Contact:
Wayne A. Schellhammer
Chairman & Chief Executive Officer
American CareSource Holdings, Inc.
Tel. 214-596-2400
FOR IMMEDIATE RELEASE
AMERICAN CARESOURCE HOLDINGS, INC. ANNOUNCES
FIRST QUARTER 2006 FINANCIAL RESULTS
Irving, TX, May 15, 2006 - American CareSource Holdings, Inc. (OTCBB: ACSH.OB)
today announced financial results for the quarter ended March 31, 2006.
Net revenue increased to $2.5 million in the first quarter of 2006 from $1.3
million in the first quarter of 2005. The contribution margin from these sales
increased from $48 thousand in 2005 to $419 thousand in 2006. Net loss for the
quarter ended March 31, 2006 was $260 thousand, or $0.02 per share, compared to
$518 thousand, or $0.04 per share in the prior year. Cash used in operations
decreased from $578 thousand in the first quarter of 2005 to $184 thousand in
the first quarter of 2006.
"We are building momentum and have demonstrated that our platform is working,"
stated Wayne A. Schellhammer, Chief Executive Officer and Chairman of the Board
for American CareSource Holdings, Inc. "Over the past year we have improved our
automation software, implemented a direct Network Value comparison tool,
expanded our network and we are seeing the benefits of that today. We are
prepared to implement new clients with our automated scalability and remain
focused on key expansion to our network. We continue to look forward to a robust
2006."
About American CareSource Holdings, Inc.:
American CareSource Holdings, Inc., the first national, publicly traded
ancillary care benefit management company, is a comprehensive ancillary care
service provider offering a national network of more than 21,000 ancillary
provider sites. American CareSource Holdings, Inc.'s ancillary network
management provides a complete outsourced solution for a wide variety of
healthcare payors and plan sponsors including self-insured employers, indemnity
insurers, PPOs, HMOs, third party administrators and both the Federal and local
governments. Through its product offerings, American CareSource Holdings, Inc.
offers its clients substantial discounts on services rendered through its
network of ancillary care providers in more than 30 service categories. For more
information on American CareSource, visit www.anci-care.com.
(more)
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Any statements that are not historical facts contained in this release are
forward-looking statements. It is possible that the assumptions made by
management for purposes of such statements may not materialize. Actual results
may differ materially from those projected or implied in any forward-looking
statements. Such statements may involve risks and uncertainties, including but
not limited to those relating to product demand, pricing, market acceptance, the
effect of economic conditions, and intellectual property rights, and the outcome
of competitive products, risks in product development, the results of financing
effort, the ability to complete transactions, and other risks identified in this
release, and the Securities and Exchange Commission filings of American
CareSource Holdings, Inc.
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(Tables to Follow)
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AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of
ASSETS March 31, 2006 December 31, 2005
CURRENT ASSETS:
Current Assets
Cash and cash equivalent $ 5,469,640 $ 23,399
Accounts Receivable 1,312,636 482,159
Other 21,022 30,151
Total Current Assets 6,803,298 535,709
Net Property, Plant, and Equipment 168,456 175,608
Intangible Assets 1,868,006 1,921,401
Goodwill 4,361,299 4,361,299
Total Assets $ 13,201,059 $ 6,994,017
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Due to Service Providers $ 1,043,267 $ 386,217
Accounts Payable and Accrued Liabilities 446,130 352,383
Current Maturities of Long-Term Debt 356,865 20,231
Total Current Liabilities 1,846,262 758,831
Long-Term Debt 54,401 3,845,929
Total Liabilities 1,900,663 4,604,760
STOCKHOLDERS' EQUITY:
Common Stock-par value $0.01, 40,000,000 shares authorized and 144,348 123,713
