Exhibit 99.1
MedAssets Announces First Quarter 2008 Results
Reports First Quarter 2008 Net Revenue of $58.8 million,
Adjusted EBITDA of $16.0 million and Adjusted EPS of $0.11
ATLANTA--(BUSINESS WIRE)--MedAssets, Inc. (NASDAQ: MDAS) today announced results for its first quarter ended March 31, 2008.
Financial Highlights
- Total net revenue was $58.8 million in the first quarter of 2008, an increase of 38.9% from net revenue of $42.3 million in the first quarter last year, driven by revenue growth from both organic and acquisition sources.
- Adjusted EBITDAa was $16.0 million in the first quarter of 2008, compared to adjusted EBITDA of $16.3 million in the first quarter last year.
- Adjusted diluted earnings per sharea (EPS) for the first quarter of 2008 was $0.11, excluding non-cash acquisition-related intangible amortization on a tax-adjusted basis.
Net Revenue
Total net revenue for the first quarter of 2008 increased 38.9% to $58.8 million from $42.3 million in the first quarter of 2007. For comparative purposes, total net revenue in the first quarter of 2008 increased 11.2% when compared to total pro formab net revenue of $52.8 million in the prior year’s first quarter.
Adjusted EBITDA
In the first quarter of 2008, adjusted EBITDA was $16.0 million, or 27.3% of net revenue, versus adjusted EBITDA of $16.3 million, or 38.4% of net revenue, in the first quarter of 2007. For comparative purposes, pro forma adjusted EBITDA in the first quarter of 2007 totaled $19.2 million, or 36.4% of pro forma net revenue.
Profitability
The Company reported net income attributable to common stockholders in the first quarter of 2008 of $2.7 million, or $0.06 per diluted share, versus net income attributable to common stockholders of $0.9 million, or $0.03 per diluted share, in the first quarter of 2007. Adjusted diluted EPS in the first quarter of 2008 was $0.11 per diluted share, excluding non-cash acquisition-related intangible amortization on a tax-adjusted basis. For comparative purposes, pro forma net loss attributable to common stockholders in the first quarter of 2007 was a loss of $1.7 million, or a loss of $0.16 per diluted share.
Share-based compensation expense, on a tax-adjusted basis, equated to $0.02 per diluted share in the first quarter of 2008.
(a) Reconciliation of non-GAAP measures, including pro forma net revenue, adjusted EBITDA, pro forma adjusted EBITDA, pro forma diluted EPS and pro forma adjusted diluted EPS, to their most directly comparable GAAP measure, is provided in the attached financial schedules.
(b) Pro forma results in the first quarter of 2007 assume the acquired XactiMed and MD-X businesses were part of MedAssets, as well as certain financing, as of January 1, 2007.
Capital Resources and Cash Flow
At March 31, 2008, MedAssets had cash and cash equivalents of $128.0 million and total debt of $207.9 million on its balance sheet. Net cash used in operating activities in the first quarter of 2008 was $4.5 million, primarily driven by scheduled semi-annual revenue share obligation payments to hospital and health system customers. Capital expenditures for the quarter increased to $3.9 million from $2.0 million in the first quarter of 2007, due mainly to the addition of MD-X and XactiMed in mid-2007.
Business Segment Highlights
Revenue Cycle Management (RCM) Segment
The RCM segment reported net revenue of $25.1 million, an 81.2% increase over net revenue of $13.9 million in the first quarter of 2007, driven by revenue growth from both organic and acquisition sources. Pro forma net revenue in the first quarter of 2007 was $24.4 million. Adjusted EBITDA in the first quarter of 2008 was $4.2 million, or 16.9% of net revenue, versus adjusted EBITDA of $4.6 million, or 33.1% of net revenue, in the first quarter of 2007. For comparative purposes, pro forma adjusted EBITDA in the first quarter of 2007 was $7.6 million, or 31.0% of pro forma net revenue.
The RCM segment’s net revenue and adjusted EBITDA performance was consistent with management’s expectations. The comparative first quarter results in the RCM segment were primarily characterized by: significant non-recurring consulting services revenue in the first quarter of 2007; a slower rate of decision support revenue growth in the first quarter of 2008; and continuing investment in the segment’s operating cost structure to support new customer implementations and anticipated revenue growth.
