EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

40 IDX Drive

P.O. Box 1070

Burlington, VT 05402-1070

www.idx.com

 


Contacts:

 

Margo Happer

   

Director – Investor Relations and

   

Corporate Communications

   

802-859-6169

 

FOR IMMEDIATE RELEASE

 

IDX SYSTEMS CORPORATION REPORTS

2004 FIRST QUARTER RESULTS

Customer momentum across business lines drives continued growth

 

BURLINGTON, VT – April 29, 2004 – IDX Systems Corporation (NASDAQ:IDXC) reported results today for the first quarter ended March 31, 2004.

 

Revenues for the first quarter 2004 increased to $102.6 million compared to $92.4 million in the first quarter of 2003.

 

IDX reported first quarter 2004 net income of $1.6 million, or $0.05 per fully diluted share, compared to 2003 net income of $3.8 million, or $0.13 per fully diluted share. As previously projected, first quarter 2004 results reflect startup costs associated with the company’s business in the United Kingdom. IDX expects the UK business to be accretive to earnings beginning this year.

 

“We began 2004 firmly established in the global marketplace, and our results for the first quarter clearly show our sustained momentum domestically, as we continue to execute against our plan across the company,” said James H. Crook Jr., Chief Executive Officer of IDX. “Our partnership approach to our customer relationships, coupled with robust and proven solutions, continues to spur new growth.”


Significant Momentum Across IDX Business Lines

 

Separately today, IDX announced additional noteworthy contracts signed in the first quarter, reflecting significant momentum across all business lines.

 

New agreements for Flowcast included Creighton Medical Associates, an academic multi-specialty group practice operating as a division of Creighton University School of Medicine in Omaha, Nebraska. The IDX solution will automate key processes in the revenue cycle for 225 faculty members located in Creighton University’s primary affiliated teaching hospital (Creighton University Medical Center) and eight community-based primary care clinics. Currently, 75 percent of academic medical centers utilize IDX solutions.

 

Additionally, Brown & Toland Medical Group, San Francisco, CA, will upgrade to Flowcast 3.0, IDX’s next-generation business performance solution, including the TouchWorks EMR (electronic medical record) solution from Allscripts Healthcare Solutions (NASDAQ: MDRX), an alliance partner of IDX. Flowcast and TouchWorks will provide a complete, integrated solution for practice management and clinical automation and strengthen financial and administrative support for 315 primary care physicians and 1,200 specialists.

 

IDX expanded an agreement with Vancouver Health Authority, the largest academic health authority in Canada, for the IDX Carecast Patient Accounting solution. Carecast will enable integrated clinical and financial capabilities in six facilities serving 75 percent of the comprehensive health system, encompassing 1,800 beds. The agreement will also allow VCH to deploy Carecast patient accounting functionality across its eight acute care hospitals and numerous outpatient facilities.

 

Groupcast enjoyed a strong new account performance with small to mid-size group practices including billing services, single-specialty practices and complex, multi-site groups, demonstrating the flexibility and broad applicability of our solution.

 

Imagecast agreements were signed with long-time customer Wellspan Health Systems, who will pioneer a new cardiology offering, and UC Davis, the fourth of five prestigious University of California teaching hospitals that utilize Imagecast.

 

A long-time Imagecast Radiology Information System (RIS) customer, Wellspan Health will upgrade its IDX RIS and purchased the full IDX Picture Archiving and Communications System. Wellspan Health includes York Hospital and Gettysburg Hospital (total of 630 beds) and 31 ambulatory care and outpatient sites.

 

UC Davis Health System will use Imagecast RIS to drive workflow and clinical improvement throughout their health system, which conducts more than 800,000 patient visits each year.

 

IDX remains comfortable with projected 2004 revenue of $500 - $525 million and earnings per share guidance of $0.95 - $0.99.

 

A conference call with investors will be held on April 29, 2004 at 11:00 am EDT to discuss these results. An audio Webcast of the call is available at our Internet site: www.idx.com, Investor Relations, Multimedia.


About IDX

 

Founded in 1969, IDX Systems Corporation provides information technology solutions to maximize value in the delivery of healthcare, improve the quality of patient service, enhance medical outcomes, and reduce the costs of care. IDX supports these objectives with a broad range of complementary and functionally rich products installed at 3,300 customer sites. Customers include 138,000 physicians who utilize practice management systems to improve patient care and other workflow processes. IDX Systems are installed at approximately:

 

  380 Integrated delivery networks (IDNs) representing more than 500 hospitals

 

  175 large group practices with more than 200 physicians

 

  665 mid-size group practices with less than 200 physicians

 

The IDX web strategy includes browser technology, e-commerce and web-based tools – built using Internet architecture – that facilitates access for patients, physicians and care providers to vital health information and data managed by the IDX clinical, administrative, financial, and managed care products. IDX has approximately 2,100 full-time employees.

 

This press release contains forward-looking statements about IDX Systems Corporation that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are uncertainties or difficulties in developing new services and systems, difficulties in implementing systems including Carecast, Imagecast, Flowcast and Groupcast, including the systems to be implemented for the UK National Health Service, possible deferral, delay or cancellation by customers of computer system or service purchase decisions, possible delay of system installations and service implementations, development by competitors of new or superior technologies, changing economic, political and regulatory influences on the healthcare industry, possible disruptions in the national economy caused by terrorist activities and foreign conflicts, changes in product pricing policies, governmental regulation of IDX’s software and operations, the possibility of product-related liabilities, and factors detailed from time to time in IDX’s periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. IDX undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.

