Q1 Financial Highlights
Operating Income/Loss: Operating loss for the first quarter of 2009 was $1.6 million against an operating loss of $1.2 million for the first quarter of 2008. Operating loss for the first quarter of 2009 included $549,000 of expenses related to the acquisition and integration of Emageon Inc.
Adjusted EBITDA: The company’s Adjusted EBITDA, excluding acquisition-related and integration costs for the first quarter of 2009, was $200,000 as against an Adjusted EBITDA of $33,000 for the first quarter of 2008.
Cash and Cash Flow: AMICAS ended the first quarter of 2009 with cash, cash equivalents, and a marketable securities balance of $56.6 million, no long-term debt, and working capital of $47.7 million. AMICAS generated $1.8 million of cash flow from operations in the first quarter of 2009.
Stock Repurchase: In the fourth quarter of 2008, the board of directors directed the company to initiate a $5.0 million stock repurchase plan. The company repurchased about 88,000 shares of its common stock for about $141,000 in the first quarter of 2009. Under this plan, we have repurchased about 281,000 shares of our common stock for about $426,000.
Business Perspective
“The acquisition of Emageon clearly helps AMICAS scale to execute both as a top-flight IT solution provider and as a standalone independent public company. As a result of our combination with Emageon, AMICAS now provides a market leading suite that includes radiology PACS, radiology information systems, cardiology PACS, cardiovascular information systems, referring physician tools, business intelligence tools, enterprise content management tools (serving as both the imaging component of the EMR and as a vendor-neutral archive), and revenue cycle management systems,” said Dr. Kahane.
Dr. Kahane also said, “We continue to maintain our focus on serving the end-to-end needs of imaging centers, radiology groups, and sub-specialty groups that are highly dependent on imaging during their delivery of healthcare services. At the same time, we are looking forward to providing the market with an enterprise content management solution that makes images accessible as a component of the electronic medical record.”
Dr. Kahane went on to say, “We believe we have built an excellent foundation with many very sophisticated providers of imaging services while developing an excellent product suite over the last two years. We are looking forward to combining this foundation with the customers, solutions, and employees of Emageon to establish AMICAS as the premiere independent provider of image and information management solutions in healthcare.”
Business Guidance
AMICAS projects to provide guidance for 2009 upon completion of its purchase accounting related to the Emageon Inc. acquisition, and to provide this guidance at the time that AMICAS releases its results for the second quarter of 2009.
Purchase accounting is expected to have minimal impact on 2010 results and, therefore, AMICAS is providing the following business outlook for fiscal year 2010.
Amicas is an independent provider of imaging IT solutions. It offers the industry’s most comprehensive suite of image and information management solutions – from radiology PACS to cardiology PACS, from radiology information systems to cardiovascular information systems, from revenue cycle management solutions to enterprise content management tools designed to power the imaging component of the electronic medical record.
