Exhibit 99.1
Company Contact:
Allen Dodge
Health Grades, Inc.
(HEALTH GRADES LOGO) 303-716-0041
adodge@healthgrades.com
For Immediate Release
HEALTH GRADES, INC. ANNOUNCES FIRST QUARTER RESULTS
COMPANY REPORTS PROFITS
Lakewood, Colo. (April 29, 2004) - Health Grades, Inc. (OTCBB: HGRD) today
announced financial results for the first quarter ended March 31, 2004.
Ratings and advisory revenue for the three months ended March 31, 2004 was
$3,217,423, representing an increase of approximately $1.5 million or 85%, over
ratings and advisory revenue for the first quarter of 2003. Income from
operations for the three months ended March 31, 2004 was $195,361 or $0.01 per
share on 32.1 million weighted average diluted shares outstanding, compared to a
$262,194 loss from operations for the same period of 2003. As of April 23, 2004,
cash on hand was approximately $3.5 million.
Kerry Hicks, President and Chief Executive Officer of Health Grades, Inc.
stated, "After twelve consecutive quarters of ratings and advisory revenue
growth, we are pleased to announce our first quarter of operational profit from
our ratings and advisory business. We believe the demand for quality healthcare
information, ratings and advisory services continues to accelerate and we are
optimistic that this demand will create further opportunities for our product
offerings."
The Company will hold a conference call to discuss its first quarter financial
results today, April 29, 2004, at 9:00am Mountain Time/11:00am Eastern Time. If
you would like to participate, please dial (800) 447-0521 ten minutes before the
scheduled start time. The conference call reference name is "HealthGrades". The
telephone replay will be available one hour after the conclusion of the
teleconference at (888) 843-8996 passcode 8882581 until May 29, 2004.
About Health Grades, Inc.
- -------------------------
Health Grades, Inc. (OTCBB: HGRD) is the leading independent healthcare quality
company, providing ratings, information, and advisory services to healthcare
providers, employers, health plans and insurance companies. Health Grades works
with healthcare providers to help assess, improve and promote their quality.
Health Grades provides consumers access to information about healthcare
providers and practitioners through
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its Web site and provides liability insurers, employers, and payers with
critical information about healthcare quality. Additional information can be
found at www.healthgrades.com.
This press release contains forward-looking statements, including statements
addressing the continued demand for quality healthcare information, ratings and
advisory services. Actual results may differ materially from those described in
such forward-looking statements due to several factors, including a decline in
the demand for quality healthcare information, ratings and advisory services and
other factors described in the Company's filings with the Securities and
Exchange Commission.
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HEALTH GRADES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,
---------------------------------
2004 2003
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Revenue:
Ratings and advisory $ 3,217,423 $ 1,737,741
Other 250 43
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3,217,673 1,737,784
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Expenses:
Cost of ratings and advisory revenue 662,203 440,109
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Gross margin 2,555,470 1,297,675
Operating expenses:
Sales and marketing 1,091,450 642,522
Product development 465,450 327,430
General and administrative 803,209 589,917
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Income (loss) from operations 195,361 (262,194)
Other:
Gain on sale of assets and other -- 25
Interest income 1,850 2,185
Interest expense -- (578)
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Income (loss) before income taxes 197,211 (260,562)
Income tax expense -- --
------------ ------------
Net income (loss) $ 197,211 $ (260,562)
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Net income (loss) per common share (basic) $ 0.01 (0.01)
============ ============
Weighted average number of common shares
used in computation (basic) 24,835,779 33,605,720
============ ============
Net income (loss) per common share (diluted) $ 0.01 $ (0.01)
============ ============
Weighted average number of common shares and
common share equivalents used in computation (diluted) 32,063,695 33,605,720
============ ============
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