DALLAS, TX today announced financial and operational results for
the third quarter and nine months ended September 30, 2007.
Highlights include:
* The Company reported a quarterly profit of $188 thousand in net income,
or $0.01 per share -- a first in its ten year history.
* Achieved $7.1 million in revenue for the quarter, a record 114% rise
in revenues for Q3 2007 compared to Q3 2006.
* Achieved two consecutive quarters of 77% quarter over quarter growth
from Q1 2007 to Q3 2007. This is the largest increase in sequential
revenue in the Company's history.
* The Company generated EBITDA, as adjusted, of $357 thousand for
the quarter and $(306) thousand year to date.
-- EBITDA, as adjusted, is defined as income (loss) from
operations less depreciation and amortization, non-cash warrant
and option compensation expense and executive severance. EBITDA,
as adjusted, should be considered in addition to, but not in
lieu of, income (loss) from operations reported under generally
accepted accounting principles (GAAP).
* Claims volume increased to 40,317 for Q3 2007, up 139% over Q3 2006.
* Recent key executive changes to lead the Company:
-- David S. Boone promoted to Chief Executive Officer
-- Steven J. Armond appointed Chief Financial Officer
Revenues for the third quarter of 2007 rose 114% to $7.1 million
compared to $3.3 million in the third quarter of 2006. For the nine
months ended September 30, 2007, the Company reported revenues of
$13.4 million, a 55% increase compared to revenues of $8.6 million
in the same period of 2006.
The Company reported net income of $188 thousand, or $0.01 per
share, for the third quarter of 2007, compared to a net loss of
$116 thousand, or $0.01 per share, in the same period last year.
Factors affecting positive current quarter results include
increases in revenue from Texas True Choice and HealthSmart, and
the implementation of AAG and InterPlan Health Group.
For the nine months ended September 30, 2007, the Company
reported a net loss of $1,139 thousand, or $0.08 per share,
compared to a net loss of $641 thousand, or $0.05 per share, for
the same period in 2006. Excluding the one time charge for the
departure of the Company's former Chief Executive Officer, the net
loss for the nine months ended September 30, 2007 was $801
thousand.
Cash provided by operations was $143 thousand in the third
quarter of 2007 versus cash used of $177 thousand in the third
quarter of 2006. At September 30, 2007, the Company had $3.6
million in cash and cash equivalents compared to $5.0 million at
December 31, 2006.
Commenting on the Company's most recent results, David S. Boone,
Chief Executive Officer, noted, "We are pleased with our third
quarter results, which we believe reflect the progress we are
achieving along a number of financial milestones. Most importantly,
we believe that this increase in revenue demonstrates an inflection
point in our evolution as a Company.
"We recently welcomed Steve Armond to the executive team as the
Company's Chief Financial Officer. In this position, and given his
deep experience in financial management, planning and analysis and
corporate administration, Steve will play a critical role in seeing
that American CareSource achieves both its financial and
operational milestones going forward. We are glad to have him
aboard."
Conference Call
As previously announced, American CareSource will hold a
conference call to discuss financial results of the third quarter
ended September 30, 2007 as follows:
Date: Monday, November 12, 2007
Time: 11:00 AM ET/10:00 AM CT
Dial-in numbers: 888-812-8518 (U.S. & Canada) or 913-312-1488
Live webcast: www.anci-care.com, under "News and Events"
The teleconference replay will be available two hours after
completion through Monday, November 19, 2007 at 888-203-1112 (U.S.
only) or 719-457-0820. The replay passcode is 8264771. The archived
webcast will be available for one year on the Company's investor
website, www.anci-care.com, under "News and Events."
About American CareSource Holdings, Inc.
