EXHIBIT 99.2
[LOGO OF PROXYMED]
Company News Release
FOR IMMEDIATE RELEASE
IMPORTANT NOTE: ProxyMed's second quarter 2001 results live teleconference call
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is accessible through Global Crossing by calling 1-800-340-5808 beginning at
10:00 AM Eastern Time on Wednesday, July 11, 2001 and will be simultaneously
broadcast on the internet through CCBN at www.streetevents.com. Replays of the
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teleconference call will be available at www.streetevents.com after 1:00 PM on
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July 11th.
Contact:
Michael K. Hoover
Chairman and Chief Executive Officer
(954) 473-1001, ext. 300
PROXYMED ANNOUNCES FINANCIAL RESULTS
FOR SECOND QUARTER AND FIRST SIX MONTHS OF 2001
- Company Reports Record Revenue of $10.2 million
and First EBITDA Profit in Company History of $419,600 -
Ft. Lauderdale, FL. July 10, 2001 - ProxyMed, Inc. (Nasdaq: PILL), a
leading provider of healthcare transaction processing services, today reported
its operating results for its second quarter and six months ended June 30, 2001.
The Company reported record revenues of $10,203,300 for the second quarter
of 2001, an increase of 27% compared to revenues of $8,016,900 for the same
period of 2000. For the six months ended June 30, 2001, revenues were
$18,606,200, an increase of 19% compared to revenues of $15,661,800 for the six
months ended June 30, 2000.
For the second quarter of 2001, the Company's profit from continuing
operations before interest, taxes, depreciation and amortization (EBITDA) was
$419,600, or $0.02 per share compared to an EBITDA loss of $1,802,200 (excluding
restructuring charges), or $0.09 per share for the same period in 2000. For the
six months ended June 30, 2001, the Company's EBITDA loss from continuing
operations was $128,900, or $0.01 per share compared to an EBITDA loss of
$4,541,500, or $0.24 per share for the same period in 2000.
"With our record performance in the second quarter, ProxyMed is on track to
meeting our financial goals of $42.5 million in revenues and $3.0 million in
EBITDA profits for 2001, as disclosed in our 8-K in December 2000. Core revenues
before acquisitions grew 14% over last year due to the strength and continued
momentum in our payer and laboratory services businesses; our EBITDA improved by
more than $968,000 over last quarter; and our cash position improved to $5
million. With the momentum from these results, the successful integration of our
MDP acquisition, our continued focus on expenses, and the clean-up of our
capital structure through the exchange of warrants into common stock, we believe
that our investors will realize that our stock has been undervalued," said
Judson E. Schmid, ProxyMed's chief financial officer.
Second quarter operating highlights include:
Electronic Healthcare Transaction Processing
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. Record setting 21.8 million financial transactions (claims, encounters,
electronic remittance advices, patient statements and scanned claims)
and clinical transactions (prescriptions and laboratory results) were
processed through ProxyNet(R), ProxyMed's secure, proprietary, national
healthcare information network, representing an increase of 58% over the
same quarter last year.
. We successfully completed the acquisition of MDP Corporation which added
positive EBITDA in the second quarter of 2001.
. We added 154 new payers (148 through the MDP acquisition), 1 strategic
partner and 3 new gateway partners.
Laboratory Communication Devices and Services
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. Sales of laboratory results reporting devices grew 44% over the same
quarter last year.
. Total units manufactured in our ISO 9001 facility increased by 59% over
the same quarter last year.
. Our sales team added 24 new accounts during the quarter
For the second quarter of 2001, net loss applicable to common shareholders
and net loss per share from continuing operations were $4,088,800 and $0.17,
compared to a net loss of $24,887,300 and net loss per share of $1.29 for the
second quarter of 2000. Weighted average shares outstanding for the quarters
ended June 30, 2001 and 2000 were 23,994,533 and 19,222,849, respectively.
For the six months ended June 30, 2001, net loss applicable to common
shareholders and net loss per share from continuing operations were $10,017,000
and $0.44, respectively, compared to a net loss of $30,833,100 and net loss per
share of $1.65 for the first six months of 2000. Weighted average shares
outstanding for the six months ended June 30, 2001 and 2000 were 22,514,954 and
18,828,694, respectively.
Michael K. Hoover, ProxyMed's chairman and chief executive officer said,
"We are extremely pleased with the improving historical trends over the last
three quarters, culminating
with this quarter's historic results which demonstrate to the market that we
have been able to turn this company around from both a revenue and profitability
perspective. We expect that investors and analysts believe, as we do, that
ProxyMed is a significant player in this healthcare space and that our stock
price will recover to levels that are representative of the value of this
company today and into the future. Looking ahead, we remain focused on growing
shareholder value through continued core growth and additional strategic
opportunities that might be available."
About ProxyMed - Where Healthcare Connects(TM)
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ProxyMed is an electronic healthcare transaction processing services company
providing connectivity services and related value-added products to physicians,
payers, pharmacies, and laboratories. ProxyMed's electronic transaction
processing services support a broad range of both financial and clinical
transactions. To facilitate these services, ProxyMed operates ProxyNet(R), its
secure, proprietary national electronic information network, which provides
physicians and other primary care 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.
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, install and upgrade our clinical and
financial transaction services and applications to 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)
Six Months Ended June 30, Three Months Ended June 30,
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2001 2000 2001 2000
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Revenues $ 18,606,200 $ 15,661,800 $ 10,203,300 $ 8,016,900
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Costs and expenses:
Cost of sales 8,047,400 5,586,500 4,720,900 2,762,100
Selling, general and administrative expenses 10,687,700 14,616,800 5,062,800 7,057,000
Restructuring charge - 1,415,000 - 1,415,000
Operating depreciation and amortization (1) 877,100 1,316,400 439,600 694,400
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Total operating costs and expenses (1) 19,612,200 22,934,700 10,223,300 11,928,500
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Operating loss, as adjusted (1) (1,006,000) (7,272,900) (20,000) (3,911,600)
Acquisition-related amortization charges (4,425,100) (5,219,200) (1,842,800) (2,558,000)
Interest income (expense), net 70,500 (3,912,400) (30,700) (4,005,600)
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Net loss from continuing operations (5,360,600) (16,404,500) (1,893,500) (10,475,200)
Discontinued operations:
Loss from discontinued operations - (303,900) - -
Gain on sales of discontinued operations - 511,100 - -
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- 207,200 - -
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Net loss (5,360,600) (16,197,300) (1,893,500) (10,475,200)
Deemed dividends and other charges 4,656,400 14,635,800 2,195,300 14,412,100
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Net loss applicable to common shareholders $(10,017,000) $(30,833,100) $ (4,088,800) $(24,887,300)
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Basic and diluted income (loss) per share:
From continuing operations $ (0.44) $ (1.65) $ (0.17) $ (1.29)
From discontinued operations - 0.01 - -
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$ (0.44) $ (1.64) $ (0.17) $ (1.29)
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Basic and diluted weighted average shares outstanding 22,514,954 18,828,694 23,994,533 19,222,849
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EBITDA (2) $ (128,900) $ (4,541,500) $ 419,600 $ (1,802,200)
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(1) Excludes acquisition-related charges
(2) Excludes restructuring charges
PROXYMED, INC. AND SUBSIDIARIES
Balance Sheet Highlights
June 30, 2001 (unaudited)
Cash and cash equivalents $ 5,033,900
Total assets $29,584,500
Total liabilities $12,647,100
Total stockholders' equity $16,937,400