Exhibit 99.1
Contact:
David S. Boone
Chief Executive Officer
American CareSource Holdings, Inc.
Tel: 972-308-6830
FOR IMMEDIATE RELEASE
AMERICAN CARESOURCE HOLDINGS REPORTS
RECORD FINANCIAL RESULTS FOR 2008 FIRST QUARTER
- Company reports third consecutive quarterly profit of $521 thousand, or $0.03 per share -
DALLAS, TX – May 15, 2008 -- American CareSource Holdings, Inc. (AMEX: XSI) today announced record financial and operational results for the first quarter ended March 31, 2008. Highlights include:
• Reported a quarterly profit of $521 thousand in net income, or $0.03 per diluted share, resulting in three consecutive quarters of profit growth.
• Achieved $11.5 million in revenue for the quarter, a record 407% rise in revenues for Q1 2008 compared to Q1 2007, representing four quarters of sequential revenue growth.
• Attained gross margins of approximately 15% compared to 7% in Q1 2007, reflecting continued leverage of the Company’s fixed cost infrastructure.
• Generated EBITDA, as adjusted, of $784 thousand for the quarter.
− EBITDA, as adjusted, (a non-GAAP measure) is defined as income (loss) from operations less depreciation and amortization, non-cash warrant and option compensation expense and executive severance. EBITDA, as adjusted, should be considered in addition to, but not in lieu of, income (loss) from operations reported under generally accepted accounting principles (GAAP).
• The Company finished the quarter with $5.9 million in cash on hand and generated $1.6 million in cash from operating activities in the first quarter, the largest cash flow volume in the Company’s history.
• Claims volume increased to approximately 60 thousand for Q1 2008, up 278% over Q1 2007.
• Recent key executive additions:
− Matthew Thompson appointed to Controller and Chief Accounting Officer.
Commenting on today’s announcement, David S. Boone, Chief Executive Officer of American CareSource, stated, “We are very pleased to report such strong quarterly financial results. With renewed focus, we have now developed the most comprehensive national network of ancillary healthcare services providers in the country and, as a result, we are bringing our clients a wider range of services with highly favorable economics. We continue to deliver real cost savings to our clients and are demonstrating the value of our business model.
“The tremendous surge in revenues for the first quarter and the dramatic improvement in profitability compared to the same period of 2007, is a continuation of the trend we began last year and reflect both organic growth as well as the addition of several new clients during the past year. Given where we stand today and taking into account expected new client wins, further expansion of our provider network and growth in current client business, we continue to believe that the Company is on track to exceed its initial guidance of $50 million in revenues for the full year.”
Revenues for the first quarter of 2008 rose 407% to $11.5 million compared to $2.3 million in the first quarter of 2007. The Company’s first quarter revenues also represent a 14% improvement over fourth quarter 2007 reported revenues of $10.1 million.
The Company reported net income of $521 thousand, or $0.03 per diluted share, for the first quarter of 2008, compared to a net loss of $611 thousand, or $0.04 per share, in the same period last year. Factors affecting positive current quarter results include increases in revenue from the addition of five new clients which began with the Company in 2007 and the expansion of services for existing clients.
Cash provided by operations was $1.6 million in the first quarter of 2008 versus negative $546 thousand in the first quarter of 2007. Factors affecting the improvement in operating cash flows include earnings growth, accelerated client collections and overall effectiveness in working capital management. At March 31, 2008, the Company had $5.9 million in cash and cash equivalents compared to $4.3 million at December 31, 2007.
Conference Call
As previously announced, American CareSource will hold a conference call to discuss financial results of the first quarter ended March 31, 2008 as follows:
Date: Thursday, May 15, 2008
Time: 10:00 a.m. (CT)/11:00 a.m. (ET)
Dial-in numbers: 877-675-4757 (U.S. & Canada) or 719-325-4911
Live webcast: www.anci-care.com, under “New & Events”
The teleconference replay will be available two hours after completion through Thursday, May 22, 2008 at 888-203-1112 (U.S. & Canada) or 719-457-0820. The replay pass code is 6620406. The archived webcast will be available for one year on the Company’s investor website, www.anci-care.com, under “News and Events.”
About American CareSource Holdings, Inc.
American CareSource Holdings, the first national, publicly traded ancillary care network services company, offers a comprehensive national network of more than 25,000 ancillary provider sites. Through its product offerings, American CareSource helps its clients reduce the cost of ancillary services rendered through its network of providers in more than 30 service categories. The Company’s 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 federal and local governments.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
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 ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.
(Tables to Follow)
American CareSource Holdings, Inc.
