RANCHO CORDOVA, Calif., Aug. 5 /PRNewswire-FirstCall/ -- VantageMed Corporation (BULLETIN BOARD: VMDC.OB) today announced financial results for the quarter and six months ended June 30, 2004. Total revenues for the quarter ended June 30, 2004 were $6.1 million and were up 20.9% from prior quarter revenues of $5.1 million and were up 17.2% from the year ago quarter. Revenues for the six months ended June 30, 2004 were $11.2 million, 5.9% higher than revenues of $10.6 million for the six months ended June 30, 2003.
Net income before interest, taxes, depreciation and amortization (EBITDA) totaled a positive $85,000 for the quarter ended June 30, 2004 compared to a negative ($572,000) for the previous quarter and compared to a negative ($516,000) for the year ago quarter. EBITDA for the six months ended June 30, 2004 was a negative ($487,000) compared to a negative ($1.2 million) for the six months ended June 30, 2003. EBITDA for the quarter and six months ended June 30, 2004 includes a $147,000 benefit resulting from the termination and buyout of a lease. EBITDA for the six months ended June 30, 2003 includes a $108,000 charge related to a change in our restructuring reserve. We present EBITDA because we believe it provides an alternative measure by which to evaluate our performance. EBITDA is not a measurement defined by GAAP and should not be considered an alternative to, or more meaningful than, information presented in accordance with GAAP.
VantageMed reported a net loss of ($28,000), or ($0.00) per basic and diluted share, for the quarter ended June 30, 2004 compared to a net loss of ($706,000), or ($0.08), for the previous quarter and a net loss of ($726,000), or ($0.09), for the year ago quarter. Net loss for the six month period ended June 30, 2004 was ($734,000), or ($0.09) per basic and diluted share, compared to a loss of ($1.7) million, or ($0.20), for the six months ended June 30, 2003.
Richard M. Brooks, Chairman and Chief Executive Officer, commented, "Our focus on expanding the delivery capabilities of our client services organization resulted in increased revenue and a company record for system installations. Also, in the second quarter we signed 68 RidgeMark orders as compared to 24 in same quarter last year. Our continued investments in HIPAA compliant, industry leading EDI services are also beginning to yield positive results in terms of increased transaction volumes."
VantageMed will be hosting a conference call related to their second quarter 2004 earnings today, August 5, 2004 at 4:15 P.M. Eastern Time and will be broadcasting the call live over the Internet at http://phx.corporate-ir.net/playerlink.zhtml?c=76749&s=wm&e=923869 . A direct link will also be available on their website at http://www.vantagemed.com/ and a playback of the call will be available for 90 days.
VantageMed is a provider of healthcare information systems and services distributed to over 12,000 customer sites through a national network of regional offices. Their suite of software products and services automates administrative, financial, clinical and management functions for physicians and other healthcare providers and provider organizations.
This press release may be deemed to contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements are made as of today's date and we do not undertake any obligation to update forward-looking statements. You can identify such statements by our use of such words as "should," "expect," "will," "intends," and similar words and phrases which denote future events and which may depend on the future performance of the Company. Our assumptions underlying these statements are also "forward-looking" statements. Forward-looking statements are based on information and assumptions that are dynamic in nature and subject to rapid and sometimes abrupt changes. Our forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the statements. These risks and uncertainties include risks related to our failure to improve our operating cash flow, the inability of our restructuring efforts to improve profitability and our inability to increase our revenue or to grow the sales of our products. Our forward-looking statements are also subject to important risks and uncertainties detailed in our latest reports filed with the SEC and available on its website at http://www.sec.gov/.
