Merge Reports First Quarter Financial Results
April 30 2014 - 7:00AM
Merge Healthcare Incorporated (Nasdaq:MRGE), a leading provider of
innovative enterprise imaging, interoperability and clinical
systems that seek to advance healthcare, today announced its
financial and business results for the first quarter of 2014.
"In Q1, Merge continued to see positive momentum in our
operations. We've demonstrated strong cash flow by keeping our
expenses under control, achieved positive net income and increased
our adjusted EBITDA. We also refinanced our existing credit
facility with a new facility with Guggenheim Corporate Funding, LLC
as administrative agent, which will provide greater operating
flexibility going forward," said Justin Dearborn, CEO of Merge
Healthcare. "In addition, we made forward progress with our
subscription-based services. Sales increased for our eClinical OS
platform, we saw continued success with iConnect® Network and we
are well positioned to launch a new white space opportunity with
our retinal screening interoperability solution within our eye care
business that complements the population health strategies being
pursued by many of our largest customers. We've also completed
Meaningful Use Stage 2 (MU2) certifications for all of our
applicable solutions, enabling customers to receive additional
government reimbursements. With this progress, we remain focused on
and confident with our 2014 outlook."
Financial Summary:
- Cash generated from business operations grew to $13.5 million
in the first quarter of 2014 from $9.2 million in the prior year (a
47% increase), which compares to net cash provided by operating
activities on the statement of cash flows of $9.8 million and $8.7
million in the respective quarters;
- Net income in the first quarter of 2014 was $0.3 million, or
$0.00 per share, compared to a net loss of $6.5 million, or a loss
of $0.07 per share, in the first quarter of 2013;
- Sales decreased to $50.9 million ($51.1 million on a pro forma
basis) in the first quarter of 2014 from $63.6 million ($64.0
million on a pro forma basis) in the first quarter of 2013.
Adjusted EBITDA was $10.2 million in the first quarter of 2014,
representing 20% of pro forma revenue, compared to $12.5 million
and 19.5% in the first quarter of 2013;
- Subscription backlog increased to $54.2 million, a 23% increase
over the first quarter of 2013;
- Repaid $8.6 million of debt principal in the quarter and
achieved a leverage ratio of 5.3:1, within the 5.5:1 leverage
covenant of our then existing credit facility;
- Subsequent to quarter end we refinanced our debt with a new
six-year term loan facility totaling $235 million at a variable
interest rate of 7% (currently 1% higher than the debt it
replaced). The new facility has no financial covenants for one year
and the covenants thereafter provide significant additional
operating flexibility. The new facility will permit us to once
again consider various strategic, tuck-in acquisitions going
forward; and
- As a result of the debt refinancing, we are updating our prior
2014 guidance to reflect the GAAP charges associated with the
transaction as well as the differences in interest rate terms (see
table below).
Business Highlights:
- Continued momentum for advanced interoperability with iConnect®
Network, executing 19 new customer agreements, including Southern
Illinois Healthcare, our first hospital customer to join the
network. Also, we released the second version of the solution,
which now integrates directly with athenahealth's electronic health
record (EHR) solution, so that customers can receive and view exam
results, diagnostic quality images and other critical patient
information within the athenaClinicals® EHR workflow;
- Announced availability of iConnect Access v5.0, which now
combines universal viewing and image sharing into one, single
integrated solution to expand the ability of referring physicians
to review patient images from browser-based devices;
- Developed a new subscription-based product, targeted at a white
space opportunity for Merge Interoperability Solutions with
iConnect Retinal Screening. This is an eye care screening solution
that will enable integrated delivery systems and accountable care
organizations to more effectively identify and screen diabetic
patients which complements their overall population health
strategy. A pilot project for the solution has been launched with
Ontario Telemedicine Network;
- Implemented over 300 active trials on the Merge eClinical OS™
platform, with over 18,500 professionals using the system every
day; and
- Received 2014 certification of all eligible Merge solutions for
MU2, empowering customers to meet requirements and earn applicable
government reimbursements.