Balance Sheet (Unaudited)
March 31, 2008 and December 31, 2007
| | | March 31, 2008 | | | December 31, 2007 | |
| ASSETS | | | | | | |
| Current Assets | | | | | | |
| Cash | | $ | 5,857,094 | | | $ | 4,272,498 | |
| Accounts receivable, net | | | 3,248,579 | | | | 3,651,203 | |
| Prepaids and Other Current Assets | | | 427,195 | | | | 409,445 | |
| Total Current Assets | | | 9,532,868 | | | | 8,333,146 | |
| | | | | | | | | |
| Net Property, Plant and Equipment | | | 388,504 | | | | 332,450 | |
| Other Assets | | | | | | | | |
| Certificate of Deposit, restricted | | | 145,000 | | | | 145,000 | |
| Other Non-Current Assets | | | 420,238 | | | | 492,977 | |
| Intangible Assets | | | 1,440,843 | | | | 1,494,238 | |
| Goodwill | | | 4,361,299 | | | | 4,361,299 | |
| Total Other Assets | | | 6,367,380 | | | | 6,493,514 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 16,288,752 | | | $ | 15,159,110 | |
| | | | | | | | | |
| LIABILITIES | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Due to Service Providers | | $ | 3,709,889 | | | $ | 3,344,278 | |
| Accounts Payable and Accrued Liabilities | | | 1,288,963 | | | | 1,320,036 | |
| Current Maturities of Long-Term Debt | | | 56,697 | | | | 55,697 | |
| Total Current Liabilities | | | 5,055,549 | | | | 4,720,011 | |
| | | | | | | | | |
| Long-Term Debt | | | 35,784 | | | | 50,348 | |
| | | | | | | | | |
| TOTAL LIABILITIES | | | 5,091,333 | | | | 4,770,359 | |
| | | | | | | | | |
| EQUITY | | | | | | | | |
| Common Stock | | | 150,674 | | | | 146,684 | |
| Preferred Stock-par value $0.01, 10,000,000 shares | | | - | | | | - | |
| authorized and none outstanding | | | | | | | | |
| Additional Paid In Capital - General | | | 17,897,140 | | | | 17,613,880 | |
| Accumulated Deficit | | | (6,850,395 | ) | | | (7,371,813 | ) |
| | | | | | | | | |
| TOTAL EQUITY | | | 11,197,419 | | | | 10,388,751 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND EQUITY | | $ | 16,288,752 | | | $ | 15,159,110 | |
| American CareSource Holdings, Inc. | |
| Consolidated Statements of Operations (Unaudited) | |
| | | | | | | |
| | | | | | | |
| | | Three months ended | |
| | | 3/31/2008 | | | 3/31/2007 | |
| | | | | | | |
| Net Revenues | | $ | 11,505,675 | | | $ | 2,266,569 | |
| | | | | | | | | |
| Total Cost of Revenues | | | 9,801,122 | | | | 2,101,643 | |
| | | | | | | | | |
| Contribution Margin | | | 1,704,553 | | | | 164,926 | |
| | | | | | | | | |
| | | | | | | | | |
| Selling General and Administrative Expense | | | 1,112,854 | | | | 694,421 | |
| Depreciation and Amortization | | | 92,067 | | | | 78,074 | |
| | | | | | | | | |
| Total Operating Expenses | | | 1,204,921 | | | | 772,495 | |
| | | | | | | | | |
| Operating Income (Loss) | | | 499,632 | | | | (607,569 | ) |
| | | | | | | | | |
| Interest Income | | | (40,668 | ) | | | (53,874 | ) |
| Interest Expense | | | 1,838 | | | | 11,071 | |
| Debt Issuance Cost | | | - | | | | 46,300 | |
| | | | | | | | | |
| Total Other (Income) Expenses | | | (38,830 | ) | | | 3,497 | |
| | | | | | | | | |
| Net Income (Loss) Before Income Taxes | | | 538,462 | | | | (611,066 | ) |
| Income Tax Provision | | | 17,044 | | | | - | |
| | | | | | | | | |
| Net Income (Loss) | | $ | 521,418 | | | $ | (611,066 | ) |
| | | | | | | | | |
| | | | | | | | | |
| Earnings (loss) per common share: | | | | | | | | |
| Basic | | $ | 0.04 | | | $ | (0.04 | ) |
| Diluted | | $ | 0.03 | | | $ | (0.04 | ) |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | | 14,880,266 | | | | 14,486,749 | |
| Diluted | | | 17,255,201 | | | | 14,486,749 | |