 

-tables follow-


IDX SYSTEMS CORPORATION

Consolidated Balance Sheets

(in thousands)

 

     March 31,
2004


   December 31,
2003


     (unaudited)    (audited)

Assets

             

Cash and cash equivalents

   $ 18,820    $ 25,536

Marketable securities

     86,441      79,068

Accounts receivable, net

     117,468      93,709

Refundable income taxes

     8,264      8,564

Prepaid and other current assets

     21,512      11,446

Deferred tax asset

     8,408      5,899
    

  

Total current assets

     260,913      224,222
    

  

Property and equipment, net

     85,943      86,216

Capitalized software costs, net

     4,985      3,806

Goodwill, net

     2,508      2,508

Other assets

     10,318      10,357

Deferred tax asset

     11,235      11,404
    

  

Total assets

   $ 375,902    $ 338,513
    

  

Liabilities and stockholders’ equity

             

Accounts payable, accrued expenses and other liabilities

   $ 60,213    $ 54,843

Deferred revenue

     44,906      23,016
    

  

Total current liabilities

     105,119      77,859
    

  

Stockholders’ equity

     270,783      260,654
    

  

Total liabilities and stockholders’ equity

   $ 375,902    $ 338,513
    

  


IDX SYSTEMS CORPORATION

Consolidated Statements of Income

(in thousands, except for per share data)

(unaudited)

 

    

Three Months Ended

March 31,


 
     2004

    2003

 

Revenues

                

Systems sales

   $ 35,974     $ 32,541  

Maintenance and service fees

     66,576       59,900  
    


 


Total revenues

     102,550       92,441  

Operating expenses

                

Cost of systems sales

     11,217       11,792  

Cost of maintenance and services

     46,591       41,661  

Selling, general and administrative

     28,427       20,454  

Software development costs

     13,887       13,350  
    


 


Total operating expenses

     100,122       87,257  
    


 


Operating income

     2,428       5,184  

Other income

     116       124  
    


 


Income before income taxes

     2,544       5,308  

Income tax provision

     (967 )     (1,592 )
    


 


Income from continuing operations

     1,577       3,716  

Discontinued operations

                

Gain on sale of discontinued operations, net of income (loss) and income taxes

     —         115  
    


 


Net income

   $ 1,577     $ 3,831  
    


 


Basic earnings per share

                

Income from continuing operations

   $ 0.05     $ 0.13  

Income from discontinued operations

   $ —       $ —    
    


 


Basic earnings per share

   $ 0.05     $ 0.13  
    


 


Basic weighted average shares outstanding

     29,880       29,172  
    


 


Diluted earnings per share

                

Income from continuing operations

   $ 0.05     $ 0.13  

Income from discontinued operations

   $ —       $ —    
    


 


Diluted earnings per share

   $ 0.05     $ 0.13  
    


 


Diluted weighted average shares outstanding

     31,434       29,415  
    


 


 

Earnings per share numbers may not foot due to rounding.


IDX Systems Corporation

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Three Months Ended
March 31,


 
     2004

    2003

 

OPERATING ACTIVITIES

                

Net income from continuing operations

     1,577       3,716  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

                

Depreciation

     4,031       3,145  

Amortization

     406       580  

Deferred tax provision

     (2,340 )     (727 )

Increase in allowance for doubtful accounts

     544       294  

Tax benefit related to exercise of non-qualified stock options

     2,673       —    

Foreign currency transaction (gains) losses, net

     189       —    

Loss on disposition of equipment

     29       —    

Other

     52       75  

Changes in operating assets and liabilities:

                

Accounts receivable

     (24,454 )     647  

Prepaid expenses and other assets

     (10,083 )     (1,452 )

Accounts payable and accrued expenses

     5,462       (9,103 )

Federal and state income taxes

     285       1,488  

Deferred revenue

     21,890       989  
    


 


Net cash provided by (used in) operating activities

     261       (348 )

INVESTING ACTIVITIES

                

Purchase of property and equipment, net

     (3,785 )     (8,415 )

Other assets

     (1,584 )     (211 )
    


 


Net cash used in investing activities

     (5,369 )     (8,626 )

FINANCING ACTIVITIES

                

Proceeds from sale of common stock

     5,788       137  

Proceeds from debt issuance

     —         23,727  

Repayment of debt issuance

     —         (18,727 )
    


 


Net cash provided by financing activities

     5,788       5,137  

Effect of exchange rate fluctuations on cash and cash equivalents

     (23 )     —    
    


 


Increase (decrease) in cash, cash equivalents and marketable securities from continuing operations

     657       (3,837 )

Net cash provided by discontinued operations

     —         5,531  
    


 


Increase in cash, cash equivalents and marketable securities

     657       1,694  

Cash, cash equivalents and marketable securities at beginning of period

     104,604       54,435  
    


 


Cash, cash equivalents and marketable securities at end of period

   $ 105,261     $ 56,129