Spend Management Segment
Net revenue in the Spend Management segment was $33.7 million, an 18.3% increase over the $28.5 million reported in the first quarter of 2007. Adjusted EBITDA was $16.0 million, or 47.6% of net revenue, in the first quarter of 2008, versus $14.5 million, or 50.9% of net revenue, in the first quarter of 2007. The decline in adjusted EBITDA margin percentage in this segment was due to $2.9 million in net revenue and $3.2 million of costs related to the Company’s annual customer and vendor meeting. The 2007 meeting occurred in the second quarter of last year.
Corporate
The impact of corporate operations on total adjusted EBITDA was $4.2 million in the first quarter of 2008, versus $2.8 million in the same quarter of 2007. The increase in corporate expense was primarily attributable to costs associated with being a publicly-traded company.
Definitive Agreement to Acquire Accuro Healthcare Solutions
On April 29, 2008, MedAssets announced that it had entered into a definitive purchase agreement to acquire Accuro Healthcare Solutions, a leading revenue cycle management solutions provider focused on delivering tangible financial improvement principally to the hospital market. The transaction is subject to customary closing conditions and regulatory approval, and is expected to be completed in 45 to 75 days.
Management Reaffirms Guidance for 2008
Management reiterated its financial guidance for full-year 2008, exclusive of any impact of the pending acquisition of Accuro. Total net revenue is expected to be in the range of $230 million to $236 million. On a segment basis, net revenue in the RCM segment is expected to be between $109 million and $113 million, and net revenue in the Spend Management segment is expected to be between $120 million to $124 million.
At March 31, 2008, MedAssets’ rolling 12-month contracted revenue was an estimated $206.9 million, consisting of $92.5 million from the RCM segment and $114.4 million from the Spend Management segment. This is an increase of approximately 4.3% over the rolling 12-month total as of December 31, 2007. The Company’s contracted revenue reflects the estimated contractually committed revenue to be generated under existing customer contracts in a defined 12-month period. Most of the contracted revenue is derived from multi-year customer agreements.
Total adjusted EBITDA for 2008 is expected to be between $71 million and $75 million.
GAAP diluted EPS in 2008 is expected to be in the range of $0.28 to $0.36. Adjusted diluted EPS, excluding non-cash acquisition-related intangible amortization on a tax-adjusted basis, is expected to be in the range of $0.48 to $0.56 for full year 2008. The Company expects to recognize between $8.5 million and $9.0 million in non-cash share-based compensation expense, which would convert to an earnings impact of between $0.10 and $0.11 per diluted share on a tax-adjusted basis.
Management will modify its 2008 financial guidance to reflect the acquisition of Accuro upon closing of the transaction.
Conference Call Information
The Company will host a conference call at 5:00 p.m. ET today to discuss its financial and business highlights and management's outlook for future performance. The live audio webcast will be accessible from the “Events & Presentations” page at http://ir.medassets.com. To access the conference call, dial 866-811-1812 or 706-902-0609 (international), and provide the conference ID number 43467094. For those unable to listen to the live broadcast, a webcast replay will be archived on MedAssets’ website for 30 days. A conference call replay will be available for one week by calling 800-642-1687 or 706-645-9291 (international), and entering conference ID number 43467094.
About MedAssets
MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing integrated 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, 2,500 hospitals and 30,000 non-acute care healthcare providers. For more information, go to www.medassets.com.
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 members of its management team with respect to the Company’s future business operations as well as the assumptions upon which such statements are based. Forward-looking statements include specifically, but are not limited to: 2008 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 and future 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, 2007 and subsequent Forms 10-Q filed with the Securities and Exchange Commission. The Company disclaims any responsibility to update any forward-looking statements.
