HMS Holdings Corp. HMS Holdings Corp.
401 Park Avenue South Nasdaq: HMSY
New York, New York 10016
(212) 685-4545
(212) 857-5004 (fax)
PRESS RELEASE
Release: May 6, 2003
Contact: Kathy Arendt, Corporate Secretary
(212) 857-5423
(212) 857-5973 (fax)
E-Mail: ir@hmsy.com
http://www.hmsholdings.com
HMS HOLDINGS CORP. ANNOUNCES FIRST QUARTER RESULTS
New York, NY, May 6, 2003 -- HMS Holdings Corp. (Nasdaq: HMSY) announced first
quarter results today for the period ended March 31, 2003. HMS Holdings
reported revenue of $17.8 million for the first quarter compared with $16.9
million during the prior year period. HMS Holdings reported a net loss of
$395,000 or $0.02 per common share for the quarter, compared to a net loss of
$719,000 or $0.04 per common share during the first quarter of the prior year.
First quarter 2003 results included legal and other fees of over $600,000
associated with our response to the subpoena from the United States Attorney's
office that was previously announced at the end of January.
"If not for the costs we incurred in response to the subpoena, we would
have reported positive net income for the quarter," said William F. Miller III
Chief Executive Officer, HMS Holdings Corp. "While these additional costs and
the management diversion, which redirects attention away from potential
revenue generating activities, are real consequences of responding to the
subpoena, I believe our operating results for the last three quarters
fundamentally illustrate that we have our business heading in the right
direction."
# # #
HMS Holdings furnishes revenue recovery, business process and business
office outsourcing services to healthcare payors and providers. We help our
clients increase revenue, accelerate collections and reduce operating and
administrative costs.
HMS Holdings Corp. HMS Holdings Corp.
401 Park Avenue South Nasdaq: HMSY
New York, New York 10016
(212) 685-4545
(212) 857-5004 (fax)
PRESS RELEASE
Certain statements in this press release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 (the
"Reform Act"). Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual results, performance,
or achievements of HMSY, or industry results, to be materially different from
any future results, performance, or achievements expressed or implied by such
forward-looking statements. The important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements include, but are not limited to (i) the information being of a
preliminary nature and therefore subject to further adjustment; (ii) the
uncertainties of litigation; (iii) HMSY's dependence on significant customers;
(iv) changing conditions in the healthcare industry which could simplify the
reimbursement process and adversely affect HMSY's business; (v) government
regulatory and political pressures which could reduce the rate of growth of
healthcare expenditures and/or discourage the assertion of claims for
reimbursement against and delay the ultimate receipt of payment from third party
payors; (vi) competitive actions by other companies, including the development
by competitors of new or superior services or products or the entry into the
market of new competitors; (vii) all the risks inherent in the development,
introduction, and implementation of new products and services; and (viii) other
risk factors described from time to time in HMSY's filings with the SEC,
including HMSY's Form 10-K for the year ended December 31, 2002. HMSY assumes no
responsibility to update the forward-looking statements contained in this
release as a result of new information, future events or otherwise. When used in
this release, the words "focus," "believe," "confident," "strong," "potential,"
and similar expressions are intended to identify forward-looking statements, and
the above described risks inherent therein.
# # #
HMSY will be hosting its quarterly conference call with the investment community
on Tuesday, May 6, 2003 at 4:00 P.M. Eastern Standard Time. The conference call
will include listen-only capability for individual investors and interested
parties. The conference call number is (212) 346-6444. The conference call will
be available for replay at (212) 857-5423 until May 21, 2003. This press release
and the earnings statements herein will be available at www.hmsholdings.com
indefinitely.
# # #
HMS Holdings Corp. HMS Holdings Corp.
