Superior Consultant (NASDAQ:SUPC)
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Superior Consultant Raises 2004 Forecast and Expects Strong 2005
Consulting and Outsourcing Driving Strong Performance
DEARBORN, Mich., Sept. 20 /PRNewswire-FirstCall/ -- Superior Consultant
Holdings Corporation (NASDAQ:SUPC) today raised its earnings forecast for 2004
and also stated that the company expects continued growth in revenue, EBITDA
and earnings in 2005.
The company expects to generate earnings before interest, taxes, depreciation
and amortization (EBITDA) in 2004 of $8.9 million, prior to the effect of a
non-cash charge related to the sale of an underutilized office building, or
$8.3 million after the effect of the non-cash charge related to the sale of an
office building, on revenue of $108 million. As previously reported, the sale
of the office building occurred in the second quarter. Earnings per basic share
is expected to reach $0.17, or $0.23 before the effect of a non-cash charge
related to the office building sale.
Superior expects to continue its strong financial performance in 2005, with
increases in revenue, EBITDA, and EPS throughout 2005. The addition of
long-term, recurring revenue contracts has greatly enhanced visibility. The
company expects to enter 2005 at a revenue run rate of approximately $118
million, and expects to increase the revenue performance during the year. The
current revenue backlog for 2005 is $73.2 million and the opportunity pipeline
for new assignments is strong with a growing number of larger transactions.
* The revenue forecast for 2004 is based on revenue of $51.5 million for the
first half of 2004, $51.6 million in second-half 2004 recognized revenue and
revenue backlog, and current client indications of an additional $1.5 million.
* The EBITDA forecast is based on results achieved in the first half of 2004
of $4.3 million prior to the effect of the non-cash charge related to the sale
of an underutilized office building, and expected results for the remainder of
the year.
* The earnings per basic share forecast of $0.23 prior to the effect of the
building sale is based on achievement of $0.11 for the first half of 2004, also
absent the effect of the building sale, and the anticipated company performance
in the second half of 2004. With the effect of the building sale, earnings per
basic share for the first half of 2004 was $0.05, and the current forecast for
2004 is $0.17.
The company's cash position is good, and it has commitments for outsourcing
expansion-related financing for equipment, software, and services. As
Superior's financial performance continues to improve, additional financing is
more readily available for new contracts.
"Superior is grateful for the clients who have entrusted us to be their
strategic advisor, IT consultant, and outsourcing partner," said Richard D.
Helppie, Superior's Chief Executive Officer. "We owe thanks to our clients who
provide us the privilege of serving them and to our colleagues who bring an
extraordinary level of commitment and competence to each assignment.
Concentrating on innovation and service to our clients and support to our
colleagues has led to our positive financial performance."
Helppie continued: "At the beginning of 2004, we forecasted consulting
bookings of $56 million to $62 million for the year. Superior's consulting
segment is generating stronger sales performance, with bookings year to date of
$58 million. The company's outsourcing client base has reached critical mass,
and the efficiencies in the model also support our growing profitability."
The company believes its full-service, healthcare-specific, vendor- independent
offering is finding increasing favor in the marketplace. Outsourcing sales
commitments for 2004 now total more than $136 million with more than $900
million in Superior's sales prospect pipeline. The company today received a
client indication for a multi-year outsourcing relationship to provide network
management, network control, help desk, and consolidated data center services
for a Midwest health system.
Statements included in this press release which are not historical in nature,
are intended to be, and are hereby identified as "forward-looking statements"
for purposes of the safe harbor provided by Section 21E of the Securities
Exchange Act of 1934, as amended by Public Law 104-67. Forward- looking
statements may be identified by words including, but not limited to:
"anticipate," "believe," "intends," "estimates," "promises," "expect,"
"should," "conditioned upon" and similar expressions. This release contains
forward-looking statements relating to future financial results or business
expectations. Business plans may change as circumstances warrant. Actual
results may differ materially as a result of factors and events which the
company is unable to accurately predict or over which the company has no
control. Such factors include, but are not limited to: the award or loss of
significant client assignments, timing of contracts, recruiting and new
business solicitation efforts, the healthcare market's acceptance of and demand
for the company's offerings, demands upon and consumption of the company's cash
and cash equivalent resources or changes in the company's access to working
capital, regulatory changes and other factors affecting the financial
constraints on the company's clients, competitive pressures (both domestic and
foreign), the ability to successfully manage currency risk, obtain foreign work
permits and otherwise successfully execute and manage international contracts,
economic factors specific to healthcare, general economic conditions,
unforeseen disruptions in transportation, communications or other
infrastructure components, acquisitions under consideration and the ability to
integrate acquisitions on a timely basis. Additional information regarding
these risk factors and others, and additional information concerning the
company are included in the company's reports on file with the Securities and
Exchange Commission.
About Superior Consultant Holdings Corporation
Recipient of Frost & Sullivan's 2003 Best Bang for the Buck Award for providing
services and solutions with the highest ratio of value to cost, Superior
Consultant is a leading national provider of transformational outsourcing,
management and information technology consulting services and solutions to the
healthcare industry. Superior specializes in Digital Business
Transformation(TM) services that enable clients to thrive in the
information-driven economy, and its transformational outsourcing, management
and information technology consulting services and solutions help clients plan
and execute better business strategies and meet their fiscal challenges while
advancing clinical quality. Superior's best practices outsourcing model
includes a full range of flexible business process and information technology
solutions, including data center services, 24/7/365 network monitoring and help
desk services, facility management, interim management, and application
outsourcing services. For 20 years, Superior has been recognized as an
innovative leader within the healthcare industry and has been rewarded with
full and partial outsourcing contracts, thousands of engagements, approximately
170 interim management assignments, and nearly 3,000 clients.
For more information on Superior Consultant Holdings Corporation simply dial
1-800-PRO-INFO and enter the Company ticker: SUPC (a no-cost fax-on- demand
service) or visit the Company's Web site at http://www.superiorconsultant.com/
.
DATASOURCE: Superior Consultant Holdings Corporation
CONTACT: Richard D. Helppie - Chief Executive Officer, Richard R.
Sorensen - Chief Financial Officer, or Susan M. Synor - Executive Vice
President, of Superior Consultant Holdings Corporation, +1-248-386-8300
Web site: http://www.superiorconsultant.com/