American CareSource Holdings, the first national, publicly
traded ancillary care network services company, offers a
comprehensive national network of more than 24,000 ancillary
provider sites. Through its product offerings, American CareSource
helps its clients reduce the cost of ancillary services rendered
through its network of providers in more than 30 service
categories. The Company's ancillary network and management provides
a complete outsourced solution for a wide variety of healthcare
payors and plan sponsors including self-insured employers,
indemnity insurers, PPOs, HMOs, third party administrators and both
federal and local governments.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995: Any statements that are not historical facts
contained in this release are forward-looking statements. It is
possible that the assumptions made by American CareSource Holdings,
Inc. for purposes of such statements may not materialize. Actual
results may differ materially from those projected or implied in
any forward-looking statements. Such statements may involve further
risks and uncertainties, including but not limited to those
relating to product demand, pricing, market acceptance, the effect
of economic conditions, and intellectual property rights, and the
outcome of competitive products, risks in product development, the
results of financing effort, the ability to complete transactions,
and other risks identified in this release, and the Securities and
Exchange Commission filings of American CareSource Holdings,
Inc.
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of
September 30, December 31,
ASSETS 2007 2006
------------- -------------
CURRENT ASSETS
Cash $ 3,630,133 $ 5,025,380
Accounts Receivable 2,467,471 1,334,950
Other 614,869 33,515
------------- -------------
Total Current Assets 6,712,473 6,393,845
Net Property, Plant, and Equipment 318,144 266,555
Other Assets
Certificate of Deposit, Restricted 145,000 145,000
Intangible Assets 1,547,633 1,707,819
Goodwill 4,361,299 4,361,299
------------- -------------
Total Other Assets 6,053,932 6,214,118
------------- -------------
Total Assets $ 13,084,549 $ 12,874,518
============= =============
Liabilities and Stockholders' Equity
Current Liabilities
Due to Service Providers $ 1,881,702 $ 1,077,174
Accounts Payable and Accrued Liabilities 1,174,305 761,926
Current Maturities of Long-Term Debt 55,041 352,718
------------- -------------
Total Current Liabilities 3,111,048 2,191,818
Long-Term Debt 59,910 101,541
------------- -------------
Total Liabilities 3,170,958 2,293,359
STOCKHOLDERS' EQUITY:
Common Stock-par value $0.01, 40,000,000
shares authorized and 14,654,167 and
14,486,615 shares issued and outstanding as
of September 30, 2007 and December 31, 2006
respectively 146,542 144,866
Preferred Stock-par value $0.01, 10,000,000
shares authorized and none outstanding - -
Additional Paid in Capital 17,457,604 17,034,176
Deferred Debt Issuance Cost - (46,300)
Accumulated (Deficit) (7,690,555) (6,551,583)
------------- -------------
Total Stockholders' Equity 9,913,591 10,581,159
Total Liabilities and Equity $ 13,084,549 $ 12,874,518
============= =============
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
September 30,
2007 2006
------------- -------------
REVENUES
Net Ancillary Health $ 7,088,499 $ 3,283,570
Patient Claims Processing - 29,870
------------- -------------
Net Revenue 7,088,499 3,313,440
Total Cost of Revenues 6,091,789 2,689,471
------------- -------------
Net Margin 996,710 623,969
------------- -------------
Selling, General, and Administrative Expense 766,648 665,841
Depreciation and Amortization 86,445 77,271
------------- -------------
Total Operating Expense 853,093 743,112
------------- -------------
Operating (Loss) 143,617 (119,143)
------------- -------------
Net Interest (Income) (47,430) (57,241)
Interest Expense 2,836 8,174
Debt Issuance Cost - 46,300
------------- -------------
Total Other (Income) Expense (44,594) (2,767)
------------- -------------
Net Income (Loss) Before Income Tax 188,211 (116,376)
Income Tax Expense - -
------------- -------------
Net Income (Loss) $ 188,211 $ (116,376)
============= =============
NET INCOME (LOSS) PER SHARE - BASIC $ 0.01 $ (0.01)
WEIGHTED AVERAGE COMMON SHARES - BASIC 14,555,314 14,472,867
NET INCOME (LOSS) PER SHARE - DILUTED $ 0.01 $ (0.01)
