Exhibit 99.1
Healthaxis Announces First Quarter 2003 Financial Results;
Net Loss of $0.03 per share compared to Net Loss of
$0.14 per share a year ago
IRVING, Texas--(BUSINESS WIRE)--May 9, 2003--Healthaxis Inc.
(Nasdaq:HAXS), an innovative provider of claims and benefit
administration applications, web-enabled software solutions and
outsourced claims services for government and commercial benefit
administrators, health insurance and managed care organizations,
reported financial results today for the three months ended March 31,
2003.
First Quarter 2003 Highlights(a)
-- Revenues of $5.2 million in the first quarter of 2003 were in
line with the company's internal expectations; they
represented a 3% increase from revenues reported in the fourth
quarter of 2002, and were essentially flat with the revenues
reported in the first quarter of 2002. The increase over
fourth quarter revenues resulted primarily from growth in our
business process outsourcing business.
-- Cash operating expenses (defined as operating expenses
excluding taxes, depreciation, amortization, severance, stock
based compensation, asset dispositions and restructuring and
impairment charges) declined significantly from the first
quarter of 2002 - - down 18%, from $6.9 million to $5.7
million. Cash operating expenses during the quarter, on an
annualized basis, are down approximately $5.0 million from the
annualized rate from the first quarter of 2002. The lower
operating expenses in 2003 resulted primarily from the
company's restructuring and internal reorganization undertaken
in November 2002. It is expected that the full effect of these
actions will be recognized throughout 2003. GAAP operating
expenses declined from $6.8 million in the first quarter of
2002 to $6.6 million in the first quarter of 2003.
-- The EBITDA loss (defined as revenue less cash operating
expenses) was $437,000 in the first quarter of 2003, compared
to an EBITDA loss of $1.6 million in the first quarter of
2002.
-- The operating loss for the quarter improved 7% from $1.5
million in the first quarter of 2002 to $1.4 million in the
first quarter of 2003. The operating loss for the fourth
quarter of 2002 was $7.8 million.
-- The net loss for the first quarter of 2003 was $1.4 million,
or $0.03 per share, compared to a net loss of $7.7 million, or
$0.14 per share in the first quarter of 2002. The net loss for
the fourth quarter of 2002 was $0.15 per share.
-- Cash balances at March 31, 2003 totaled $9.9 million.
-- During the quarter, the company developed alliance
arrangements with several companies to broaden its offerings
for its target markets. These include ValueCHECK for
utilization review and large case management; Integration
Concepts for data warehousing and reporting; CompLink for
COBRA administration; and CallConnect for outsourced call
center services and plan benefit-scripting services.
-- The company made substantial progress toward development of
its own Health Reimbursement Account product to address the
growing consumer directed health plan trend. The company is
now offering this product to its TPA customers for July 1,
2003 implementation.
Jamie McLane, Chairman, President, and CEO of Healthaxis,
commented, "Our financial results continue to improve, and our cash
position remains relatively strong for a company of our size, as we
strive to achieve our goal of profitability this year. We continue to
improve our productivity and to have an intense focus on cost control
throughout the company. We also continue to invest in improvements in
functionality and product capabilities to better serve our target
markets. Clearly, revenue growth is the name of the game. Our pipeline
for prospective sales is strong in terms of aggregate size and average
size per prospective customer contract. Healthaxis is being invited
into opportunities where it previously had not been considered as a
service provider. Our focus on delivering what we promise and
developing mutually beneficial relationships has opened new and bigger
markets for the company.
"I am particularly pleased with the emerging growth of our
Business Process Outsourcing business, and our entry into providing
claims pre-adjudication services," McLane continued. "I also am
pleased with our new alliance partnerships to augment the services
which our customers are able to provide their customers, helping them
gain market share and stronger profitability."
McLane reiterated what he pointed out in March 2003: "Our
objectives for 2003 are focused on building from our strengths to
capitalize on the growing opportunities in the health benefit services
marketplace. These include:
-- Build a more significant business process outsourcing
company--both organically and strategically;
-- Enhance revenues by leveraging our partner relationships and
by offering our existing customers enhanced services that will
enable them to increase their market position, improve their
productivity and lower their costs.
-- Increase our penetration of state government and commercial
health insurance markets with our new web-based benefit
administration platform;
-- Maintain cost control in all aspects of the business;
-- Continue our progress toward profitability;
-- Manage our cash wisely.
We believe our objectives are realizable and that we have put in
place appropriate plans to achieve them."
(a) The financial results reported in this release contain both
measures of GAAP and Non-GAAP financial information, as defined in
Regulation G adopted by the Securities and Exchange Commission.
Accordingly, all such non-GAAP financial measures that are presented
are also set forth on the tables attached to this press release and
are both compared to, and reconciled with, the most directly
comparable financial measure calculated and presented in accordance
with GAAP. Management believes that these non-GAAP financial measures
are useful in monitoring basic cash flow generated and used in the
company's core operating activities, and in monitoring the effects of
changes made by management in the Company's operations across
different time periods. These non-GAAP factors alone are insufficient
to measure all of the company's operating characteristics and should
be used in conjunction with GAAP measures to evaluate total operating
performance.
Healthaxis management will host a conference call on Friday, May
9, 2003 to review these results and answer questions. The conference
call will be held at 11:00am CDT (noon EDT). Investors wishing to
participate should call (888) 334-9269 and request the Healthaxis
First Quarter Earnings Call. Please plan to call in at least 10
minutes before the scheduled start time.
