EX-99.1 2 b75455aiexv99w1.htm EX-99.1 PRESS RELEASE ENTITLED "AMICAS REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2009," ISSUED BY AMICAS ON MAY 11, 2009. exv99w1
Exhibit 99.1
AMICAS Reports Financial Results for the First Quarter Ended March 31, 2009
Provides 2010 business outlook
BOSTON, May 11 /PRNewswire-FirstCall/ — AMICAS, Inc. (Nasdaq: AMCS), a leader in medical image and information management solutions, today reported unaudited financial results for the first quarter ended March 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO)
Q1 Financial Highlights
Revenue: Total revenues for the first quarter of 2009 were $11.3 million compared to $12.8 million for the first quarter of 2008.
Operating Income/Loss: Operating loss for the first quarter of 2009 was $1.6 million compared to an operating loss of $1.2 million for the first quarter of 2008. Operating loss for the first quarter of 2009 included $549,000 of expenses related to the acquisition and integration of Emageon Inc.
Adjusted EBITDA: The Company’s Adjusted EBITDA, excluding acquisition-related and integration costs for the first quarter of 2009, was $200,000 as compared to an Adjusted EBITDA of $33,000 for the first quarter of 2008.
Net Income/Loss: The Company’s net loss for the first quarter of 2009 was $1.2 million, or $(0.03) per share, compared to net loss of $467,000, or $(0.01) per share, for the first quarter of 2008.
Cash and Cash Flow: AMICAS ended the first quarter of 2009 with cash, cash equivalents, and a marketable securities balance of $56.6 million, no long-term debt, and working capital of $47.7 million. AMICAS generated $1.8 million of cash flow from operations in the first quarter of 2009.
Stock Repurchase: In the fourth quarter of 2008, the Board of Directors directed the Company to initiate a $5.0 million stock repurchase plan. The Company repurchased approximately 88,000 shares of its common stock for approximately $141,000 in the first quarter of 2009. Under this plan, we have repurchased approximately 281,000 shares of our common stock for approximately $426,000.
Business Perspective
“The acquisition of Emageon clearly helps AMICAS scale to execute both as a top-flight IT solution provider and as a standalone independent public company. As a result of our combination with Emageon, AMICAS now provides a market leading suite that includes radiology PACS, radiology information systems, cardiology PACS, cardiovascular information systems, referring physician tools, business intelligence tools, enterprise content management tools (serving as both the imaging component of the EMR and as a vendor-neutral archive), and revenue cycle management systems,” said Dr. Kahane.
Dr. Kahane also said, “We continue to maintain our focus on serving the end-to-end needs of imaging centers, radiology groups, and sub-specialty groups that are highly dependent on imaging during their delivery of healthcare services. At the same time, we are looking forward to providing the market with an enterprise content management solution that makes images accessible as a component of the electronic medical record.”

 


 

Dr. Kahane went on to say, “We believe we have built an excellent foundation with many very sophisticated providers of imaging services while developing an excellent product suite over the last two years. We are looking forward to combining this foundation with the customers, solutions, and employees of Emageon to establish AMICAS as the premiere independent provider of image and information management solutions in healthcare.”
Business Outlook
AMICAS expects to provide guidance for 2009 upon completion of its purchase accounting related to the Emageon Inc. acquisition, and to provide this guidance at the time that AMICAS releases its results for the second quarter of 2009.
Purchase accounting is expected to have minimal impact on 2010 results and, therefore, AMICAS is providing the following business outlook for fiscal year 2010.
    Fiscal year 2010 revenue is expected to be $112 to $120 million
 
    Fiscal year 2010 Adjusted EBITDA is expected to be $16.5 to $20.7 million
Conference Call
AMICAS will host a conference call on Tuesday, May 12, at 8:30 a.m. Eastern Time to discuss the Company’s 2009 first fiscal quarter results. Investors and other interested parties may dial in to the call using the toll free number 1.800.862.9098. (Conference ID: 7AMICAS). The conference call will also be available via Webcast at www.amicas.com. Following the conclusion of the call, a replay will be available at 1.800.283.8520 or 402.220.0870 until June 12, 2009.
About AMICAS
AMICAS, Inc. (www.amicas.com) is a leading independent provider of imaging IT solutions. AMICAS offers the industry’s most comprehensive suite of image and information management solutions — from radiology PACS to cardiology PACS, from radiology information systems to cardiovascular information systems, from revenue cycle management solutions to enterprise content management tools designed to power the imaging component of the electronic medical record. AMICAS provides a complete, end-to-end solution for radiology practices, imaging centers, and ambulatory care facilities. Hospitals and integrated delivery networks are provided with a comprehensive image management solution for cardiology and radiology that supports EMR strategies to enhance clinical, operational, and administrative functions.
Safe Harbor Statement
Except for the historical information herein, the matters discussed in this release include forward-looking statements. In particular, the forward-looking statements contained in this release include statements about our anticipated financial and operating results for the remainder of fiscal year 2009 and for fiscal year 2010. When used in this press release, the words: believes, intends, plans, anticipates, expects, estimates, and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions, and uncertainties that could cause actual results to differ materially, which include, but are not limited to, the following: a significant portion of the Company’s quarterly sales are concluded in the last month of the fiscal quarter; the length of sales and delivery cycles; the deferral and/or realization of deferred software license and system revenues according to contract terms; the timing, cost,

