delicious
Digg
Facebook
LinkedIn
Mixx
Twitter
Yahoo! Buzz
ATLANTA, Feb 25, 2009 (BUSINESS WIRE) -- MedAssets, Inc. (NASDAQ: MDAS) today announced results for its fourth quarter and year ended December 31, 2008, as summarized below:
| Full Year | Full Year | ||||||||||
| (In millions, except per share) | 4Q-08 | 4Q-07 | 2008 | 2007 | |||||||
| Net Revenue: | |||||||||||
| Revenue Cycle Management | $ 49.5 | $ 26.1 | $ 151.7 | $ 80.5 | |||||||
| Spend Management | 34.2 | 27.8 | 127.9 | 108.0 | |||||||
| Total Net Revenue | 83.7 | 53.9 | 279.7 | 188.5 | |||||||
| Net Income (loss) | 6.0 | (3.8 | ) | 10.8 | (9.8 | ) | |||||
| Diluted earnings(loss) per share(EPS) | 0.11 | (0.20 | ) | 0.21 | (0.75 | ) | |||||
| Non-GAAP adjusted EBITDA | 29.4 | 15.7 | 89.7 | 60.6 | |||||||
| Non-GAAP adjusted diluted EPS | 0.19 | nm* | 0.55 | nm* | |||||||
| Non-GAAP cash diluted EPS | $ 0.21 | nm* | $ 0.65 | nm* | |||||||
(* Not meaningful; see below) | |||||||||||
Net Revenue
Fourth Quarter
Total net revenue for the fourth quarter of 2008 increased 55.2% to $83.7 million from $53.9 million in the fourth quarter of 2007, driven primarily by revenue from the Accuro acquisition, an increase in recurring subscription and service fees in the Revenue Cycle Management segment, and continued growth in the Spend Management segment from supply chain services, consulting and technology solutions.
In comparing quarter-over-quarter organic growth, the Company's total net revenue increased 18.4% to $83.7 million in the fourth quarter of 2008 when compared to non-GAAP acquisition-affected (see definition at end of this press release) total net revenue of $70.7 million in the same quarter of 2007.
Full Year
Total net revenue for the year ended December 31, 2008 increased 48.3% to $279.7 million from $188.5 million in 2007. The year-over-year improvement was driven primarily by acquisitions as well as the other factors noted above for the fourth quarter.
In comparing year-over-year organic growth, the Company's non-GAAP acquisition-affected total net revenue for full-year 2008 increased 12.5% to $308.2 million from $274.1 million in 2007.
Non-GAAP Adjusted EBITDA
Fourth Quarter
In the fourth quarter of 2008, non-GAAP total adjusted EBITDA was $29.4 million, or 35.2% of total net revenue, an 87.0% increase over non-GAAP total adjusted EBITDA of $15.7 million, or 29.2% of total net revenue, in the fourth quarter of 2007, driven primarily by revenue growth, operating leverage and the impact of the Accuro acquisition.
In comparing quarter-over-quarter organic growth, the Company's total adjusted EBITDA of $29.4 million increased 38.6% when compared to fourth quarter 2007 non-GAAP acquisition-affected total adjusted EBITDA of $21.2 million, or 30.0% of non-GAAP acquisition-affected total net revenue.
Full Year
For the year ended December 31, 2008, non-GAAP total adjusted EBITDA increased 48.1% to $89.7 million, or 32.1% of total net revenue, versus non-GAAP total adjusted EBITDA of $60.6 million, or 32.1% of total net revenue, in full-year 2007. The year-over-year non-GAAP total adjusted EBITDA growth was driven primarily by acquisitions as well as the other factors noted above for the fourth quarter.
In comparing year-over-year organic growth, the Company's full-year 2008 non-GAAP acquisition-affected total adjusted EBITDA was $99.8 million, or 32.4% of non-GAAP acquisition-affected total net revenue, an increase of 17.6% from $84.9 million, or 31.0% of non-GAAP acquisition-affected total net revenue, in 2007.
Net Income & Earnings per Share
Fourth Quarter
Net income attributable to common stockholders in the fourth quarter of 2008 was $6.0 million, or $0.11 per diluted share, versus a net loss attributable to common stockholders of $3.8 million, or a loss of $0.20 per diluted share, in the fourth quarter of 2007.
