EX-99.1 2 a04-12758_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

 

HOLD FOR RELEASE UNTIL 7:30am ET November 3, 2004

 

A.D.A.M. Announces Third Quarter Earnings of $0.05 Per Share

 

Revenues increase 22%, Healthcare-related revenues climb 47%

 

Atlanta, GA — November 3, 2004 — A.D.A.M., Inc. (Nasdaq: ADAM), a leading developer of interactive health information and decision support tools for the healthcare and education markets, today announced financial results for the third quarter ended September 30, 2004.

 

A.D.A.M, Inc. reported net income for the third quarter of 2004 of $405,000, or $0.05 per fully diluted share, as compared to net income of $86,000, or $0.01 per fully diluted share, in the year ago quarter.  Revenues for the quarter ended September 30, 2004 were $2,278,000 compared to revenues of $1,873,000 in the year-ago period, an increase of approximately 22%.

 

A.D.A.M. reported net income for the nine-month period ended September 30, 2004 of $945,000, or $0.11 per fully diluted share, as compared to net income of $511,000, or $0.06 per fully diluted share, for the nine months ended September 30, 2003.  Revenues for the nine-month period ended September 30, 2004 were $5,962,000 compared to revenues of $6,151,000 during the same period last year.  The decrease in revenues for the nine-month period was due to the expiration of a content license agreement with WebMD Corp. that contributed approximately $600,000 of revenue in the first quarter of 2003.

 

Revenues from the Company’s healthcare-related business increased approximately 47%, to $1,567,000 for the three months ended September 30, 2004 as compared to $1,063,000 for the year ago quarter. Revenues from healthcare represent approximately 69% of the Company’s total revenues for the three-month period ended September 30, 2004.

 

On a sequential performance basis, revenues for the third quarter of 2004 increased approximately 18% as compared to the second quarter of 2004, net income increased approximately 29%, and cash and investments increased approximately 23%.  As of September 30, 2004, the Company’s cash and investments were $6,411,000, an increase of $1,857,000 as compared to $4,554,000 as of December 31, 2003.

 

Robert S. Cramer, Jr., A.D.A.M.’s Chairman and CEO, commented: “Our results today demonstrate A.D.A.M.’s ability to grow its business. With a number of new initiatives in place, and seven consecutive quarters of profitability behind us, we anticipate a strong year-end finish and believe we are well positioned for 2005.”

 

Conference Call Information

 

A.D.A.M. will hold its third quarter earnings conference call today, November 3, 2004, at 10:00 A.M. ET. To participate in the call, please dial (877) 829-1372 approximately five minutes prior to the start time.  International callers may dial (706) 679-8134.

 

 


 

Forward-Looking Statements

 

Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements, especially revenue, net income and cash flow forecasts, involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors that could affect the company’s actual results, performance or developments include general economic conditions, development of the Internet as a source of health information, pricing actions taken by competitors, demand for the company’s health information, and changes in laws and regulations that impact how the company conducts its business. A.D.A.M. disclaims any obligation or duty to update any of its forward-looking statements.

 

About A.D.A.M., Inc.

 

For more than a decade, A.D.A.M.’s unique, visually engaging health content, decision support tools and educational products have been helping millions of people “get smart” about their health and wellness. With one of the largest consumer-oriented medical information libraries in the world, A.D.A.M. markets its solutions to leading healthcare and pharmaceutical organizations, government, employers, and educational institutions. To learn more about A.D.A.M., visit www.adam.com or call 1-800-408-ADAM.

 

For further information, contact:

 

Victor Thompson

A.D.A.M., Inc.

(770) 425-7877

 

###

 

 


 

A.D.A.M., Inc.

Condensed Consolidated Statements of Operations

and Summary Balance Sheet Data

 

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended

 

Three Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

$

2,278

 

$

1,873

 

$

5,962

 

$

6,151

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

457

 

420

 

1,185

 

1,296

 

General and administrative

 

458

 

487

 

1,206

 

1,312

 

Product and content development

 

407

 

281

 

1,007

 

1,124

 

Sales and marketing

 

430

 

392

 

1,227

 

1,353

 

Depreciation and amortization

 

146

 

217

 

443

 

588

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

1,898

 

1,797

 

5,068

 

5,673

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

380

 

76

 

894

 

478

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

25

 

10

 

51

 

33

 

 

 

 

 

 

 

 

 

 

 

Net income

 

405

 

86

 

945

 

511

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.05

 

$

0.01

 

$

0.12

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of common shares outstanding

 

7,904

 

7,421

 

7,881

 

7,163

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.05

 

$

0.01

 

$

0.11

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number of common shares outstanding

 

8,735

 

8,325

 

8,649

 

7,973

 

 

 

 

 

Summary Balance Sheet Data

 

 

 

 

 

 

 

 

 

9/30/2004

 

12/31/2003

 

Cash and cash equivalents

 

$

2,686

 

$

4,554

 

Accounts receivable, net

 

1,316

 

1,407

 

Investments, short term

 

2,725

 

—

 

Total current assets

 

7,196

 

6,355

 

Investments, long term

 

1,000

 

—

 

Goodwill

 

2,043

 

2,043

 

Total assets

 

12,073

 

10,496

 

Deferred revenue

 

2,854

 

2,295

 

Short term debt

 

12

 

11

 

Total current liabilities

 

3,612

 

2,940

 

Total liabilities

 

3,639

 

2,976

 

Shareholders' equity

 

8,434

 

7,520

 

Working capital

 

3,584

 

3,415