Orion Healthcorp (AMEX:ONH)
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Orion HealthCorp, Inc. (AMEX: ONH) today announced its financial results
for the fourth quarter and year ended December 31, 2006.
For the three months ended December 31, 2006, net operating revenues
were $6.8 million compared with $5.7 million for the same period in the
prior year. Net loss was $3.9 million, or $0.18 per basic share, for the
fourth quarter of 2006 compared with a net loss of $4.3 million, or
$0.36 per basic share, for the prior year period. The net loss for the
quarter ended December 31, 2006, included a net loss from discontinued
components of $3.1 million, or $0.14 per share, including a charge for
the impairment of intangible assets of $3.0 million. Earnings before
interest, taxes, depreciation and amortization (EBITDA) was a loss of
$481,000 for the fourth quarter of 2006 as compared with an EBITDA loss
of $165,665 for the quarter ended December 31, 2005. (A reconciliation
of EBITDA to net income for the fourth quarter and year-end is provided
on the attached consolidated statements of operations.)
Terrence L. Bauer, chief executive officer of Orion HealthCorp, said, “2006
was a year of progress, adding to the momentum we have established since
our formation in 2004. Beginning in early 2005, we restructured,
refocused, developed a fiscally disciplined culture and, more recently,
started laying the ground work for the future by expanding our footprint
through complementary acquisitions. In addition, in 2006, we
strengthened our balance sheet with a significant refinancing and the
addition of new investors. The past year has been the most productive
thus far and gives us additional traction for a successful 2007.”
For the year ended December 31, 2006, net operating revenues were $23.4
million compared with $22.8 million for the same period in the prior
year. Loss from continuing operations was $2.0 million, or $0.10 per
basic share, for the year ended December 31, 2006, compared with a loss
from continuing operations of $5.9 million, or $0.57 per basic share,
for the same period in 2005. Net loss, including loss from discontinued
operations of $2.0 million, was $4.1 million, or $0.20 per basic share,
for the year ended December 31, 2006, compared with a net loss,
including a loss from discontinued operations of $14.6 million, which
included a charge for impairment of intangible assets of $9.8 million,
of $20.4 million, or $1.98 per basic share, for the same period in 2005.
EBITDA loss totaled $759,000 for the year ended December 31, 2006,
compared with an EBITDA loss of $2.7 million for the prior year period.
The results for the three months and year ended December 31, 2006 and
2005, respectively, include the consolidated results of Orion
HealthCorp, including its two reportable segments: Practice Management,
which provides business and management services to pediatric physician
groups, and Revenue Cycle Management, which provides physician billing
and collection services and practice management solutions, primarily to
hospital-based physicians. The surgery center business operated under
the name “SurgiCare”
is reported as discontinued operations for the three months and year
ended December 31, 2006 and 2005. Certain reclassifications have been
made in the 2005 financial statements to conform to the reporting format
in 2006. Such reclassifications had no effect on previously reported
earnings. The most significant reclassifications related to the
presentation of discontinued operations for comparative purposes.
The Company also announced that Jay McBurney has been named to the newly
created position of Director of New Business Development, where he will
be responsible for new business development for Orion’s
revenue cycle management segment. Mr. McBurney brings to Orion more than
ten years of experience in the billing and collections industry.
Previously, he served as Senior Director of Business Development for
Per-Sé Technologies, which was recently
acquired by McKesson Corporation. During his eight years with Per-Sé,
we believe Mr. McBurney was among the top producers in the company. Mr.
McBurney is a graduate of the University of Texas.
In closing, Mr. Bauer added, “Jay is a
tremendous addition to our management team, and we are looking forward
to the impact that he will have on our organic growth initiatives. Jay
is one of many reasons for us to be very optimistic about Orion’s
future. The demand for our services is increasing and the market remains
highly fragmented. The pressures on physicians’
incomes are escalating, and we offer a realistic solution to the
challenges facing the medical community. We have an experienced,
successful management team and an expanding market presence. All of us
at Orion are very excited about where we can go from here.”
The live broadcast of Orion HealthCorp’s
fourth quarter and year-end conference call will begin at 11:00 a.m.
Eastern Time on Wednesday, April 4, 2007. An online replay of the call
will be available for 30 days following the conclusion of the live
broadcast. A link for these events can be found on the Company’s
website at www.orionhealthcorp.com
or at www.earnings.com.
Orion’s mission is to provide superior
billing, collections, practice, business and financial management
services for physicians, resulting in optimal profitability for its
clients and increased enterprise value for its stakeholders. For more
information on Orion HealthCorp, Inc., visit the Company’s
website at www.orionhealthcorp.com.
Certain statements in this press release constitute “forward-looking
statements” within the meaning of the
Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended (the “Acts”).
Any statements contained herein that are not statements of historical
fact are deemed to be forward-looking statements, including all
statements regarding improving financial metrics and future growth.
