NEWS RELEASE for May 23, 2005
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AUXILIO
Contact: Paul T. Anthony
Chief Financial Officer
Auxilio, Inc.
(949) 614-0700
AUXILIO, INC. Announces 2005 First Quarter Results
Mission Viejo, California - May 23, 2005 - Auxilio, Inc. (OTCBB: AUXO),
a provider of Image Output Management services for Healthcare, reported today
financial results for the quarter ended March 31, 2005.
As a result of the Company's acquisition of The Mayo Group on April 1,
2004, the condensed consolidated financial statements for the first quarter
ended March 31, 2005, are not comparable to the condensed consolidated financial
statements for the first quarter ended March 31, 2004. In March of 2004, the
Company sold its previous product offerings, including ClimateSight(TM),
SkillSight(TM), PerformanceSight(TM), ComplianceSight(TM) and HCM TOOLS(TM), to
Workstream, Inc. and completed the Company's exit from its the previous business
model.
Total revenues for the first quarter of 2005 were $.8 million compared
with $0.2 million for the first quarter of 2004, which was included in the
income from discontinued operations. Net loss was $0.6 million in the first
quarter of 2005 compared to a net loss from continuing operations of $0.05
million in the first quarter of 2004. Net income for the first quarter of 2004
after income from discontinued operations was $0.5 million. Basic and fully
diluted loss per share for the first quarter of 2005 was $0.04 compared with
basic and fully diluted loss per share from continuing operations of $0.01 for
the first quarter of 2004. Basic and fully diluted loss per share for the first
quarter of 2004 after income from discontinued operations was $.06.
Net income for the first quarter ended March 31, 2004 includes the gain
from discontinued operations of $0.7 million, pursuant to the Workstream
transaction, and our exit from the previous business model.
"In the first quarter of 2005, we spent time adjusting our sales organization
and finding the right leader to focus our business development efforts on the
right opportunities," said Joe Flynn, Chairman & CEO of Auxilio, Inc. "In
addition the company finalized a contract with MedAssets, the nation's third
largest General Purchasing Agent (GPO) on March, 1, 2005. These developments
represented a continuous effort on behalf of our management team and board to
build momentum into our pipeline and focus the majority of our efforts on
business development," added Flynn.
Although the company is involved in a number of proposals and assessment
opportunities, due to the length of our sales cycle, it is still very difficult
to predict the timing of the closing of larger new sales transactions, added
Flynn. "As we have taken steps to strengthen our business development team and
have been provided access to major hospital systems through our contract with
MedAssets, we anticipate growing our pipeline and revenues over the next several
quarters at a faster pace," stated Flynn
Investor Conference Call Information
The company encourages all interested investors to join a conference
call on which company management will discuss the financial results for the
first quarter ended March 31, 2005 and provide guidance for future expectations.
The call is scheduled at 4:00 p.m. EST / 1:00 p.m. PST on May 24, 2005. The
phone number for the call is 800-776-0816 or 913-981-5556. A re-broadcast of the
conference call will be available for two weeks at 888-203-1112 or 719-457-0820
Passcode 5338491.
About Auxilio, Inc.
Auxilio, Inc. provides Image Output Management Services and related
financial and business processes for major Healthcare facilities. The company's
proprietary technologies and unique processes assist hospitals, health plans and
health systems with strategic direction and services that reduce image output
expenses, increase operational efficiencies and improve the productivity of
their staff. Auxilio's analysts, consultants and resident hospital teams work
with senior hospital financial management and department heads to determine the
best possible long term strategy for managing the millions of document images
produced by their facilities on an annual basis. Auxilio's Image Output
Management programs guarantee our clients immediate measurable savings, a fully
outsourced process, and unparalleled service. Auxilio's target market includes
medium to large hospitals, health plans and health care systems. Customers
served by Auxilio, Inc. include health systems such as St. Joseph's Health
System, Memorial Health Services, Catholic Healthcare West and Huntington
Memorial Hospital.
For more information, see the company's website at www.auxilioinc.com or
contact:
Joseph Flynn
Chairman and CEO
Auxilio, Inc.