WEIGHTED AVERAGE COMMON SHARES - DILUTED 16,888,882 14,472,867
Reconciliation of Income (Loss) from
Operations to EBITDA, as adjusted
Operating Income (Loss) $ 143,617 $ (119,143)
Depreciation and Amortization 86,445 77,271
------------- -------------
EBITDA * 230,062 (41,872)
Executive severance - -
Non-cash Option/Warrant Compensation Expense 127,161 63,223
EBITDA, as adjusted * $ 357,223 $ 21,351
*EBITDA is earnings before interest, taxes, depreciation, and amortization
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended
September 30,
2007 2006
------------- -------------
REVENUES
Net Ancillary Health $ 13,363,356 $ 8,512,425
Patient Claims Processing - 95,337
------------- -------------
Net Revenue 13,363,356 8,607,762
Total Cost of Revenues 11,671,724 6,904,779
------------- -------------
Net Margin 1,691,632 1,702,983
------------- -------------
Selling, General, and Administrative Expense 2,677,919 2,038,718
Depreciation and Amortization 248,161 235,618
------------- -------------
Total Operating Expense 2,926,080 2,274,336
------------- -------------
Operating (Loss) (1,234,448) (571,353)
------------- -------------
Net Interest (Income) (151,062) (132,753)
Interest Expense 9,286 63,082
Debt Issuance Cost 46,299 138,900
------------- -------------
Total Other (Income) Expense (95,477) 69,229
------------- -------------
Net Income (Loss) Before Income Tax (1,138,971) (640,582)
Income Tax Expense - -
------------- -------------
Net Income (Loss) $ (1,138,971) $ (640,582)
============= =============
NET INCOME (LOSS) PER SHARE - BASIC $ (0.08) $ (0.05)
WEIGHTED AVERAGE COMMON SHARES - BASIC 14,511,642 14,066,192
NET INCOME (LOSS) PER SHARE - DILUTED $ (0.08) $ (0.05)
WEIGHTED AVERAGE COMMON SHARES - DILUTED 14,511,642 14,066,192
Reconciliation of Income (Loss) from
Operations to EBITDA, as adjusted
Operating Income (Loss) $ (1,234,448) $ (571,353)
Depreciation and Amortization 248,160 235,617
------------- -------------
EBITDA * (986,288) (335,736)
Executive severance 338,010 -
Non-cash Option/Warrant Compensation Expense 342,012 137,615
------------- -------------
EBITDA, as adjusted * $ (306,266) $ (198,121)
*EBITDA is earnings before interest, taxes, depreciation, and amortization
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30,
2007 2006
------------- -------------
OPERATING ACTIVITIES:
Net loss $ (1,138,971) $ (640,582)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock option compensation expense 319,965 137,615
Depreciation and amortization 248,160 235,618
Compensation expense related to warrants 46,300 138,900
Client management expense related to
warrants 22,047 -
(Gain) on disposal of assets - (33,359)
Changes in operating assets and
liabilities:
(Increase) decrease in accounts receivable (1,132,521) (1,514,904)
(Increase) in other current assets (550,488) (107,524)
Increase in accounts payable and accrued
liabilities 412,379 299,173
Increase (decrease) in amounts payable
to service providers 804,528 1,060,363
------------- -------------
Net cash (used in) operating activities (968,601) (424,700)
------------- -------------
INVESTING ACTIVITIES:
Purchase of property and equipment (139,563) (161,866)
Sales of equipment - 65,225
------------- -------------
Net cash (used in) investing activities (139,563) (96,641)
------------- -------------
FINANCING ACTIVITIES:
Borrowings from line of credit - 200,000
Net proceeds from new debt - 135,000
Payment on line of credit or long term debt (339,308) (3,714,121)
Net proceeds from the exercising of stock
options 52,225 34,575
Net proceeds from the sale of capital stock - 9,069,848
------------- -------------
Net cash provided by (used in) financing
activities $ (287,083) $ 5,725,302
------------- -------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS $ (1,395,247) $ 5,203,961
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 5,025,380 23,399
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 3,630,133 $ 5,227,360
============= =============
Supplemental disclosures cash flow information
Cash paid for interest $ 28,147 $ 48,591
Supplemental disclosure of non-cash financing
activity
Issuance of warrants in payment of client
management fees $ 52,913 -
Contact: David S. Boone Chief Executive Officer American
CareSource Holdings, Inc. Tel: 972-308-6830