Mon, 15 May 2006 10:04:00 PDT
IRVING, TX -- (MARKET WIRE) -- 05/15/2006 -- American CareSource Holdings, Inc. (OTC BB: ACSH) today announced financial results quarter ended March 31, 2006.
Net revenue increased to $2.5 million in the first quarter of 2006 from $1.3 million in the first quarter of 2005. The contribution margin from these sales increased from $48 thousand in 2005 to $419 thousand in 2006. Net loss for the quarter ended March 31, 2006 was $260 thousand, or $0.02 per share, compared to $518 thousand, or $0.04 per share in the prior year. Cash used in operations decreased from $578 thousand in the first quarter of 2005 to $184 thousand in the first quarter of 2006.
"We are building momentum and have demonstrated that our platform is working," stated Wayne A. Schellhammer, Chief Executive Officer and Chairman of the Board for American CareSource Holdings. "Over the past year we have improved our automation software, implemented a direct Network Value comparison tool, expanded our network, and we are seeing the benefits of that today. We are prepared to implement new clients with our automated scalability and remain focused on key expansion to our network. We continue to look forward to a robust 2006."
About American CareSource Holdings, Inc.:
American CareSource Holdings, the first national, publicly traded ancillary care benefit management company, is a comprehensive ancillary care service provider offering a national network of more than 21,000 ancillary provider sites. American CareSource Holdings, Inc.'s ancillary network management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both the Federal and local governments. Through its product offerings, American CareSource Holdings, Inc. offers its clients substantial discounts on services rendered through its network of ancillary care providers in more than 30 service categories. For more information on American CareSource, visit www.anci-care.com.
Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights, and the outcome of competitive products, risks in product development, the results of financing effort, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of
ASSETS March 31, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Current Assets
Cash and cash equivalent $ 5,469,640 $ 23,399
Accounts Receivable 1,312,636 482,159
Other 21,022 30,151
------------ ------------
Total Current Assets 6,803,298 535,709
Net Property, Plant, and Equipment 168,456 175,608
Intangible Assets 1,868,006 1,921,401
Goodwill 4,361,299 4,361,299
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Total Assets $ 13,201,059 $ 6,994,017
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Due to Service Providers $ 1,043,267 $ 386,217
Accounts Payable and Accrued Liabilities 446,130 352,383
Current Maturities of Long-Term Debt 356,865 20,231
------------ ------------
Total Current Liabilities 1,846,262 758,831
Long-Term Debt 54,401 3,845,929
------------ ------------
Total Liabilities 1,900,663 4,604,760
------------ ------------
STOCKHOLDERS' EQUITY:
Common Stock-par value $0.01, 40,000,000
shares authorized and 14,434,815 and
12,371,309 shares issued and outstanding
as of March 31, 2006 and 2005 respectively 144,348 123,713
Preferred Stock-par value $0.01, 10,000,000
shares authorized and none outstanding as
of March 31, 2006 and 2005 - -
Additional Paid in Capital 16,839,240 7,734,800
Deferred Debt Issuance Cost (185,199) (231,500)
Accumulated (Deficit) (5,497,993) (5,237,756)
------------ ------------
Total Stockholders' Equity 11,300,396 2,389,257
------------ ------------
Total Liabilities and Equity $ 13,201,059 $ 6,994,017
============ ============
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
March 31,
2006 2005
------------ ------------
REVENUES
Net Ancillary Health $ 2,432,232 $ 1,208,862
Patient Claims Processing 32,149 100,322
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Net Revenue 2,464,381 1,309,184
Total Cost of Revenues 2,045,474 1,261,639
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Contribution Margin 418,907 47,545
