CHADDS FORD, Pa., Feb. 16 /PRNewswire-FirstCall/ -- I-trax, Inc. , a leading provider of integrated health and productivity management, today reported financial results for the fourth quarter and fiscal year ended December 31, 2005.
Fourth Quarter Results
For the quarter ended December 31, 2005, I-trax reported net income of $0.7 million compared to $0.5 million in last year's fourth quarter. Fourth quarter net income attributable to common stockholders was $0.3 million, or $.01 per share, compared to a net loss attributable to common stockholders of $(0.1) million, or $(0.0) per share, reported in last year's fourth quarter. Fourth quarter revenue was $31.4 million, up $5.0 million, or 18.6%, from the $26.4 million reported in last year's fourth quarter. Favorable terminations of loss contracts contributed $0.4 million to revenue and net income in the fourth quarter of 2005.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the quarter were $1.9 million, versus $1.7 million for the comparable quarter of 2004. The fourth quarter operating profit was $1.0 million, versus $0.7 million in the same period last year.
I-trax had a total of 193 facilities in operation on December 31, 2005 compared to 185 on September 30, 2005 and 177 on December 31, 2004.
2005 Year End Results
For the year ended December 31, 2005, the company reported a net loss of $(14.1) million compared to a net loss of $(3.9) million last year. For the year ended December 31, 2005, net loss attributable to common stockholders was $(16.1) million or $(0.54) per share compared to a net loss attributable to common stockholders of $(21.6) million, or $(0.96) per share reported for the year ended December 31, 2004. Excluding charges of $13.9 million related to a restructuring of operations in the second quarter, I-trax' net loss for 2005 was $(0.2) million. I-trax reported revenue of $115.9 million for the year ended December 31, 2005 versus pro forma results of $99.8 million for the comparable period of 2004.
EBITDA for the year ended December 31, 2005 was $(9.6) million compared to $1.3 million for the year ended December 31, 2004. Excluding charges associated with the restructuring, EBITDA for 2005 was $4.3 million.
Commenting on these results, Frank A. Martin, chairman, stated, "We are very pleased with our fourth quarter and full year results. We achieved record revenue again this quarter, helped in part by seasonal factors such as flu vaccine programs and continuing positive effects from our second quarter restructuring. Revenue in the fourth quarter increased by $2.5 million over the third quarter and our gross margin improved to 24.4%. Our general and administrative expenses for the same period increased by $0.2 million but declined as a percentage of revenue from 19.8% and 19.1% in the fourth quarter of 2004 and in the third quarter 2005, respectively, to 18.4%. We continue to see strong growth in our core business and we are committed to investing in new products and technology infrastructure to gain operational leverage and maintain our leadership position in the industry."
Cash Flow and Balance Sheet
Cash provided by operations during the fourth quarter was $3.7 million. Cash and cash equivalents increased during the year by $1.6 million, reflecting cash from operations of $3.8 million and cash from financing activities of $0.5 million (primarily use of the company's credit facility), net of cash used for investment activities of $2.7 million. Investments were mainly for property, plant and equipment, as well as for capitalized software development costs (subsequently impaired in the second quarter restructuring). On December 31, 2005, I-trax had cash of $5.4 million and debt of $8.6 million, compared with $3.8 million and $8.3 million, respectively, at the end of 2004.
Conference Call
I-trax will host a conference call at 4:30 p.m. EST today. During the call, Frank A. Martin, chairman, R. Dixon Thayer, chief executive officer, Dr. Raymond J. Fabius, president and chief medical officer, and David R. Bock, chief financial officer, will discuss the company's financial results. The telephone number for the conference call is (888) 202-2422. Investors may also listen to the conference call on I-trax's web site http://www.i-trax.com by selecting the conference link on the Investor Information page.
Investors may access an encore recording of the conference call for one week by calling (888) 203-1112, Conference Passcode: 5214019. The encore recording will be available two hours after the conference call concludes. Investors may also access a recording of this call on I-trax's web site.
