NEWS RELEASE for September 6, 2005
Contact: Paul T. Anthony [LOGO]
Chief Financial Officer AUXILIO
Auxilio, Inc.
(949) 614-0700
Auxilio, Inc. Announces 2005 Second Quarter Results
Mission Viejo, California - September 6, 2005 - Auxilio, Inc. (OTCBB:
AUXO), a provider of Document Image Management services for Healthcare, reported
today financial results for the quarter ended June 30, 2005.
As a result of the company's acquisition of the Mayo Group on April 1,
2004, the condensed consolidated financial statements for the six months ended
June 30, 2004, are not comparable to the condensed consolidated financial
statements for the six months ended June 30, 2005. Our sale of our HR software
products to Workstream in March 2004 completed our exit from the previous
business model.
Total revenues for the second quarter of 2005 were $1.2 million compared
with $4.6 million for the second quarter of 2004, which was included in the
income from discontinued operations Net loss was $0.8 million in the second
quarter of 2005 compared to net income from continuing operations of $0.6
million in the second quarter of 2004. Net income for the second quarter of 2004
after income from discontinued operations was $0.6 million. Basic and fully
diluted loss per share for the second quarter of 2005 was $0.05 compared with
basic and fully diluted income per share from continuing operations of $0.04 for
the second quarter of 2004. Basic and fully diluted income per share for the
second quarter of 2004 after income from discontinued operations was $0.04.
"Revenue was exceptionally strong during the second quarter of 2004 due to
one large transaction. We were happy with the results for the second quarter of
2005, we rolled out our full complement of Document Image Management Services to
the San Clemente Campus of Saddleback Memorial Medical Center in Laguna Hills,
CA.", stated Joseph J. Flynn, Chairman and CEO of Auxilio, Inc. "Our continued
investment in business development has significantly increased the number of
hospitals we are assessing and proposing to on the East Coast. This also falls
right in line with our goals of national expansion. Although the sales cycle is
still long, we believe the company is in an excellent position to increase
market share over the next several quarters," added 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 second
quarter ended June 30, 2005. The call is scheduled at 4:00 p.m. EST / 1:00 p.m.
PST on September 7, 2005. The phone number for the call is 800-967-7188 or
719-457-2636. A re-broadcast of the conference call will be available for two
weeks at 888-203-1112 or 719-457-0820 Passcode 9734213.
About Auxilio, Inc.
Auxilio, Inc. provides Document Image 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 Document Image
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 June 30, 2005 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 SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 2005
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 2,039,170
Accounts and other receivables, net 1,243,363
Prepaid and other current assets 38,545
Supplies 445,797
Investment in marketable securities 32,500
Other investment 52,728
------------
Total current assets 3,852,103
Property and equipment, net 204,179
Deposits 49,644
Intangible assets, net 980,172
Goodwill 1,547,017
------------
Total assets $ 6,633,115
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,094,742
Accrued compensation and benefits 485,719
Deferred revenue 460,244
Current portion of long-term debt 17,228
Current portion of capital lease obligations 25,137
Note payable, related party 15,750
------------
Total current liabilities 2,098,820
Commitments and contingencies --
Stockholders' equity:
Common stock, par value at $0.001, 33,333,333 shares
authorized, 16,048,912 shares issued and outstanding 16,050
Additional paid-in capital 14,839,880
Accumulated deficit (10,321,635)
------------
Total stockholders' equity 4,534,295
------------
Total liabilities and stockholders' equity $ 6,633,115
============
AUXILIO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
----------------------------- -----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenue $ 1,237,850 $ 4,589,779 $ 2,021,927 $ 4,589,779
Cost of revenue 889,466 2,734,357 1,663,640 2,734,357
------------ ------------ ------------ ------------
Gross profit 348,384 1,855,422 358,287 1,855,422
Operating expenses:
Sales and marketing 468,920 642,271 908,175 642,271
General and administrative 525,752 592,293 1,010,093 642,364
Intangible asset amortization 93,368 -- 186,736 --
------------ ------------ ------------ ------------
Total operating expenses 1,088,040 1,234,564 2,105,004 1,284,635
------------ ------------ ------------ ------------
Income (loss) from operations (739,656) 620,858 (1,746,717) 570,787
Other income (expense):
Interest expense (51,598) (6,501) (72,555) (8,433)
Interest income 11,300 1,689 13,511 2,136
Gain (loss) on sale of marketable securities (41,734) -- 362,061 --
------------ ------------ ------------ ------------
Total other income (expense) (82,032) (4,812) 303,017 (6,297)
------------ ------------ ------------ ------------
Income (loss) before provision for income taxes (821,688) 616,046 (1,443,700) 564,490
Provision for income taxes -- -- (3,200) (2,400)
------------ ------------ ------------ ------------
Net income (loss) from continuing operations (821,688) 616,046 (1,446,900) 562,090
Income (loss) from discontinued operations,
(including gain (loss) on disposal of
($93,750) and $674,942 for the three
and six months ended June 30, 2004,
respectively, net of tax benefit) -- (62,365) -- 540,895
------------ ------------ ------------ ------------
Net income (loss) $ (821,688) $ 553,681 $ (1,446,900) $ 1,102,985
============ ============ ============ ============
Net income (loss) per share - basic:
Income (loss) per share continuing operations ($ 0.05) $ 0.04 ($ 0.10) $ 0.05
Income (loss) per share discontinued operations -- (0.00) -- 0.05
------------ ------------ ------------ ------------
Net income (loss) per share - basic ($ 0.05) $ 0.04 ($ 0.10) $ 0.10
------------ ------------ ------------ ------------
Net income (loss) per share - diluted:
Income (loss) per share continuing operations ($ 0.05) $ 0.04 ($ 0.10) $ 0.05
Income (loss) per share discontinued operations -- (0.00) -- 0.05
------------ ------------ ------------ ------------
Net income (loss) per share - diluted ($ 0.05) $ 0.04 ($ 0.10) $ 0.10
------------ ------------ ------------ ------------
Number of weighted average shares -
Basic 15,854,874 13,986,866 15,212,829 11,275,045
------------ ------------ ------------ ------------
Diluted 15,854,874 14,110,059 15,212,829 11,398,239
------------ ------------ ------------ ------------