Exhibit 99.1
FOR IMMEDIATE RELEASE | Contacts: Benjamin Stephen Director, Investor Relations 703-904-5539 bstephen@quadramed.com David L. Piazza Vice President, Finance 703-742-5312 dpiazza@quadramed.com | |
QUADRAMED ANNOUNCES 3rd QUARTER 2004 RESULTS | ||
Reston, VA — November 3, 2004 QuadraMed® Corporation (AMEX: QD) announced today its third quarter 2004 financial results. Revenues were $32 million for the third quarter, representing an increase of 8% over the same period in 2003. Net loss for the quarter was approximately $(16.3) million, which includes an $11.7 million loss on retirement of debt; not including the effects of this loss on retirement of debt, the net loss for the quarter would be approximately $(4.6) million compared to a net loss of $(5.2) million for the third quarter of 2003. | ||
| Management will review these results in an investment community conference call at 8:00 AM Eastern (5:00 AM Pacific) on Wednesday, November 3rd. To ensure fair dissemination of information, no inquiries of management should be made regarding QuadraMed’s results until after the conference call. A brief question and answer period will follow management’s presentation. The dial-in number for the QuadraMed Third Quarter 2004 conference call is (800) 311-0799 for domestic participants and (719) 457-2695 for international. Callers should dial in by 7:45 AM Eastern (4:45 AM Pacific) to register. The call will also be web cast live and available to the public via the Investor Relations section of QuadraMed’s Webpage at www.quadramed.com. Please note that the webcast is listen-only. Listeners should access the website at 7:45 AM Eastern (4:45 AM Pacific) to register and to download and install any | ||
| necessary audio software. The webcast replays will be available shortly after the live call’s completion and the conference call replay will be available until 12:00 AM Eastern on November 9th by dialing (719) 457-0820 or (888) 203-1112. The replay pass code is 975585. | ||||||
| Attachments | Exhibit 1 | Condensed Consolidated Balance Sheets as of September 30, 2004 (unaudited) and December 31, 2003 | ||||
| Exhibit 2 | Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine months ended September 30, 2004 and 2003 | |||||
| Exhibit 3 | Condensed Consolidated Statements of Cash Flows (unaudited) for the Nine months ended September 30, 2004 and 2003 | |||||
About QuadraMed Corporation
QuadraMed is dedicated to improving healthcare delivery by providing innovative healthcare information technology and services. From clinical and patient information management to revenue cycle and health information management, QuadraMed delivers real-world solutions that help healthcare professionals deliver outstanding patient care with optimum | ||||||
| efficiency. Behind our products and services is a staff of more than 900 professionals whose experience and dedication to service has earned QuadraMed the trust and loyalty of customers at more than 2,000 healthcare provider facilities. To find out more about QuadraMed, visit www.quadramed.com. | ||
| Cautionary Statement on Risks Associated with QuadraMed’s Forward-Looking Statements | ||
This press release contains forward-looking statements by QuadraMed within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “may,” “should,” “could,” and similar expressions are intended to identify such statements. Forward-looking statements are not guarantees of future performance and are to be interpreted only as of the date on which they are made. QuadraMed undertakes no obligation to update or revise any forward-looking statement except as required by law. QuadraMed advises investors that it discusses risk factors and uncertainties that could cause QuadraMed’s actual results to differ from forward-looking statements in its periodic reports filed with the Securities and Exchange Commission (“SEC”).
