NASHVILLE, Tenn., Aug. 13, 2012 /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, 2012 as summarized below:
Net Income (Loss)
Non-GAAP Adjusted EBITDA
"We are pleased with our operating results for the second quarter," said George Lazenby, Emdeon's chief executive officer. "Our second quarter results reflect strong financial performance across our business, especially in pharmacy services. We also are encouraged by the integration progress of our most recent acquisition, TC3 Health, in the payment integrity space."
Second quarter revenue was $294.5 million, an increase of 4.4%, compared to $282.1 for the same period in 2011. Second quarter revenue was reduced by $1.6 million due to acquisition method adjustments related to the acquisition of the Company by Blackstone, which occurred in the fourth quarter of 2011 (the "2011 Transaction").
Net loss for the second quarter of 2012 was $35.4 million compared to net income of $9.2 million for the same period in 2011. This loss was primarily due to increased interest and other expenses associated with the 2011 Transaction, which more than offset the impact of business growth as compared to the prior year period.
Second quarter Non-GAAP Adjusted EBITDA grew 7.2% to $80.1 million, or 27.2% of revenue, from Non-GAAP Adjusted EBITDA of $74.7 million, or 26.5% of revenue, for the comparable period in 2011.
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."
Emdeon is a leading provider of revenue and payment cycle management and clinical information exchange solutions, connecting payers, providers and patients in the U.S. healthcare system. Emdeon's offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter. Through the use of Emdeon's comprehensive suite of solutions, which are designed to easily integrate with existing technology infrastructures, customers are able to improve efficiency, reduce costs, increase cash flow and more efficiently manage the complex revenue and payment cycle and clinical information exchange processes. For more information, visit www.emdeon.com.
Statements made in this press release that express Emdeon's or management's intentions, plans, beliefs, expectations or predictions of future events are forward-looking statements. These statements often include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Forward-looking statements may include information concerning Emdeon's possible or assumed future results of operations, including descriptions of Emdeon's revenues, profitability, outlook and overall business strategy. You should not place undue reliance on these statements because they are subject to numerous uncertainties and factors relating to Emdeon's operations and business environment, all of which are difficult to predict and many of which are beyond Emdeon's control. Although Emdeon believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Emdeon's actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. Such factors related to Emdeon's actual financial results or results of operations include: effects of competition, including competition from entities that are customers for certain of Emdeon's solutions; Emdeon's ability to maintain relationships with its customers and channel partners; Emdeon's ability to effectively cross-sell its solutions to existing customers and to continue to generate revenue and maintain profitability by developing or acquiring and successfully deploying new or updated solutions; pricing pressures on Emdeon's solutions; the anticipated benefits from acquisitions not being fully realized or not being realized within the expected time frames; and general economic, business or regulatory conditions affecting the healthcare information technology and services industries; as well as the other risks discussed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections and elsewhere in Emdeon's Annual Report for the year ended December 31, 2011, as well as any public reports, press releases, filings or other public statements made by Emdeon.
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.