mdas/F
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| Pro Forma | |||||||||||||||||
| In $000s, except per share data | Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||
| March 31, | March 31, | Pro Forma | March 31, | ||||||||||||||
| 2008 | 2007 | Adjustments c | 2007 | ||||||||||||||
| Revenue: | |||||||||||||||||
| Administrative fees, net | $ | 27,545 | $ | 25,977 | $ | - | $ | 25,977 | |||||||||
| Other service fees | 31,213 | 16,329 | 10,515 | 26,844 | |||||||||||||
| Total net revenue | 58,758 | 42,306 | 10,515 | 52,821 | |||||||||||||
| Operating expenses: | |||||||||||||||||
Cost of revenue | 8,462 | 4,186 | 3,519 | 7,705 | |||||||||||||
| Product development expenses | 2,697 | 1,881 | 360 | 2,241 | |||||||||||||
| Selling and marketing expenses | 12,911 | 7,838 | 890 | 8,728 | |||||||||||||
| General and administrative expenses | 21,060 | 13,449 | 3,753 | 17,202 | |||||||||||||
| Depreciation | 2,121 | 1,599 | 141 | 1,740 | |||||||||||||
| Amortization of intangibles | 3,778 | 2,841 | 1,241 | 4,082 | |||||||||||||
| - | |||||||||||||||||
| Total operating expenses | 51,029 | 31,794 | 9,904 | 41,698 | |||||||||||||
| Operating income | 7,729 | 10,512 | 611 | 11,123 | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense | (4,317 | ) | (3,629 | ) | (2,974 | ) | (6,603 | ) | |||||||||
| Other income | 1,033 | 472 | 19 | 491 | |||||||||||||
| Income (loss) before income taxes | 4,445 | 7,355 | (2,344 | ) | 5,011 | ||||||||||||
| Income tax expense (benefit) | 1,746 | 2,810 | (309 | ) | 2,501 | ||||||||||||
| Net income (loss) | 2,699 | 4,545 | (2,035 | ) | 2,510 | ||||||||||||
| Preferred stock dividends d | - | (3,672 | ) | (499 | ) | (4,171 | ) | ||||||||||
| Net income (loss) attributable to common stockholders | $ | 2,699 | $ | 873 | $ | (2,534 | ) | $ | (1,661 | ) | |||||||
| Basic and diluted income (loss) per share: | |||||||||||||||||
| Basic net income (loss) attributable to common stockholders | $ | 0.06 | $ | 0.03 | $ | (0.16 | ) | ||||||||||
| Diluted net income (loss) attributable to common stockholders | $ | 0.06 | $ | 0.03 | $ | (0.16 | ) | ||||||||||
| Weighted average shares — basic e | 44,418 | 26,807 | 10,694 | ||||||||||||||
| Weighted average shares — diluted e | 47,213 | 28,853 | 10,694 | ||||||||||||||
| (c) Includes all adjustments relating to the acquisitions of MD-X and XactiMed as if both companies were acquired on January 1, 2007. Such adjustments include the effect of financing certain acquisitions and the financing of the Company's 2007 dividend payment, as though obtained on January 1, 2007. Refer to the Company's final prospectus filed on Form 424B4 with the Securities and Exchange Commission (SEC) on December 13, 2007 for further description of such adjustments. | |||||||||||||||||
| (d) The Company's participating preferred stock converted to common stock on December 18, 2007 as the result of our initial public offering. With this conversion, the Company is no longer obligated to pay the associated accrued preferred dividends, and all rights to accrued and unpaid preferred dividends were terminated by the former preferred stock shareholders. | |||||||||||||||||
(e) For the pro forma three months ended March 31, 2007, preferred shares are not included in the weighted average shares outstanding since the effect is antidilutive due to a pro forma net loss attributable to common stockholders. Additionally, basic and diluted weighted average shares outstanding are equivalent for this period due to the antidilution of the pro forma net loss attributable to common stockholders. | |||||||||||||||||
| CONDENSED SEGMENT REPORTING | ||||||||
| (UNAUDITED) | ||||||||
| In $000s | Three Months Ended | |||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
ACTUAL | ||||||||
| Net revenue | ||||||||
| Revenue Cycle Management | $ | 25,106 | $ | 13,856 | ||||
| Spend Management | 33,652 | 28,450 | ||||||
| Total net revenue | $ | 58,758 | $ | 42,306 | ||||
| Adjusted EBITDA (a non-GAAP measure) f | ||||||||
