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Investor Relations
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InvestorRelations@quadramed.com
QuadraMed Corporation Announces Q3 2009 Results
Revenues of $35.8 Million
Reston, VA — November 5, 2009 —
For the three months ended
Income from operations was
The three month and nine month periods ended
The Company will also report net income attributable to common
shareholders of
Cash used in operations was
Software development expenses during the current quarter of
As previously announced, during the current quarter, the Company signed
four new significant license agreements to install QCPR Clinical
Information Systems at three hospital systems in
“We are pleased with the extension of our relationship with the
Management will review these results in an investment community
conference call at
| Attachments | Exhibit 1 | Condensed Consolidated Balance Sheets (unaudited) as of September 30, 2009 and December 31, 2008 | ||||||||||
| Exhibit 2 | Condensed Consolidated Statements of Operations (unaudited) for the Three Months Ended September 30, 2009 and 2008 and the Nine Months Ended September 30, 2009 and 2008 | |||||||||||
| Exhibit 3 | Condensed Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended September 30, 2009 and 2008 and the Nine Months Ended September 30, 2009 and 2008 | |||||||||||
| Exhibit 4 | Reconciliation of EBITDA and Non-GAAP Measurements (unaudited) for the Three Months Ended September 30, 2009, June 30, 2009, March 31, 2009, December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008, and December 31, 2007. | |||||||||||
| Exhibit 5 | Reconciliation of EBITDA and Non-GAAP Measurements (unaudited) for the Nine Months Ended September 30, 2009 and September 30, 2008 |
About Adjusted EBITDA and other Non-GAAP Measurements
The Company’s use and presentation of the terms EBITDA, Adjusted EBITDA and other Non-GAAP measurements included in this press release and Exhibits 4 and 5 hereto, and the reconciliations of those items to the most directly comparable GAAP financial measure with equal or greater prominence as the non-GAAP financial measures, have been prepared in direct response to questions from its investors and other interested parties. Although the Company has frequently discussed these reconciling items when they occur, both in its filings as well as in investment community conference calls that are open to the public at large, many inquiries are still made as to the nature of these items, and the impact of removing these items from the GAAP financial results. As a result, the Company believes it is important to provide these reconciliations, so that the requesting investors will not have to perform the arithmetic themselves and so that all interested parties will benefit from the disclosures and reconciliations, through a straightforward and unambiguous presentation. The Company believes that the use and presentation of the terms EBITDA, Adjusted EBITDA and the other non-GAAP financial measures is useful because it allows readers of its financial information to evaluate its performance for different periods on a more comparable basis by excluding items that are unique in nature such as non-cash compensation, or do not relate to the ongoing operation of its core business. The items presented in calculating Adjusted EBITDA and other Non-GAAP measurements represent specific events or items as follows (please see Exhibits 4 and 5 to this press release):
-
Cash Severance – costs associated with payments to former executive
officers of the Company in the three-month periods ended
June 30, 2009 andMarch 31, 2009 , and restructuring and downsizing of the Company’s employee base during the three-month periods endedMarch 31, 2008 ,June 30, 2008 andDecember 31, 2008 ; -
Non-cash Compensation – the costs of employee stock options and
restricted stock; the three-month periods ended
June 30, 2009 andMarch 31, 2009 include$0.2 million and$0.3 million , respectively, related to the acceleration of employee stock option expense to former executive officers of the Company upon their respective resignations from the Company; -
Tax benefit, Net – the amount recorded in the three-month period ended
December 31, 2007 resulting from the release of a portion of the reserve against the Company’s deferred tax assets, net of deferred income tax expense recorded in the period; -
Strategic Initiatives – the expenses recorded in connection with
merger and acquisition activities during the three-month period ended
December 31, 2007 ; -
Employment Matters – the cost of the Company’s review of wage/hour
classifications for certain employees during the three-month period
ended
December 31, 2007 ; -
Loss on Sale of Assets – a one-time loss for accounting purposes
recorded in connection with the Company’s
April 2008 sale of itsAustralia -based lab and radiology business, with operations inAustralia ,New Zealand and theUnited Kingdom .
About
Cautionary Statement on Risks Associated with
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that are
subject to risks and uncertainties. The words “believe,” “expect,”
“target,” “goal,” “project,” “anticipate,” “predict,” “intend,” “plan,”
“estimate,” “may,” “will,” “should,” “could” and similar expressions and
their negatives are intended to identify such statements.
Forward-looking statements are not guarantees of future performance,
anticipated trends or growth in businesses, or other characterizations
of future events or circumstances and are to be interpreted only as of
the date on which they are made.
|
Exhibit 1 |
||||||
| QUADRAMED CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands, except per share amounts) | ||||||
| (unaudited) | ||||||
| September 30, | December 31, | |||||
| ASSETS |
2009 |
2008 | ||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 7,879 | $ | 20,649 | ||
| Short-term investments | 7,650 | 4,213 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of $1,402 and $1,052, respectively |
27,384 | 20,843 | ||||
| Unbilled receivables | 6,817 | 6,177 | ||||
| Deferred contract expenses | 5,678 | 5,005 | ||||
| Prepaid royalty expenses | 1,094 | 7,831 | ||||
|
Prepaid expenses and other current assets, net of allowance on other receivable of $919, respectively |
4,330 | 4,485 | ||||
| Deferred tax asset, net of valuation allowance | 6,241 | 6,240 | ||||
| Total current assets | 67,073 | 75,443 | ||||
| Restricted cash | 1,522 | 1,444 | ||||
| Long-term investments | 3,506 | 3,043 | ||||
|
Property and equipment, net of accumulated depreciation and amortization of $19,169 and $17,732, respectively |
3,556 | 3,895 | ||||
| Goodwill | 35,632 | 35,632 | ||||
|
Other amortizable intangible assets, net of accumulated amortization of $30,932 and $29,305, respectively |
7,760 | 9,387 | ||||
| Other long-term assets | 2,831 | 2,829 | ||||
| Deferred tax asset, net of valuation allowance | 48,009 | 47,921 | ||||
| Total assets | $ | 169,889 | $ | 179,594 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued expenses | $ | 5,794 | $ | 4,705 | ||
| Accrued payroll and related benefits | 5,221 | 7,228 | ||||
| Accrued exit cost of facility closing | 346 | 888 | ||||
| Income tax payable | 2,079 | 688 | ||||
| Other accrued liabilities | 3,491 | 4,721 | ||||
| Dividends payable | 1,375 | 1,375 | ||||
| Deferred revenue | 43,004 | 53,190 | ||||
| Total current liabilities | 61,310 | 72,795 | ||||
| Other long-term liabilities | 1,458 | 1,834 | ||||
| Total liabilities | 62,768 | 74,629 | ||||
| Commitments and Contingencies | ||||||
| Stockholders’ equity | ||||||
|
Preferred stock, $0.01 par, 5,000 shares authorized, 4,000 shares issued and outstanding, respectively |
96,144 | 96,144 | ||||
|
Common stock, $0.01 par, 30,000 shares authorized; 9,471 and 9,451 shares issued and 8,307 and 8,287 outstanding, respectively |
95 | 95 | ||||
| Shares held in treasury, 1,164, respectively | (9,031) | (9,031) | ||||
| Additional paid-in-capital | 317,868 | 316,027 | ||||
| Accumulated other comprehensive loss | (987) | (1,675) | ||||
| Accumulated deficit | (296,968) | (296,595) | ||||
| Total stockholders’ equity | 107,121 | 104,965 | ||||
| Total liabilities and stockholders’ equity | $ | 169,889 | $ | 179,594 | ||