NASHVILLE, Tenn., May 11, 2015 /PRNewswire/ -- Emdeon Inc., a leading provider of software-based solutions, network solutions and technology-enabled services that optimize communications, payments and analytics by leveraging its intelligent healthcare platform, today announced financial results for the first quarter ended March 31, 2015, as summarized below:
(In millions) | 1Q 2015 | 1Q 2014 | % Change | ||||||
Solutions Revenue (exclusive of postage)(1) | $ | 258.4 | $ | 236.1 | 9.4% | ||||
Net Loss | $ | 5.7 | $ | 3.0 | -92.3% | ||||
Adjusted EBITDA | $ | 87.6 | $ | 78.3 | 11.8% | ||||
(1) | In January 2015, the company reorganized its reportable segments as Software and Analytics, Network Solutions and Technology-enabled Services. In addition, to clarify the nature of its customer related postage activities, the company created separate captions on the statement of operations within revenue and costs and expenses, respectively. Solutions revenue represents total revenue less postage revenue. |
"We continue to be very encouraged by our financial results as evidenced by the 9.4% growth in solutions revenue and 11.8% growth in Adjusted EBITDA during the quarter. Our sales momentum remains strong and we continue to see network volume gains throughout our platform, due in large part, to increases in the number of insured lives of our customers from the ongoing expansion of Medicaid and federal and state exchanges," said Neil de Crescenzo, president and chief executive officer for Emdeon. "During 2015, we intend to further strengthen our position as a leading provider of software-based and other technology-enabled solutions that optimize communications, payments and analytics by leveraging our intelligent healthcare platform."
First quarter solutions revenue was $258.4 million, an increase of 9.4%, compared to $236.1 million for the same period in 2014. This increase in solutions revenue was primarily due to business growth, including the acceleration of our electronic payment and other recently developed and acquired solutions. Net loss for the first quarter of 2015 was $5.7 million compared to $3.0 million for the same period in 2014.
First quarter 2015 Non-GAAP Adjusted EBITDA increased 11.8% to $87.6 million, or 33.9% of solutions revenue, from Non-GAAP Adjusted EBITDA of $78.3 million, or 33.2% of solutions revenue, for the comparable period in 2014. This increase in Adjusted EBITDA and as a percentage of solutions revenue compared to the same period in 2014 is primarily due to business growth and productivity improvements throughout the business.
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."
About Emdeon
Emdeon is a leading provider of software-based solutions, network solutions and technology-enabled services that optimize communications, payments and analytics by leveraging its intelligent healthcare platform, which includes one of the largest financial and administrative networks in the United States healthcare system. Emdeon's platform and solutions integrate and automate key functions of our payer, provider and pharmacy customers throughout the patient encounter, from consumer engagement and pre-care eligibility and enrollment through payment. By using 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 complex workflows. For more information, visit www.emdeon.com.
Forward-Looking Statements
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; 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 filed on Form 10-K for the year ended December 31, 2014, as well as other reports filed by Emdeon with the Securities and Exchange Commission.
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