Note to editors: QuadraMed is a registered trademark of QuadraMed Corporation. All other trademarks are the property of their respective owners. | ||
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Exhibit 1
QUADRAMED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except percentages and per share amounts)
September 30, 2004 | December 31, 2003 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 26,032 | $ | 36,944 | ||||
Accounts receivable, net | 25,040 | 30,872 | ||||||
Unbilled and other receivables | 6,590 | 6,218 | ||||||
Prepaid expenses and other current assets | 10,588 | 11,268 | ||||||
Total current assets | 68,250 | 85,302 | ||||||
Restricted cash | 3,963 | 5,523 | ||||||
Property and equipment, net | 7,227 | 5,643 | ||||||
Goodwill | 32,436 | 18,445 | ||||||
Capitalized software development costs, net | 1,747 | 3,219 | ||||||
Other intangible assets, net | 9,112 | 6,992 | ||||||
Other long-term assets | 7,019 | 8,031 | ||||||
Total assets | $ | 129,754 | $ | 133,155 | ||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 4,089 | $ | 2,914 | ||||
Accrued payroll and related | 8,418 | 11,100 | ||||||
Accrued interest | — | 1,912 | ||||||
Accrued dividends payable | 15,772 | — | ||||||
Other accrued liabilities | 7,770 | 7,866 | ||||||
Deferred revenue | 45,472 | 48,502 | ||||||
Total current liabilities | 81,521 | 72,294 | ||||||
10% Senior Secured Notes due 2008, net | — | 61,233 | ||||||
5.25% Convertible Subordinated Notes due 2005 | — | 11,931 | ||||||
Other long-term liabilities | 4,833 | 4,580 | ||||||
Total liabilities | 86,354 | 150,038 | ||||||
Stockholders’ equity (deficit) | ||||||||
Preferred stock, $0.01 par, 5,000 shares authorized, 4,000 and 0 shares issued and outstanding, respectively | 81,931 | — | ||||||
Common stock, $0.01 par, 150,000 shares authorized; 40,007 and 28,871 shares issued, respectively | 400 | 290 | ||||||
Treasury stock at cost, 0 and 200 shares, respectively | — | (822 | ) | |||||
Additional paid-in-capital | 301,198 | 292,716 | ||||||
Deferred compensation and accumulated other comprehensive loss | (2,088 | ) | (2,884 | ) | ||||
Accumulated deficit | (338,041 | ) | (306,183 | ) | ||||
Total stockholders’ equity (deficit) | 43,400 | (16,883 | ) | |||||
Total liabilities and stockholders’ equity (deficit) | $ | 129,754 | $ | 133,155 | ||||
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Exhibit 2
QUADRAMED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenue | ||||||||||||||||
Services | $ | 4,219 | $ | 4,603 | $ | 13,494 | $ | 14,065 | ||||||||
Maintenance | 11,342 | 9,170 | 31,572 | 26,935 | ||||||||||||
Installation and other | 4,772 | 4,657 | 14,414 | 13,213 | ||||||||||||
Services and other revenue | 20,333 | 18,430 | 59,480 | 54,213 | ||||||||||||
Licenses | 9,562 | 10,362 | 33,236 | 30,079 | ||||||||||||
Hardware | 2,175 | 910 | 7,723 | 4,081 | ||||||||||||
Total revenues | 32,070 | 29,703 | 100,439 | 88,373 | ||||||||||||
Cost of revenue | ||||||||||||||||
Cost of services and other revenue | 9,548 | 9,802 | 28,704 | 31,189 | ||||||||||||
Cost of licenses revenue | 2,553 | 1,754 | 9,109 | 5,363 | ||||||||||||
Cost of hardware revenue | 1,829 | 492 | 5,435 | 2,930 | ||||||||||||
Total cost of revenue | 13,930 | 12,048 | 43,248 | 39,482 | ||||||||||||
Gross margin | 18,140 | 17,654 | 57,191 | 48,891 | ||||||||||||
Operating expenses | ||||||||||||||||
General and administration | 8,125 | 7,200 | 25,653 | 28,011 | ||||||||||||
Software development | 7,137 | 6,027 | 21,082 | 17,371 | ||||||||||||
Sales and marketing | 5,970 | 5,715 | 17,825 | 15,617 | ||||||||||||
