SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 11, 2000
PROXYMED, INC
(Exact name of registrant as specified in its charter)
FLORIDA 000-22052 65-0202059
------- --------- ----------
(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification No.)
incorporation)
2555 Davie Road
Suite 110
Ft. Lauderdale, Florida 33317
(Address of principal executive offices)
954-473-1001
(Registrant's telephone number, including area code)
Item 9. Regulation FD Disclosure.
ProxyMed, Inc. (the "Company" or "ProxyMed") is furnishing this Current
Report on Form 8-K with respect to presentations to be made by management of the
Company to certain institutional investors. The presentations will be made
during the week of December 11, 2000. Certain of the information that will
disclosed in the course of the presentations is set forth in this Report. The
furnishing of this information is not intended to constitute a determination by
the Company that this information is material or that the dissemination of this
information is required by Regulation FD. In addition, the information provided
in this Report is presented as of December 11, 2000 and the Company does not
assume any obligation to update such information in the future.
FORWARD LOOKING STATEMENT - This document contains forward-looking statements
that reflect the Company's current assumptions and expectations regarding future
events. While these statements reflect the Company's 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, install and
upgrade our clinical and financial transaction services and software
applications to physicians, pharmacies, payers, and medical laboratories; our
ability to compete effectively on price and support services; and our assessment
of the healthcare industry's need to become technology efficient. These factors
and other risk factors are more fully discussed in the Company's filings with
the Securities and Exchange Commission, which you are strongly urged to read.
ProxyMed expressly disclaims any intent or obligation to update any
forward-looking statements. When used in this Report, the words "believes,"
"estimated," "estimates," "expects," "expected," "anticipates," "may" and
similar expressions are intended to identify forward-looking statements.
The Company's current business strategy is to leverage its leadership
position in financial and clinical EDI (electronic data interchange) in order to
establish ProxyMed as the premier provider of physician connectivity to
pharmacies, payers, and medical laboratories. The Company maintains an open
electronic network for electronic transactions with no ownership interest in the
front-end (i.e., physician practice management software system vendors) or
back-end (i.e., pharmacies, payers and laboratories) markets, unlike its
competitors. With this strategy, the Company believes that it can better attract
both front-end and back-end partners who may be more comfortable doing business
with a non-competitive partner.
Based upon internal projections, the Company expects to generate the
following annual consolidated revenues: $32.9 million in 2000; $42.5 million in
2001; $55.0 million in 2002; and $90.0 million in 2003. These estimates are
based on an evaluation of the revenue opportunities for each of the Company's
product lines: pharmacy services, financial services and lab services. The
Company believes that pharmacy services represents the greatest opportunity for
growth and the Company anticipates revenues growing from $1.6 million in 2000 to
$36 million in 2003; financial services revenues are expected to grow from $8.1
million in 2000 to $16.0 million in 2003; and lab services revenues are expected
to grow from $23.2 million in 2000 to $38.0 million in 2003.
A portion of the Company's recurring revenue model is based upon
developing value-added transaction services and driving back-end transactions to
pharmacies. The Company believes it has identified a significant growth
opportunity for its pharmacy services business gained through market penetration
of the pharmacy benefit manager market. If the Company were able to attain just
a 10% market share of this 1 billion transaction per year business, after three
years, the Company's revenue opportunity for this market is estimated to be
between $65 million and $150 million per year, depending upon the per
transaction charge. Although the Company believes that it has identified
potential growth opportunity in the pharmacy benefit manager market, the Company
has not investigated this potential opportunity in sufficient detail to make an
assessment as to its ability to penetrate this market. There can be no assurance
that the Company would be able to attain 10%, or any percent, of the pharmacy
benefit manager market and, accordingly, the impact of potential revenue from
this source has not been taken into consideration in any material respect in
calculating the revenue projections set forth in the preceding paragraph.
Based upon internal projections, recurring consolidated Earnings Before
Income Taxes, Depreciation, and Amortization ("EBITDA") is expected to be a loss
of $3.8 million in 2000; and positive EBITDA of $3.0 million in 2001; $6.7
million in 2002; and $24.4 million in 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PROXYMED, INC.
By: /s/ Judson E. Schmid
------------------------------------------
Name: Judson E. Schmid
Title: Executive Vice President, Chief
Financial Officer and Treasurer
Dated: December 11, 2000