Quarter Results:
Results compared to the same quarter in the prior year on a GAAP
basis are as follows (in millions, except per share data):
|
Q1 2014 |
Q1 2013 |
Net sales |
$50.9 |
$63.6 |
Operating income |
4.4 |
5.3 |
Net income (loss) |
0.3 |
(6.5) |
Net income (loss) per diluted share |
$0.00 |
($0.07) |
|
|
|
Cash balance at period end |
$19.8 |
$44.5 |
Cash from business operations* |
13.5 |
9.2 |
|
|
|
*See table at the back of this
earnings release for reconciliation. |
Pro forma results and other, non-GAAP measures compared to the
same quarter in the prior year are as follows (in millions, except
percentages and per share data):
|
Q1 2014 |
Q1 2013 |
Pro forma (Non-GAAP)
results |
|
|
Net sales |
$51.1 |
$64.0 |
Adjusted net income (loss) |
4.3 |
(0.5) |
Adjusted EBITDA |
10.2 |
12.5 |
|
|
|
Adjusted net income (loss) per diluted
share |
$0.04 |
($0.01) |
Adjusted EBITDA per diluted share |
$0.11 |
$0.13 |
|
|
|
Other operating
measures |
|
|
Subscription, maintenance & EDI revenue
as % of net sales |
66% |
58% |
Subscription and non-recurring backlog at
period end |
$77.2 |
$67.9 |
Days sales outstanding |
90 |
104 |
A reconciliation of GAAP net income (loss) to adjusted net
income and adjusted EBITDA is included after the financial
information below. See "Explanation of Non-GAAP Financial Measures"
for definitions of each of these non-GAAP measures and the reason
the Company's management believes that the adjustments made to
arrive at the non-GAAP financial measures provide useful
information to investors regarding the Company.
Pro Forma Operating Group Results:
Results (in millions) for our operating groups are as
follows:
|
Three Months
Ended March 31, 2014 |
|
Healthcare |
DNA |
Corporate/
Other |
Total |
Net sales: |
|
|
|
|
Software and other |
$ 11.2 |
$ 3.9 |
|
$ 15.1 |
Service |
7.1 |
3.4 |
|
10.5 |
Maintenance |
25.1 |
0.4 |
|
25.5 |
Total net sales |
43.4 |
7.7 |
|
51.1 |
Gross Margin |
25.3 |
4.8 |
|
30.1 |
Gross Margin % |
58.3% |
62.3% |
|
58.9% |
Expenses |
19.1 |
4.0 |
|
23.1 |
Segment income (loss) |
$ 6.2 |
$ 0.8 |
|
$ 7.0 |
Operating Margin % |
14% |
10% |
|
14% |
Net corporate/other expenses (1) |
|
|
$ 6.5 |
6.5 |
Income before income taxes |
|
|
|
0.5 |
Adj. EBITDA reconciling adjustments |
3.1 |
1.0 |
5.6 |
9.7 |
Adjusted EBITDA |
$ 9.3 |
$ 1.8 |
$ (0.9) |
$ 10.2 |
Adjusted EBITDA % |
21.4% |
23.4% |
|
20.0% |
|
|
|
|
|
(1) Net corporate/other expenses
include public company costs, corporate administration costs,
acquisition-related expenses and net interest expense. |
|
|
Net Sales in the
Three Months Ended March 31, 2014 |
|
Backlog as of
March 31, 2014 |
|
|
Healthcare |
DNA |
|
Healthcare |
DNA |
|
Revenue Source |
$ |
% |
$ |
% |
Total |
$ |
% |
$ |
% |
Total |
Maintenance & EDI (1) |
$ 25.1 |
57.8% |
$ 0.4 |
5.2% |
49.8% |
|
|
|
|
|
Subscription |
1.3 |
3.0% |
6.9 |
89.6% |
16.1% |
$ 11.5 |
33.3% |
$ 42.7 |
100.0% |
70.2% |
Non-recurring |
17.0 |
39.2% |
0.4 |
5.2% |
34.1% |
23.0 |
66.7% |
-- |
0.0% |
29.8% |
Total |
$ 43.4 |
100.0% |
$ 7.7 |
100.0% |
100.0% |
$ 34.5 |
100.0% |
$ 42.7 |
100.0% |
100.0% |
|
84.9% |
|
15.1% |
|
|
44.7% |
|
55.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Due to the variability in
timing and length of maintenance renewals, we do not believe
backlog for this revenue component is a meaningful disclosure. |
2014 Outlook:
The following table outlines expectations surrounding the
various items comprising the difference between GAAP net income and
adjusted EBITDA and has been updated to reflect the estimated
impact of the refinancing of Merge's debt. While revenue and
adjusted EBITDA remains unchanged, there are GAAP and cash flow
expectations that are updated to consider the approximate non-cash
extinguishment expense associated with capitalized costs under the
prior loan and the estimated change in interest expense and
payments as a result of the new loan.