 


 

and success or failure of current and new product and service introductions and product upgrade releases; potential patent infringement claims against AMICAS and the related defense costs; the ability of AMICAS to comply with all government laws, rules, and regulations; and other risks affecting AMICAS’ businesses generally and as set forth in AMICAS’ most recent filings with the Securities and Exchange Commission, including the section entitled “Risk Factors” of our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q. All forward-looking statements in this release are qualified by these cautionary statements and are made only as of the date of this release. AMICAS is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise. The financial statements and information as of, and for the period ended, March 31, 2009, contained in this press release are subject to review by the Company’s independent registered public accounting firm.
Adjusted EBITDA Financial Measures
Adjusted EBITDA refers to net income (loss), adjusted for amortization, acquisition-related and integration costs, depreciation, interest, taxes, and stock compensation expense.
Management believes that its Adjusted EBITDA, when viewed in addition to the Company’s reported GAAP results, provides an additional meaningful measure of operating performance, enabling investors to more thoroughly evaluate current performance in comparison to past performance. This information will necessarily differ from comparable information that may be provided by other companies and should not be considered in isolation or as an alternative to the Company’s operating and other financial information determined under GAAP. A reconciliation of net income (loss) to Adjusted EBITDA is included below.
CONTACT:
Colleen McCormick, Investor Relations
617.779.7892
cmccormick@amicas.com

 


 

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share data)
                 
    March 31,     December 31,  
    2009     2008  
Assets
               
Current assets:
               
Cash and cash equivalents
  $ 44,076     $ 7,366  
Marketable securities
    12,502       47,627  
Accounts receivable, net of allowances of $45 and $158, respectively
    9,654       10,224  
Prepaid expenses and other current assets
    2,671       2,261  
Total current assets
    68,903       67,478  
 
               
Property and equipment, less accumulated depreciation and amortization of $7,649 and $7,495, respectively
    86       96  
Acquired/developed software, less accumulated amortization of $10,766 and $10,195, respectively
    5,233       5,805  
Other intangible assets, less accumulated amortization of $676 and $2,144, respectively
    1,224       1,256  
Other assets
    1,747       1,594  
Total Assets
  $ 77,970     $ 77,098  
 
               
Liabilities and stockholders’ equity
               
Current liabilities:
               
Accounts payable and accrued expenses
  $ 4,375     $ 4,156  
Accrued employee compensation and benefits
    1,252       1,611  
Deferred revenue
    15,551       14,657  
Total current liabilities
    21,178       20,424  
 
               
Unrecognized tax benefits
    1,406       1,379  
Deferred revenue long term portion
    930        
 
               
Commitments and contingencies
               
 
               
Stockholders’ equity:
               
Preferred stock $.001 par value; 2,000,000 shares authorized; none issued
           
Common stock $.001 par value, 200,000,000 shares authorized, 51,558,435 and 51,473,965 issued, respectively
    51       51  
Additional paid-in capital
    231,477       230,905  
Accumulated other comprehensive (loss) income
    (2 )     100  
Accumulated deficit
    (129,717 )     (128,549 )
Treasury stock, at cost, 16,357,854 and 16,270,088 shares
    (47,353 )     (47,212 )
Total stockholders’ equity
    54,456       55,295  
Total Liabilities and Stockholders’ Equity
  $ 77,970     $ 77,098  

 


 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share data and footnotes)
                 
    Three Months Ended  
    March 31,  
    2009     2008  
Revenues
               
Maintenance and services
  $ 9,962     $ 9,753  
Software licenses and system sales
    1,309       3,035  
Total revenues
  $ 11,271       12,788  
 
               
Costs and expenses
               
Cost of revenues:
               