Non-GAAP adjusted diluted EPS in the fourth quarter of 2008, which is defined as diluted EPS excluding non-cash acquisition-related intangible amortization and non-recurring expense items on a tax-adjusted basis, was $0.19 per diluted share. Non-GAAP cash diluted EPS, which additionally excludes non-cash tax-adjusted share-based compensation expense, was $0.21 per diluted share.
Full Year
For full-year 2008, net income attributable to common stockholders was $10.8 million, or $0.21 per diluted share, versus a net loss attributable to common stockholders of $9.8 million, or a loss of $0.75 per diluted share, in full-year 2007.
Non-GAAP adjusted diluted EPS in 2008 was $0.55 per diluted share. Non-GAAP cash diluted EPS in full-year 2008 was $0.65 per diluted share.
* The comparison of 2007 non-GAAP adjusted diluted EPS and non-GAAP cash diluted EPS to 2008 performance is not meaningful due to the significant non-recurring preferred stock dividends accrued in 2007 prior to the Company's initial public offering in December of that year.
Cash Flow and Capital Resources
Net cash provided by operating activities for full-year 2008 rose 25.2% to $52.1 million from $41.6 million in 2007. The Company's balance sheet as of December 31, 2008 included $245.6 million in total bank debt, and leverage was approximately 2.5 times trailing non-GAAP acquisition-affected adjusted EBITDA.
Reaffirming 2009 Guidance
MedAssets reaffirmed its full-year 2009 financial outlook, as follows:
| 12 Months | |||
| (In millions, except EPS) | ended 12/31/09 | ||
| Net Revenue: | |||
| Revenue Cycle Management | $ 207 - 213 | ||
| Spend Management | 137 - 143 | ||
| Total Net Revenue | 346 - 354 | ||
| Diluted EPS | 0.27 - 0.35 | ||
| Non-GAAP adjusted EBITDA | 111 - 117 | ||
| Non-GAAP adjusted diluted EPS | 0.56 - 0.64 | ||
| Non-GAAP cash diluted EPS | $ 0.74 - 0.82 |
At December 31, 2008, the Company's rolling 12-month non-GAAP contracted revenue was an estimated $301.1 million ($174.6 million from the Revenue Cycle Management segment and $126.5 million from the Spend Management segment). This is an increase of approximately 1.0% on a consolidated basis when compared to the rolling 12-month total as of September 30, 2008, and was anticipated given the strength of the Company's financial results in the fourth quarter of 2008. The December 31, 2008 non-GAAP contracted revenue of $301.1 million equates to approximately 86% of the midpoint of the Company's 2009 total net revenue guidance range.
Conference Call Information
Time/Date: 5:00 p.m. ET today, Wednesday, February 25, 2009
Phone: 866-811-1812 (or 706-902-0609 international), conference code 82066755
Webcast: http://ir.medassets.com, "Events & Presentations" page
Replay: Webcast will be archived for at least 30 days, or call 800-642-1687 (conf code 82066755)
The Company intends to file its Form 10-K for the year ended December 31, 2008 with the Securities and Exchange Commission on or about March 11, 2009, and the Form 10-K will contain additional information about the Company's results of operations.
About MedAssets
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing spend management and revenue cycle solutions that help control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. MedAssets serves more than 125 health systems, 3,300 hospitals and 30,000 non-acute care healthcare providers. For more information, go to www.medassets.com.
Use of Non-GAAP Financial Information
In order to provide investors with greater insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, the Company supplements its consolidated financial statements presented on a GAAP basis with non-GAAP financial information, including: EBITDA, adjusted EBITDA, adjusted diluted EPS, cash diluted EPS, acquisition-affected total net revenue, acquisition-affected EBITDA, acquisition-affected total adjusted EBITDA, and contracted revenue.
Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures, where possible, are included in the accompanying financial schedules. Also, see "Use of Non-GAAP Financial Measures" following these financial schedules for more information.
