Emdeon Reports Second Quarter 2013 Results
- Revenue of $311.5 million for Second Quarter 2013
NASHVILLE, Tenn., Aug. 8, 2013 /PRNewswire/ -- Emdeon Inc., a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, today announced financial results for the second quarter ended June 30, 2013 as summarized below:
"During the second quarter, we continued to see solid operating results throughout Emdeon's business, especially in our key growth areas of payment integrity and revenue cycle technology," said George Lazenby, chief executive officer for Emdeon. "We also significantly advanced our strategic growth initiatives through our acquisition of Goold Health Systems to expand our position in the government pharmacy benefit administration market, as well as our recent announcement of several new initiatives to further enhance the Emdeon Payment Network."
Second quarter revenue was $311.5 million, an increase of 5.8%, compared to $294.5 for the same period in 2012. Net loss for the second quarter of 2013 was $28.3 million compared to $35.4 million for the same period in 2012. The increase in revenue as compared to the prior year period was primarily due to the impact of business growth. The improvement in net loss compared to the same period in 2012 was primarily due to the impact of business growth and lower interest expense as a result of the repricing of Emdeon's term debt in April 2012 and April 2013.
Second quarter 2013 Non-GAAP Adjusted EBITDA decreased 3.7% to $77.2 million, or 24.8% of revenue, from Non-GAAP Adjusted EBITDA of $80.1 million, or 27.2% of revenue, for the comparable period in 2012. This decline in Adjusted EBITDA as compared to the same period in 2012 is primarily due to increased investments related to sales and other strategic growth initiatives, as well as increased labor costs in our government eligibility and enrollment services in advance of the related revenues, partially offset by business growth.
A reconciliation of Emdeon's financial results determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP) to certain non-GAAP financial measures has been provided in the financial statement tables included in this release to supplement its unaudited condensed consolidated financial statements presented on a GAAP basis. An explanation of these non-GAAP measures is also included below under the heading "Explanation of Non-GAAP Financial Measures."
You should keep in mind that any forward-looking statement made by Emdeon herein, or elsewhere, speaks only as of the date on which made. Emdeon expressly disclaims any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in Emdeon's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
Explanation of Non-GAAP Financial Measures
Emdeon's management believes that, in order to properly understand Emdeon's short-term and long-term financial trends, investors may wish to consider the impact of certain non-cash or non-operating items, when used as a supplement to financial performance measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These items result from facts and circumstances that vary in frequency and/or impact continuing operations. In addition, management uses results of operations before such excluded items to evaluate the operational performance of Emdeon as a basis for strategic planning and as a performance evaluation metric in determining achievement of certain executive and management incentive compensation programs. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition to the description provided below, reconciliations of GAAP to non-GAAP results are provided in the financial statement tables included in this release.
In this release, Emdeon defines Adjusted EBITDA as EBITDA (which is defined as net income before income tax provision (benefit), net interest expense and depreciation and amortization), plus certain other non-cash or non-operating items (collectively, "EBITDA Adjustments").
To properly evaluate Emdeon's business, Emdeon encourages investors to review the GAAP financial information included in this release, and not rely on any single financial measure to evaluate Emdeon's business. Emdeon also strongly encourages investors to review the reconciliation of net income (loss) to the non-GAAP measure of Adjusted EBITDA. Adjusted EBITDA, as Emdeon defines it, may differ from and may not be comparable to similarly titled measures used by other companies, because Adjusted EBITDA is not a measure of financial performance under GAAP and is susceptible to varying calculations. Adjusted EBITDA calculations are also used in our credit facilities and indentures, although the adjustments used to calculate Adjusted EBITDA as used in our credit facilities and indentures vary in certain respects among such agreements and from those presented below.
Management uses Adjusted EBITDA to facilitate a comparison of Emdeon's operating performance on a consistent basis from period to period that, when viewed in combination with Emdeon's GAAP results, management believes provides a more complete understanding of factors and trends affecting Emdeon's business than GAAP measures alone. Management believes this non-GAAP measure assists Emdeon's board of directors, management, lenders and investors in comparing Emdeon's operating performance on a consistent basis because it removes where applicable, the impact of Emdeon's capital structure, asset base, acquisition accounting, non-cash charges and non-operating items from Emdeon's operations.
SOURCE Emdeon Inc.
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