Amortization of intangible assets and depreciation | 1,304 | 1,475 | 3,713 | 4,503 | ||||||||||||
Total operating expenses | 22,536 | 20,417 | 68,273 | 65,502 | ||||||||||||
Loss from operations | (4,396 | ) | (2,763 | ) | (11,082 | ) | (16,611 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Interest expense | (292 | ) | (2,662 | ) | (5,195 | ) | (6,766 | ) | ||||||||
Interest income | 107 | 152 | 351 | 438 | ||||||||||||
Other income (expense), net | 17 | 42 | 134 | 756 | ||||||||||||
Loss on retirement of debt | (11,726 | ) | — | (14,871 | ) | — | ||||||||||
Provision (benefit) for income taxes | 1 | 10 | (161 | ) | 10 | |||||||||||
Other income (expense) | (11,895 | ) | (2,458 | ) | (19,420 | ) | (5,562 | ) | ||||||||
Net loss | $ | (16,291 | ) | $ | (5,241 | ) | $ | (30,502 | ) | $ | (22,193 | ) | ||||
Preferred stock accretion | (1,348 | ) | — | (1,348 | ) | — | ||||||||||
Net loss attributable to common shareholders | (17,639 | ) | $ | (5,241 | ) | (31,850 | ) | $ | (22,193 | ) | ||||||
Loss per share | ||||||||||||||||
Basic and diluted | $ | (0.44 | ) | $ | (0.19 | ) | $ | (0.92 | ) | $ | (0.82 | ) | ||||
Weighted average shares outstanding | ||||||||||||||||
Basic and diluted | 39,779 | 27,171 | 34,621 | 27,094 | ||||||||||||
Exhibit 2 to Press Release dated November 2, 2004
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Exhibit 3
QUADRAMED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine months ended September 30, | ||||||||
| 2004 | 2003 | |||||||
Cash flows from operating activities | ||||||||
Net loss attributable to common shareholders | $ | (31,850 | ) | $ | (22,193 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 8,044 | 8,701 | ||||||
Provision for bad debts and other | 3,015 | 638 | ||||||
Loss on retirement of debt | 14,871 | — | ||||||
Changes in assets and liabilities, net of effects of acquisition: | ||||||||
Accounts receivable | 4,728 | (1,624 | ) | |||||
Prepaid expenses and other | 957 | (4,041 | ) | |||||
Accounts payable and accrued liabilities | (3,687 | ) | 7,559 | |||||
Deferred revenue | (5,796 | ) | 9,649 | |||||
Cash used in operating activities | (9,718 | ) | (1,311 | ) | ||||
Cash flows from investing activities | ||||||||
Proceeds from sale of assets and available-for-sale securities | 114 | 4,226 | ||||||
Decrease in restricted cash | 1,560 | 314 | ||||||
Acquisition of Détente | (4,074 | ) | — | |||||
Acquisition of Tempus | (5,148 | ) | — | |||||
Capital expenditures | (3,469 | ) | (2,491 | ) | ||||
Cash provided by (used in) investing activities | (11,017 | ) | 2,049 | |||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of common and treasury stock | 1,763 | 238 | ||||||
Proceeds from issuance of preferred stock, net of issuance cost | 96,120 | — | ||||||
Issuances (repayments) of Notes, net | (88,090 | ) | 8,561 | |||||
Foreign currency translation effect on cash and cash equivalents | 30 | — | ||||||
Cash provided by financing activities | 9,823 | 8,799 | ||||||
Net increase (decrease) in cash and cash equivalents | (10,912 | ) | 9,537 | |||||
Cash and cash equivalents, beginning of period | 36,944 | 23,663 | ||||||
Cash and cash equivalents, end of period | $ | 26,032 | $ | 33,200 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest | $ | 4,249 | $ | 1,854 | ||||
Net cash refunded for taxes | (161 | ) | (1 | ) | ||||
Issuance of common stock upon acquisition of Tempus | $ | 7,650 | $ | — | ||||
Exhibit 3 to Press Release dated November 2, 2004
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