VantageMed Corporation Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended Six Months Ended Jun 30 Mar 31 Jun 30 Jun 30 Jun 30 2004 2004 2003 2004 2003 Revenues: Software and systems $1,762 $1,102 $1,139 $2,864 $2,359 Customer support 3,144 2,816 2,890 5,960 5,803 Electronic services 1,219 1,147 1,199 2,366 2,404 Total revenues 6,125 5,065 5,228 11,190 10,566 Cost of revenues: Software and systems 896 468 533 1,364 1,053 Customer support 1,903 1,758 1,724 3,661 3,554 Electronic services 694 630 790 1,324 1,610 Total cost of revenues 3,493 2,856 3,047 6,349 6,217 Total gross margin 2,632 2,209 2,181 4,841 4,349 Operating expenses: Selling, general and administrative 1,999 2,049 2,087 4,048 4,330 Product development 674 719 607 1,393 1,144 Depreciation and amortization 128 128 220 256 462 Stock-based compensation 21 13 3 34 5 Asset impairment and restructuring charges (147) -- -- (147) 108 Total operating costs and expenses 2,675 2,909 2,917 5,584 6,049 Loss from operations (43) (700) (736) (743) (1,700) Interest and other income (expense): Interest income 13 13 30 26 55 Interest and other expense 2 (19) (20) (17) (46) Total interest and other income (expense), net 15 (6) 10 9 9 Net income (loss) $(28) $(706) $(726) $(734) $(1,691) Basic and diluted net income (loss) per share $(0.00) $(0.08) $(0.09) $(0.09) $(0.20) Weighted-average shares - basic and diluted 8,271 8,353 8,468 8,313 8,471 Reconciliation - GAAP net income (loss) to EBITDA: GAAP net income (loss) $(28) $(706) $(726) $(734) $(1,691) Depreciation and amortization 128 128 220 256 462 Interest (income) expense, net (15) 6 (10) (9) (9) EBITDA $85 $(572) $(516) $(487) $(1,238) VantageMed Corporation Consolidated Statements Of Cash Flows (In Thousands) (Unaudited) Six Months Ended June 30, 2004 2003 Cash flows from operating activities: Net loss $(734) $(1,691) Adjustments to reconcile net loss to net cash used for operating activities - Depreciation and amortization 268 462 Stock-based compensation 34 5 Changes in assets and liabilities - Accounts receivable (139) 510 Inventories 114 (168) Prepaid expenses and other 91 32 Accounts payable and accrued liabilities 4 219 Customer deposits and deferred revenue 214 143 Net cash used for operating activities (148) (488) Cash flows from investing activities: Purchases of property and equipment (102) (145) Proceeds from maturity of investments -- 1,256 Repayment of notes receivable -- 20 Net cash provided by (used for) investing activities (102) 1,131 Cash flows from financing activities: Principal payments on long-term debt (299) (256) Proceeds from stock option exercises 17 -- Net cash used for financing activities (282) (256) Net increase (decrease) in cash and cash equivalents (532) 387 Cash and cash equivalents, beginning of period 1,585 1,440 Cash and cash equivalents, end of period $1,053 $1,827 VantageMed Corporation Consolidated Balance Sheets (In Thousands, Except Share And Per Share Amounts) (Unaudited) June 30, December 31, 2004 2003 ASSETS Current assets: Cash and cash equivalents $1,053 $1,585 Short-term investments 754 774 Accounts receivable, net of allowance of $243 and $129, respectively 2,512 2,373 Inventories, net 155 269 Prepaid expenses and other 483 366 Total current assets 4,957 5,367 Property and equipment, net 430 506 Other assets 12 17 Intangibles, net 1,658 1,748 Total assets $7,057 $7,638 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) Current liabilities: Current portion of long-term debt $515 $461 Accounts payable 1,744 1,162 Accrued liabilities 2,180 2,386 Customer deposits and deferred revenue 3,759 3,545 Total current liabilities 8,198 7,554 Long-term portion of restructuring reserve, net of current portion 139 372 Long-term debt, net of current portion 39 195 Total liabilities 8,237 8,121 Stockholders' equity (deficiency): Common stock, $0.001 par value, 20,000,000 shares authorized; 8,251,966 and 8,343,770 shares issued and outstanding at June 30, 2004 and December 31, 2003 8 8 Additional paid-in capital 72,534 72,483 Accumulated other comprehensive income 2 16 Accumulated deficit (73,724) (72,990) Total stockholders' equity (deficiency) (1,180) (483) Total liabilities and stockholders' equity (deficiency) $7,057 $7,638
VantageMed CorporationCONTACT: investors, Liesel Loesch, +1-916-638-4744, ext. 213, orinvestor@vantagemed.com, or Jennifer Morgano, +1-510-536-6012, orjmorgano@vantagemed.com, both of VantageMed Corporation
Web site: http://www.vantagemed.com/