Safe Harbor Statement
This Press Release contains statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this Press Release include the intent, belief or current expectations of the Company and its management team with respect to the Company's future business operations that include, but are not limited to:2009 projections, costs and revenue growth, margin and other financial projections; contracted revenue forecasts; and the Company's ability to successfully integrate and capitalize on synergies associated with its past acquisitions. Investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those contemplated by the forward-looking statements in this Press Release include, but are not limited to: failure to realize improvements in performance, efficiency and profitability; failure to complete anticipated sales under negotiations; failure to successfully implement revenue backlog; lack of revenue growth; client losses; and adverse developments with respect to the operation or performance of the Company's business units or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this Press Release can also be found in the Company's Risk Factor disclosures in its Form 10-K for the year ended December 31, 2008 that will be filed on or about March 11, 2009 with the Securities and Exchange Commission. The Company disclaims any responsibility to update any forward-looking statements.
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| In 000s, except per share data | Three Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2008 | 2007 | % Change | 2008 | 2007 | % Change | ||||||||||||||
| Unaudited | Unaudited | Unaudited | Audited | ||||||||||||||||
| Revenue: | |||||||||||||||||||
| Administrative fees, net | $ 27,410 | $ 23,826 | 15.0 | % | $ 105,765 | $ 94,792 | 11.6 | % | |||||||||||
| Other service fees | 56,281 | 30,095 | 87.0 | % | 173,891 | 93,726 | 85.5 | % | |||||||||||
| Total net revenue | 83,691 | 53,921 | 55.2 | % | 279,656 | 188,518 | 48.3 | % | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Cost of revenue | 15,296 | 10,138 | 51,548 | 27,983 | |||||||||||||||
| Product development expenses | 5,366 | 2,173 | 16,393 | 7,785 | |||||||||||||||
| Selling and marketing expenses | 11,109 | 9,073 | 43,205 | 35,748 | |||||||||||||||
| General and administrative expenses | 25,427 | 20,415 | 91,481 | 64,817 | |||||||||||||||
| Depreciation | 2,742 | 1,845 | 9,793 | 7,115 | |||||||||||||||
| Amortization of intangibles | 7,325 | 4,845 | 23,442 | 15,778 | |||||||||||||||
| Impairment of property and equipment, intangibles and in process research and development | |||||||||||||||||||
| 193 | 9 | 2,272 | 1,204 | ||||||||||||||||
| Total operating expenses | 67,458 | 48,498 | 39.1 | % | 238,134 | 160,430 | 48.4 | % | |||||||||||
| Operating income | 16,233 | 5,423 | 199.3 | % | 41,522 | 28,088 | 47.8 | % | |||||||||||
| Other income (expense): | |||||||||||||||||||
| Interest (expense) | (6,151 | ) | (6,240 | ) | (21,271 | ) | (20,391 | ) | |||||||||||
| Other income (expense) | 180 | 1,014 | (1,921 | ) | 3,115 | ||||||||||||||
| Income before income taxes | 10,262 | 197 | 18,330 | 10,812 | |||||||||||||||
| Income tax expense | 4,230 | 323 | 7,489 | 4,516 | |||||||||||||||
| Net income (loss) | 6,032 | (126 | ) | 10,841 | 6,296 | ||||||||||||||
| Preferred stock dividends and accretion a | - | (3,649 | ) | - | (16,094 | ) | |||||||||||||
| Net income (loss) attributable to common stockholders | $ 6,032 | $ (3,775 | ) | $ 10,841 | $ (9,798 | ) | |||||||||||||
| Basic and diluted income (loss) per share: | |||||||||||||||||||
| Basic net income (loss) attributable to common stockholders | $ 0.11 | $ (0.20 | ) | $ 0.22 | $ (0.75 | ) | |||||||||||||
| Diluted net income (loss) attributable to common stockholders | $ 0.11 | $ (0.20 | ) | $ 0.21 | $ (0.75 | ) | |||||||||||||
| Weighted average shares -- basic b | 53,866 | 18,761 | 49,843 | 12,984 | |||||||||||||||
| Weighted average shares -- diluted b | 55,976 | 18,761 | 52,314 | 12,984 | |||||||||||||||
