EXHIBIT 99.2
[ProxyMed Logo]
COMPANY NEWS
RELEASE
FOR IMMEDIATE RELEASE
IMPORTANT NOTE: ProxyMed's second quarter 2002 results live teleconference call
is accessible by calling 1-800-360-9865 beginning at 11:00 a.m. Eastern Daylight
Time on Wednesday, July 24, 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. EDT on July 24th.
Contact:
Judson E. Schmid
Chief Financial Officer
(954) 473-1001, ext. 353
investorrelations@proxymed.com
PROXYMED ANNOUNCES SECOND QUARTER 2002 EARNINGS
- Records first-ever net income of $445,500 and earnings per share of $0.06 -
Fort Lauderdale, Florida (Business Wire) July 23, 2002 - ProxyMed, Inc.
(Nasdaq: PILL), a leading provider of healthcare transaction processing
services, today reported operating results for its second quarter of 2002.
ProxyMed reported revenues for the second quarter of 2002 of $12.6
million, an increase of 24% compared to revenues of $10.2 million for the same
period of 2001. For the six months ended June 30, 2002, revenues were $24.1
million, an increase of 30% compared to revenues of $18.6 million for the six
months ended June 30, 2001.
For the second quarter of 2002, the Company's profit before interest,
taxes, depreciation and amortization (EBITDA) increased 115% to $0.9 million,
compared to $0.4 million a year ago. For the six months ended June 30, 2002, the
Company's EBITDA profit was $1.5 million compared to an EBITDA loss of $0.1
million for the same period in 2001.
Additionally, for the second quarter of 2002, net income applicable to
common shareholders and diluted earnings per share were $0.4 million and $0.06,
respectively, compared to a net loss of $4.1 million and diluted net loss per
share of $2.56 for the second
quarter of 2001. Diluted weighted average shares outstanding for the quarters
ended June 30, 2002 and 2001 were 6,873,585 and 1,599,636, respectively.
For the six months ended June 30, 2002, net loss applicable to common
shareholders and diluted loss per share were $0.1 million and $0.02,
respectively, compared to a net loss of $10.0 million and diluted net loss per
share of $6.67 for the six months ended June 30, 2001. Diluted weighted average
shares outstanding for the six months ended June 30, 2002 and 2001 were
5,892,026 and 1,500,997, respectively.
"As we had projected, ProxyMed achieved its first-ever quarter of net
income and positive earnings per share. This milestone is another step in our
efforts to become the premier provider of physician connectivity services, and
we are seeing market recognition of our efforts with institutional ownership of
our company growing significantly over the last 12 months. In addition, in the
last quarter four analysts have initiated coverage of ProxyMed with the highest
consensus ratings being given," said Judson E. Schmid, ProxyMed's chief
financial officer.
Second quarter operating highlights include:
Corporate
o Closed on the sale of $25.0 million of common stock to General
Atlantic Partners, LLC, a private equity investment fund, in a
private placement transaction.
o Obtained analyst coverage with four major investment firms: WR
Hambrecht, Avondale Partners, Jefferies & Co. and Gruntal
(Ryan, Beck & Co.).
Electronic Healthcare Transaction Processing
o Processed 28.5 million financial and clinical transactions
through ProxyNet(R), ProxyMed's secure, proprietary, national
healthcare information network, representing an increase of
31% over the same quarter last year.
o Signed a national connectivity services agreement with Aetna
on July 1 to provide claims processing and other transaction
processing services.
o Announced a major distribution agreement with Availity, LLC to
distribute PreScribe, ProxyMed's online refill authorization
service, to physician offices throughout the state of Florida.
o Added 7 new payers (including Aetna) and 17 strategic
partners.
Laboratory Communication Solutions
o Acquired KenCom Communications & Services, Inc., a provider of
remote printing intelligence in the Northeast.
o Added 8 new accounts.
o Enrolled over 750 physician offices for our FleetWatchSM
monitoring service.
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Michael K. Hoover, ProxyMed's chairman and chief executive officer
said, "I continue to be pleased with ProxyMed's performance, now culminating
with the reporting of our first-ever quarter of positive net income and earnings
per share. We had several major announcements this quarter and I am excited that
our growth and expansion is happening in every facet of our business, expanding
our leadership position across the board. By signing Aetna, we have completed
our nationwide list of health plans that we serve. Our distribution agreement
with Availity will be a major force in driving electronic prescriptions through
our network. And with our acquisition of KenCom, we have created a tremendous
cross-selling opportunity, obtained a superior product, and increased our
overall leadership in the lab market."
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, the soundness of our business strategies
relative to the perceived market opportunities; our ability to identify suitable
acquisition candidates; our ability to successfully integrate any future
acquisitions; 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 the Risk Factors
disclosure in our Form 10-K for the year ended December 31, 2001 and our other
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 www.proxymed.com.