27401 Los Altos, Suite 100
Mission Viejo, CA 92691
Phone: 949-614-0700
Fax: 949-614-0701
jflynn@auxilioinc.com
Forward Looking Information
This Release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements can be identified
by the fact that they do not relate strictly to historical or current facts and
often include the words "believe," "expect," "anticipate," "project," or words
of similar meaning, or future or conditional verbs such as "will," "would,"
"should," "could," or "may." Forward-looking statements are estimates of, or
expectations or beliefs regarding, our future financial condition or financial
performance that are based on current information. Our business is subject to a
number of risks and uncertainties that could adversely affect our ability to
grow earnings per share, expand net interest margin and maintain asset quality
and, therefore, could cause our future financial condition or operating results
to differ significantly from our current expectations and beliefs. Certain of
those risks and uncertainties are described in our Quartely Report on Form
10-QSB for the quarter ended March 31, 2004 and in our Annual Report on Form
10-KSB for the fiscal year ended December 31, 2004, as filed with the Securities
and Exchange Commission. Readers of this Release are urged to read the
cautionary statements, which are set forth under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations
- --Factors That May Affect Future Results" in both our Quarterly and Annual
Report. Due to these uncertainties and risks, readers are cautioned not to place
undue reliance on forward-looking statements contained in this Release, which
speak only as of this date. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
AUXILIO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2005
(UNAUDITED)
ASSETS
Current assets:
Cash $ 2,609,035
Accounts and other receivables, net 189,639
Prepaid and other current assets 60,364
Supplies 310,439
Investment in marketable securities 255,000
Other investment 52,728
------------
Total current assets 3,477,205
Property and equipment, net 220,130
Deposits 56,395
Intangible assets, net 1,073,540
Goodwill 1,547,017
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Total assets $ 6,374,287
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 585,194
Accrued compensation and benefits 503,551
Deferred revenue 248,937
Current portion of long-term debt 16,626
Current portion of capital lease obligation 22,683
Revolving loan payable-related party, net of discount of $47,395 452,605
Note payable, related party 52,607
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Total current liabilities 1,882,203
Commitments and contingencies --
Stockholders' equity:
Common stock, par value at $0.001, 33,333,333 shares
authorized, 15,526,412 shares issued and outstanding 15,528
Additional paid-in capital 13,879,002
Accumulated deficit (9,499,946)
Accumulated comprehensive income 97,500
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Total stockholders' equity 4,492,084
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Total liabilities and stockholders' equity $ 6,374,287
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AUXILIO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31,
-------------------------------
2005 2004
-------------------------------
Net Revenues $ 784,077 $ --
Cost of revenues 774,174 --
------------ ------------
Gross profit 9,903 --
Operating expenses:
Sales and marketing 439,720 --
General and administrative expenses 483,876 50,071
Intangible asset amortization 93,368 --
------------ ------------
Total operating expenses 1,016,964 50,071
------------ ------------
Loss from operations (1,007,061) (50,071)
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Other income (expense):
Interest expense (20,957) (1,932)
Interest income 2,212 447
Gain on sale of marketable securities 403,795 --
------------ ------------
Total other income (expense) 385,050 (1,485)
------------ ------------
Loss before provision for income taxes (622,011) (51,556)
Income tax expense 3,200 2,400
------------ ------------
Net loss from continuing operations (625,211) (53,956)
Income from discontinued operations, net of tax benefit of $0 -- 603,260
------------ ------------
Net income (loss) $ (625,211) $ 549,304
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Net income (loss) per share - basic:
Loss per share - continuing operations $ (0.04) $ (0.01)
Income per share - discontinued operations -- 0.07
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Net income (loss) per share - basic $ (0.04) $ 0.06
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Net income (loss) per share - diluted:
Loss per share - continuing operations $ (0.04) $ (0.01)
Income per share - discontinued operations -- 0.07
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Net income (loss) per share - diluted $ (0.04) $ 0.06
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Number of weighted average shares -
Basic 14,563,651 8,575,972
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Diluted 14,563,651 8,575,972
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