2014
Projection |
(in millions, except
for per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
Impact of |
|
|
|
|
|
Debt |
|
|
|
Originally
Provided |
Refinancing |
Updated
Projection |
|
High |
Low |
|
High |
Low |
Net sales |
$ 225 |
$ 212 |
|
$ 225 |
$ 212 |
Adjusted EBITDA % |
20% |
19% |
|
20% |
19% |
|
|
|
|
|
|
Adjusted EBITDA |
45 |
40 |
|
45 |
40 |
Debt extinguishment costs |
-- |
-- |
$ 5 |
(5) |
(5) |
Income tax expense |
(3) |
(2) |
|
(3) |
(2) |
Net interest expense |
(15) |
(15) |
2 |
(17) |
(17) |
Depreciation & amortization -
COGS |
(1) |
(1) |
|
(1) |
(1) |
Depreciation & amortization -
operating expense |
(6) |
(6) |
|
(6) |
(6) |
Adjusted net income |
20 |
16 |
7 |
13 |
9 |
Share-based compensation expense |
(5) |
(5) |
|
(5) |
(5) |
Amortization of significant acquisition
intangibles - COGS |
(4) |
(4) |
|
(4) |
(4) |
Amortization of significant acquisition
intangibles - operating expense |
(5) |
(5) |
|
(5) |
(5) |
Net acquisition-related sales & COGS
adjustments |
(1) |
(1) |
|
(1) |
(1) |
Net income (loss) |
$ 5 |
$ 1 |
$ 7 |
$ (2) |
$ (6) |
|
|
|
|
|
|
Net income (loss) per share - diluted |
$ 0.05 |
$ 0.01 |
|
$ (0.02) |
$ (0.06) |
Adjusted net income per share - diluted |
$ 0.21 |
$ 0.16 |
|
$ 0.14 |
$ 0.09 |
Estimated fully diluted shares |
95 |
100 |
|
95 |
100 |
|
|
|
|
|
|
Cash flow considerations: |
|
|
|
|
|
Adjusted EBITDA |
$ 45 |
$ 40 |
|
$ 45 |
$ 40 |
Income taxes |
(1) |
(1) |
|
(1) |
(1) |
Net interest expense |
(13) |
(14) |
$ 2 |
(15) |
(16) |
Capital expenditures |
(5) |
(5) |
|
(5) |
(5) |
Capitalized software costs |
(3) |
(2) |
|
(3) |
(2) |
Estimated cash flow (assuming no working
capital change) |
$ 23 |
$ 18 |
$ 2 |
$ 21 |
$ 16 |
Explanation of Non-GAAP Financial Measures
We report our financial results in accordance with generally
accepted accounting principles or GAAP. This press release includes
certain non-GAAP financial measures to supplement its GAAP
information. Non-GAAP measures are not an alternative to GAAP and
may be different from non-GAAP measures used by other companies. A
quantitative reconciliation of GAAP net income available to common
shareholders to adjusted net income and adjusted EBITDA is included
after the financial information included in this press release.