| (a) The Company's participating preferred stock converted to common stock on December 18, 2007 as the result of the Company's initial public offering. As a result of this conversion, the Company is no longer obligated to pay the associated accrued preferred dividend, and all rights of the former preferred stockholders to accrued and unpaid preferred dividends were terminated. | |||||||||||||||||||
| (b) For the three months and twelve months ended December 31, 2007, common stock equivalents are not included in the weighted average shares outstanding since the effect would be antidilutive due to net losses attributable to common stockholders in the period. | |||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, | December 31, | |||||||
| In $000s, except shares | 2008 | 2007 | ||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | $ | 5,429 | $ | 136,972 | ||||
| Accounts receivable, net of allowances of $2,247 and $3,506 as of December 31, | ||||||||
| 2008 and December 31, 2007 | 55,048 | 33,679 | ||||||
| Deferred tax asset, current | 13,780 | 15,049 | ||||||
| Prepaid expenses and other current assets | 5,997 | 4,508 | ||||||
| Total current assets | 80,254 | 190,208 | ||||||
| Property and equipment, net | 42,417 | 32,490 | ||||||
| Other long term assets | ||||||||
| Goodwill | 508,748 | 232,822 | ||||||
| Intangible assets, net | 124,340 | 62,491 | ||||||
| Other | 18,101 | 8,368 | ||||||
| Other long term assets | 651,189 | 303,681 | ||||||
| Total assets | $ | 773,860 | $ | 526,379 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 6,725 | $ | 4,562 | ||||
| Accrued revenue share obligation and rebates | 29,698 | 29,998 | ||||||
| Accrued payroll and benefits | 21,837 | 13,402 | ||||||
| Other accrued expenses | 6,981 | 5,612 | ||||||
| Deferred revenue, current portion | 24,280 | 19,791 | ||||||
| Deferred purchase consideration | 19,361 | - | ||||||
| Current portion of notes payable | 30,277 | 2,020 | ||||||
| Current portion of finance obligation | 149 | 128 | ||||||
| Total current liabilities | 139,308 | 75,513 | ||||||
| Notes payable, less current portion | 215,349 | 196,264 | ||||||
| Finance obligation, less current portion | 9,860 | 10,009 | ||||||
| Deferred revenue, less current portion | 6,411 | 3,229 | ||||||
| Deferred tax liability | 15,817 | 5,868 | ||||||
| Other long term liabilities | 4,176 | 5,981 | ||||||
| Total liabilities | 390,921 | 296,864 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $0.01 par value, 150,000,000 shares authorized; 53,917,000 and 44,429,000 shares issued and outstanding as of December 31, 2008 and December 31, 2007, respectively | ||||||||
| 539 | 444 | |||||||
| Additional paid in capital | 605,340 | 464,313 | ||||||
| Notes receivable from stockholders | - | (614 | ) | |||||
| Accumulated other comprehensive loss | (2,088 | ) | (2,935 | ) | ||||
| Accumulated deficit | (220,852 | ) | (231,693 | ) | ||||
| Total stockholders' equity | 382,939 | 229,515 | ||||||
| Total liabilities and stockholders' equity | $ | 773,860 | $ | 526,379 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| In $000s | December 31, | December 31, | ||||||
| 2008 | 2007 | |||||||
| Unaudited | Audited | |||||||
| Operating activities: | ||||||||
| Net income | $ | 10,841 | $ | 6,296 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Bad debt expense | 1,906 | 1,076 | ||||||
| Impairment of property and equipment | 243 | 9 | ||||||
| Depreciation | 10,503 | 7,469 | ||||||
| Amortization of intangibles | 24,316 | 16,571 | ||||||
| (Gain) loss on sale of assets | (120 | ) | 56 | |||||
| Noncash stock compensation expense | 8,550 | 5,611 | ||||||
| Excess tax benefit from exercise of stock options | (1,866 | ) | (2,894 | ) | ||||
| Amortization of debt issuance costs | 1,374 | 452 | ||||||
| Noncash interest expense, net | 1,419 | 520 | ||||||
| Impairment of intangibles | 2,029 | 1,195 | ||||||
| Deferred income tax expense | 5,132 | 367 | ||||||