Beginning approximately two hours after the live call is
completed, a replay of the teleconference will be available until May
23, 2003 by dialing (866) 579-1010 and (416)695-6035 for international
callers. The access code, for the replay only, is 5006.
Investors can also listen to the call online via a Web cast
accessible from the company's Web site at www.healthaxis.com. The Web
cast will be available until May 23, 2003.
About Healthaxis Inc.
Healthaxis (Nasdaq:HAXS) is a technology and business process
services firm committed to providing innovative and configurable
web-based connectivity and applications solutions for health benefit
distribution and administration. These solutions, which are comprised
of software products and related services, are designed to assist
health insurance payers, government agencies, third party
administrators (TPAs) and health and welfare plans provide enhanced
services to members, employees and providers through the application
of Healthaxis' flexible technology to legacy systems, either on a
fully integrated or on an Application Service Provider (ASP) basis.
These technology solutions are complemented by the company's Business
Process Outsourcing (BPO) services that are offered to its technology
clients and on a stand-alone basis. Healthaxis solutions enable
clients to reduce their administrative costs, enhance their customer
service and improve their profitability. For information on Healthaxis
products and services, call (800) 519-0679 or visit
www.healthaxis.com. For investor information, call (972) 458-8000.
Forward-looking statements:
Statements that are not purely historical facts, including without
limitation statements about anticipated or expected future revenue and
performance, constitute forward-looking statements within the meaning
of Section 27A of the Securities and Exchange Act of 1934, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements are subject to known and unknown
risks, uncertainties and other factors, which may cause actual results
to be materially different from those contemplated by the
forward-looking statements. Such factors include without limitation
the risks and uncertainties identified in our documents filed with, or
furnished to, the Securities and Exchange Commission, including those
identified under the caption "Business-Risk Factors" in our Form 10-K
for the year ended December 31, 2002. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Readers are
cautioned not to place undue reliance on forward-looking statements.
Healthaxis Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except share and per share data) (Unaudited)
Three Months Ended
March 31,
2003 2002
----------- -----------
Revenue $5,231 $5,292
Expenses:
Cost of revenues 5,097 5,689
Sales and marketing 255 366
General and administrative 909 279
Research and development 30 117
Amortization of Intangibles 324 325
----------- -----------
Total operating expenses 6,615 6,776
----------- -----------
Operating loss (1,384) (1,484)
Interest and other income (expense), net 11 (64)
----------- -----------
Loss from continuing operations (1,373) (1,548)
Gain from discontinued operations(a) - 547
----------- -----------
Net loss before cumulative effect of
accounting change (1,373) (1,001)
Cumulative effect of accounting change - (6,674)
----------- -----------
Net Loss $(1,373) $(7,675)
=========== ===========
Loss per share of common stock (basic)
Continuing operations $(0.03) $(0.03)
Discontinued operations $- $0.01
Cumulative effect charge $- $(0.12)
----------- -----------
Net loss per share of common stock $(0.03) $(0.14)
=========== ===========
Weighted average common shares used in
computing income (loss) per share
Basic 53,645,000 53,483,000
=========== ===========
(a) As of the second quarter of 2002, the Company began reporting its
historical results of operations from the terminated UICI
Technical Services Agreement as a net amount in "Gain from
discontinued operations"
Healthaxis Inc. and Subsidiaries
Consolidated Statements of Operations
GAAP / Non-GAAP Comparison and Reconciliation
(In thousands, except share and per share data) (Unaudited)
Three Months Ended
March 31,
2003 2002
----------- -----------
Revenue $5,231 $5,292
Expenses:
Cost of revenues 4,508 4,928
Sales and marketing 247 320
General and administrative 891 1,550
Research and development 22 125
----------- -----------
Cash operating expenses 5,668 6,923
----------- -----------
Non-cash operating expenses:
Operating depreciation & amortization 614 724
Stock based compensation 9 149
Amortization of acquisition intangibles 324 325
Severance expenses - (1,345)
----------- -----------
Total GAAP operating expenses 6,615 6,776
----------- -----------
EBITDA (Revenue less cash operating expenses) (437) (1,631)
----------- -----------
GAAP operating loss (EBITDA less non-cash
operating expenses) (1,384) (1,484)
----------- -----------
Interest and other income (expense), net 11 (64)
----------- -----------
Loss from continuing operations (1,373) (1,548)
Gain from discontinued operations - 547
----------- -----------
Net loss before cumulative effect of accounting
change (1,373) (1,001)
Cumulative effect of accounting change - (6,674)
----------- -----------
Net Loss $(1,373) $(7,675)
=========== ===========
Healthaxis Inc. and Subsidiaries
Unaudited Consolidated Condensed Balance Sheets
(In thousands) (Unaudited)
March 31, 2003 December 31, 2002
Assets
Cash and cash equivalents $9,924 $11,380
Accounts receivable, net 4,594 3,346
Other current assets 1,115 862
----------------- -------------------
15,633 15,588
Property & Equipment, net 1,275 1,462
Goodwill 11,276 11,276
Other assets 4,545 5,048
----------------- -------------------
Total assets $32,729 $33,374
================= ===================
Liabilities and stockholders'
equity
Current liabilities $4,577 $3,715
Other long-term liabilities 2,023 2,051
Stockholders' equity 26,129 27,608
----------------- -------------------
Total liabilities and
stockholders' equity $32,729 $33,374
================= ===================
CONTACT: Halliburton Investor Relations
Investor Contact
Matt Kreps, 972/458-8000
mkreps@halliburtonir.com