DALLAS, TX -- 04/02/2007 -- American CareSource Holdings, Inc. (AMEX: XSI) today announced financial results for its fourth quarter and year ended December 31, 2006 and the election of Edward B. Berger as Non Executive Chairman of its Board of Directors.
Revenues for 2006 were approximately $11.4 million compared to approximately $4.4 million in the prior year. The increase in revenue is primarily the result of the addition by the company of HealthSmart as a client in December 2005.
Net loss for the fiscal year 2006 was $1.3 million, or $0.09 per share, compared to $2.4 million, or $0.19 per share last year. Cash used in operations was $387,154 in 2006 versus $1,812,862 in 2005. The company had cash on hand at the end of 2006 of $5,025,380 versus $23,399 in 2005.
"We have made great progress in this past year," stated Wayne A. Schellhammer, President and Chief Executive Officer for American CareSource Holdings. "We have increased our sales volume, closed several important pieces of new business, improved our capital structure, and made the leap to the American Stock Exchange. We are looking forward to furthering our progress in 2007."
At the March 30, 2007 meeting of the American CareSource Holdings' Board of Directors, Edward B. Berger was elected Non Executive Chairman of its Board of Directors. In addition, Mr. Berger will continue to serve as a member of the Audit and Nominating and Governance Committees.
Commenting on the change, President and CEO, Wayne A. Schellhammer said, "I'm pleased that Edward Berger has accepted this position for us. With our increased activity this action creates more management availability to expedite the momentum from recent new client commitments."
Mr. Berger has served as one of our directors since March 2006. Mr. Berger is the Chief Executive Officer and Director of CardSystems Solutions and Director of Compass Bank of Tucson, Arizona and a director of Healthcare Acquisition Corp. Mr. Berger has been admitted to practice law by the U.S. Supreme Court, New York Bar, Arizona Bar, District of Columbia Bar, U.S. District Court-Arizona and the U.S. Court of Appeals 9th Circuit. Mr. Berger is currently an Adjunct Professor in Political Science at Pima Community College and is the Chairman of the MBA Advisory Council at the University of Arizona. Mr. Berger received a Juris Doctor in Law from New York Law School and a Masters Degree in Education as well as a B.A. in History and English from the University of Arizona.
About American CareSource Holdings, Inc. (ACS)
American CareSource Holdings, Inc., the first national, publicly traded ancillary care benefit management company, is a comprehensive ancillary care service provider 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. CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2006 AND 2005 2006 2005 ------------ ------------ ASSETS Current Assets Cash and cash equivalents $ 5,025,380 $ 23,399 Accounts receivable 1,334,950 482,159 Prepaid and other current assets 33,515 30,151 ------------ ------------ Total current assets 6,393,845 535,709 Net Property and Equipment 266,555 175,608 OTHER ASSETS Certificate of deposit, restricted 145,000 - Net intangible assets 1,707,819 1,921,401 Goodwill 4,361,299 4,361,299 ------------ ------------ Total other assets 6,214,118 6,272,700 Total assets $ 12,874,518 $ 6,994,017 ============ ============ LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Due to service providers $ 1,077,174 $ 386,217 Accounts payable and other accrued liabilities 761,926 352,383 Current maturities of long-term debt 352,718 20,231 ------------ ------------ Total current liabilities 2,191,818 758,831 ------------ ------------ Long-Term Debt 101,541 3,845,929 ------------ ------------ STOCKHOLDERS’ EQUITY Common stock, par value $0.01, 40,000,000 shares authorized and 14,486,615 and 12,371,309 issued and outstanding as of December 31, 2006 and December 31, 2005, respectively 144,866 123,713 Preferred stock, par value .01, 10,000,000 shares authorized and none outstanding as of December 31, 2006 and 2005 - - Additional paid-in-capital 17,034,176 7,734,800 Deferred debt issuance cost (46,300) (231,500) Accumulated (deficit) (6,551,583) (5,237,756) ------------ ------------ Total stockholders’ equity 10,581,159 2,389,257 ------------ ------------ $ 12,874,518 $ 6,994,017 ============ ============ AMERICAN CARESOURCE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS DECEMBER 31, 2006 AND 2005 2006 2005 ------------ ------------ Revenues: Ancillary health $ 11,323,217 $ 4,219,133 Patient claims processing 95,337 198,313 ------------ ------------ Total revenues 11,418,554 4,417,446 Total costs of revenues 9,346,927 4,407,290 ------------ ------------ Contribution margin 2,071,627 10,156 ------------ ------------ Selling, general and administrative expense 3,005,241 1,804,793 Depreciation and amortization 316,304 310,915 ------------ ------------ Total operating expenses 3,321,545 2,115,708 ------------ ------------ Operating (loss) (1,249,918) (2,105,552) ------------ ------------ Financing (income) expenses: Interest (income) (194,097) - Interest expense 72,806 146,492 Debt issuance cost 185,200 154,474 ------------ ------------ Total financing expenses 63,909 300,966 ------------ ------------ Net (loss) before income tax (1,313,827) (2,406,518) Income tax expense - - ------------ ------------ Net (Loss) $ (1,313,827) $ (2,406,518) ============ ============ Net (Loss) per share - basic and diluted $ (0.09) $ (0.19) Weighted Average Shares Outstanding 14,130,766 12,371,309 ============ ============ AMERICAN CARESOURCE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY DECEMBER 31, 2006 AND 2005 Additional Paid-In Shares Amount Capital ---------- ------------ ------------ Balance, December 31, 2004 12,371,309 $ 123,713 $ 7,158,154 Issue & amortization of warrants - - 376,646 Option compensation expense - - 200,000 Net (loss) - - - ---------- ------------ ------------ Balance, December 31, 2005 12,371,309 123,713 7,734,800 Issuance of 1,999,400 common stock shares, net of offering costs of $1,391,013 1,999,400 19,994 8,585,993 Issuance of common stock warrants - - 463,861 Exercise of 115,906 stock options 115,906 1,159 35,943 Option compensation expense - - 213,579 Amortization of warrants associated with debt - - - Net (loss) - - - ---------- ------------ ------------ Balance, December 31, 2006 14,486,615 $ 144,866 $ 17,034,176 ========== ============ ============ Deferred Debt Accumulated Issuance Cost (Deficit) Total ---------- ------------ ------------ Balance, December 31, 2004 $ - $(2,831,238) $ 4,450,629 Issue & amortization of warrants (231,500) - 145,146 Option compensation expense - - 200,000 Net (loss) - (2,406,518) (2,406,518) --------- ----------- ----------- Balance, December 31, 2005 (231,500) (5,237,756) $ 2,389,257 Issuance of 1,999,400 common stock shares, net of offering costs of $1,391,013 - - 8,605,987 Issuance of common stock warrants - - 463,861 Exercise of 115,906 stock options - - 37,102 Option compensation expense - - 213,579 Amortization of warrants associated with debt 185,200 - 185,200 Net (loss) - (1,313,827) (1,313,827) --------- ----------- ----------- Balance, December 31, 2006 $ (46,300) $(6,551,583) $10,581,159 ========= =========== =========== AMERICAN CARESOURCE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS DECEMBER 31, 2006 AND 2005 2006 2005 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) $ (1,313,827) $ (2,406,518) Adjustments to reconcile net loss to net cash (used in) operating activities Depreciation and amortization 316,304 310,915 Compensation expense related to warrants 185,200 145,146 Stock option compensation 213,579 200,000 Gain on disposal of assets (32,755) (6,729) Changes in operating assets and liabilities Accounts receivable (852,791) (21,468) Prepaid and other assets (3,364) (17,356) Due to service providers 690,957 (33,516) Accounts payable and other accrued liabilities 409,543 14,664 ------------ ------------ Net cash used in operating activities (387,154) (1,812,862) ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (234,376) (126,487) Proceeds from sales of equipment 73,462 31,656 Purchase of Certificate of Deposit (145,000) - ------------ ------------ Net cash used in investing activities (305,914) (94,831) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from (payments on) line of credit, net (3,450,000) 3,250,000 Proceeds from long term debt 135,000 33,727 Payments on long term debt (96,901) (54,125) Net proceeds from the sale of capital stock 9,069,848 - Net proceeds from the exercise of stock options 37,102 - Net (payments to) advances from former parent - (1,315,259) ------------ ------------ Net cash provided by financing activities 5,695,049 1,914,343 ------------ ------------ Net increase in cash and cash equivalents 5,001,981 6,650 Cash and cash equivalents at beginning of year 23,399 16,749 ------------ ------------ Cash and cash equivalents at end of year $ 5,025,380 $ 23,399 ============ ============ SUPPLEMENTAL CASH FLOW INFORMATION, cash paid for interest $ 52,532 $ 145,499 SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING AND FINANCIAL ACTIVITIES Warrants issued for debt guarantees - 376,646 Advances from former parent converted to long-term debt - 336,227 Acquisition of equipment through capital lease - 59,601 Warrants issued for stock issuance services 463,861 -
Contact: Wayne A. Schellhammer President & Chief Executive Officer American CareSource Holdings, Inc. Tel. 972.308.6830