14,434,815 and 12,371,309 shares issued and outstanding as of
March 31, 2006 and 2005 respectively
Preferred Stock-par value $0.01, 10,000,000 shares authorized and none
outstanding as of March 31, 2006 and 2005 -- --
Additional Paid in Capital 16,839,240 7,734,800
Deferred Debt Issuance Cost (185,199) (231,500)
Accumulated (Deficit) (5,497,993) (5,237,756)
Total Stockholders' Equity 11,300,396 2,389,257
Total Liabilities and Equity $ 13,201,059 $ 6,994,017
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AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
March 31,
2006 2005
REVENUES
Net Ancillary Health $ 2,432,232 $ 1,208,862
Patient Claims Processing 32,149 100,322
Net Revenue 2,464,381 1,309,184
Total Cost of Revenues 2,045,474 1,261,639
Contribution Margin 418,907 47,545
Selling, General, and Administrative Expense 531,266 455,079
Depreciation and Amortization 78,247 76,512
Total Operating Expenses 609,513 531,591
Operating (Loss) (190,606) (484,046)
Other Expenses: 2,632 --
Debt Issuance Cost 46,301 23,832
Net Interest and Finance Cost 20,699 10,617
Total Other Expenses 69,631 34,449
Net (Loss) Before Income Tax (260,237) (518,495)
Income Tax Expense -- --
Net (Loss) $ (260,237) $ (518,495)
NET LOSS PER SHARE - BASIC AND DILUTED $ (0.02) $ (0.04)
WEIGHTED AVERAGE COMMON SHARES 13,278,649 12,371,309
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AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND MARCH 31, 2005 (UNAUDITED)
Deferred Accum
Shares Amount APIC Debt Deficit Total
------ ------ ---- ---- ------- -----
Balance
December 31, 2004 10,091,899 $ 100,919 $ 7,180,948 $ -- $ (2,831,238) $ 4,450,629
Issue & Amortization
of Warrants -- -- 214,489 (190,657) 23,832
Net Loss -- -- -- -- (518,496) (518,496)
Balance March 31, 2005 10,091,899 $ 100,919 $ 7,395,437 $ (190,657) $ (3,349,734) $ 3,955,965
------------ ------------ ------------ ------------ ------------ ------------
Balance
December 31, 2005 12,371,309 $ 123,713 $ 7,734,800 $ (231,500) $ (5,237,756) $ 2,389,257
Issue of 2,063,506 Common
Stock Shares 2,063,506 20,635 9,082,210 -- -- 9,102,845
Option Compensation Expense 22,230 -- -- 22,230
Amortization of Warrants
Associated with Deferred
Debt 46,301 -- 46,301
Net Loss -- -- -- -- (260,237) (260,237)
------------ ------------ ------------ ------------ ------------ ------------
Balance March 31, 2005 14,434,815 $ 144,348 $ 16,839,240 $ (185,199) $ (5,497,993) $ 11,300,396
============ ============ ============ ============ ============ ============
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AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2006 March 31, 2005
OPERATING ACTIVITIES:
Net loss $ (260,237) $ (518,496)
Adjustments to reconcile net loss to net cash used in operating
activities:
Stock Option Compensation Expense 22,230 --
Depreciation and amortization 78,247 76,512
Compensation expense related to warrants 46,301 23,832
Changes in operating assets and liabilities:
Increase in accounts receivable (830,477) (167,662)
Increase (decrease) in prepaid expenses and other current assets 9,129 (7,341)
Increase (decrease) in accounts payable and accrued liabilities 93,747 (58,453)
Increase in amounts payable to services providers 657,050 73,796
----------- -----------
Net cash used in operating activities $ (184,010) $ (577,812)
----------- -----------
INVESTING ACTIVITIES:
Property and equipment additions (17,700) (41,211)
----------- -----------
Net cash used in investing activities $ (17,700) $ (41,211)
----------- -----------
FINANCING ACTIVITIES:
Borrowings from Line of Credit 200,000 1,600,000
Payment on line of credit or long term debt (3,654,894) (5,445)
Net proceeds from the sale of capital stock 9,102,845 --
Net cash provided by financing activities $ 5,647,951 $ 677,592
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 5,446,241 $ 58,569
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 23,399 16,749
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,469,640 $ 75,318
Supplemental disclosures cash flow information
Cash paid for interest expense $ 88,805 $ 10,172