CONTACT:
Netsmart Technologies, Inc.
James Conway, CEO
800-451-7503
jconway@csmcorp.com
Carpe DM, Inc.
Stuart Fine
908-490-0075
stuart@carpedminc.com
NETSMART ANNOUNCES YEAR END RESULTS FOR 2003
Net Income Up 153%; Revenues increase 23%
ISLIP, NY - March 3, 2004 - Netsmart Technologies, Inc. (Nasdaq: NTST), a
leading supplier of enterprise-wide software solutions for health and human
services providers, reported results for the year ended December 31, 2003.
Net income for the year ended December 31, 2003 was $3,029,000, or $0.69 per
share (basic) and $.64 per share (diluted), as compared to $1,195,000 or $.32
per share (basic) and $.29 per share (diluted) for 2002, representing an
increase of 153%. The net income for 2003 includes a $900,000 deferred tax
benefit associated with our tax loss carry forward. There was a deferred tax
benefit adjustment in 2002 in the amount of $400,000. Revenue for the year ended
December 31, 2003 was $27,175,000 as compared to $22,126,000 for the year ended
December 31, 2002, representing an increase of 23%.
Net income for the fourth quarter ended December 31, 2003 was $691,000 and
compared to $348,000 for the quarter ended December 31, 2002 before the addition
of the 2002 fourth quarter tax benefit of $400,000. Revenue for the fourth
quarter ended December 31, 2003 was $7,359,000 as compared to $5,805,000
representing an increase of 27%.
James Conway, CEO of Netsmart Technologies, stated that, "We are pleased to
report these significant results for 2003. This revenue for this period is the
highest in our Company's history and our balance sheet, which has been fueled by
quality earnings, continues to get stronger with year end working capital of
$14.7 million and a cash balance of $15.9 million. Our 2003 contract signings
with major accounts in both state and county environments have resulted in a
backlog of approximately $24 million at December 31, 2003 of which $12.7 million
represents recurring revenue."
He added: "We expect that the demand for information technology in the health
and human services marketplace will continue to grow. We believe that the
strength of our balance sheet and earnings record provides us with a competitive
advantage and that our competitors will be challenged by the difficulties
typically faced by small private companies in accessing the capital markets. We
believe that our organization is ideally positioned to expand and strengthen our
leadership position."
- more -
1
About Netsmart Technologies, Inc.
Netsmart Technologies, Inc. of Great River, N.Y., through Creative Socio-Medics,
is an established, leading supplier of enterprise-wide software solutions for
health and human services providers with over 580 clients, including 25 systems
with state agencies. Creative's clients include health and human services
organizations: public health agencies, mental health and substance abuse
clinics, psychiatric hospitals, and managed care organizations. Avatar Practice
Management and the Avatar Clinician Work Station, Creative's core products, are
full-featured information systems that operate on a variety of operating
systems, hardware platforms, and mobile devices and offer unlimited scalability.
Statement on Behalf of Netsmart Technologies, Inc.
Statements in this press release may be "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Words such as
"anticipate", "believe", "estimate", "expect", "intend" and similar expressions,
as they relate to the company or its management, identify forward-looking
statements. These statements are based on current expectations, estimates and
projections about the company's business based, in part, on assumptions made by
management. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may, and probably will, differ materially
from what is expressed or forecasted in such forward-looking statements due to
numerous factors, including those described above and those risks discussed from
time to time in Netsmart's filings with the Securities and Exchange Commission.
In addition, such statements could be affected by risks and uncertainties
related to product demand, market and customer acceptance, competition, pricing
and development difficulties, as well as general industry and market conditions
and growth rates, and general economic conditions. Any forward-looking
statements speak only as of the date on which they are made, and the company
does not undertake any obligation to update any forward-looking statement to
reflect events or circumstances after the date of this release. Information on
Netsmart's or Creative's website do not constitute a part of this release.
2
NETSMART TECHNOLOGIES, INC.
Comparative Operating Results for the Year and Three Months Ended December 31,
Year Three Months
---- ------------
2003 2002 2003 2002
---- ---- ---- ----
Revenue $27,175,000 $22,126,000 $7,359,000 $5,805,000
Net Income $ 3,029,000(1) $ 1,195,000(2) $ 691,000(1) $ 748,000(3)
Net Income
Per Share Basic $ .69 $ .32 $ .13 $ .19
Weighted Average
Shares of Common
Stock Outstanding Basic 4,418,364 3,748,537 5,280,445 3,866,524
Net Income Per
Share Diluted $ .64 $ .29 $ .13 $ .18
Weighted Average
Shares of Common
Stock Outstanding Diluted 4,752,068 4,153,484 5,464,977 4,227,525
- --------
1 The Company's tax provision has been reduced in all periods as a result of
available net operating loss carry forwards. In addition, the Company recognized
a $900,000 tax benefit during 2003 as a result of a further reduction in its
deferred tax asset valuation allowance.
2 The Company's tax provision has been reduced in all periods as a result of
available net operating loss carry forwards. In addition, the Company recognized
a $400,000 tax benefit during 2002 as a result of a further reduction in its
deferred tax asset valuation allowance.
3 The Company's tax provision has been reduced in all periods as a result of
available net operating loss carry forwards. In addition, the Company recognized
a $400,000 tax benefit during the three months ended 12/31/02 as a result of a
further reduction in its deferred tax asset valuation allowance.