Precis Announces Year End 2004 Financial Results
April 18 2005 - 11:47AM
PR Newswire (US)
Precis Announces Year End 2004 Financial Results GRAND PRAIRIE,
Texas, April 18 /PRNewswire-FirstCall/ -- Precis Inc.
(NASDAQ:PCIS), a provider of access to affordable healthcare
services to the ever growing number of uninsured and/or
underinsured in the United States, announced financial results for
fourth quarter and the year ended December 31, 2004. For the fourth
quarter the company reported revenue of $8.7 million, a decrease of
$1.4 million, or 13.9%, compared to $10.1 million during the
comparable quarter in 2003. The company's net loss for the fourth
quarter of 2004 was $2.9 million, a loss of $(0.24) per fully
diluted share compared to net earnings of $.67 million and $0.05
per diluted share for the comparable quarter in 2003. The loss
resulted in a use by operations of $1.0 million of cash. Revenue
for the year ended December 31, 2004, was $38.3 million, a decrease
of $3.8 million, or 9%, compared to $42.1 million in the previous
year. The Company's net loss for the year was $1.9 million, or
$(0.16) per diluted share compared to net earnings of $4.1 million
and $0.34 per fully diluted share in the previous year. The Company
ended the year with $8.3 million of cash. The Company's book value
per diluted share decreased from $2.82 as of December 31, 2003 to
$2.69 as of December 31, 2004. The Company's results for the fourth
quarter were adversely impacted by an impairment charge to goodwill
associated with its Foresight, Inc. subsidiary of $2.0 million.
Additionally, during the fourth quarter of 2004 and the first
quarter of 2005, the Company experienced deterioration in the
collectibility of receivables and notes from certain of its private
label partners, leading to an increase in the allowance for
doubtful accounts and notes and a charge to operations of $1.0
million. Judith Henkels, president and CEO of Precis Inc.,
commented, "The disappointing results for the fourth quarter
underscore the need for more serious measures than we have
previously taken. We must reduce our cost structure. We must
energize our independent sales force. We must rationalize our
product lines and continue to evolve our Care Entree offerings. We
have taken decisive action in each of these directions and look
forward to the positive impact that each of these actions will
have." Conference Call The Company will conduct a conference call
to discuss financial results for the year ended December 31, 2004,
and the measures being taken by the Company to address negative
trends, on Monday, April 18, 2005 at 11:00 a.m. Eastern time.
Interested parties can access the call by dialing (877) 858-9308 or
(706) 643-0580 or by accessing the web cast at
http://www.precis-pcis.com/. A replay of the call will be available
at (800) 642-1687 or (706) 645-9291, access number 5591969, for 3
days following the call; and the web cast can be accessed at
http://www.precis-pcis.com/ for 30 days. About Precis Inc. Precis
Inc. and its subsidiaries market non-insurance health care savings
programs, administer tax-favored reimbursement accounts, provide
third party administration services to self funded employer groups
and offer a broad range of financial solutions such as health and
life insurance to individuals and businesses. For more information
on Precis, its subsidiaries Care 125, Care Financial, LLC, and
Access Administrators visit http://www.precis-pcis.com/,
http://www.care125.com/, and http://www.care-financial.com/,
http://www.accesshealthsource.com/ respectively. Disclaimer Certain
statements included in this news release constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Certain, but not
necessarily all, of such forward-looking statements can be
identified by the use of forward-looking terminology such as
"anticipate", "believes", "expects", "may", "will", or "should", or
other variations thereon, by discussions of strategies that involve
risks and uncertainties. Precis Inc.'s actual results or industry
results may be materially different from any future results
expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially include
general economic and business conditions; Precis Inc.'s ability to
implement its business strategies; competition; availability of key
personnel; increasing operating costs; unsuccessful promotional
efforts; changes in brand awareness; acceptance of new product
offerings; retention of members and independent marketing
representatives; and changes in, or the failure to comply with,
government regulations. The Company undertakes no obligation to
update any forward-looking statements or to make any other
forward-looking statement, whether as a result of new information,
future events, or otherwise. Contact: Bob Bintliff Joe Diaz Chief
Financial Officer The RCG Group Precis Inc. 480-675-0400
972-343-6501 Precis Inc. and Subsidiaries Condensed Consolidated
Statement of Operations and Balance Sheet Data For the Quarter
Ended For the Year Ended December 31, December 31, 2004 2003 2004
2003 Statement of Operations Data: Product and service revenues
$8,678,165 $10,092,739 $38,318,696 $42,087,671 Total operating
expenses 13,323,131 8,754,747 40,952,671 35,437,310 Operating
income (loss) (4,644,966) 1,337,992 (2,633,975) 6,650,361 Earnings
(loss) before income taxes (4,644,080) 1,301,538 (2,690,533)
6,500,392 Provision for income tax expense (benefit) (1,698,012)
636,321 (734,581) 2,411,066 Net earnings (loss) $(2,946,068)
$665,217 $(1,955,952) $4,089,326 Earnings (loss) per share: Basic
$(0.24) $0.06 $(0.16) $0.35 Diluted $(0.24) $0.05 $(0.16) $0.34
December 31, 2004 2003 Balance Sheet Data: Cash and cash
equivalents $8,282,953 $11,087,920 Working capital $6,344,954
$8,818,823 Total assets $41,974,616 $40,813,664 Total liabilities
$9,605,563 $7,211,560 Stockholders' equity $32,369,053 $33,602,104
DATASOURCE: Precis Inc. CONTACT: Bob Bintliff, Chief Financial
Officer of Precis Inc., +1-972-343-6501; or Joe Diaz of The RCG
Group, +1-480-675-0400, for Precis Inc. Web site:
http://www.precis-pcis.com/
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