NASHVILLE, Tenn., Nov. 7, 2014 /PRNewswire/ -- Emdeon Inc., a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, today announced financial results for the third quarter ended September 30, 2014 as summarized below:
(In millions) | 3Q 2014 | 3Q 2013 | % Change | ||||||
Revenue | $ | 341.6 | $ | 317.8 | 7.5% | ||||
Net Loss | $ | 13.0 | $ | 16.3 | 20.1% | ||||
Non-GAAP Adjusted EBITDA | $ | 94.1 | $ | 85.2 | 10.3% |
"We remain pleased with our Adjusted EBITDA and revenue growth trajectory. The 10.3% increase in Adjusted EBITDA over the prior year period and expansion of Adjusted EBITDA margin to 27.5% for the quarter was largely due to revenue growth and continued productivity improvements throughout our business. Our revenue growth 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. "Our integration efforts related to the July 2014 Capario acquisition and its suite of innovative, cloud-based applications are going well. During the third quarter, we were able to fully repay the portion of the purchase price that was funded by our revolving credit facility through operating cash flow, and are already enjoying positive impacts to our financial results."
Third quarter revenue was $341.6 million, an increase of 7.5%, compared to $317.8 million for the same period in 2013. This increase in revenue was primarily due to business growth, including the Capario acquisition, partially offset by a one-time reduction of revenue. Net loss for the third quarter of 2014 was $13.0 million compared to $16.3 million for the same period in 2013. This improvement in net loss was primarily due to business growth.
Third quarter 2014 Non-GAAP Adjusted EBITDA increased 10.3% to $94.1 million, or 27.5% of revenue, from Non-GAAP Adjusted EBITDA of $85.2 million, or 26.8% 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, partially offset by increased investments related to sales and product development initiatives and the one-time reduction of revenue described above.
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; 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 filed on Form 10-K for the year ended December 31, 2013, as well as other reports filed by Emdeon with the Securities and Exchange Commission.
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.
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