| Revenue Cycle Management | $ | 4,241 | $ | 4,581 | ||||
| Spend Management | 16,028 | 14,488 | ||||||
| Corporate | (4,239 | ) | (2,811 | ) | ||||
| Total Adjusted EBITDA | $ | 16,030 | $ | 16,258 | ||||
PRO FORMA | ||||||||
| Net revenue | ||||||||
| Revenue Cycle Management | $ | 25,106 | $ | 24,371 | ||||
| Spend Management | 33,652 | 28,450 | ||||||
| Total net revenue | $ | 58,758 | $ | 52,821 | ||||
| Adjusted EBITDA (a non-GAAP measure) g | ||||||||
| Revenue Cycle Management | $ | 4,241 | $ | 7,564 | ||||
| Spend Management | 16,028 | 14,488 | ||||||
| Corporate | (4,239 | ) | (2,811 | ) | ||||
| Total Adjusted EBITDA | $ | 16,030 | $ | 19,241 | ||||
(f) Adjusted EBITDA is defined by the Company 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. Adjusted EBITDA is used by the Company to facilitate a comparison of its operating performance on a consistent basis from period to period that provides a more complete understanding of factors and trends affecting our business than GAAP measures alone. The Company believes Adjusted EBITDA assists its board of directors, management and investors in comparing its operating performance on a consistent basis because it removes the impact of the Company's capital structure (primarily interest charges and amortization of debt issuance costs), asset base (primarily depreciation and amortization) and items outside the control of MedAssets' management team (taxes), as well as other non-cash (purchase accounting adjustments, share-based compensation expense and imputed rental income) and non-recurring items, from the Company's operations. See the Company's accompanying reconciliations from consolidated Adjusted EBITDA to consolidated Net Income, the closest comparable GAAP-based metric. Such reconciliations are consistent with that of the Company's segment reporting disclosures to the consolidated financial statements for the year ended December 31, 2007 included in the Company's Form 10-K as filed with the SEC on March 24, 2008. | ||||||||
| (g) Pro forma Adjusted EBITDA is Adjusted EBITDA after considering the effect of the acquisitions of MD-X and XactiMed, and certain financing secured in July 2007 as if these events had been completed on January 1, 2007. See the Company's accompanying reconciliations from consolidated Pro Forma Adjusted EBITDA to consolidated Pro Forma Net Income. | ||||||||
| RECONCILIATION OF NET INCOME TO | ||||||||
| CONSOLIDATED ADJUSTED EBITDA (A NON-GAAP MEASURE) | ||||||||
| (UNAUDITED) | ||||||||
| In $000s | Three Months Ended | |||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
ACTUAL | ||||||||
| Net Income | $ | 2,699 | $ | 4,545 | ||||
| Depreciation | 2,121 | 1,599 | ||||||
| Amortization of intangibles | 3,778 | 2,841 | ||||||
| Amortization of intangibles (included in cost of revenue) | 391 | 223 | ||||||
| Interest Expense, net | 3,409 | 3,266 | ||||||
| Income tax expense | 1,746 | 2,810 | ||||||
| EBITDA | $ | 14,144 | $ | 15,284 | ||||
| Share-based compensation | 1,740 | 744 | ||||||
| Rental income from capitalized building lease | (110 | ) | (110 | ) | ||||
| Purchase accounting adjustments | 256 | 340 | ||||||
Adjusted EBITDAh | $ | 16,030 | $ | 16,258 | ||||
PRO FORMA | ||||||||
| Net Income | $ | 2,699 | $ | 2,510 | ||||
| Depreciation | 2,121 | 1,740 | ||||||
| Amortization of intangibles | 3,778 | 4,082 | ||||||
| Amortization of intangibles (included in cost of revenue) | 391 | 691 | ||||||
| Interest Expense, net | 3,409 | 6,264 | ||||||
| Income tax expense | 1,746 | 2,500 | ||||||
| EBITDA | $ | 14,144 | $ | 17,787 | ||||
| Share-based compensation | 1,740 | 1,053 | ||||||
| Rental income from capitalized building lease | (110 | ) | (110 | ) | ||||
| Purchase accounting adjustments | 256 | 511 | ||||||
| Pro Forma Adjusted EBITDA i | $ | 16,030 | $ | 19,241 | ||||