| Changes in assets and liabilities: | (12,199 | ) | 4,896 | |||||
| Cash provided by operating activities | 52,128 | 41,624 | ||||||
| Investing activities: | ||||||||
| Purchases of property, equipment, and software | (6,895 | ) | (9,862 | ) | ||||
| Capitalized software development costs | (11,129 | ) | (6,829 | ) | ||||
| Acquisitions, net of cash acquired | (209,972 | ) | (90,963 | ) | ||||
| Cash used in investing activities | (227,996 | ) | (107,654 | ) | ||||
| Financing activities: | ||||||||
| Decrease in restricted cash | 20 | - | ||||||
| Proceeds from notes payable | 198,999 | 160,188 | ||||||
| Repayment of notes payable and capital lease obligations | (151,658 | ) | (132,668 | ) | ||||
| Repayment of finance obligation | (648 | ) | (647 | ) | ||||
| Debt issuance costs | (6,167 | ) | (1,590 | ) | ||||
| Payment on note receivable from stockholders | 92 | 248 | ||||||
| Excess tax benefit from exercise of stock options | 1,866 | 2,894 | ||||||
| Payment of dividend | - | (70,000 | ) | |||||
| Issuance of series J preferred stock, net of offering costs | - | 1,000 | ||||||
| Issuance of common stock, net of offering costs | 1,841 | 220,098 | ||||||
| Cash provided by financing activities | 44,345 | 179,523 | ||||||
| Net (decrease) increase in cash and cash equivalents | (131,523 | ) | 113,493 | |||||
| Cash and cash equivalents, beginning of period | 136,952 | 23,459 | ||||||
| Cash and cash equivalents, end of period | $ | 5,429 | $ | 136,952 | ||||
| SUPPLEMENTAL SEGMENT REPORTING | ||||||||||||||||
| RECONCILIATION OF SELECTED NON-GAAP MEASURES TO GAAP MEASURES | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| In $000s | Three Months Ended December 31, | |||||||||||||||
| 2008 | 2007 | % Change | ||||||||||||||
| Net revenue | ||||||||||||||||
| Revenue Cycle Management ("RCM") | $ | 49,499 | $ | 26,118 | 89.5 | % | ||||||||||
| Spend Management | 34,192 | 27,803 | 23.0 | % | ||||||||||||
| Total net revenue | 83,691 | 53,921 | 55.2 | % | ||||||||||||
| Acquisition-related RCM adjustments c | - | 16,765 | ||||||||||||||
| Total non-GAAP acquisition-affected net revenue | $ | 83,691 | $ | 70,686 | 18.4 | % | ||||||||||
| Non-GAAP adjusted EBITDA | % margin | % margin | ||||||||||||||
| Revenue Cycle Management | $ | 17,332 | 35.0 | % | $ | 6,574 | 25.2 | % | 163.6 | % | ||||||
| Spend Management | 17,627 | 51.6 | % | 13,138 | 47.3 | % | 34.2 | % | ||||||||
| Corporate | (5,510 | ) | (3,966 | ) | 38.9 | % | ||||||||||
| Total non-GAAP Adjusted EBITDA | $ | 29,449 | 35.2 | % | $ | 15,746 | 29.2 | % | 87.0 | % | ||||||
| Acquisition-related RCM adjustments c | - | 5,495 | ||||||||||||||
| Total non-GAAP acquisition-affected adjusted EBITDA | $ | 29,449 | 35.2 | % | $ | 21,241 | 30.0 | % | 38.6 | % | ||||||
| Twelve Months Ended December 31, | ||||||||||||||||
| 2008 | 2007 | % Change | ||||||||||||||
| Net revenue | ||||||||||||||||
| Revenue Cycle Management ("RCM") | $ | 151,717 | $ | 80,512 | 88.4 | % | ||||||||||
| Spend Management | 127,939 | 108,006 | 18.5 | % | ||||||||||||
| Total net revenue | 279,656 | 188,518 | 48.3 | % | ||||||||||||
| Acquisition-related RCM adjustments c | 28,540 | 85,539 | ||||||||||||||
| Total non-GAAP acquisition-affected net revenue | $ | 308,196 | $ | 274,057 | 12.5 | % | ||||||||||
| Non-GAAP adjusted EBITDA | % margin | % margin | ||||||||||||||
| Revenue Cycle Management | $ | 43,375 | 28.6 | % | $ | 22,711 | 28.2 | % | 91.0 | % | ||||||
| Spend Management | 64,175 | 50.2 | % | 50,632 | 46.9 | % | 26.7 | % | ||||||||
| Corporate | (17,834 | ) | (12,772 | ) | 39.6 | % | ||||||||||
| Total non-GAAP Adjusted EBITDA | $ | 89,716 | 32.1 | % | $ | 60,571 | 32.1 | % | 48.1 | % | ||||||
| Acquisition-related RCM adjustments c | 10,103 | 24,330 | ||||||||||||||
| Total non-GAAP acquisition-affected adjusted EBITDA | $ | 99,819 | 32.4 | % | $ | 84,901 | 31.0 | % | 17.6 | % | ||||||
