NASHVILLE, Tenn., March 16, 2015 /PRNewswire/ -- Emdeon Inc., a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, today announced financial results for the fourth quarter and year ended December 31, 2014, as summarized below:
(In millions) | 4Q 2014 | 4Q 2013 | % Change | FY 2014 | FY 2013 | % Change | ||||||||||||
Revenue | $ | 353.4 | $ | 320.1 | 10.4% | $ | 1,350.4 | $ | 1,242.6 | 8.7% | ||||||||
Net Loss | $ | 0.3 | $ | 16.5 | 97.9% | $ | 75.9 | $ | 74.5 | -1.9% | ||||||||
Non-GAAP Adjusted EBITDA | $ | 101.7 | $ | 85.5 | 18.8% | $ | 364.3 | $ | 324.0 | 12.5% |
“We are very pleased with our strong fourth quarter and full year 2014 financial results. The 12.5% increase in Adjusted EBITDA and expansion of Adjusted EBITDA margin over the prior year was largely due to revenue growth and continued productivity improvements throughout our business. Our revenue growth in 2014 was driven by increased sales of our solutions and volume gains due to the increase in the number of insured lives of our customers,” said Neil de Crescenzo, president and chief executive officer for Emdeon. “Throughout 2014, we also made important progress in positioning Emdeon for future success. During the fourth quarter, we completed two strategic acquisitions - Change Healthcare, a leader in healthcare consumer engagement, and Adminisource, a leading provider of healthcare payment and communication solutions. In connection with these acquisitions, we also closed a $160 million incremental secured loan on favorable terms under our existing senior credit facility. Together with the acquisition of Capario earlier in the year, these transactions significantly strengthened our overall portfolio of solutions to better serve our customers entering 2015.”
Fourth quarter revenue was $353.4 million, an increase of 10.4%, compared to $320.1 million for the same period in 2013. This increase in revenue was primarily due to business growth. Net loss for the fourth quarter of 2014 was $0.3 million compared to $16.5 million for the same period in 2013. This improvement in net loss was primarily due to business growth and the absence of a charge related to cancelling a product development project in the prior year period.
Fourth quarter 2014 Non-GAAP Adjusted EBITDA increased 18.8% to $101.7 million, or 28.8% of revenue, from Non-GAAP Adjusted EBITDA of $85.5 million, or 26.7% of revenue, for the comparable period in 2013. This increase in Adjusted EBITDA and as a percentage of revenue compared to the same period in 2013 is primarily due to business growth and productivity improvements throughout the business.
For the year ended December 31, 2014, revenue was $1,350.4 million compared to $1,242.6 million for 2013, an increase of 8.7%. This increase in revenue was primarily due to business growth, accelerated by the impact of healthcare utilization, new solutions and acquisitions. Net loss for 2014 was $75.9 million compared to $74.5 million in 2013.
Full year 2014 Non-GAAP Adjusted EBITDA increased 12.5% to $364.3 million, or 27.0% of revenue, from Non-GAAP Adjusted EBITDA of $324.0 million, or 26.1% of revenue, for the comparable period in 2013. This increase was primarily due to the impact of business growth in higher margin businesses and productivity improvements.
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 revenue and payment cycle management and clinical information exchange solutions, connecting payers, providers, pharmacies and patients in the U.S. healthcare system. Emdeon’s offerings integrate and automate key business and administrative functions of its payer, provider and pharmacy 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.
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;
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