Quarterly Results Reflect 81 Percent Increase in Revenue and 171
Percent Increase in Net Income GREAT RIVER, N.Y., Nov. 14
/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 third quarter ended September 30, 2006. Revenue for
the quarter was $15,392,000, an 81 percent increase from $8,517,000
for the quarter ended September 30, 2005. Net income for the third
quarter was $1,026,000, an increase of 171 percent compared with
net income of $379,000 for the same quarter in 2005. Net income per
diluted share for the quarter was $0.15 compared with $0.07 for the
same quarter last year. Earnings before Interest, Taxes,
Depreciation and Amortization (EBITDA) for the three months ended
September 30, 2006 were $2,918,000, compared to $1,151,000 for the
same period last year. The third quarter of 2006 represents the
company's 33rd consecutive quarter of profitability. Backlog of
orders at September 30, 2006 was a record $54.7 million, compared
to $28.6 million at September 30, 2005. The September 30, 2006
backlog includes $35.7 million for recurring revenue related to
support, ASP and clearinghouse areas, as compared to $16.5 million
for those categories at September 30, 2005. Recurring revenue for
the quarter ended September 30, 2006 was $8,230,000, compared to
$3,718,000 for the same quarter in 2005. Revenue for the nine
months ended September 30, 2006 was $43,535,000, an 84 percent
increase from $23,705,000 for the nine months ended September 30,
2005. Net income for the nine months was $2,270,000, an increase of
91 percent compared with net income of $1,191,000 for the same
period in 2005. Net income per diluted share for the nine months
ended September 30, 2006 was $0.33 compared with $0.21 for the same
period last year. EBITDA for the nine months ended September 30,
2006 was $7,262,000 compared to $3,138,000 for the same period last
year. Recurring revenue for the nine months ended September 30,
2006 was $23,453,000, compared to $10,243,000 for the same period
last year. "We are pleased to report another record quarter,
including a 171 percent increase in net income over the same
quarter last year and a $4.1 million increase in EBITDA for the
nine months ended September 30, 2006," said James L. Conway,
chairman and chief executive officer of Netsmart Technologies. "We
enjoyed another strong quarter attributable to the integration of
acquired companies, including QS Technologies, which deepens our
public health product offerings and our ability to provide
solutions to integrated public and behavioral health systems, as
well as to organic growth." 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 Nine Months Ended
September 30 September 30 2006 2005 2006 2005 EBITDA $2,918,000
$1,151,000 $7,262,000 $3,138,000 Less: Depreciation and
Amortization (1,144,000) (566,000) (3,261,000) (1,419,000) Interest
Income (expense), net 24,000 86,000 94,000 194,000 Income Taxes
(772,000) (292,000) (1,825,000) (722,000) Net Income $1,026,000
$379,000 $2,270,000 $1,191,000 NETSMART TECHNOLOGIES, INC.
Comparative Operating Results for the Three Months and Nine Months,
Ended September 30 Three Months Nine Months 2006 2005 2006 2005
Revenue $15,392,000 $8,517,000 $43,535,000 $23,705,000 Net Income
$1,026,000 $379,000 $2,270,000 $1,191,000 Net Income Per Share
Basic $0.16 $0.07 $0.35 $0.22 Weighted Average Shares of Common
Stock Outstanding Basic 6,547,937 5,537,862 6,522,215 5,409,836 Net
Income Per Share Diluted $0.15 $0.07 $0.33 $0.21 Weighted Average
Shares of Common Stock Outstanding Diluted 6,835,360 5,798,017
6,813,735 5,655,631 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 1,300 clients,
including more than 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, Inc., +1-800-451-7503 Web site:
http://www.ntst.com/
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