(h) Adjusted EBITDA is defined by the Company 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. Adjusted EBITDA is used by the Company to facilitate a comparison of its operating performance on a consistent basis from period to period that provides a more complete understanding of factors and trends affecting our business than GAAP measures alone. The Company believes Adjusted EBITDA assists its board of directors, management and investors in comparing its operating performance on a consistent basis because it removes the impact of the Company's capital structure (primarily interest charges and amortization of debt issuance costs), asset base (primarily depreciation and amortization) and items outside the control of MedAssets' management team (taxes), as well as other non-cash (purchase accounting adjustments, share-based compensation expense and imputed rental income) and non-recurring items, from the Company's operations. | ||||||||
| (i) Pro forma Adjusted EBITDA is Adjusted EBITDA after considering the effect of the acquisitions of MD-X and XactiMed, and certain financing secured in July 2007 as if these events had been completed on January 1st of each respective year. | ||||||||
| RECONCILIATION OF GROSS FEES (A NON-GAAP MEASURE) TO NET REVENUE | ||||||||
| (UNAUDITED) | ||||||||
| In $000s | Three Months Ended | |||||||
| March 31, | ||||||||
ACTUAL | 2008 | 2007 | ||||||
| Gross administrative fees | $ | 39,887 | $ | 37,727 | ||||
| Other service fees | 31,213 | 16,329 | ||||||
| Gross fees | 71,100 | 54,056 | ||||||
| Revenue share obligation | (12,342 | ) | (11,750 | ) | ||||
| Net revenue | $ | 58,758 | $ | 42,306 | ||||
PRO FORMA | ||||||||
| Gross administrative fees | $ | 39,887 | $ | 37,727 | ||||
| Other service fees | 31,213 | 26,844 | ||||||
| Gross fees | 71,100 | 64,571 | ||||||
| Revenue share obligation | (12,342 | ) | (11,750 | ) | ||||
| Net revenue | $ | 58,758 | $ | 52,821 | ||||
| RECONCILIATION OF FIRST QUARTER 2008 PRO FORMA ADJUSTED DILUTED | ||||||||
| EARNINGS PER SHARE (A NON-GAAP MEASURE) TO GAAP EARNINGS PER SHARE | ||||||||
| (UNAUDITED) | ||||||||
| Per share data | Three Months Ended | |||||||
| March 31, | ||||||||
| 2008 | ||||||||
| Diluted net income attributable to common stockholders | $ | 0.06 | ||||||
| Non-cash, tax-adjusted acquisition-related intangible amortization | 0.05 | |||||||
| Pro forma adjusted diluted earnings per share | $ | 0.11 | ||||||
| Weighted average shares - diluted | 47,213 | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, | December 31, | |||||||
| In $000s | 2008 | 2007 | ||||||
| (Unaudited) |
| |||||||
| ASSETS | ||||||||
| Current | ||||||||
| Cash and cash equivalents | $ | 127,977 | $ | 136,952 | ||||
| Restricted cash | 20 | 20 | ||||||
| Accounts receivable, net of allowances of $4,589 and $3,506 as of March 31, 2008 and December 31, 2007 | ||||||||
| 42,258 | 33,679 | |||||||
| Deferred tax asset, current | 14,331 | 15,049 | ||||||
| Prepaid expenses and other current assets | 5,092 | 4,508 | ||||||
| Total current assets | 189,678 | 190,208 | ||||||
| Property and equipment | 33,486 | 32,490 | ||||||
| Other long term assets | ||||||||
| Goodwill | 232,822 | 232,822 | ||||||
| Intangible assets, net | 58,462 | 62,491 | ||||||
| Other | 8,958 | 8,368 | ||||||
| Other long term assets | 300,242 | 303,681 | ||||||
| Total assets | $ | 523,406 | $ | 526,379 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 5,280 | $ | 4,562 | ||||
| Accrued revenue share obligation and rebates | 21,780 | 29,998 | ||||||
| Accrued payroll and benefits | 11,898 | 13,402 | ||||||
| Other accrued expenses | 6,803 | 5,612 | ||||||
| Deferred revenue, current portion | 20,451 | 19,791 | ||||||
| Current portion of notes payable | 2,020 | 2,020 | ||||||
| Current portion of finance obligation | 135 | 128 | ||||||
| Total current liabilities | 68,367 | 75,513 | ||||||
| Notes payable, less current portion | 195,759 | 196,264 | ||||||
| Finance obligation, less current portion | 9,973 | 10,009 | ||||||
| Deferred revenue, less current portion | 3,474 | 3,229 | ||||||
| Deferred Tax liability | 4,644 | 5,868 | ||||||
| Other long term liabilities | 9,229 | 5,981 | ||||||
