EXHIBIT 99.2
COMPANY NEWS RELEASE
FOR IMMEDIATE RELEASE
IMPORTANT NOTE: ProxyMed's fourth quarter 2001 results live teleconference call
is accessible by calling 1-800-530-8983 beginning at 10:00 a.m. Eastern
Standard Time on Thursday, February 14, 2002 and will be simultaneously
broadcast on the Internet at www.proxymed.com. Replays of the teleconference
call will be available at www.proxymed.com after 1:00 p.m. EST on February
14th.
CONTACT:
JUDSON E. SCHMID
CHIEF FINANCIAL OFFICER
(954) 473-1001, EXT. 353
INVESTORRELATIONS@PROXYMED.COM
PROXYMED ANNOUNCES FINANCIAL RESULTS
FOR FOURTH QUARTER AND YEAR END 2001
- RECORD ANNUAL REVENUE OF $43.2 MILLION AND EBITDA,
AS ADJUSTED, OF $2.46 MILLION -
FT. LAUDERDALE, FL (Business Wire) February 13, 2002 - ProxyMed, Inc.
(Nasdaq: PILL), a leading provider of healthcare transaction processing
services, today reported operating results for its fourth quarter and year
ended December 31, 2001.
ProxyMed reported record revenues for the fourth quarter of 2001 of
$12.8 million, an increase of 47%, compared to revenues of $8.7 million for the
same period of 2000. For the year ended December 31, 2001, revenues were $43.2
million, an increase of 29%, over revenues of $33.4 million for the prior year.
For the quarter, the Company's profit before interest, taxes,
depreciation and amortization, excluding impairment and restructuring charges,
(EBITDA) was $0.9 million, compared to an EBITDA loss of ($0.6 million) for the
fourth quarter of 2000. For the year ended December 31, 2001, the Company
reported an EBITDA profit of $1.6 million compared to an EBITDA loss of ($5.9
million) for the prior year.
Additionally, for the 2001 year, the Company is reporting $2.46
million in EBITDA profit, as adjusted, after adding back to reported EBITDA
approximately $0.9 million in certain separation pay, software licensing
charges, and non-cash compensatory option expenses incurred primarily in the
early part of the year.
For the fourth quarter of 2001, net loss applicable to common
shareholders and net loss per share from continuing operations were $4.7
million and $1.44, compared to a net loss of $12.4 million and net loss per
share of $9.05 for the fourth quarter of 2000. Weighted average shares
outstanding for the quarters ended December 31, 2001 and 2000 were 3,286,149
and 1,371,635 respectively.
For the year ended December 31, 2001, net loss applicable to common
shareholders and net loss per share from continuing operations were $19.1
million and $8.81, respectively, compared to a net loss of $48.1 million and
net loss per share of $36.84 for the year ended December 31, 2000. Weighted
average shares outstanding for the year ended December 31, 2001 and 2000 were
2,162,352 and 1,304,342, respectively.
"We are extremely pleased with our record revenues and EBITDA for the
year as evidence of a true turnaround. With these accomplishments and the
completion of our multi-stage capital structure clean-up, we start 2002 in our
best financial position ever. We can now focus on accelerating our core growth
and on delivering quality earnings to our shareholders through expanding EBITDA
margins," said Judson E. Schmid, ProxyMed's chief financial officer.
Fourth quarter operating highlights include:
CORPORATE - CAPITAL STRUCTURE IMPROVEMENTS
- Converted almost 99% of the outstanding Series C Preferred
Stock into common shares (83% was converted through December
31, 2001) pursuant to a Conversion Offer. A non-cash, deemed
dividend charge of $3.4 million for the 83% of shares
converted in 2001 is reflected in the loss applicable to
common shareholders.
- Raised $8 million through the private placement of 483,414
shares of common stock to nine U.S. and Canadian
institutional and accredited investors.
- Created a simplified capital structure after completion of
Conversion Offer (as of February 11, 2002):
Number of
Common
Shares
---------
Common shares outstanding 5,141,200
Preferred stock 20,000
Stock options 842,400
Warrants 189,000
---------
Total 6,192,600
=========
ELECTRONIC HEALTHCARE TRANSACTION PROCESSING
- Processed a record setting 26.5 million financial and
clinical transactions through ProxyNet(R), ProxyMed's secure,
proprietary, national healthcare information network,
representing an increase of 72% over the same quarter last
year. For all of 2001, ProxyMed processed 88.0 million
transactions, representing a 48% increase over 2000.
- Signed over 500 physician offices in less than 60 days in
connection with our EDS partnership.
- Added 6 new payers and 17 strategic partners.
- Expanded ProxyNet's pharmacy connectivity through an alliance
with eRx Network. ProxyNet now has the ability to reach
pharmacies that dispense one-third of all prescriptions being
filled annually in this country.
LABORATORY COMMUNICATION SOLUTIONS
- Grew sales of laboratory results reporting devices 32% over
the same quarter last year.
- Began marketing a next generation clinical lab product,
ProxyLab, which enables physician offices to send lab orders
and receive lab results through a flexible thick or thin
architecture .
- Introduced a new service offering, FleetWatch, for our lab
customers.
Michael K. Hoover, ProxyMed's chairman and chief executive officer
said, "I want to thank our dedicated associates and management team for
delivering these outstanding results throughout 2001. Looking ahead, I believe
that ProxyMed will become the leading provider of physician connectivity
through the introduction of new transaction services, our focused efforts on
cross-selling our existing physicians, and the completion of key strategic
acquisitions."