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PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------- -------------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Revenues $ 12,627,000 $ 10,203,300 $ 24,130,100 $ 18,606,200
------------ ------------ ------------ ------------
Costs and expenses:
Cost of sales 5,784,400 4,720,900 11,163,800 8,047,400
Selling, general and administrative expenses 5,941,300 5,062,800 11,434,200 10,687,700
Operating depreciation and amortization (1) 484,500 439,600 953,400 877,100
------------ ------------ ------------ ------------
Total operating costs and expenses (1) 12,210,200 10,223,300 23,551,400 19,612,200
------------ ------------ ------------ ------------
Operating income (loss), as adjusted (1) 416,800 (20,000) 578,700 (1,006,000)
Acquisition-related amortization charges (99,500) (1,842,800) (199,100) (4,425,100)
Interest income (expense), net 128,200 (30,700) 114,800 70,500
------------ ------------ ------------ ------------
Net income (loss) 445,500 (1,893,500) 494,400 (5,360,600)
Deemed dividends and other charges -- 2,195,300 611,700 4,656,400
------------ ------------ ------------ ------------
Net income (loss) applicable to common
shareholders $ 445,500 $ (4,088,800) $ (117,300) $(10,017,000)
============ ============ ============ ============
Diluted earnings (loss) per share: $ 0.06 $ (2.56) $ (0.02) $ (6.67)
============ ============ ============ ============
Diluted weighted average shares outstanding 6,873,585 1,599,636 5,892,026 1,500,997
========= ========= ========= =========
EBITDA $ 901,300 $ 419,600 $ 1,532,100 $ (128,900)
============ ============ ============ ============
(1) Excludes acquisition-related amortization charges related to other
intangibles
PROXYMED, INC. AND SUBSIDIARIES
Segment Information (unaudited)
Three Months Ended June 30, Six Months Ended June 30,
------------------------------- -------------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Revenues:
Electronic healthcare transaction processing $ 5,331,600 $ 4,085,800 $ 10,609,700 $ 6,807,500
Laboratory communication solutions 7,295,400 6,117,500 13,520,400 11,798,700
------------ ------------ ------------ ------------
$ 12,627,000 $ 10,203,300 $ 24,130,100 $ 18,606,200
============ ============ ============ ============
EBITDA:
Electronic healthcare transaction processing $ 260,300 $ 105,700 $ 776,500 $ (362,900)
Laboratory communication solutions 1,293,700 1,025,200 2,041,400 2,145,400
Corporate and consolidating (652,700) (711,300) (1,285,800) (1,911,400)
------------ ------------ ------------ ------------
$ 901,300 $ 419,600 $ 1,532,100 $ (128,900)
============ ============ ============ ============
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PROXYMED, INC. AND SUBSIDIARIES
Consolidated Balance Sheet (unaudited)
June 30, December 31,
2002 2001
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 26,812,600 $ 12,601,000
Accounts receivable - trade, net 7,034,100 5,588,800
Other receivables 90,900 88,800
Inventory 3,151,200 3,351,100
Other current assets 618,500 330,600
------------- -------------
Total current assets 37,707,300 21,960,300
Property and equipment, net 3,990,200 3,831,700
Goodwill, net 11,322,300 7,960,400
Purchased technology, capitalized software and other intangibles, net 2,002,800 2,075,800
Other assets 53,300 53,300
------------- -------------
Total assets $ 55,075,900 $ 35,881,500
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Note payable $ -- $ 7,000,000
Accounts payable and accrued expenses 5,251,400 5,344,600
Deferred revenue and other current liabilities 642,300 222,300
------------- -------------
Total current liabilities 5,893,700 12,566,900
Long-term deferred revenue and other long-term liabilities 337,300 442,100
------------- -------------
Total liabilities 6,231,000 13,009,000
------------- -------------
Stockholders' equity:
Series C 7% Convertible preferred stock -- 300
Common stock 6,700 4,900
Additional paid-in capital 145,753,000 120,276,500
Accumulated deficit (96,728,900) (97,223,300)
Note receivable from stockholder (185,900) (185,900)
------------- -------------
Total stockholders' equity 48,844,900 22,872,500
------------- -------------
Total liabilities and stockholders' equity $ 55,075,900 $ 35,881,500
============= =============
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PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statement of Cash Flows (unaudited)
Six Months Ended June 30,
---------------------------------
2002 2001
------------ ------------
Cash flows from operating activities:
Net income (loss) $ 494,400 $ (5,360,600)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,152,500 5,302,200
Provision for (recovery of) doubtful accounts (17,800) 31,400
Provision for obsolete inventory 120,000 50,500
Compensatory stock options and warrants -- 433,300
Changes in assets and liabilities, net of
effect of acquisitions and dispositions:
Accounts and other receivables (910,500) (42,700)
Inventory 211,800 (287,600)
Prepaid expenses (280,100) (206,900)
Accounts payable and accrued expenses (139,900) (174,400)
Deferred revenue 45,700 52,300
Other, net (125,500) (108,100)
------------ ------------
Net cash provided by (used in) operating activities 550,600 (310,600)
------------ ------------
Cash flows from investing activities:
Acquisition of business (3,175,000) (3,000,000)
Short term investments -- (3,000,000)
Redemption of short term investments -- 3,000,000
Capital expenditures (689,900) (396,400)
Capitalized software (200,400) --
Payments for acquisition-related costs (22,000) (23,200)
------------ ------------
Net cash used in investing activities (4,087,300) (3,419,600)
------------ ------------
Cash flows from financing activities:
Proceeds from stock offering, net 24,886,100 --
Payment of note payable related to acquisition of business (7,000,000) --
Dividends on preferred stock -- (1,600)
Collections on notes receivable 18,300 25,500
Payment of notes payable, capital leases and long-term debt (156,100) (100,900)
------------ ------------
Net cash provided by (used in) financing activities 17,748,300 (77,000)
------------ ------------
Net decrease in cash and cash equivalents 14,211,600 (3,807,200)
Cash and cash equivalents at beginning of period 12,601,000 8,841,100
------------ ------------
Cash and cash equivalents at end of period $ 26,812,600 $ 5,033,900
============ ============
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