Exhibit 99.1
Per-Se Technologies Updates Fourth Quarter 2004 Outlook;
Earnings Release Scheduled for March 3rd
ALPHARETTA, Ga.--(BUSINESS WIRE)--Jan. 18, 2005--Per-Se
Technologies, Inc. (NASDAQ: PSTI) announced today that it expects
fully diluted earnings per share from continuing operations for the
fourth quarter of 2004 to be in the range of $.21 to $.24(1) compared
to previous guidance of $.27 to $.30.(1) Fully diluted earnings per
share from continuing operations for 2004, excluding special items (a
non-GAAP measure), are expected to be in the range of $.83 to $.86
(1), an increase of 19% to 23% over the Company's 2003 performance.
During December, the Company experienced a technical problem in
its physician claims clearinghouse that resulted in a delay in
transmitting electronic claims to payers for its Physician Services
division. The problem has been resolved. However, the delay in
transmitting claims adversely impacted the timing of reimbursement
from payers, and reduced revenue recognized by the Physician Services
division during the fourth quarter by approximately $1.5 million to
$2.0 million.
Because the Physician Services division recognizes revenue based
on a percentage of cash collections, the reduced revenue related to
the delay in transmitting claims for reimbursement had a direct impact
on the Company's net income, reducing fully diluted earnings per share
by approximately $.05 to $.06 for the quarter. The impact on revenue
is a timing issue. The Company expects to recognize this revenue
during the first quarter of 2005. Excluding the revenue delay, fully
diluted earnings per share and revenue growth would have been in line
with previous guidance.
As a result of the revenue delay, the Company now expects
consolidated revenue growth for the full year 2004 of approximately
5%, versus previous guidance of approximately 6%. By division,
Physician Services revenue growth for 2004 is expected to be
approximately 3.5% to 4%, versus previous guidance of 4.5% to 5%, and
Hospital Services revenue growth is expected to be approximately 9%,
in line with previous guidance.
(1) These earnings per share ranges are non-GAAP measures as they
exclude the anticipated fourth quarter tax benefits resulting
from a partial release of the Company's deferred tax asset
valuation allowance. The Company is in the process of
reviewing the anticipated tax benefit. Therefore, the
comparable GAAP measure is not available at this time.
Fourth Quarter Earnings Release Scheduled for March 3rd
The Company will provide further details on the quarter as well as
2005 guidance when it releases its fourth quarter 2004 earnings on
Thursday, March 3, 2005, before the market opens.
The Company will host a conference call for institutional
investors and security analysts on Thursday, March 3, 2005, at 10:00
a.m. Eastern Time.
A simultaneous, listen-only webcast of the conference call will be
available on the Company's website at www.per-se.com in the Investor
section by selecting the Webcast link. Listeners should go to the
website at least 15 minutes before the scheduled start time of the
call to download and install any necessary audio software. For those
unable to listen to the live broadcast of the call, a replay will be
available shortly after completion of the call and will be archived on
Per-Se's website for approximately 60 days.
About Per-Se Technologies
Per-Se Technologies (NASDAQ: PSTI) is the leader in Connective
Healthcare. Connective Healthcare solutions from Per-Se enable
physicians and hospitals to achieve their income potential by creating
an environment that streamlines and simplifies the complex
administrative burden of providing healthcare. Per-Se's Connective
Healthcare solutions help reduce administrative expenses, increase
revenue and accelerate the movement of funds to benefit providers,
payers and patients. More information is available at www.per-se.com.
Safe Harbor Statement
This Press Release contains statements that constitute
forward-looking statements within the meaning of the Securities Act of
1933 and the Securities Exchange Act of 1934, as amended by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements contained in this Press Release include the intent, belief
or current expectations of the Company and members of its management
team with respect to the Company's future business operations as well
as the assumptions upon which such statements are based.