| (c) Acquisition-related RCM adjustments reflect the historical results of the acquired companies' operations from the beginning of each period presented to the date of acquisition, inclusive of certain purchase accounting adjustments. | ||||||||||||||||
| See "Use of Non-GAAP Financial Measures" following financial schedules for more information on non-GAAP measures. | ||||||||||||||||
| SUPPLEMENTAL REPORTING OF ADJUSTED EBITDA | |||||||||||||||||
| RECONCILIATION OF SELECTED NON-GAAP MEASURES TO GAAP MEASURES | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| In $000s | Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | ||||||||||||||
| ACTUAL RESULTS | Unaudited | Unaudited | Unaudited | Audited | |||||||||||||
| Net Income (loss) | $ | 6,032 | $ | (126 | ) | $ | 10,841 | $ | 6,296 | ||||||||
| Depreciation | 2,742 | 1,845 | 9,793 | 7,115 | |||||||||||||
| Amortization of intangibles | 7,325 | 4,845 | 23,442 | 15,778 | |||||||||||||
| Amortization of intangibles (included in cost of revenue) | 586 | 378 | 1,581 | 1,145 | |||||||||||||
| Interest expense, net | 6,108 | 5,717 | 19,823 | 18,213 | |||||||||||||
| Income tax expense | 4,230 | 323 | 7,489 | 4,516 | |||||||||||||
| Non-GAAP EBITDA | $ | 27,023 | $ | 12,982 | $ | 72,969 | $ | 53,063 | |||||||||
| Impairment of intangibles | 193 | 9 | 2,272 | 1,204 | |||||||||||||
| Share-based compensation | 1,959 | 2,720 | 8,550 | 5,611 | |||||||||||||
| Rental income from capitalized building lease | (109 | ) | (109 | ) | (438 | ) | (438 | ) | |||||||||
| Purchase accounting adjustments | 383 | 144 | 2,449 | 1,131 | |||||||||||||
| Interest rate swap cancellation | - | - | 3,914 | - | |||||||||||||
| Non-GAAP adjusted EBITDA | $ | 29,449 | $ | 15,746 | $ | 89,716 | $ | 60,571 | |||||||||
| NON-GAAP ACQUISITION-AFFECTED RESULTS | |||||||||||||||||
| Net Income (loss) | $ | 6,032 | $ | (126 | ) | $ | 10,841 | $ | 6,296 | ||||||||
| Non-GAAP acquisition-related net loss | - | (55 | ) | (1,674 | ) | (9,559 | ) | ||||||||||
| Non-GAAP acquisition-affected net income (loss) | 6,032 | (181 | ) | 9,167 | (3,263 | ) | |||||||||||
| Depreciation d | 2,742 | 2,194 | 10,415 | 8,838 | |||||||||||||
| Amortization of intangibles d | 7,325 | 8,904 | 29,646 | 33,709 | |||||||||||||
| Amortization of intangibles (included in cost of revenue) d | 586 | 378 | 1,581 | 1,848 | |||||||||||||
| Interest expense, net d | 6,108 | 8,232 | 24,112 | 34,385 | |||||||||||||
| Income tax expense d | 4,230 | (1,693 | ) | 6,456 | (1,367 | ) | |||||||||||
| Non-GAAP acquisition-affected EBITDA | $ | 27,023 | $ | 17,834 | $ | 81,377 | $ | 74,150 | |||||||||
| Impairment of intangibles d | 193 | 9 | 2,272 | 1,204 | |||||||||||||
| Share-based compensation d | 1,959 | 3,007 | 9,067 | 7,192 | |||||||||||||
| Rental income from capitalized building lease d | (109 | ) | (109 | ) | (438 | ) | (438 | ) | |||||||||
| Purchase accounting adjustments d | 383 | 500 | 3,627 | 2,793 | |||||||||||||
| Interest rate swap cancellation d | - | - | 3,914 | - | |||||||||||||
| Non-GAAP acquisition-affected adjusted EBITDA | $ | 29,449 | $ | 21,241 | $ | 99,819 | $ | 84,901 | |||||||||
| (d) Figures are non-GAAP except for the three months ended December 31, 2008 | |||||||||||||||||
| See "Use of Non-GAAP Financial Measures" following financial schedules for more information on non-GAAP measures. | |||||||||||||||||
| SUPPLEMENTAL EARNINGS PER SHARE REPORTING | ||||||
| RECONCILIATION OF SELECTED NON-GAAP MEASURES TO GAAP MEASURES | ||||||
| (UNAUDITED) | ||||||
| Three Months Ended | 12 Months Ended | |||||
| Per share data | December 31, | December 31, | ||||
| 2008 | 2008 | |||||
| Diluted EPS attributable to common stockholders | $ 0.11 | $ 0.21 | ||||
| Non-cash, tax-adjusted Impairment of intangibles | - | 0.03 | ||||
| Tax-adjusted interest rate swap cancellation | - | 0.04 | ||||
| Non-cash, tax-adjusted acquisition-related intangible amortization | 0.08 | 0.27 | ||||
| Non-GAAP adjusted diluted EPS | 0.19 | 0.55 | ||||
| Non-cash, tax-adjusted share-based compensation | 0.02 | 0.10 | ||||