Management believes that the presentation of non-GAAP results,
when shown in conjunction with corresponding GAAP measures,
provides useful information to it and investors regarding financial
and business trends related to results of operations, because
certain charges, costs and expenses reflect events that are not
essential to recurring business operations. In addition, management
believes these non-GAAP measures provide investors useful
information regarding the underlying performance of the
post-acquisition business operations when compared to the
pre-acquisition results of Merge and any significant acquired
company. Purchase accounting adjustments made in accordance
with GAAP can make it difficult to make meaningful comparisons of
the underlying operations of the business without considering the
non-GAAP adjustments that are provided and discussed herein.
Further, management believes that these non-GAAP measures improve
its and investors' ability to compare Merge's financial performance
with other companies in the technology industry. Management also
uses financial statements that exclude these charges, costs and
expenses for its internal budgets. While GAAP results are more
complete, these supplemental metrics are offered since, with
reconciliations to GAAP, they may provide greater insight into our
financial results. Management does not intend for the presentation
of these non-GAAP financial measures to be considered in isolation
or as a substitute for results prepared in accordance with
GAAP.
Additional information regarding the non-GAAP financial measures
presented herein is as follows:
- Pro forma revenue consists of GAAP revenue as reported,
adjusted to add back the acquisition related sales adjustments (for
all significant acquisitions) recorded for GAAP purposes.
- Subscription revenue and the related backlog are comprised of
software, hardware and professional services (including
installation, training, etc.) contracted with and payable by the
customer over a number of years. Generally, these contracts
will include a minimum volume / dollar commitment. As such,
the revenue from these transactions is recognized ratably over an
extended period of time. These types of arrangements will
include monthly payments (including leases), long-term clinical
trials, renewable annual software agreements (with very high renew
rate), to specify a few contract methods.
- Non-recurring revenue and related backlog represents revenue
that we anticipate recognizing in future periods from signed
customer contracts as of the end of the period
presented. Non-recurring revenue is comprised of perpetual
software license sales and includes licenses, hardware and
professional services (including installation, training and
consultative engineering services).
- Adjusted net income consists of GAAP net income available to
common stockholders, adjusted to exclude (a) acquisition-related
costs, (b) debt extinguishment costs, (c) restructuring and other
costs, (d) share-based compensation expense, (e)
acquisition-related amortization (f) acquisition-related sales
adjustments, and (g) acquisition-related cost of sales
adjustments.
- Adjusted EBITDA adjusts GAAP net income available to common
stockholders for the items considered in adjusted net income as
well as (a) remaining depreciation and amortization, (b) net
interest expense and (c) income tax expense (benefit).
- Cash from business operations reconciles the cash generated
from such operations to the change in GAAP cash balance for the
period by reflecting payments of liabilities associated with debt
issuance and retirement activities, acquisitions, payments of
acquisition related fees, interest payments and other payments and
receipts of cash not generated by the business
operations. Cash generated from business operations and
used to pay restructuring initiatives, acquisition related costs
and interest approximates net cash provided by operating activities
in the condensed consolidated statement of cash flows.
Management has excluded certain items from non-GAAP adjusted net
income because it believes (i) the amount of certain expenses in
any specific period may not directly correlate to the underlying
performance of business operations and (ii) the adjustment
facilitates comparisons of pre-acquisition results to
post-acquisition results. In addition, certain adjustments are
described in more detail below:
- Acquisition-related amortization expense is a non-cash expense
arising from the acquisition of intangible assets in connection
with significant acquisitions. Management excludes
acquisition-related amortization expense from non-GAAP adjusted net
income because it believes such expenses can vary significantly
between periods as a result of new acquisitions and full
amortization of previously acquired intangible assets.
- Share-based compensation expense is a non-cash expense arising
from the grant of stock awards to employees and is excluded from
non-GAAP net income because management believes such expenses can
vary significantly between periods as a result of the timing of
grants of new stock-based awards, including grants to new employees
resulting from acquisitions.