ABOUT PROXYMED - WHERE HEALTHCARE CONNECTS(TM)
ProxyMed solves the business problems of physician offices every day by
automating their financial, administrative and clinical transactions with
healthcare institutions. To facilitate these services, ProxyMed operates
ProxyNet(R), its secure, proprietary national electronic information network,
which provides physicians and other healthcare providers with direct
connectivity to one of the industry's largest list of payers, the largest list
of chain and independent pharmacies and the largest list of clinical
laboratories. ProxyMed exceeds customer expectations through our expertise,
proven methodologies and dedication to service excellence.
Note: This press release contains forward-looking statements that reflect our
current assumptions and expectations regarding future events. While these
statements reflect our current judgment, they are subject to risks and
uncertainties. Actual results may differ significantly from projected results
due to a number of factors, including, but not limited to the soundness of our
business strategies relative to the perceived market opportunities; our ability
to successfully develop, market, sell, cross-sell, install and upgrade our
clinical and financial transaction services and applications to current and new
physicians, payers, medical laboratories and pharmacies; our ability to compete
effectively on price and support services; our assessment of the healthcare
industry's need, desire and ability to become technology efficient; and our
ability and that of our business associates to comply with various government
rules regarding healthcare and patient privacy. These and other risk factors
are more fully discussed in our filings with the Securities and Exchange
Commission, which we strongly urge you to read. We expressly disclaim any
intent or obligation to update any forward-looking statements. When used, the
words "believes," "estimated," "expects," "anticipates," "may" and similar
expressions are intended to identify forward-looking statements.
More information on ProxyMed is available on its home page at
http://www.proxymed.com.
PROXYMED, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended December 31, Year Ended Ended December 31,
------------------------------- -------------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Revenues $ 12,773,200 $ 8,665,600 $ 43,230,300 $ 33,441,100
------------ ------------ ------------ ------------
Costs and expenses:
Cost of sales 6,497,300 3,104,600 20,408,000 12,249,000
Selling, general and administrative expenses 5,345,800 6,185,400 21,266,900 27,097,200
Restructuring charge -- (85,000) -- 1,330,000
Write-off of impared assets 91,100 2,850,100 91,100 2,850,100
Operating depreciation and amortization (1) 462,500 842,100 1,766,700 2,991,100
------------ ------------ ------------ ------------
Total operating costs and expenses (1) 12,396,700 12,897,200 43,532,700 46,517,400
------------ ------------ ------------ ------------
Operating income (loss), as adjusted (1) 376,500 (4,231,600) (302,400) (13,076,300)
Acquisition-related amortization charges (991,900) (2,582,300) (6,409,700) (10,383,800)
Litigation settlement and other, net 39,800 (22,000) 39,800 666,600
Interest income (expense), net (105,300) 132,600 (125,600) (4,133,000)
------------ ------------ ------------ ------------
Net loss from continuing operations (680,900) (6,703,300) (6,797,900) (26,926,500)
Discontinued operations:
Loss from discontinued operations -- -- -- (303,900)
Gain on sales of discontinued operations -- 34,200 -- 545,300
------------ ------------ ------------ ------------
-- 34,200 -- 241,400
------------ ------------ ------------ ------------
Net loss (680,900) (6,669,100) (6,797,900) (26,685,100)
Deemed dividends and other charges 4,042,600 5,738,400 12,262,000 21,366,600
------------ ------------ ------------ ------------
Net loss applicable to common shareholders $ (4,723,500) $(12,407,500) $(19,059,900) $(48,051,700)
============ ============ ============ ============
Basic and diluted income (loss) per share:
From continuing operations $ (1.44) $ (9.07) $ (8.81) $ (37.03)
From discontinued operations -- 0.02 -- 0.19
------------ ------------ ------------ ------------
$ (1.44) $ (9.05) $ (8.81) $ (36.84)
============ ============ ============ ============
Basic and diluted weighted average shares outstanding 3,286,149 1,371,635 2,162,352 1,304,342
============ ============ ============ ============
EBITDA (2) $ 930,100 $ (624,400) $ 1,555,400 $ (5,905,100)
============ ============ ============ ============
(1) Excludes acquisition-related amortization charges
(2) Excludes restructuring and impairment charges
PROXYMED, INC. AND SUBSIDIARIES
SEGMENT INFORMATION (UNAUDITED)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -------------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Revenues:
Electronic healthcare transaction processing $ 5,404,800 $ 3,007,700 $ 16,938,400 $ 10,103,400
Laboratory communication solutions 7,368,400 5,658,000 26,291,900 23,337,700
------------ ------------ ------------ ------------
$ 12,773,200 $ 8,665,700 $ 43,230,300 $ 33,441,100
============ ============ ============ ============
Operating income (loss):(1)
Electronic healthcare transaction processing $ (650,300) $ (6,246,200) $ (6,858,700) $(18,949,800)
Laboratory communication solutions 785,600 843,100 3,685,900 3,724,200
Corporate and consolidating (750,700) (1,495,800) (3,539,300) (6,904,500)
Restructuring charges -- 85,000 -- (1,330,000)
------------ ------------ ------------ ------------
$ (615,400) $ (6,813,900) $ (6,712,100) $(23,460,100)
============ ============ ============ ============
(1) Includes impairment and acquisition-related amortization charges
PROXYMED, INC. AND SUBSIDIARIES
BALANCE SHEET HIGHLIGHTS
DECEMBER 31, 2001 (UNAUDITED)
Cash and cash equivalents $12,601,000
Total assets $35,881,500
Total liabilities $13,009,000
Total stockholders' equity $22,872,500