Maintenance and services (a)
  $ 4,232       4,269  
Software licenses and system sales, including amortization of software costs of $571 and $489, respectively
    1,060       2,211  
Selling, general and administrative (b)
    4,521       5,002  
Research and development (c)
    2,286       2,195  
Depreciation and amortization
    185       275  
Acquisition-related and integration costs
    549        
 
    12,833       13,952  
Operating loss
    (1,562 )     (1,164 )
Interest income
    447       789  
Loss on sale of investments
          (31 )
Loss before provision for income taxes
    (1,115 )     (406 )
Provision for income taxes
    53       61  
Net loss
  $ (1,168 )   $ (467 )
 
               
(Loss) income per share
               
Basic:
  $ (0.03 )   $ (0.01 )
Diluted:
  $ (0.03 )   $ (0.01 )
 
               
Weighted average number of shares outstanding
               
Basic
    35,195       43,628  
Diluted
    35,195       43,628  
 
(a)   includes $39,000 and $37,000 in stock-based compensation expense for the three months ended March 31, 2009, and 2008, respectively
 
(b)   includes $314,000 and $284,000 in stock-based compensation expense for the three months ended March 31, 2009, and 2008, respectively
 
(c)   includes $104,000 and $112,000 in stock-based compensation expense for the three months ended March 31, 2009, and 2008, respectively

 


 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
                 
    Three Months Ended  
    March 31,  
    2009     2008  
 
               
Operating activities
               
Net loss
    (1,168 )   $ (467 )
 
               
Adjustments to reconcile net loss to cash provided by operating activities:
               
Depreciation and amortization
    185       275  
Provisions for bad debts
    (73 )     55  
Amortization of software development costs
    571       489  
Non-cash stock compensation expense
    457       433  
Changes in operating assets and liabilities:
               
Accounts receivable
    642       (489 )
Prepaid expenses and other current assets
    (561 )     532  
Accounts payable and accrued expenses
    (140 )     (306 )
Deferred revenue including unearned discount
    1,824       454  
Unrecognized tax benefits
    27       25  
Cash provided by operating activities
    1,764       1,001  
 
               
Investing activities
               
Purchases of property and equipment
    (51 )     (304 )
Purchases of held-to-maturity securities
    (8,403 )     (124,084 )
Maturities of held-to-maturity securities
    27,595       113,799  
Purchases of available-for-sale securities
    (20,363 )     (1,500 )
Sales of available-for-sale securities
    36,193       20,031  
Cash provided by investing activities
    34,971       7,942  
 
               
Financing activities
               
Repurchase of common stock
    (141 )     (4,593 )
Exercise of stock options
    116       181  
Cash used in financing activities
    (25 )     (4,412 )
 
               
Increase in cash and cash equivalents
    36,710       4,531  
Cash and cash equivalents at beginning of period
    7,366       8,536  
Cash and cash equivalents at end of period
  $ 44,076     $ 13,067  
 
               
Supplemental disclosure of cash paid during the period for:
               
Income taxes, net of refunds
  $     $ 115  
Non-cash investing activity:
               
Unrealized gain (loss) on available-for-sale securities
  $ (102 )   $ 120  

 


 

RECONCILIATION NET LOSS TO ADJUSTED EBITDA
(Unaudited)
(in thousands)
                 
    Three Months Ended
    March 31,
    2009   2008
 
               
Net loss
  $ (1,168 )   $ (467 )
Provision for income taxes
    53       61  
Interest income
    447       789  
Loss on sale of investments
    0       (31 )
Operating loss
    (1,562 )     (1,164 )
Non-cash stock compensation expense
    457       433  
Acquisition-related and integration costs
    549        
Depreciation and amortization
    185       275  
Amortization of software development costs
    571       489  
Adjusted EBITDA
  $ 200     $ 33  
FISCAL YEAR 2010 BUSINESS OUTLOOK
(in thousands)
                 
    FY 2010  
    Low     High  
Revenue
  $ 112,000     $ 120,000  
Adjusted EBITDA
  $ 16,500     $ 20,700  
FISCAL YEAR 2010 BUSINESS OUTLOOK
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(in thousands)
                 
    FY 2010  
    Low     High  
Net income
  $ 7,000     $ 11,000  
Provision for income taxes
    300       500  
Interest income
    700       700  
Operating income
    6,600       10,800  
Non-cash stock compensation expense
    2,500       2,500  
Depreciation and amortization
    7,400       7,400  
Adjusted EBITDA
  $ 16,500     $ 20,700  
CONTACT: Colleen McCormick, Investor Relations, +1-617-779-7892, cmccormick@amicas.com