officer, Mike Gallagher MD, has added immediate value with his 15 years of experience in healthcare informatics. In addition, Joe Brophy has been selected to lead our operating solutions as our Senior VP of Operations. He brings with him 25 years of healthcare operations, technology, consulting, business and sales expertise. As the ICD-10 deadline approaches, we will continue to add experienced individuals to our senior leadership team and further expand our pipeline through the execution of our growth strategy."
First Quarter 2013 Financial Results
For the first quarter of 2013, total revenues were $2,156,597, an increase of $1,550,767 or 256%, from revenues of $605,830 for the first quarter of 2012.
Operating expenses were $1,469,803 for the first quarter of 2013, compared to $651,355 for the prior year's first quarter. The increase in operating expenses is due to increased SG&A expenses as the company increased its staff from 32 employees to 116. The Company had an operating loss in the first quarter of 2013 of ($298,527), compared to an operating loss of ($476,645) for the prior year's first quarter.
The Company recorded a net loss of ($434,828), or ($0.01) per basic and diluted share, for the first quarter of 2013, as compared to a net loss of ($482,567), or ($0.01) per basic and diluted share, for the first quarter of 2012.
Conference Call
The Company will be holding a conference call on Thursday, May 16, 2013, at 8:30am ET (5:30am Pacific Time) to review the first quarter 2013 results. Robert Rubinowitz, President and Chief Operating Officer and Evan McKeown, Chief Financial 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: 888-523-1208
Toll: 719-457-2704
Passcode: 150029
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 a 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 | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash | $ | 1,062,910 | $ | 893,458 | ||||
| Accounts receivable | 1,293,431 | 1,246,814 | ||||||
| Prepaid expenses | -- | 3,600 | ||||||
| Other current assets | 45,757 | 688 | ||||||
| Total Current Assets | 2,402,098 | 2,144,560 | ||||||
| Property and Equipment, net | 425,250 | 365,017 | ||||||
| Software | 590,264 | 258,933 | ||||||
| Other assets | 8,865 | 8,871 | ||||||
| Finance costs, net | 2,395 | 2,477 | ||||||
| Total Other Assets | 601,524 | 270,281 | ||||||
| Total Assets | $ | 3,428,872 | $ | 2,779,858 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Accounts payable | $ | 283,802 | $ | 207,741 | ||||
| Due to officer | 75,000 | 75,000 | ||||||
| Accrued expenses | 97,280 | 64,077 | ||||||
| Accrued payroll | 527,698 | 412,186 | ||||||
| Loan payable to factor | 439,474 | 827,075 | ||||||
| Accrued interest | 8,743 | 4,524 | ||||||
| Lines of credit, current portion | 72,115 | 25,000 | ||||||
| Capital Leases, current portion | 28,706 | 16,923 | ||||||
| Notes payable, current portion, net of discount | 431,649 | 202,557 | ||||||
| Long term debt, current portion | 36,134 | 37,513 | ||||||
| Settlement Payable | 69,167 | 115,278 | ||||||
| Total Current Liabilities | 2,069,768 | 1,987,874 | ||||||
| Capital Leases (net of current portion) | 40,978 | 23,974 | ||||||
| Lines of credit (net of current portion) | 118,750 | 125,000 | ||||||
| Notes payable (net of current portion), net of discount | 548,031 | 273,751 | ||||||
| Long term debt (net of current portion) | 173,034 | 181,457 | ||||||
| Total Liabilities | 2,950,561 | 2,592,056 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Common stock ($0.001 par value, 75,000,000 shares authorized, | 44,727 | 39,055 | ||||||
| 44,726,562 shares and 39,054,867 issued and outstanding at | ||||||||
| March 31, 2013 and December 31, 2012, respectively) | ||||||||
| Additional paid-in capital | 3,453,210 | 2,738,545 | ||||||
| Subscription receivable | -- | (5,000 | ) | |||||
| Accumulated deficit | (3,019,626 | ) | (2,584,798 | ) | ||||
| Total Stockholders' Equity | 478,311 | 187,802 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 3,428,872 | $ | 2,779,858 | ||||
| HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||
| For the three months ended | ||||||||
| March 31, | March 31, | |||||||
| 2013 | 2012 | |||||||
| Revenues | $ | 2,156,597 | $ | 605,830 | ||||
| Cost of Revenues | 985,321 | 431,120 | ||||||
| Gross Profit | 1,171,276 | 174,710 | ||||||
| Operating Expenses | ||||||||
| Selling and administrative expenses (includes stock compensation of $27,984 and $0 in 2013 and 2012, respectively) | 1,444,085 | 609,270 | ||||||
| Research and development | 289 | 32,213 | ||||||
| Depreciation and amortization | 25,429 | 9,872 | ||||||
| Total Operating Expenses | 1,469,803 | 651,355 | ||||||
| Operating Loss | (298,527 | ) | (476,645 | ) | ||||
| Other Expense | ||||||||
| Other expense | (283 | ) | -- | |||||
| Interest expense | (136,018 | ) | (5,922 | ) | ||||
| Total Other Expense, net | (136,301 | ) | (5,922 | ) | ||||
| Loss before provision for income taxes | (434,828 | ) | (482,567 | ) | ||||
| Provision for income taxes | -- | -- | ||||||
| Net Loss | $ | (434,828 | ) | $ | (482,567 | ) | ||
| Net Loss Per Share | ||||||||
| basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||
| Weighted Average Number of Shares Outstanding | ||||||||
| basic and diluted | 43,792,483 | 32,231,559 | ||||||