- Acquisition-related sales and costs of sales adjustments
reflect the fair value adjustment to deferred revenues acquired in
connection with significant acquisitions. The fair value of
deferred revenue represents an amount equivalent to the estimated
cost plus an appropriate profit margin to perform services-related
software and product support, which assumes a legal obligation to
do so, based on the deferred revenue balances as of the date the
acquisition of a significant company was completed. Management adds
back this deferred revenue adjustment, net of related costs, for
non-GAAP revenue and non-GAAP net income because it believes the
inclusion of this amount directly correlates to the underlying
performance of operations and facilitates comparisons of
pre-acquisition to post-acquisition results.
Notice of Conference Call
Merge will host a conference call at 8:30 AM ET on Wednesday,
April 30, 2014. The call will address first quarter financial and
business results for 2014.
To preregister for this teleconference, go to
http://emsp.intellor.com?p=415182&do=register&t=8. Upon
registration, a confirmation page will display dial-in numbers and
a unique PIN, and the participant will also receive an email
confirmation with this information.
A replay via the Internet or phone will be available after the
call at
http://www.merge.com/Company/Investors/Conference-Call-Info.aspx.
About Merge
Merge is a leading provider of innovative enterprise imaging,
interoperability and clinical systems that seek to advance
healthcare. Merge's enterprise and cloud-based technologies for
image intensive specialties provide access to any image, anywhere,
any time. Merge also provides clinical trials software with
end-to-end study support in a single platform and other intelligent
health data and analytics solutions. With solutions that have been
used by providers for more than 25 years, Merge is helping to
reduce costs, improve efficiencies and enhance the quality of
healthcare worldwide. For more information, visit merge.com and
follow us @MergeHealthcare.
Cautionary Notice Regarding Forward-Looking
Statements
The matters discussed in this press release may include
forward-looking statements, which could involve a number of risks
and uncertainties. When used in this press release, the words
"will," "believes," "intends," "anticipates," "expects" and similar
expressions are intended to identify forward-looking statements.
Actual results could differ materially from those expressed in, or
implied by, such forward-looking statements. The potential risks
and uncertainties include those risks and uncertainties included
under the captions "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
Annual Report on Form 10-K for the year ended December 31, 2013,
which is on file with the SEC and are available on our investor
relations website at merge.com and on the SEC website at
www.sec.gov. Except as expressly required by the federal securities
laws, Merge undertakes no obligation to update such factors or to
publicly announce the results of any of the forward-looking
statements.
MERGE HEALTHCARE
INCORPORATED AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in
thousands) |
(unaudited) |
|
|
|
|
March 31, |
December 31, |
|
2014 |
2013 |
Current assets: |
|
|
Cash (including restricted cash) |
$ 19,770 |
$ 19,729 |
Accounts receivable, net |
51,326 |
61,895 |
Inventory |
5,841 |
5,851 |
Prepaid expenses |
4,960 |
4,803 |
Deferred income taxes |
1,925 |
1,915 |
Other current assets |
13,184 |
12,506 |
Total current assets |
97,006 |
106,699 |
|
|
|
Property and equipment, net |
5,740 |
4,739 |