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Selling, General, and Administrative Expense 531,266 455,079
Depreciation and Amortization 78,247 76,512
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Total Operating Expenses 609,513 531,591
------------ ------------
Operating (Loss) (190,606) (484,046)
------------ ------------
Other Expenses: 2,632 -
Debt Issuance Cost 46,301 23,832
Net Interest and Finance Cost 20,699 10,617
------------ ------------
Total Other Expenses 69,631 34,449
Net (Loss) Before Income Tax (260,237) (518,495)
Income Tax Expense - -
------------ ------------
Net (Loss) $ (260,237) $ (518,495)
============ ============
NET LOSS PER SHARE - BASIC AND DILUTED $ (0.02) $ (0.04)
WEIGHTED AVERAGE COMMON SHARES 13,278,649 12,371,309
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND MARCH 31, 2005 (UNAUDITED)
Shares Amount APIC
------------ ------------ ------------
Balance
December 31, 2004 10,091,899 $ 100,919 $ 7,180,948
Issue & Amortization of Warrants - - 214,489
Net Loss - - -
Balance March 31, 2005 10,091,899 $ 100,919 $ 7,395,437
------------ ------------ ------------
Deferred Accum
Debt Deficit Total
------------ ------------ ------------
Balance
December 31, 2004 $ - $ (2,831,238) $ 4,450,629
Issue & Amortization of Warrants (190,657) 23,832
Net Loss - (518,496) (518,496)
Balance March 31, 2005 $ (190,657) $ (3,349,734) $ 3,955,965
------------ ------------ ------------
Shares Amount APIC
------------ ------------ ------------
Balance
December 31, 2005 12,371,309 $ 123,713 $ 7,734,800
Issue of 2,063,506
Common Stock Shares 2,063,506 20,635 9,082,210
Option Compensation Expense 22,230
Amortization of Warrants
Associated with Deferred Debt
Net Loss - - -
------------ ------------ ------------
Balance March 31, 2005 14,434,815 $ 144,348 $16,839,240
============ ============ ============
Deferred Accum
Debt Deficit Total
------------ ------------ ------------
Balance
December 31, 2005 $ (231,500) $ (5,237,756) $ 2,389,257
Issue of 2,063,506
Common Stock Shares - - 9,102,845
Option Compensation Expense - - 22,230
Amortization of Warrants
Associated with Deferred Debt 46,301 - 46,301
Net Loss - (260,237) (260,237)
Balance March 31, 2005 $ (185,199) $ (5,497,993) $ 11,300,396
============ ============ ============
AMERICAN CARESOURCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2006 March 31, 2005
------------ ------------
OPERATING ACTIVITIES:
Net loss $ (260,237) $ (518,496)
Adjustments to reconcile net loss to net
cash used in operating activities:
Stock Option Compensation Expense 22,230 -
Depreciation and amortization 78,247 76,512
Compensation expense related to warrants 46,301 23,832
Changes in operating assets and liabilities:
Increase in accounts receivable (830,477) (167,662)
Increase (decrease) in prepaid expenses
and other current assets 9,129 (7,341)
Increase (decrease) in accounts payable
and accrued liabilities 93,747 (58,453)
Increase in amounts payable to services
providers 657,050 73,796
------------ ------------
Net cash used in operating activities $ (184,010) $ (577,812)
------------ ------------
INVESTING ACTIVITIES:
Property and equipment additions (17,700) (41,211)
------------ ------------
Net cash used in investing activities $ (17,700) $ (41,211)
------------ ------------
FINANCING ACTIVITIES:
Borrowings from Line of Credit 200,000 1,600,000
Payment on line of credit or long term debt (3,654,894) (5,445)
Net proceeds from the sale of capital stock 9,102,845 -
Net cash provided by financing
activities $ 5,647,951 $ 677,592
------------ ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 5,446,241 $ 58,569
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 23,399 16,749
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,469,640 $ 75,318
============ ============
Supplemental disclosures cash flow
information
Cash paid for interest expense $ 88,805 $ 10,172
Contact: Wayne A. Schellhammer Chairman & Chief Executive Officer American CareSource Holdings, Inc. Tel. 214-596-2400
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