Catalyst Health Solutions, Inc. (ticker: CHSI, exchange: NASDAQ Global Select Market (.O))
News Release -
29-Jul-2003
HealthExtras Reports Record Second Quarter Results; Revenues Up 70% and Net Income Up 132% Over Prior Year ROCKVILLE, Md.--(BUSINESS WIRE)--July 29, 2003--HealthExtras, Inc.
(NASDAQ:HLEX), a pharmacy benefit management company, today announced
its financial results for the second quarter ended June 30, 2003.
Second Quarter Highlights
-- Net income for the second quarter 2003 was $2.2 million or
$.07 per share, a 132% increase over comparable after-tax
second quarter 2002 earnings of $947,000 ($1.5 million as
reported).
-- Revenues for the second quarter 2003 totaled $94.1 million, a
70% increase over second quarter 2002 revenues of $55.2
million.
-- Over 2.0 million prescriptions were processed during the
quarter and total earnings before interest, taxes,
depreciation, and amortization (EBITDA) were $4.3 million.
"We are pleased with the Company's financial performance," said
David T. Blair, Chief Executive Officer of HealthExtras. "This
quarter's strong financial performance was driven by new client
additions, high generic utilization, increased formulary compliance,
and the continued integration of PNNC, our most recent acquisition."
Operating income for the six months ended June 30, 2003 increased
to $6.9 million a 214% increase over the $2.2 million from the same
period in 2002. The financial results were consistent with
management's expectations, and the Company confirms that it is on
track to achieve its previously stated 2003 financial guidance of
approximately $375 million in revenues and earnings of $.30 per share.
The Company generated cash from operations of $13.0 million for
the six months ended June 30, 2003. "While year over year increases in
revenues and earnings are significant, it is also important to note
that segment margins and operating cash flow objectives are also on
target", added Blair.
About HealthExtras (www.healthextras.com)
HealthExtras, Inc., a pharmacy benefit management company,
currently provides benefits to over two million members and the
Company's clients include managed care organizations, large employer
groups, unions, government agencies and individual consumers.
The Company's integrated pharmacy benefit management services
include: claims processing, mail order services, benefit design
consultation, drug utilization review, formulary management and drug
data analysis services. Additionally, the Company operates a national
retail pharmacy network with over 53,000 participating pharmacies.
This press release contains forward-looking information. The
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Act of 1995.
Forward-looking statements may be significantly impacted by certain
risks and uncertainties described in HealthExtras' filings with the
Securities and Exchange Commission.
Financial Information Follows:
HealthExtras, Inc.
Balance Sheet Information as of June 30, 2003
--------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $26,162,251
Accounts receivable 39,824,162
Income taxes receivable 1,644,580
Deferred income taxes 1,286,313
Deferred charges 1,969,137
Other current assets 1,199,076
-------------
Total current assets 72,085,519
Fixed assets, net 3,398,537
Deferred income taxes 1,636,104
Intangible assets, net 13,777,773
Goodwill 33,666,142
Restricted cash 1,000,000
Other assets 840,909
-------------
Total assets $126,404,984
=============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $40,943,439
Accrued expenses and other current liabilities 2,231,203
Deferred revenue 5,227,282
-------------
Total current liabilities 48,401,924
Notes payable 14,000,000
-------------
Total liabilities 62,401,924
-------------
Stockholder's equity:
Common stock 324,141
Additional paid-in capital 70,810,251
Retained deficit (7,131,332)
-------------
Total stockholder's equity 64,003,060
-------------
Total liabilities and stockholders' equity $126,404,984
=============
Income Statement
For the quarter For the quarter
ended ended
June 30, 2002 June 30, 2003
Revenue $55,248,679 $94,114,780
---------------- ----------------
Direct expenses 44,658,926 83,863,324
Selling, general & administrative 9,003,208 6,492,387
---------------- ----------------
Total operating expenses 53,662,134 90,355,711
---------------- ----------------
Operating income 1,586,545 3,759,069
Interest expense, net 59,738 114,330
---------------- ----------------
Income before income taxes 1,526,807 3,644,739
Provision for income taxes - 1,407,000
---------------- ----------------
Net income $1,526,807 $2,237,739
================ ================
EPS - basic $0.05 $0.07
EPS - diluted $0.05 $0.07
Weighted average common shares 32,291 32,403
basic (in thousands)
Weighted average common shares 32,501 33,280
diluted (in thousands)
CONTACT: HealthExtras, Inc. Aaron Finch, 301-548-2900
AFinch@HealthExtras.com
SOURCE: HealthExtras, Inc.
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Catalyst Health Solutions, Inc.