| Non-GAAP cash diluted EPS | $ 0.21 | $ 0.65 | ||||
| Weighted average shares - diluted | 55,976 | 52,314 | ||||
| SUPPLEMENTAL 2009 ADJUSTED EBITDA GUIDANCE | ||||||
| RECONCILIATION OF SELECTED NON-GAAP MEASURES TO GAAP MEASURES | ||||||
| (UNAUDITED) | ||||||
| Guidance Range for | ||||||
| 12 Months Ending | ||||||
| In $000s | December 31, | |||||
| 2009 | ||||||
| (Low) | (High) | |||||
| Net Income | $ 15,300 | $ 19,800 | ||||
| Depreciation | 15,200 | 14,800 | ||||
| Amortization of intangibles | 28,000 | 28,000 | ||||
| Amortization of intangibles (included in cost of revenue) | 3,200 | 3,200 | ||||
| Interest expense, net | 21,400 | 20,800 | ||||
| Income tax expense | 10,300 | 13,200 | ||||
| Non GAAP EBITDA | 93,400 | 99,800 | ||||
| Share-based compensation | 17,500 | 17,100 | ||||
| Rental income from capitalized building lease | (400 | ) | (400 | ) | ||
| Purchase accounting adjustments | 500 | 500 | ||||
| Non-GAAP adjusted EBITDA | $ 111,000 | $ 117,000 | ||||
| SUPPLEMENTAL 2009 EARNINGS PER SHARE GUIDANCE | ||||||
| RECONCILIATION OF SELECTED NON-GAAP MEASURES TO GAAP MEASURES | ||||||
| (UNAUDITED) | ||||||
| Guidance Range for | ||||||
| 12 Months Ending | ||||||
| December 31, | ||||||
| In 000s, except per share data | 2009 | |||||
| (Low) | (High) | |||||
| Net Income | $ 15,300 | $ 19,800 | ||||
| Diluted EPS | 0.27 | 0.35 | ||||
| Non-cash, tax-adjusted acquisition-related intangible amortization | 0.29 | 0.29 | ||||
| Non-GAAP adjusted diluted EPS | 0.56 | 0.64 | ||||
| Non-cash, tax-adjusted share-based compensation | 0.18 | 0.18 | ||||
| Non-GAAP cash diluted EPS | $ 0.74 | $ 0.82 | ||||
| Fully diluted weighted average shares outstanding | 57,400 | 57,400 | ||||
| See "Use of Non-GAAP Financial Measures" following financial schedules for more information on non-GAAP measures. | ||||||
| Use of Non-GAAP Measures |
| In order to provide investors with greater insight, promote transparency and allow for a more comprehensive understanding of the information used by management and the board of directors in its financial and operational decision-making, the Company supplements its consolidated financial statements presented on a GAAP basis with the following non-GAAP financial information: EBITDA, adjusted EBITDA; adjusted diluted EPS; cash diluted EPS; acquisition-affected total net revenue, acquisition-affected EBITDA, acquisition-affected total adjusted EBITDA and contracted revenue. |
| These non-GAAP financial measures may have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. The Company compensates for such limitations by relying primarily on the Company's GAAP results and using non-GAAP financial measures only supplementally. Where possible, the Company provides reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures. Investors are encouraged to carefully review those reconciliations. In addition, because these non-GAAP measures are not measures of financial performance under GAAP and are susceptible to varying calculations, these measures, as defined by the Company, may differ from and may not be comparable to similarly titled measures used by other companies. |
The Company defines: EBITDA as net income (loss) before net interest expense, income tax expense (benefit), depreciation and amortization; adjusted EBITDA as net income (loss) before net interest expense, income tax expense (benefit), depreciation and amortization and other non-recurring, non-cash or non-operating items; and adjusted diluted EPS as earnings per share excluding non-cash acquisition-related intangible amortization and non-recurring expense items on a tax-adjusted basis. EBITDA, adjusted EBITDA and adjusted diluted EPS are used by the Company to facilitate a comparison of its operating performance on a consistent basis from period to period and provide for a more complete understanding of factors and trends affecting our business than GAAP measures alone. These