The forward-looking statements in this press release are based on
current beliefs, estimates and assumptions concerning the operations,
future results, and prospects of Orion HealthCorp, Inc. and the other
companies described herein. As actual operations and results may
materially differ from those assumed in forward-looking statements,
there is no assurance that forward-looking statements will prove to be
accurate. Forward-looking statements are subject to the safe harbors
created in the Acts. Any number of factors could affect future
operations and results, including without limitation, changes in federal
or state healthcare laws and regulations and third party payer
requirements, changes in costs of supplies, the loss of major customers,
increases in labor and employee benefit costs, increases in interest
rates on the Company’s indebtedness as well
as general market conditions, competition and pricing, and the Company’s
ability to successfully implement its business strategies, including the
impact and expense of any potential acquisitions and the ability to
integrate acquired operations and to obtain necessary approvals and
financing. Orion HealthCorp, Inc. undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information or future events.
ORION HEALTHCORP, INC.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2006
2005
2006
2005
(Unaudited)
(Unaudited)
Net operating revenues
$6,814
$5,656
$23,401
$22,845
Operating expenses
7,816
6,299
25,892
28,365
Loss from continuing operations before other income (expense)
(1,002)
(643)
(2,491)
(5,520)
Other income (expense), net
128
(92)
427
(355)
Minority interest earnings in partnership
--
--
--
(6)
Loss from continuing operations
(874)
(735)
(2,064)
(5,881)
Income (loss) from operations of discontinued components,
including gain (loss) on disposal
(3,058)
(3,602)
(2,064)
(14,558)
Net loss
$(3,932)
$(4,337)
$(4,128)
$(20,439)
Weighted average common shares outstanding:
Basic
21,510
12,076
20,268
10,345
Diluted
21,510
12,076
20,268
10,345
Net loss per share, basic and diluted:
Net loss per share from continuing operations
$(0.04)
$(0.06)
$(0.10)
$(0.57)
Loss per share from discontinued operations
(0.14)
(0.30)
(0.10)
(1.41)
Net loss per share
$(0.18)
$(0.36)
$(0.20)
$(1.98)
Reconciliation of EBITDA to net loss:
EBITDA
$(481)
$(166)
$(759)
$(2,725)
Less: Depreciation and amortization
(521)
(477)
(1,732)
(2,795)
Less: Total other income (expenses), net
128
(92)
427
(355)
Less: Minority interest loss in partnership
--
--
--
(6)
Less: Loss from operations of discontinued components, including
net loss on disposal
(3,058)
(3,602)
(2,064)
(14,558)
Net loss
$(3,932)
$(4,337)
$(4,128)
$(20,439)
ORION HEALTHCORP, INC.
Consolidated Balance Sheets
(in thousands, except share amounts)
Dec. 31,
Dec. 31,
2006
2005
Current assets:
Cash and cash equivalents
$644
$299
Accounts receivable, net
3,575
2,798
Inventory
278
206
Prepaid expenses and other current assets
407
716
Assets held for sale
502
976
Total current assets
5,406
4,995
Property and equipment, net
711
742
Other long-term assets:
Intangible assets, including goodwill, net
22,158
16,289
Other assets, net
1,908
92
Total other long-term assets
24,066
16,381
Total assets
$30,183
$22,118
Current liabilities:
Accounts payable and accrued expenses
$6,938
$6,738
Other current liabilities
--
25
Current portion of capital lease obligations and long-term debt
1,847
2,861
Current portion of long-term debt held by related parties
325
1,463
Liabilities held for sale
159
452
Total current liabilities
9,269
11,539
Long-term liabilities:
Capital lease obligations and long-term debt, net of current portion
6,989
3,085
Long-term debt, net of current portion, held by related parties
4,541
1,000
Minority interest in partnership
--
35
Total long-term liabilities
11,530
4,120
Stockholders' equity:
Preferred stock, par value $0.001; 20,000,000 shares authorized;
no shares issued and outstanding
--
--
Common stock, Class A, par value $0.001; 300,000,000 and 70,000
shares authorized and 105,374,487 and 12,428,042 shares issued and
outstanding at December 31, 2006 and December 31, 2005,
respectively
105
12
Common stock, Class B, par value $0.001; 0 and 25,000,000 shares
authorized and 0 and 10,448,470 shares issued and outstanding at
December 31, 2006 and December 31, 2005, respectively
--
11
Common stock, Class C, par value $0.001; 0 and 2,000,000 shares
authorized and 0 and 1,437,572 shares issued and outstanding at
December 31, 2006 and December 31, 2005, respectively
--
2
Common stock, Class D, par value $0.001; 50,000,000 and 0 shares
authorized and 24,658,955 and 0 shares issued and outstanding at
December 31, 2006 and 2005, respectively
25
--
Additional paid-in capital
63,876
56,928
Accumulated deficit
(54,584)
(50,456)
Treasury stock - at cost; 9,140 shares
(38)
(38)
Total stockholders' equity
9,384
6,459
Total liabilities and stockholders' equity
$30,183
$22,118