Purchased and developed software, net |
15,222 |
15,906 |
Other intangible assets, net |
24,229 |
26,200 |
Goodwill |
214,374 |
214,374 |
Deferred income taxes |
6,295 |
6,979 |
Other assets |
6,687 |
7,184 |
Total assets |
$ 369,553 |
$ 382,081 |
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 21,321 |
$ 22,072 |
Current maturities of long-term debt |
2,319 |
2,490 |
Accrued wages |
5,207 |
5,559 |
Restructuring accrual |
1,116 |
1,301 |
Other current liabilities |
7,395 |
8,205 |
Deferred revenue |
51,956 |
55,183 |
Total current liabilities |
89,314 |
94,810 |
|
|
|
Long-term debt, less current maturities, net
of unamortized discount |
225,697 |
233,942 |
Deferred income taxes |
3,925 |
4,065 |
Deferred revenue |
297 |
378 |
Income taxes payable |
982 |
1,399 |
Other liabilities |
2,172 |
2,227 |
Total liabilities |
322,387 |
336,821 |
Total Merge shareholders' equity |
46,717 |
44,813 |
Noncontrolling interest |
449 |
447 |
Total shareholders' equity |
47,166 |
45,260 |
Total liabilities and shareholders'
equity |
$ 369,553 |
$ 382,081 |
|
|
MERGE HEALTHCARE
INCORPORATED AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands, except
for share and per share data) |
(unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2014 |
2013 |
Net sales |
|
|
Software and other |
$ 15,083 |
$ 23,571 |
Professional services |
10,489 |
12,123 |
Maintenance and EDI |
25,331 |
27,940 |
Total net sales |
50,903 |
63,634 |
Cost of sales |
|
|
Software and other |
6,101 |
11,767 |
Professional services |
6,347 |
6,525 |
Maintenance and EDI |
6,963 |
8,089 |
Depreciation and amortization |
1,595 |
1,810 |
Total cost of sales |
21,006 |
28,191 |
Gross margin |
29,897 |
35,443 |
Operating costs and expenses: |
|
|
Sales and marketing |
8,007 |
10,366 |
Product research and development |
7,580 |
8,525 |
General and administrative |
7,360 |
7,119 |
Acquisition-related expenses |
26 |
269 |
Restructuring and other expenses |
-- |
1,229 |
Depreciation and amortization |
2,482 |
2,653 |
Total operating costs and expenses |
25,455 |
30,161 |
Operating income |
4,442 |
5,282 |
Other expense, net |
(4,136) |
(8,760) |
Income (loss) before income taxes |
306 |
(3,478) |
Income tax (benefit) expense |
(19) |
3,015 |
Net income (loss) |
325 |
(6,493) |
Less: noncontrolling interest's
share |
2 |
(18) |
Net income (loss) available to common
shareholders |
$ 323 |
$ (6,475) |
|
|
|
Net income (loss) per share - basic |
$ 0.00 |
$ (0.07) |
Weighted average number of common shares
outstanding - basic |
94,656,786 |
93,301,277 |
|
|
|
Net income (loss) per share - diluted |
$ 0.00 |
$ (0.07) |
Weighted average number of common shares
outstanding - diluted |
95,996,566 |
93,301,277 |
|
|
MERGE HEALTHCARE
INCORPORATED AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(in
thousands) |
(unaudited) |
|
|
|
|
|
|
Three Months
Ended |
|
|
March
31, |
|
|
2014 |
2013 |
Cash flows from operating
activities: |
|
|
|
Net income (loss) |
|
$ 325 |
$ (6,493) |
Adjustments to reconcile net income (loss) to
net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
|
4,077 |
4,463 |
Share-based compensation |
|
1,530 |
1,643 |
Amortization of debt issuance costs &
discount |
|
492 |
736 |
Unrealized loss on equity security |
|
-- |
441 |
Provision for doubtful accounts
receivable and allowances, net of recoveries |
|
525 |
85 |
Deferred income taxes |
|
279 |
2,772 |
Gain on lawsuit settlement |
|
-- |
(2,500) |
Net change in assets and liabilities |
|
2,620 |
7,540 |
Net cash provided by operating
activities |
|
9,848 |
8,687 |
Cash flows from investing
activities: |
|
|
|
Purchases of property, equipment and