measures assist management and the board of directors and may be useful to investors in comparing the Company's operating performance consistently over time as it removes the impact of its capital structure (primarily interest charges and amortization of debt issuance costs), asset base (primarily depreciation and amortization) and items outside the control of the management team (taxes), as well as other non-cash (purchase accounting adjustments, and imputed rental income) and non-recurring items, from the Company's operational results. Adjusted EBITDA also removes the impact of non-cash share-based compensation expense. EBITDA, adjusted EBITDA and adjusted diluted EPS are not measures of liquidity under GAAP, or otherwise, and are not alternatives to cash flow from continuing operating activities. |
The Company defines cash diluted EPS as earnings per share excluding non-cash acquisition-related intangible amortization and non-recurring expense items on a tax-adjusted basis and non-cash tax-adjusted shared-based compensation expense. Cash diluted EPS is not a measure of liquidity under GAAP, or otherwise, and is not an alternative to cash flow from continuing operating activities. Cash diluted EPS growth is used by the Company as the financial performance metric tied to the vesting of certain equity awards granted pursuant to the Company's Long-Term Performance Incentive Plan. Use of this measure for this purpose allows management and the board of directors to analyze the Company's operating performance on a consistent basis by removing the impact of certain non-cash and non-recurring items from our operations, and by rewarding organic growth and accretive business transactions. As a significant portion of senior management's incentive based compensation is based on the achievement of certain cash diluted EPS growth over time, investors may find such information useful. |
Acquisition-affected results include the results of certain acquired companies prior to the Company's actual ownership. The XactiMed, MD-X and Accuro acquisitions were consummated on May 18, 2007, July 2, 2007 and June 2, 2008, respectively. These results assume the XactiMed and MD-X acquisitions as well as certain financings, inclusive of certain purchase accounting adjustments, had occurred on January 1, 2007, and the acquisition of Accuro occurred on January 1 of each of 2007 and 2008. Acquisition-affected net revenue, EBITDA and adjusted EBITDA are used by management and the board of directors to better understand the extent of period-over-period growth of the Revenue Cycle Management segment and the Company as a whole. Given the significant impact that these transactions had on the Company during the fiscal years ended December 31, 2007 and 2008, the Company believes such acquisition-affected measures are useful and meaningful to investors in their analysis of such growth. Non-GAAP acquisition-affected measures are for illustrative and informational purposes only and are not intended to represent or be indicative of what the Company's results of operations would have been if these transactions had occurred at the beginning of such periods. These measures also should not be considered representative of the Company's future results of operations. |
Contracted revenue is a forward-looking operating measure used by management and the board of directors and investors to better understand revenue growth trends within its businesses as it reflects the Company's current estimate of contractually committed revenue to be generated under existing customer contracts in the forward 12-month period. Such information may be useful to investors in their analysis of our revenue growth trends. A reconciliation to the most directly comparable GAAP measure cannot be performed without unreasonable effort. |
mdas/F
SOURCE: MedAssets, Inc.
MedAssets, Inc.
Robert P. Borchert, 678-248-8194
VP, Investor Relations
rborchert@medassets.com
Copyright Business Wire 2009