Forward-looking statements include specifically, but are not limited
to, earnings per share from continuing operations projections, the
anticipated release of a portion of the Company's deferred tax asset
valuation allowance, the anticipated timing of revenue recognition
related to the electronic claims transmission delay in the Physician
Services division, and consolidated and divisional full year revenue
growth projections. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance,
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Important factors currently known to management that could
cause actual results to differ materially from those contemplated by
the forward-looking statements in this Press Release include, but are
not limited to, the outcome of the deferred tax asset valuation
allowance review and the finalization of the Company's fourth quarter
results. Additional factors that would cause actual results to differ
materially from those contemplated within this Press Release can also
be found in the Company's Safe Harbor Compliance Statement and Factors
That May Affect Future Results of Operations, Financial Condition or
Business included in the Company's Form 10-Q for the quarter ended
September 30, 2004, and Form 10-K for the year ended December 31,
2003. The Company disclaims any responsibility to update any
forward-looking statements.
The Company believes that the following non-GAAP measures are
additional meaningful measures of operating performance: (1) fourth
quarter guidance of fully diluted earnings per share from continuing
operations excluding the anticipated release of a portion of the
deferred tax asset valuation allowance; and (2) full year guidance for
fully diluted earnings per share from continuing operations that
excludes the gain on the Lloyd's settlement, the one-time, non-cash
lease expense, the additional procedures expenses, the loss on
extinguishment of debt, and any impact from the anticipated release of
a portion of the deferred tax asset valuation allowance. The
presentation of such non-GAAP measures enables investors to focus on
period-over-period operating performance without the impact of
significant special items, and thereby, enhances the user's overall
understanding of the Company's current financial performance and
provides a better baseline for modeling future earnings expectations.
The Company believes the inclusion of such non-GAAP measures provides
consistency and comparability in its financial reporting and is
provided in order to enable investors to more thoroughly evaluate its
current performance compared to past performance. However, this
information will necessarily be different from comparable information
provided by other companies and should not be used as an alternative
to our operating and other financial information as determined under
U.S. generally accepted accounting principles.
RECONCILIATION OF FULLY DILUTED EPS - 2004 GUIDANCE AND 2003 ACTUALS
(unaudited, in thousands)
Increase
Guidance Actuals (decr-
for the for the ease)
Year Ended Year Ended 2004
Dec. 31, Dec. 31, vs.
2004 2003 2003
-----------------------------
EPS from continuing operations excluding
special items (a non-GAAP measure) $.83 -$.86 $ .70 19% -23%
Additional procedures expenses (.19) --
Loss on extinguishment of debt (.18) (.19)
Non-cash lease abandonment expenses (.03) --
Gain on Lloyd's settlement .05 --
Restructuring expenses -- (.02)
----------------------------
EPS from continuing operations on a GAAP
basis (2) $.48 -$.51 $ .49 (2%) -4%
============================
EPS from continuing operations, excluding special items - 2004
guidance and 2003 actuals
The Company believes earnings per share from continuing
operations, excluding special items, is an additional meaningful
measure of operating performance as it represents the earnings
generated from the "base business" excluding (1) the costs associated
with additional procedures requested by the Company's external
auditors as part of the year-end 2003 audit, (2) the costs associated
with the refinancing and retirement of the Company's debt, (3) the
non-cash costs associated with the Company's corporate office move,
(4) the gain on the settlement of the Company's litigation with
Lloyd's, and (5) the costs associated with the 2003 reorganization of
the Company's operating structure following the Patient1 divestiture.
These items are special in nature. Internally, the Company uses this
measure to evaluate the operational performance of the Company. The
presentation of such non-GAAP measures enables investors to focus on
period-over-period operating performance without the impact of
significant special items, and thereby, enhances the user's overall
understanding of the Company's current financial performance and
provides a better baseline for modeling future earnings expectations.
The Company believes the inclusion of such non-GAAP measures provides
consistency and comparability in its financial reporting and is
provided in order to enable investors more thoroughly to evaluate its
current performance compared to past performance. However, this
information will necessarily be different from comparable information
provided by other companies and should not be used as an alternative
to our operating and other financial information as determined under
U.S. generally accepted accounting principles.
(2) The anticipated income from the partial release of the
deferred tax asset valuation allowance is not included in
the above reconciliation because the amount is not
quantifiable at this time.
CONTACT: Per-Se Technologies, Alpharetta
Michele Howard, 770-237-7827
investors@per-se.com