NEWS RELEASE for May 16, 2006
Contact: Paul T. Anthony
Chief Financial Officer
Auxilio, Inc.
(949) 614-0700
Auxilio, Inc. Announces 2006 First Quarter Results
Mission Viejo, California - May 16, 2006 - Auxilio, Inc. (OTCBB: AUXO), a
provider of Document Image Management services for Healthcare facilities,
reported today financial results for the quarter ended March 31, 2006.
The Company's total revenues for the first quarter of 2006 were $2.0
million compared with $784,000 for the first quarter of 2005. The Company had a
net loss of $1.2 million for the first quarter of 2006 compared to a net loss of
$0.6 million in the first quarter of 2005. Basic and fully diluted loss per
share for the first quarter of 2006 was $0.07 compared with basic and fully
diluted loss per share of $0.04 for the first quarter of 2005.
On January 1, 2006, the Company implemented Statement of Financial
Accounting Standards No.123R (SFAS 123R), "Share-Based Payment," which requires
the Company to recognize an expense for stock-based compensation, including
stock options, and record their fair value as compensation expense in the income
statement. Net loss for periods prior to January 1, 2006 do not reflect such
expenses. As a result of SFAS 123R, the Company's net loss for the quarter ended
March 31, 2006 includes $207,000 of additional compensation expenses. For
comparability purposes, excluding the effect of SFAS 123R, the loss per share
would have been $0.06 in the first quarter of 2006.
"The first quarter of 2006 was a great success for Auxilio both in
expanding our operations in California and closing the contract with Saint
Barnabas Health Care System, stated Joe Flynn, Chairman & CEO of Auxilio, Inc.
"In the first quarter we successfully implemented our Image Management Services
programs at the three campuses of the California Pacific Medical Center in San
Francisco and at St. Joseph's Hospital in Orange. In addition to these very
large implementations, in early March we closed a five year contract with the
Saint Barnabas Health Care System, which includes seven hospitals and a number
of administrative and medical office buildings," added Flynn. "This contract
will expand our monthly recurring service revenues and provide credibility for
Auxilio with other health care systems both on the East Coast and in other parts
of the United States," stated Flynn.
Investor Conference Call Information
The company encourages all interested investors to join a conference call
on which company management will discuss first quarter ended March 31, 2006
results. The call is scheduled at 4:00 p.m. EST / 1:00 p.m. PST on May 19th,
2006. The phone number for the call is (800) 289-0462. A re-broadcast of the
conference call will be available for two weeks at (888) 203-1112, Passcode
7345534.
About Auxilio, Inc.
Auxilio, Inc. provides total outsourced 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 document image 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
healthcare systems. Customers served by Auxilio include health systems such as
Raritan Bay Medical Center, California Pacific Medical Center, Memorial Health
Services, St. Joseph's Health System, Catholic Healthcare West and Huntington
Hospital of Pasadena, CA.
For more information, see the company's website at www.auxilioinc.com or
contact:
Paul T. Anthony
CFO
Auxilio, Inc.
27401 Los Altos, Suite 100
Mission Viejo, CA 92691
Phone: 949-614-0700
Fax: 949-614-0701
panthony@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 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 -- Forward Factors
That May Affect Future Results" in Part II of that 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
CONSOLIDATED BALANCE SHEET
March 31, 2006
ASSETS
Current assets:
Cash and cash equivalents $ 292,571
Accounts receivable, net 369,421
Prepaid and other current assets 147,328
Supplies 420,803
--------------
Total current assets 1,230,123
Property and equipment, net 281,582
Deposits 41,355
Intangible assets, net 620,542
Goodwill 1,517,017
--------------
Total assets $ 3,690,619
==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 733,564
Accrued compensation and benefits 243,874
Deferred revenue 390,413
Current portion of long-term debt 16,626
Current portion of capital lease obligations 34,211
Revolving loan payable, net of discount of $79,605 170,395
--------------
Total current liabilities 1,589,083
Commitments and contingencies --
Stockholders' equity:
Common stock, par value at $0.001, 33,333,333 shares
authorized, 15,964,948 shares issued and outstanding 15,966
Additional paid-in capital 15,487,614
Accumulated deficit (13,402,044)
--------------
Total stockholders' equity 2,101,536
--------------
Total liabilities and stockholders' equity $ 3,690,619
==============
AUXILIO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
--------------------------------
2006 2005
-------------- --------------
Revenues $ 2,035,193 $ 784,077
Cost of revenues 1,971,374 774,174
-------------- --------------
Gross profit 63,819 9,903
Operating expenses:
Sales and marketing 510,903 439,720
General and administrative expenses 657,164 483,876
Intangible asset amortization 63,802 93,368
-------------- --------------
Total operating expenses 1,231,869 1,016,964
-------------- --------------
Loss from operations (1,168,050) (1,007,061)
-------------- --------------
Other income (expense):
Interest expense (9,850) (20,957)
Interest income 1,327 2,212
Gain on sale of marketable securities 10,448 403,795
-------------- --------------
Total other income (expense) 1,925 385,050
-------------- --------------
Loss before provision for income taxes (1,166,125) (622,011)
Income tax expense 2,400 3,200
-------------- --------------
Net loss $ (1,168,525) $ (625,211)
============== ==============
Net loss per share:
Basic $ (0.07) $ (0.04)
============== ==============
Diluted $ (0.07) $ (0.04)
============== ==============
Number of weighted average shares:
Basic 15,961,724 14,563,651
============== ==============
Diluted 15,961,724 14,563,651
============== ==============