Non-GAAP Financial Measures
The company makes use of non-GAAP financial measures. Adjusted net income/(loss) (net income excluding restructuring-related activities) and EBITDA (earnings before interest, taxes, depreciation and amortization) are not recognized terms under generally accepted accounting principles, or "GAAP," and should not be considered as an alternative to net income/(loss) or net cash provided by operating activities, which are GAAP measures. The company believes EBITDA is a useful operating performance indicator. A reconciliation of adjusted net income/(loss), EBITDA and EBITDA, excluding restructuring-related activities to net income/(loss) appears at the end of this release.
About I-trax
I-trax is the leading provider of integrated workplace health and productivity management solutions. Serving nearly 100 clients at over 190 locations nationwide, I-trax offers a broad spectrum of on-site, disease management and wellness services including primary care, pharmacy, occupational and corporate health. I-trax provides a comprehensive solution utilizing telephonic and e-health tools to enhance the trusted relationship established by our clinicians at the worksite. I-trax is focused on making the workplace safe, helping companies achieve employer of choice status, reducing costs while improving the quality of care received and the productivity of the workforce. For more information, visit http://www.i-trax.com.
Safe Harbor Statement: This press release contains forward-looking statements that are based upon current expectations and assumptions, which involve a number of risks and uncertainties. Investors are cautioned that these statements may be affected by certain important factors, and consequently, actual operations and results may differ, possibly materially from those expressed in such statements. The important factors include, but are not limited to: demand for the company's products and services and the company's ability to execute new service contracts; uncertainty of future profitability; general economic conditions; the risk associated with a significant concentration of revenue with a limited number of customers; and the company's ability to renew and maintain contracts with existing customers under existing terms. I-trax undertakes no obligation to update or revise any forward-looking statement. These and other risks pertaining to I-trax are described in greater detail in I-trax's filings with the Securities and Exchange Commission.
Attached: Balance sheet, quarterly and year-to-date income statements, reconciliations of non-GAAP financial measures and pro forma year-to-date income statement.
I-TRAX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) December 31, 2005 December 31, 2004 Assets Current assets Cash and cash equivalents $5,386 $3,805 Accounts receivable, net 18,399 14,525 Other current assets 1,899 3,176 Total current assets 25,684 21,506 Property, plant and equipment, net 4,042 6,719 Intangible assets, net 72,125 84,432 Other assets 41 61 Total assets $101,892 $112,718 Liabilities and stockholders' equity Current liabilities Accounts payable $8,069 $6,118 Other accruals and liabilities 20,682 15,362 Total current liabilities 28,751 21,480 Other long-term liabilities 10,978 19,475 Total liabilities 39,729 40,955 Stockholders' equity Preferred stock $0.001 par value, 2,000,000 shares authorized, 853,039 and 1,070,283 issued and outstanding, respectively 1 1 Common stock, $0.001 par value, 100,000,000 shares authorized, 32,818,955 and 26,226,818 shares issued and outstanding, respectively 32 25 Paid in capital 134,864 130,399 Retained earnings (72,734) (58,662) Total stockholders' equity 62,163 71,763 Total liabilities and stockholders' equity $101,892 $112,718 I-TRAX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (in thousands, except share data) Three months ended Year ended December 31, December 31, 