Exhibit 99.1
[LOGO]
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| FOR IMMEDIATE RELEASE | | | | Contact: Michael P. Donovan mdonovan@HealthExtras.com |
| | | | | HealthExtras, Inc. |
| | | | | 301-548-2900 |
HEALTHEXTRAS REPORTS RECORD FIRST QUARTER RESULTS
Net Income and Revenues Both Up By More Than 50% Over Prior Year
Company Reports Net Income of $5.1 Million
ROCKVILLE, MD, April 27, 2005 — HealthExtras, Inc. (NASDAQ: HLEX), a pharmacy benefit management company, today announced its financial results for the first quarter ended March 31, 2005.
First Quarter Highlights
| | • | | Net income for the first quarter 2005 was $5.1 million or $.13 per share, a 50% increase over first quarter 2004 earnings of $3.4 million or $.10 per share. |
| | • | | Revenues for the first quarter 2005 totaled $169.0 million, a 53% increase over first quarter 2004 revenues of $110.5 million. |
| | • | | Over 4.3 million prescriptions were processed during the quarter. |
“We are pleased with the Company’s first quarter financial performance. The Company continues to produce significant earnings and revenue growth driven by new client additions and improved operating margins resulting from higher generic and preferred brand utilization,” said David T. Blair, Chief Executive Officer of HealthExtras. “Not only are the year-over-year financial comparisons impressive but the Company produced 11% sequential PBM revenue growth over the fourth quarter of last year.”
Operating income for the three months ended March 31, 2005 increased to $8.1 million, a 44% increase over the $5.6 million from the same period in 2004. “Throughout the year we expect to continue to add clients in both existing and new markets, further integrate our operations, implement programs to control our clients’ drug costs and provide our clients with an exemplary level of service. In addition, we are benefiting from significant sales momentum and are pursuing opportunities to accelerate our growth through select acquisitions,” added Mr. Blair.
About HealthExtras (www.healthextras.com)
HealthExtras, Inc., a pharmacy benefit management company, currently provides benefits to over three million members. Its clients include self-insured employers, including state and local governments, third-party administrators, managed care organizations and individuals. The Company’s integrated pharmacy benefit management services marketed under the name Catalyst Rx include: claims processing, benefit design consultation, drug utilization review, formulary management, drug data analysis services and mail order services. Additionally, the Company operates a national retail pharmacy network with over 55,000 participating pharmacies.
This press release may contain 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.
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Financial statements follow:
HealthExtras, Inc.
Balance Sheet Information
(In thousands)
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| | | March 31,
2005
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Assets | | | |
Current assets: | | | |
Cash and cash equivalents | | $ | 74,174 |
Accounts receivable, net of allowance for doubtful accounts of $800 | | | 74,141 |
Income tax receivable | | | 530 |
Inventory, net of allowance for obsolescence of $50 | | | 589 |
Deferred charges | | | 1,876 |
Other current assets | | | 2,267 |
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Total current assets | | | 153,577 |
Fixed assets, net | | | 9,661 |
Intangible assets, net of accumulated amortization of $3,255 | | | 21,832 |
Goodwill | | | 69,272 |
Restricted cash | | | 1,000 |
Other assets | | | 429 |
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Total assets | | $ | 255,771 |
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Liabilities and stockholders’ equity | | | |
Current liabilities: | | | |
Accounts payable | | $ | 60,699 |
Accrued expenses and other current liabilities | | | 4,162 |
Note payable | | | 5,000 |
Deferred income taxes | | | 967 |
Deferred revenue | | | 5,076 |
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Total current liabilities | | | 75,904 |
Deferred income taxes | | | 4,960 |
Notes payable | | | 19,250 |
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Total liabilities | | | 100,114 |
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Stockholders’ equity: | | | |
Common stock | | | 381 |
Additional paid-in capital | | | 134,521 |
Accumulated other comprehensive income | | | 153 |
Retained earnings | | | 20,602 |
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Total stockholders’ equity | | | 155,657 |
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Total liabilities and stockholders’ equity | | $ | 255,771 |
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Income Statement
(In thousands, except per share data)
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| | | For the quarter
ended
March 31, 2005
| | | For the quarter
ended
March 31, 2004
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Revenue (excludes member co-payments of $72,435 and $42,449 for the quarters ended March 31, 2005 and 2004, respectively) | | $ | 169,003 | | | $ | 110,520 | |
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Direct expenses | | | 150,043 | | | | 97,695 | |
Selling, general & administrative expenses | | | 10,879 | | | | 7,226 | |
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Total operating expenses | | | 160,922 | | | | 104,921 | |
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Operating income | | | 8,081 | | | | 5,599 | |
Interest income | | | 416 | | | | 36 | |
Interest expense | | | (331 | ) | | | (115 | ) |
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Income before tax | | | 8,166 | | | | 5,520 | |
Income tax provision | | | 3,021 | | | | 2,081 | |
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Net income | | $ | 5,145 | | | $ | 3,439 | |
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EPS - basic | | $ | 0.14 | | | $ | 0.10 | |
EPS - diluted | | $ | 0.13 | | | $ | 0.10 | |
Weighted average common shares, basic | | | 37,880 | | | | 32,964 | |
Weighted average common shares, diluted | | | 40,794 | | | | 35,937 | |
