DALLAS, TX -- 05/15/2007 -- American CareSource Holdings, Inc. (AMEX: XSI) today announced financial results for the first quarter ending on March 31, 2007.
Revenues for the first quarter 2007 were approximately $2.3 million compared to approximately $2.5 million in the first quarter 2006. The decrease in the first quarter was a result of a decline in business from Lutheran Preferred Health Network. Lutheran made the decision late in the fourth quarter of 2006 to directly contract with certain providers. Lutheran continues to utilize the company's network with other providers within the American CareSource network. Excluding the impact of Lutheran, revenue for the quarter would have increased 5% over the first quarter of 2006.
Net loss for the first quarter of 2007 was $611 thousand, or $0.04 per share, compared to $260 thousand, or $0.02 per share in the prior year. Cash used in operations was $546 thousand in the first quarter of 2007 versus $184 thousand in the first quarter of 2006. The company had $4.2 million in cash on hand at the end of the quarter versus $5.0 million at the end of the fourth quarter of 2006.
Wayne Schellhammer, CEO of American CareSource Holdings, stated, "While we are disappointed in the decline in Lutheran, we are very encouraged with our current sales efforts and expect to replace the lost revenue in the second quarter with new clients. We are committed to our business model and are constantly striving to speed the adoption and subsequent implementation of these new clients."
About American CareSource Holdings, Inc. (ACS)
American CareSource Holdings, Inc., the first national, publicly traded ancillary care network services company, is a comprehensive ancillary care service company offering a national network of more than 24,000 ancillary providers. The ACS ancillary network and management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both the Federal and local governments. Through its product offerings, American CareSource Holdings, Inc. helps its clients reduce the cost of ancillary services rendered through its network of ancillary care providers in more than 30 service categories.
Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by American CareSource Holdings, Inc. for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve further risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights, and the outcome of competitive products, risks in product development, the results of financing effort, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) As of March 31, December 31, ASSETS 2007 2006 ------------ ------------ CURRENT ASSETS Cash and Cash Equivalents $ 4,152,870 $ 5,025,380 Accounts Receivable 950,106 1,334,950 Other 59,175 33,515 ============ ============ Total Current Assets 5,162,151 6,393,845 Net Property, Plant, and Equipment 260,709 266,555 OTHER ASSETS Certificate of Deposit, Restricted 145,000 145,000 Intangible Assets 1,654,424 1,707,819 Goodwill 4,361,299 4,361,299 ============ ============ Total Other Assets 6,160,723 6,214,118 ============ ============ Total Assets $ 11,583,583 $ 12,874,518 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Due to Service Providers $ 631,491 $ 1,077,174 Accounts Payable and Accrued Liabilities 739,639 761,926 Current Maturities of Long-Term Debt 52,872 352,718 ============ ============ Total Current Liabilities 1,424,002 2,191,818 Long-Term Debt 91,728 101,541 ============ ============ Total Liabilities 1,515,730 2,293,359 ------------ ------------ STOCKHOLDERS' EQUITY: Common Stock-par value $0.01, 40,000,000 shares authorized and 14,492,798 and 14,486,615 shares issued and outstanding as of March 31, 2007 and December 31, 2006 respectively 144,928 144,866 Preferred Stock-par value $0.01, 10,000,000 shares authorized and none outstanding 0 0 Additional Paid in Capital 17,085,574 17,034,176 Deferred Debt Issuance Cost - (46,300) Accumulated (Deficit) (7,162,649) (6,551,583) ============ ============ Total Stockholders' Equity 10,067,853 10,581,159 ------------ ------------ Total Liabilities and Equity $ 11,583,583 $ 12,874,518 ============ ============ AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, March 31, 2007 2006 ----------- ----------- REVENUES Net Ancillary Health $ 2,266,569 $ 2,432,232 Patient Claims Processing - 32,149 ----------- ----------- Total Net Revenue 2,266,569 2,464,381 Total Cost of Revenues 2,101,643 2,045,474 ----------- ----------- Contribution Margin 164,926 418,907 ----------- ----------- Selling, General, and Administrative Expenses 694,421 533,897 Depreciation and Amortization 78,074 78,247 ----------- ----------- Total Operating Expenses 772,495 612,144 ----------- ----------- Operating (Loss) (607,569) (193,237) ----------- ----------- Financing (Income) Expense: Interest (Income) (53,874) (21,601) Debt Issuance Cost 46,300 46,301 Interest Expense 11,071 42,300 ----------- ----------- Total Financing Expenses 3,497 67,000 ----------- ----------- Net (Loss) Before Income Tax (611,066) (260,237) Income Tax Expense 0 0 ----------- ----------- Net (Loss) $ (611,066) $ (260,237) =========== =========== NET LOSS PER SHARE - BASIC AND DILUTED $ (0.04) $ (0.02) WEIGHTED AVERAGE COMMON SHARES 14,486,749 13,278,649 AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2007 (UNAUDITED) Common Stock Additional Paid In Shares Amount Capital ------------- ------------- ------------- Balance December 31, 2006 14,486,615 $ 144,866 $ 17,034,176 Exercise of 6,183 Stock Options 6,183 62 1,862 Option Compensation Expense - - 49,536 Amortization of Deferred Debt Issuance Cost - - - Net Loss - - - ============= ============= ============= Balance March 31, 2007 14,492,798 $ 144,928 $ 17,085,574 ============= ============= ============= Deferred Debt Issuance Accumulated Cost Deficit Total ------------ ------------ ------------ Balance December 31, 2006 $ (46,300) $ (6,551,583) $ 10,581,159 Exercise of 6,183 Stock Options - - 1,924 Option Compensation Expense - - 49,536 Amortization of Deferred Debt Issuance Cost 46,300 - 46,300 Net Loss (611,066) (611,066) ============ ============ ============ Balance March 31, 2007 - $ (7,162,649) $ 10,067,853 ============ ============ ============ AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, March 2007 31, 2006 ----------- ----------- OPERATING ACTIVITIES: Net loss $ (611,066) $ (260,237) Adjustments to reconcile net loss to net cash used in operating activities: Stock option compensation expense 49,536 22,230 Depreciation and amortization 78,074 78,247 Compensation expense related to warrants 46,300 46,301 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable 384,844 (830,477) (Increase) decrease in other current assets (25,660) 9,129 Increase (decrease) in accounts payable and accrued liabilities (22,287) 93,747 Increase (decrease) in amounts payable to service providers (445,683) 657,050 ----------- ----------- Net cash (used in) operating activities (545,942) (184,010) ----------- ----------- INVESTING ACTIVITIES: Purchase of Property and equipment (18,833) (17,700) ----------- ----------- Net cash (used in) investing activities (18,833) (17,700) ----------- ----------- FINANCING ACTIVITIES: Borrowings from line of credit - 200,000 Payment on line of credit or long term debt (309,659) (3,654,894) Net proceeds from the exercising of stock options 1,924 32,997 Net proceeds from the sale of capital stock - 9,069,848 ----------- ----------- Net cash provided by (used in) financing activities $ (307,735) $ 5,647,951 ----------- ----------- NET INCREASE IN CASH AND CASH EQUIVALENTS $ (872,510) $ 5,446,241 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,025,380 23,399 ----------- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 4,152,870 $ 5,469,640 =========== =========== Supplemental disclosures cash flow information Cash paid for interest expense 29,931 88,805
Contact: David S. Boone Chief Operational Officer and Chief Financial Officer American CareSource Holdings, Inc. Tel. 972.308.6830