2005 2004 2005 2004 Net revenue $31,359 $26,435 $115,887 $76,402 Costs and expenses: Operating expenses 23,714 19,521 88,457 58,151 Impairment of long-lived assets - - 12,470 - Provision for loss contracts - - 663 - Restructuring expenses - - 783 - General and administrative expenses 5,767 5,243 23,130 16,585 Depreciation and amortization 876 977 3,616 3,866 Total costs and expenses 30,357 25,741 129,119 78,602 Operating profit/(loss) 1,002 694 (13,232) (2,200) Interest 55 102 454 1,002 Amortization of financing costs 57 73 239 132 Other - - - 350 Income/(loss) before provision for income taxes 890 519 (13,925) (3,684) (Benefit from)/provision for income taxes 141 2 147 253 Net income/(loss) 749 517 (14,072) (3,937) Less preferred stock dividend (489) (596) (2,049) (1,878) Less deemed dividends applicable to preferred stockholders - - - (15,820) Net income/(loss) attributable to common stockholders 260 (79) (16,121) (21,635) Weighted average shares Basic 31,430,095 24,996,143 29,716,114 22,466,262 Diluted 41,412,283 24,996,143 29,716,114 22,466,262 Earnings/(loss) per common share, basic Basic $0.01 $(0.00) $(0.54) $(0.96) Diluted $0.01 $(0.00) $(0.54) $(0.96) Reconciliation of net income/(loss) to EBITDA Net income/(loss) $749 $517 $(14,072) $(3,937) Add: Depreciation and amortization 933 1,050 3,855 3,998 Add: (Benefit from)/provision for income taxes 141 2 147 253 Add: Interest 55 102 454 1,002 EBITDA $1,878 $1,671 $(9,616) $1,316 Impairment of long-lived assets - - 12,470 - Provision for loss contracts - - 663 - Restructuring expenses - - 783 - EBITDA, excluding restructuring-related activities $1,878 $1,671 $4,300 $1,316 Reconciliation of net income/(loss) to adjusted net income/(loss) Net income/(loss) attributable to common stockholders $749 $517 $(14,072) $(3,937) Impairment of long-lived assets - - 12,470 - Provision for loss contracts - - 663 - Restructuring expenses - - 783 - Adjusted net income/(loss) $749 $517 $(156) $(3,937) I-TRAX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (in thousands, except share data) Years ended December 31, 2005 2004 (pro forma) Net revenue $115,887 $99,757 Costs and expenses: Operating expenses 88,457 76,180 Impairment of long-lived assets 12,470 - Provision for loss contracts 663 - Restructuring Expenses 783 - General and administrative expenses 23,130 19,647 (1) Depreciation and amortization 3,616 4,689 (2) Total costs and expenses 129,119 100,516 Operating loss (13,232) (759) Interest 454 1,153 (3) Amortization of financing costs 239 132 Other - 350 Loss before provision for income taxes (13,925) (2,394) Provision for income taxes 147 253 Net loss (14,072) (2,647) Less preferred stock dividend (2,049) (1,878) Less deemed dividends applicable to preferred stockholders - - Net income/(loss) attributable to common stockholders (16,121) (4,525) Weighted average shares Basic and diluted 29,716,114 24,603,248 Earnings/(loss) per common share, basic Basic and diluted $(0.54) $(0.18) Reconciliation of operating loss to EBITDA Net loss $(14,072) $(2,647) Add: Depreciation and amortization 3,855 4,821 Add: Provision for income taxes 147 253 Add: Interest 454 1,153 EBITDA $(9,616) $3,580 (1) Includes pro forma adjustment to exclude $2,770 for transaction costs expensed in the period (2) Includes pro forma adjustment to include $435 for amortization of CHD Meridian intangibles (3) Includes pro forma adjustment to include $180 for interest on credit facility used to fund a portion of the acquisition of CHD Meridian I-trax Contact: PR Contact: Janice MacKenzie Karen Higgins I-trax, Inc. Sagefrog Marketing (610) 459-2405 x109 (610) 831-5723 jlmackenzie@i-trax.comkarenh@sagefrog.com
I-trax, Inc.CONTACT: Janice MacKenzie, I-trax, Inc., +1-610-459-2405 x109,jlmackenzie@i-trax.com; or PR Contact: Karen Higgins, Sagefrog Marketing,+1-610-831-5723, karenh@sagefrog.com, for I-trax, Inc.
Web site: http://www.i-trax.com/