leasehold improvements |
|
(333) |
(393) |
Purchased technology and capitalized software
development |
|
(766) |
-- |
Change in restricted cash |
|
160 |
-- |
Net cash used in investing activities |
|
(939) |
(393) |
Cash flows from financing
activities: |
|
|
|
Proceeds from exercise of stock options and
employee stock purchase plan |
|
51 |
396 |
Principal payments on notes |
|
(8,592) |
(5) |
Principal payments on capital leases |
|
(167) |
(103) |
Net cash (used in) provided by financing
activities |
|
(8,708) |
288 |
Effect of exchange rate changes on cash |
|
-- |
81 |
Net increase in cash and cash
equivalents |
|
201 |
8,663 |
Cash and cash equivalents, beginning of
period (net of restricted cash) |
(1) |
19,337 |
35,062 |
Cash and cash equivalents, end of period (net
of restricted cash) |
(2) |
$ 19,538 |
$ 43,725 |
|
|
|
|
(1) Restricted cash of $392
and $813 as of December 31, 2013 and 2012, respectively. |
(2) Restricted cash of $232
and $813 as of March 31, 2014 and 2013, respectively. |
|
|
MERGE HEALTHCARE
INCORPORATED AND SUBSIDIARIES |
RECONCILIATION OF NET
INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS |
(in thousands, except
for share and per share data) |
(unaudited) |
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2014 |
2013 |
Net income (loss) available to common
shareholders of Merge |
$ 323 |
$ (6,475) |
Acquisition-related costs |
26 |
269 |
Restructuring and other |
-- |
1,229 |
Share-based compensation expense |
1,530 |
1,643 |
Amortization of significant acquisition
intangibles |
2,247 |
2,506 |
Acquisition-related sales
adjustments |
162 |
385 |
Acquisition-related cost of sales
adjustments |
(25) |
(76) |
Adjusted net income (loss) |
$ 4,263 |
$ (519) |
Depreciation and amortization |
1,830 |
1,957 |
Net interest expense |
4,148 |
8,049 |
Income tax (benefit) expense |
(19) |
3,015 |
Adjusted EBITDA |
$ 10,222 |
$ 12,502 |
Adjusted net income (loss) per share -
diluted |
$ 0.04 |
$ (0.01) |
Adjusted EBITDA per share - diluted |
$ 0.11 |
$ 0.13 |
Fully diluted shares (if net income) |
95,996,566 |
94,847,633 |
|
|
|
|
Pro Forma Three
Months Ended March 31, |
|
2014 |
2013 |
Net income (loss) available to common
shareholders of Merge |
$ 460 |
$ (6,166) |
Acquisition-related costs |
26 |
269 |
Restructuring and other |
-- |
1,229 |
Share-based compensation expense |
1,530 |
1,643 |
Amortization of significant acquisition
intangibles |
2,247 |
2,506 |
Adjusted net income (loss) |
$ 4,263 |
$ (519) |
Depreciation and amortization |
1,830 |
1,957 |
Net interest expense |
4,148 |
8,049 |
Income tax (benefit) expense |
(19) |
3,015 |
Adjusted EBITDA |
$ 10,222 |
$ 12,502 |
|
|
|
Adjusted net income (loss) per share -
diluted |
$ 0.04 |
$ (0.01) |
Adjusted EBITDA per share - diluted |
$ 0.11 |
$ 0.13 |
Fully diluted shares (if net income) |
95,996,566 |
94,847,633 |
|
|
MERGE HEALTHCARE
INCORPORATED AND SUBSIDIARIES |
CASH FROM BUSINESS
OPERATIONS |
(unaudited) |
|
|
|
|
Three Months
Ended December 31, |
|
2014 |
2013 |
|
(amounts in millions) |
Cash received from (paid for): |
|
|
Debt principal reduction |
$ (8.6) |
$ -- |
Interest paid, net |
(3.6) |
-- |
Restructuring initiatives |
(0.2) |
(0.2) |
Acquisition related costs |
-- |
(0.2) |
Proceeds from stock option exercises |
-- |
0.3 |
Property and equipment purchases |
(0.3) |
(0.4) |
Purchased technology and capitalized software
development |
(0.8) |
-- |
Business operations |
13.5 |
9.2 |
Increase in cash |
$ -- |
$ 8.7 |
CONTACT: Media Contact:
Jennifer Jawor
Vice President, Corporate Marketing
312.565.6825
jennifer.jawor@merge.com
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