Precis (NASDAQ:PCIS)
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Precis Announces First Quarter 2005 Financial Results
GRAND PRAIRIE, Texas, May 16 /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 its financial results for the quarter ended March 31, 2005.
For the first quarter, the company reported revenue of $8.7 million, a decrease
of $1.2 million, or 13%, compared to $9.9 million during the comparable quarter
in 2004 and flat with revenues from the fourth quarter of 2004. The company's
net loss for the first quarter of 2005 was $71,000, a loss of $(0.01) per
diluted share compared to net earnings of $.61 million and $0.05 per diluted
share for the comparable quarter in 2004. The results included a charge of
$225,000 during the quarter for severance payments. Despite the loss, the
company's operations provided net cash of $122,000.
The Company's results for the first quarter represent an improvement from the
fourth quarter of 2004, when it reported a net loss $2.9 million, which
included an impairment charge to goodwill of $2.0 million.
Judith Henkels, President and CEO of Precis Inc., commented, "I am pleased with
the progress that we made in the first quarter of this year. The cost
reductions to which we committed were achieved, and new marketing initiatives
were taken. We restructured our management team and have brought in the talent
we need to spark our network marketing organization and improve operational
efficiencies."
"We will realize even more cost savings during the rest of the year as many of
our cost reduction measures did not take effect until late in the first
quarter," she added.
"We will be introducing a new Care Entree program late in the second quarter
that we hope will help invigorate our network sales force by broadening the
appeal of our products. This new product will also offer our sales
representatives and our members a less complex program to complement the suite
of existing Care Entree programs. Additionally, we are developing a wellness
program to be introduced later this year that will also help our members
proactively address their healthcare needs" added Ms. Henkels.
"With respect to the lawsuit filed against us by the State of Texas, we asked
for and received another meeting with representatives of the attorney general's
office in Austin last Thursday. We are pleased with the progress we made at
the meeting and because we believe ourselves to be in compliance with the
matters of concern to the state, we continue to be optimistic that we can
efficiently resolve this matter," Ms. Henkels concluded.
Precis, Inc. (NASDAQ:PCIS) will conduct a conference call to discuss financial
results for the first quarter ended March 31, 2005 on Monday, May 16, 2005 at
10:00 a.m. Eastern time. Interested parties can access the call by dialing
877-407-8035 or 201-689-8035 or by accessing the web cast at:
http://www.vcall.com/CEPage.asp?ID=92014. A replay of the call will be
available at 877-660-6853 or 201-612-7415, account number 286 and conference ID
153233, for 7 days following the call; and the web cast can be accessed at
http://www.vcall.com/CEPage.asp?ID=92014 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.
Precis Inc. and Subsidiaries
Condensed Consolidated Statement of Operations and Balance Sheet Data
Dollars in Thousands, except per share amounts
For the Quarter Ended March 31,
2005 2004
Statement of Operations Data:
Product and service revenues $8,700 $9,946
Total operating expenses 8,829 8,828
Operating income (loss) (129) 1,118
Earnings (loss) before income taxes (116) 1,089
Provision for income tax expense (benefit) (45) 483
Net earnings (loss) $(71) $606
Earnings (loss) per share:
Basic $(0.01) $0.05
Diluted $(0.01) $0.05
March 31, December 31,
2005 2004
Balance Sheet Data:
Cash and cash equivalents $7,918 $8,283
Working capital $5,433 $6,345
Total assets $43,114 $41,975
Total liabilities $10,980 $9,606
Stockholders' equity $32,134 $32,369
Contact: Bob Bintliff Joe Diaz
Chief Financial Officer The RCG Group
Precis, Inc. 480-675-0400
972-343-6501
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.care125.com/
Web site: http://www.care-financial.com/
Web site: http://www.accesshealthsource.com/
Web site: http://www.precis-pcis.com/