Quarterly Results Reflect 84 Percent Increase in Revenue and 64
Percent Increase in Net Income GREAT RIVER, N.Y., Aug. 9
/PRNewswire-FirstCall/ -- Netsmart Technologies, Inc.
(NASDAQ:NTST), a leading provider of enterprise-wide software for
health and human services organizations, today reported record
results for the second quarter ended June 30, 2006. Revenue for the
quarter was $14,287,000, an 84 percent increase from $7,759,000 for
the quarter ended June 30, 2005. Net income for the second quarter
was $735,000, an increase of 64 percent compared with net income of
$449,000 for the same quarter in 2005. Net income per diluted share
for the quarter was $0.11 compared with $0.08 for the same quarter
last year. Earnings before Interest, Taxes, Depreciation and
Amortization (EBITDA) for the three months ended June 30, 2006 were
$2.4 million, compared to $1.1 million for the same period last
year. The second quarter of 2006 represents the Company's 32nd
consecutive quarter of profitability. Backlog of orders at June 30,
2006 was a record $44.9 million, compared to $27.7 million at June
30, 2005. The June 30, 2006 backlog includes $32.8 million for
recurring revenue related to support, ASP and clearinghouse areas,
as compared to $14.8 million for those categories at June 30, 2005.
Recurring revenue for the quarter ended June 30, 2006 was
$7,768,000, compared to $3,336,000 for the same quarter in 2005.
Revenue for the six months ended June 30, 2006 was $28,143,000, an
85 percent increase from $15,188,000 for the six months ended June
30, 2005. Net income for the six months was $1,244,000, an increase
of 53 percent compared with net income of $813,000 for the same
period in 2005. Net income per diluted share for the six months
ended June 30, 2006 was $0.18 compared with $0.15 for the same
period last year. EBITDA for the six months ended June 30, 2006 was
$4.4 million, compared to $2 million for the same period last year.
Recurring revenue for the six months ended June 30, 2006 was
$15,223,000, compared to $6,524,000 for the same period last year.
"We are pleased to report another record quarter, including a $2.4
million increase in EBITDA for the six months ended June 30, 2006,"
said James L. Conway, chairman and chief executive officer of
Netsmart Technologies. "A key component of our continued success is
the investment we have made in sales, marketing, strategic
initiatives and other key areas. In addition to our strong organic
growth, we are executing on our growth strategy by winning
strategic deals, such as the recently announced contract to provide
a new statewide public health system for the State of North
Carolina, and by acquisitions such as the recent purchase of QS
Technologies." The Company will host a conference call at 4:30 p.m.
ET today to discuss these results. The Company's prepared remarks
will be followed by a question-and-answer period. To listen to the
conference call, please dial 1-866-250-3615 or access the live
Webcast at http://www.ntst-ir.com/confcall/index.htm. A written
transcript of the prepared remarks and an audio file of the
conference call will be made available on the Investor Relations
area of the Netsmart Web site http://www.ntst.com/ following the
call until the next quarter's conference call. Reconciliation of
Earnings before Interest, Taxes, Depreciation and Amortization
(EBITDA) to Net Income EBITDA is calculated for any period as the
sum of net income, plus net interest expense, income tax expense,
and depreciation and amortization expense. We consider EBITDA to be
a widely accepted financial indicator of a company's ability to
service debt, fund capital expenditures and expand its business.
EBITDA is not calculated in the same way by all companies and
therefore may not be comparable to similarly titled measures
reported by other companies. EBITDA is not a measure in accordance
with accounting principles generally accepted in the United States.
EBITDA should not be considered as an alternative to net income, as
an indicator of operating performance or as an alternative to cash
flow as a measure of liquidity. The funds depicted by this measure
may not be available for management's discretionary use due to
legal or functional requirements, debt service, or other
commitments and uncertainties. Three Months Ended Six Months Ended
June 30 June 30 2006 2005 2006 2005 EBITDA $2,429,000 $1,076,000
$4,378,000 $2,025,000 Less: Depreciation and Amortization
(1,054,000) (446,000) (2,117,000) (853,000) Interest Income
(expense), net 1,000 33,000 36,000 71,000 Income Taxes (641,000)
(214,000) (1,053,000) (430,000) Net Income $735,000 $449,000
$1,244,000 $813,000 NETSMART TECHNOLOGIES, INC. Comparative
Operating Results for the Three Months and Six Months, Ended June
30 Three Months Six Months 2006 2005 2006 2005 Revenue $14,287,000
$7,759,000 $28,143,000 $15,188,000 Net Income $735,000 $449,000
$1,244,000 $813,000 Net Income Per Share Basic $0.11 $0.08 $0.19
$0.15 Weighted Average Shares of Common Stock Outstanding Basic
6,524,232 5,371,607 6,509,355 5,354,968 Net Income Per Share
Diluted $0.11 $0.08 $0.18 $0.15 Weighted Average Shares of Common
Stock Outstanding Diluted 6,824,725 5,584,448 6,802,922 5,570,611
About Netsmart Technologies, Inc. Netsmart Technologies, Inc.,
based in Great River, N.Y., is an established, leading supplier of
enterprise-wide software solutions for health and human services
providers, with more than 1,250 clients, including 30 systems with
state agencies. Netsmart's clients include health and human
services organizations, public health agencies, mental health and
substance abuse clinics, psychiatric hospitals, and managed care
organizations. Netsmart's products are full-featured information
systems that operate on a variety of operating systems, hardware
platforms, and mobile devices, and offer unlimited scalability.
Statement on Behalf of Netsmart Technologies, Inc. Statements in
this press release may be "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "anticipate," "believe," "estimate," "expect,"
"intend" and similar expressions, as they relate to the company or
its management, identify forward-looking statements. These
statements are based on current expectations, estimates and
projections about the company's business based, in part, on
assumptions made by management. These statements are not guarantees
of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
outcomes and results may, and probably will, differ materially from
what is expressed or forecasted in such forward-looking statements
due to numerous factors, including those described above and those
risks discussed from time to time in Netsmart's filings with the
Securities and Exchange Commission. In addition, such statements
could be affected by risks and uncertainties related to product
demand, market and customer acceptance, competition, pricing and
development difficulties, as well as general industry and market
conditions and growth rates, and general economic conditions. Any
forward-looking statements speak only as of the date on which they
are made, and the company does not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of this release. Information on
Netsmart's website does not constitute a part of this release.
DATASOURCE: Netsmart Technologies, Inc. CONTACT: Anthony Grisanti,
Executive Vice President and CFO of Netsmart Technologies,
1-800-451-7503 Web site: http://www.netsmartech.com/
http://www.ntst.com/ http://www.ntst-ir.com/confcall/index.htm
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