EX-99.1 2 a05-3685_1ex99d1.htm EX-99.1

 

Exhibit 99.1

 

A.D.A.M., Inc. Reports Fourth Quarter and Year End 2004 Results

Revenues increase 42%, Fourth quarter diluted earnings of $0.07

 

FOR RELEASE FEBRUARY 15, 2005 10:00AM ET

 

ATLANTA----Feb. 15, 2005--A.D.A.M., Inc. (Nasdaq: ADAM - News), a leading developer of interactive health information and decision support tools for the healthcare and education markets, today announced its financial results for the fourth quarter and year ended December 31, 2004.

 

Highlights for the fourth quarter and the year include:

 

•                    Net income for the fourth quarter ended December 31, 2004 was $676,000, or $0.07 per share on a fully diluted basis, compared to net income of $97,000, or $0.01 per share on a fully diluted basis, in the year ago period.

 

•                    Net income for the year ended December 31, 2004 was $1,621,000, or $0.19 per share on a fully diluted basis, compared to net income of $608,000, or $0.07 per share on a fully diluted basis, for the year ended December 31, 2003.

 

•                    Operating margins for the year ended December 31, 2004 improved to 18% as compared to 7% for the year ended December 31, 2003.

 

•                    Healthcare licensing revenues increased approximately 35% during 2004 compared to 2003.

 

•                    The Company’s cash and investments grew to $6,968,000 as of December 31, 2004 compared to $4,554,000 at December 31, 2003, an increase of $2,414,000.

 

Revenues for the fourth quarter ended December 31, 2004 were $2,471,000 as compared to revenues of $1,738,000 in the year-ago quarter, an increase of 42%. Revenues for the year ended December 31, 2004 were $8,433,000 compared to revenues of $7,889,000 for the year ended December 31, 2003, an increase of 7%.

 

“A.D.A.M.’s results reflect the solid progress that we have made in moving our company from a dependency on a few large customers to having a revenue base that touches many areas of the healthcare industry,” commented Robert S. Cramer, Jr., A.D.A.M.’s Chairman and Chief Executive Officer. “Today, A.D.A.M. is a highly competitive brand that offers our healthcare clients and partners what we believe to be the best and most robust interactive health information products and decision support tools available.

 

“In 2005, we plan to continue to focus on revenue growth and expansion into new healthcare verticals, particularly into the health plan and corporate wellness markets. With a list of new products, including our Illustrated Family Health Guide book, our Health Risk Assessment products, and A.D.A.M. Interactive Anatomy 4 for education, nearly $7 million in cash and investments and eight consecutive quarters of profitability, we believe that we are well positioned.”

 

 


 

The Company also announced that it has suspended the stock repurchase program that it announced in May 2004. The Company repurchased an aggregate of 269,259 shares of its common stock at an average purchase price of $4.04 per share during the repurchase program.

 

The Company will be hosting a conference call to further discuss its results this morning, February 15, 2005 at 10:00 a.m. Eastern Time. To participate, please dial (877) 829-1394.

 

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.

 

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 regulatory 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.

 

Contact:

 

 

A.D.A.M., Inc., Atlanta

 

Victor Thompson

 

770-321-4326

 

 


 

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

 

Year Ended

 

Year Ended

 

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

$

2,471

 

$

1,738

 

$

8,433

 

$

7,889

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

532

 

373

 

1,717

 

1,668

 

General and administrative

 

291

 

461

 

1,497

 

1,774

 

Product and content development

 

407

 

250

 

1,414

 

1,375

 

Sales and marketing

 

477

 

390

 

1,704

 

1,743

 

Depreciation and amortization

 

119

 

179

 

562

 

767

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

1,826

 

1,653

 

6,894

 

7,327

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

645

 

85

 

1,539

 

562

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

31

 

12

 

82

 

46

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

676

 

$

97

 

$

1,621

 

$

608

 

 

 

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.09

 

$

0.01

 

$

0.21

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of common shares outstanding

 

7,871

 

7,658

 

7,879

 

7,306

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per common share

 

$

0.07

 

$

0.01

 

$

0.19

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number of common shares outstanding

 

9,045

 

8,619

 

8,742

 

8,169

 

 

 

 

 

Summary Balance Sheet Data

 

 

 

 

 

 

 

 

 

12/31/2004

 

12/31/2003

 

Cash and cash equivalents

 

$

3,242

 

$

4,554

 

Accounts receivable-net

 

2,112

 

1,407

 

Investments, short term

 

2,726

 

—

 

Total current assets

 

8,624

 

6,355

 

Investments, long term

 

1,000

 

—

 

Goodwill

 

2,043

 

2,043

 

Total assets

 

13,244

 

10,496

 

Deferred revenue

 

3,615

 

2,295

 

Short term debt

 

17

 

11

 

Total current liabilities

 

4,358

 

2,940

 

Total liabilities

 

4,395

 

2,976

 

Shareholders' equity

 

8,849

 

7,520

 

Working capital

 

4,266

 

3,415