401 Park Avenue South Nasdaq: HMSY
New York, New York 10016
(212) 685-4545
(212) 857-5004 (fax)
PRESS RELEASE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(unaudited)
THREE MONTHS ENDED MARCH 31,
2003 2002
-------- --------
Revenue $ 17,758 $ 16,870
Cost of services:
Compensation 9,870 9,465
Data processing 1,187 1,545
Occupancy 1,485 1,524
Direct project costs 3,335 2,262
Other operating costs 2,373 2,952
-------- --------
Total cost of services 18,250 17,748
-------- --------
Operating loss (492) (878)
Net interest income 97 159
-------- --------
Loss before income taxes (395) (719)
Income tax benefit -- --
-------- --------
Net loss $ (395) $ (719)
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Basic and diluted loss per share data:
Net loss per share $ (0.02) $ (0.04)
======== ========
Weighted average common shares outstanding 18,266 18,051
======== ========
HMS Holdings Corp. HMS Holdings Corp.
401 Park Avenue South Nasdaq: HMSY
New York, New York 10016
(212) 685-4545
(212) 857-5004 (fax)
PRESS RELEASE
CONDENSED CONSOLIDATED BALANCE SHEETS
($ In Thousands, Except Share and Per Share Amounts)
(unaudited)
MARCH 31, DECEMBER 31,
2003 2002
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 23,740 $ 24,174
Short-term investments 1,100 1,108
Accounts receivable, net 14,282 15,312
Prepaid expenses and other current assets 1,166 1,207
-------- --------
Total current assets 40,288 41,801
Property and equipment, net 4,369 4,912
Goodwill 5,679 5,679
Deferred income taxes, net 8,920 8,920
Other assets 254 354
-------- --------
Total assets $ 59,510 $ 61,666
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued expenses and other liabilities $ 11,181 $ 13,176
-------- --------
Total current liabilities 11,181 13,176
Other liabilities 704 722
-------- --------
Total liabilities 11,885 13,898
-------- --------
Commitments and contingencies
Shareholders' Equity
Preferred stock - $.01 par value;
5,000,000 shares authorized; none issued -- --
Common Stock - $.01 par value;
45,000,000 shares authorized;
19,902,770 shares issued and 18,257,854 shares
outstanding at March 31, 2003
19,885,390 shares issued and 18,276,274 shares
outstanding at December 31, 2002 199 199
Capital in excess of par value 74,940 74,959
Unearned stock compensation (11) (33)
Accumulated deficit (18,215) (17,820)
Accumulated other comprehensive income -- 8
Treasury stock, at cost; 1,644,916 shares at March 31, 2003
and 1,609,116 shares at December 31, 2002 (9,288) (9,184)
Note receivable from officer for sale of stock -- (361)
-------- --------
Total shareholders' equity 47,625 47,768
-------- --------
Total liabilities and shareholders' equity $ 59,510 $ 61,666
======== ========
HMS Holdings Corp. HMS Holdings Corp.
401 Park Avenue South Nasdaq: HMSY
New York, New York 10016
(212) 685-4545
(212) 857-5004 (fax)
PRESS RELEASE
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
($ in Thousands)
(unaudited)
THREE MONTHS ENDED MARCH 31,
2003 2002
-------- --------
Operating activities:
Net loss $ (395) $ (719)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 725 602
Provision for doubtful accounts 75 75
Stock compensation expense
(45) 145
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 955 (2,228)
Decrease in prepaid expenses and other
current assets 41 377
Decrease in other assets 100 52
Decrease in accounts payable, accrued
expenses and other liabilities (2,013) (1,325)
-------- --------
Net cash used in operating activities (557) (3,021)
-------- --------
Investing activities:
Purchases of property and equipment (182) (450)
Net proceeds from sales of short-term investments -- 10
-------- --------
Net cash used in investing activities (182) (440)
-------- --------
Financing activities:
Proceeds from exercise of stock options -- 144
Repayment of note receivable from officer for
purchase of common stock 361 361
Purchases of treasury stock (104) --
Proceeds from issuance of common stock 48 --
-------- --------
Net cash provided by financing activities 305 505
-------- --------
Net decrease in cash and cash equivalents (434) (2,956)
Cash and cash equivalents at beginning of period 24,174 21,020
Cash provided by discontinued operations -- 154
-------- --------
Cash and cash equivalents at end of period $ 23,740 $ 18,218
======== ========
Supplemental disclosure of non-cash investing and
financing activities:
Changes in unearned compensation $ (45) $ 145
======== ========
Supplemental disclosure of cash flow information:
Cash paid for income taxes $ 14 $ 75
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