| Total liabilities | 291,446 | 296,864 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, $0.01 par value, 150,000,000 shares authorized; 44,465,000 and 44,429,000 shares issued and outstanding as of March 31, 2008 and December 31, 2007, respectively | ||||||||
| 445 | 444 | |||||||
| Additional paid in capital | 466,125 | 464,313 | ||||||
| Notes receivable from stockholders | (621 | ) | (614 | ) | ||||
| Accumulated other comprehensive loss | (4,995 | ) | (2,935 | ) | ||||
| Accumulated deficit | (228,994 | ) | (231,693 | ) | ||||
| Total stockholders’ equity | 231,960 | 229,515 | ||||||
| Total liabilities and stockholders’ equity | $ | 523,406 | $ | 526,379 | ||||
| CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
| (UNAUDITED) | ||||||||
| In $000s | Three Months Ended | |||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 2,699 | $ | 4,545 | ||||
Adjustments to reconcile income from continuing operations to net cash used in operating activities: | ||||||||
| Bad debt expense | 772 | 50 | ||||||
| Depreciation | 2,260 | 1,657 | ||||||
| Amortization of intangibles | 4,029 | 3,006 | ||||||
| Loss on sale of assets | - | 2 | ||||||
| Noncash stock compensation expense | 1,740 | 744 | ||||||
| Amortization of debt issuance costs | 153 | 84 | ||||||
| Noncash interest expense, net | 140 | 128 | ||||||
| Deferred income tax expense | 763 | 2,375 | ||||||
| Changes in assets and liabilities: | (17,073 | ) | (15,168 | ) | ||||
| Cash used in operating activities | (4,517 | ) | (2,577 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property, equipment, and software | (1,707 | ) | (586 | ) | ||||
| Capitalized software development costs | (2,152 | ) | (1,364 | ) | ||||
| Cash used in investing activities | (3,859 | ) | (1,950 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from notes payable | - | 188 | ||||||
| Repayment of notes payable and capital lease obligations | (505 | ) | (621 | ) | ||||
| Repayment of finance obligation | (160 | ) | (163 | ) | ||||
| Issuance of note receivable to stockholders | (7 | ) | (11 | ) | ||||
| Issuance of common stock | 73 | - | ||||||
| Cash used in financing activities | (599 | ) | (607 | ) | ||||
| Net decrease in cash and cash equivalents | (8,975 | ) | (5,134 | ) | ||||
| Cash and cash equivalents, beginning of period | 136,952 | 23,459 | ||||||
| Cash and cash equivalents, end of period | $ | 127,977 | $ | 18,325 | ||||
| RECONCILIATION OF 2008 ADJUSTED EBITDA GUIDANCE | ||||||||
| (A NON-GAAP MEASURE) TO GAAP NET INCOME GUIDANCE | ||||||||
| Year Ending | ||||||||
| In $000s | December 31, | |||||||
| 2008 | ||||||||
| Guidance Range | ||||||||
| Net Income | $ | 13,400 | $ | 17,000 | ||||
| Depreciation | 9,600 | 9,400 | ||||||
| Amortization of intangibles | 15,100 | 15,100 | ||||||
| Amortization of intangibles (included in cost of revenue) | 1,500 | 1,500 | ||||||
| Interest Expense, net | 11,800 | 11,200 | ||||||
| Income tax expense | 10,200 | 11,900 | ||||||
| EBITDA | 61,600 | 66,100 | ||||||
| Share-based compensation | 9,000 | 8,500 | ||||||
| Rental income from capitalized building lease | (400 | ) | (400 | ) | ||||
| Purchase accounting adjustments | 800 | 800 | ||||||
| Adjusted EBITDA | $ | 71,000 | $ | 75,000 | ||||
| RECONCILIATION OF 2008 ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE | ||||||||
| (A NON-GAAP MEASURE) TO GAAP EARNINGS PER SHARE GUIDANCE | ||||||||
| Year Ending | ||||||||
| December 31, | ||||||||
| In 000s, except per share data j | 2008 | |||||||
| Guidance Range | ||||||||
| Net Income | $ | 13,400 | $ | 17,000 | ||||
| Earnings per share (EPS) | 0.28 | 0.36 | ||||||
| Non-cash, tax-adjusted acquisition-related intangible amortization | 0.20 | 0.20 | ||||||
| Adjusted EPS | 0.48 | 0.56 | ||||||
| Non-cash, tax-adjusted share-based compensation | 0.10 | 0.11 | ||||||
| Cash EPS | $ | 0.59 | $ | 0.67 | ||||
| Fully diluted weighted average shares outstanding | 47,200 | 47,200 | ||||||
| (j) Columns may not foot due to rounding. | ||||||||
CONTACT:
MedAssets, Inc.
Robert P. Borchert
VP, Investor Relations
678-248-8194
rborchert@medassets.com