EX-99 2 exhibit9901.htm

 

PATIENT INFOSYSTEMS INC. ANNOUNCES

FISCAL 2004 YEAR END AND FOURTH QUARTER FINANCIAL RESULTS

RECORD REVENUES

 

Rochester, New York, April 1, 2005 - Patient Infosystems, Inc. and subsidiaries (the "Company") (OTCBB: PATY) a leading healthcare solutions company today announced its fourth quarter and 2004 fiscal year end financial results.

 

Revenues for the fiscal year ending December 31, 2004 increased 177% to $15,736,649 from $5,687,293 for the fiscal year ended December 31, 2003. Revenues during the fourth quarter ending December 31, 2004 were $5,268,970 a 205 % increase from the fiscal fourth quarter 2003 revenues of $1,729,885. On a sequential quarterly basis the fourth quarter ending December 31, 2004 revenues represent a 56% increase in revenue from the third quarter ending September 30, 2004 revenues of $3,373,820.

 

Roger Chaufournier, CEO and Board Chair of Patient Infosystems states, "We are very proud of the performance of the Company this past year. We have completed the assimilation of the Care Management Division which was acquired from CBCA at the end of the third quarter of 2004. We established new relationships with strategic partners that provide access to additional opportunities for growth. We also have prepared for the spin-out of our subsidiary, American CareSource Holdings, Inc. (ACS), which is on track for later this spring. The performance of PATY this year was masked by the losses of ACS. The Company is now well positioned for growth and will concentrate on our core business.”

 

### FINANCIAL DATA TO FOLLOW ###

 

 

 

 

 

PATIENT INFOSYSTEMS, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2004 AND 2003

 

 

 

ASSETS

2004

2003

 

 

 

CURRENT ASSETS:

 

 

Cash and cash equivalents

$ 229,298

$ 397,851

Accounts receivable (net of doubtful accounts allowance of $65,902 and $52,141)

1,960,355

771,258

Prepaid expenses and other current assets

224,916

156,729

Total current assets

2,414,569

1,325,838

 

 

 

PROPERTY AND EQUIPMENT, net

877,213

305,551

 

 

 

Intangible assets (net of accumulated amortization of $848,806 and $586,830)

2,372,483

497,893

Goodwill

11,237,278

6,981,876

 

 

 

TOTAL ASSETS

$ 16,901,543

$ 9,111,158

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

CURRENT LIABILITIES:

 

 

Accounts payable

$ 1,483,684

$ 1,337,862

Bank overdrafts

-

189,608

Accrued salaries and wages

879,523

442,299

Accrued expenses

282,730

981,689

Accrued Interest

28,804

61,558

Accrued dividends

1,317,495

490,756

Current maturities of long term debt

21,355

294,117

Deferred revenue

269,246

336,598

Total current liabilities

4,282,837

4,134,487

 

 

 

LONG TERM DEBT

7,219,325

3,040,295

 

 

 

COMMITMENTS

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

Preferred stock - $.01 par value: shares authorized: 20,000,000

 

 

Series C, 9% cumulative, convertible

 

 

issued and outstanding: 2004 - 75,000, 2003 - 100,000

750

1,000

Series D, 9% cumulative, convertible

 

 

issued and outstanding: 2004 - 840,118, 2003 - 830,100

8,401

8,301

Common stock - $.01 par value:

 

 

authorized: 80,000,000; issued and outstanding:

 

 

2004 - 9,638,150, 2003 - 4,960,354

96,382

49,604

Additional paid-in capital

54,346,793

45,596,684

Unearned debt issuance cost

(1,689,244)

-

Accumulated deficit

(47,363,701)

(43,719,213)

Total stockholders' equity

5,399,381

1,936,376

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 16,901,543

$ 9,111,158

See notes to the consolidated statements.

 

 

 

 

PATIENT INFOSYSTEMS, INC. AND SUBSIDIARIES

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

 

 

 

 

2004

2003

 

 

 

REVENUES

$ 15,736,649

$ 5,687,293

 

 

 

COSTS AND EXPENSES:

 

 

Cost of revenue

12,529,121

4,162,759

Sales and marketing

1,532,032

893,833

General and administrative

3,358,234

1,125,926

Research and development

130,443

131,782

Impairment of goodwill

802,105

-

 

 

 

Total costs and expenses

18,351,935

6,314,300

 

 

 

OPERATING LOSS

(2,615,286)

(627,007)

 

 

 

Debt financing Costs

(812,630)

(2,143,120)

Interest expense

(139,177)

(753,685)

Other income

785

145,851

 

 

 

NET LOSS

(3,566,308)

(3,377,961)

 

 

 

CONVERTIBLE PREFERRED STOCK DIVIDENDS

(826,739)

(7,671,557)

 

 

 

NET LOSS ATTRIBUTABLE TO

 

 

COMMON STOCKHOLDERS

$ (4,393,047)

$ (11,049,518)

 

 

 

NET LOSS PER SHARE - BASIC AND DILUTED

$ (0.56)

$ (11.96)

 

 

 

WEIGHTED AVERAGE COMMON

 

 

SHARES OUTSTANDING

7,815,063

924,109

See notes to the consolidated statements.

 

 

 

During the year ended December 31, 2004, Patient Infosystems operated in two segments: (i) Patient Infoystems, which includes disease management, demand management, provider improvement as well as case management and utilization review services which were acquired on September 22, 2004 through the acquisition of CBCA Care Management, Inc. (CMI) and (ii) ACS, which includes ancillary benefits management services. Selected financial information on Patient Infosystems' segments for the years ended December 31, 2004 and 2003 and pro forma combined as if the ACS and CMI acquisition had occurred as of January 1 of each year, respectively, are presented as follows:

 

 

Year ended December 31,

 

2004

2004

2003

2003

Revenues

 

Pro Forma

 

Pro Forma

Patient Infosystems, Inc.

$ 7,624,144

$ 7,624,144

$ 5,687,293

$ 5,687,293

CBCA Care Management, Inc.

2,075,181

7,511,190

-

6,837,974

Segment total

9,699,325

15,135,334

5,687,293

12,525,267

American Caresource Holdings, Inc.

6,037,324

6,037,324

-

9,164,389

Total revenue

15,736,649

21,172,658

5,687,293

21,689,656

 

 

 

 

 

Cost of sales

 

 

 

 

Patient Infosystems, Inc.

5,485,642

5,485,642

4,162,759

4,162,759

CBCA Care Management, Inc.

1,202,890

5,050,745

-

4,719,665

Segment total

6,688,532

10,536,387

4,162,759

8,882,424

American Caresource Holdings, Inc.

5,840,589

5,840,589

-

10,289,128

Total cost of sales

12,529,121

16,376,976

4,162,759

19,171,552

 

 

 

 

 

Selling, general and administrative

 

 

 

 

Patient Infosystems, Inc.

2,633,145

2,633,145

2,151,541

2,151,541

CBCA Care Management, Inc.

177,786

1,092,432

-

1,168,513

Segment total

2,810,931

3,725,577

2,151,541

3,320,054

American Caresource Holdings, Inc.

2,209,778

2,209,778

-

2,279,094

Total selling, general and administrative

5,020,709

5,935,355

2,151,541

5,599,148

 

 

 

 

 

Other

 

 

 

 

Patient Infosystems, Inc.

936,821

936,821

2,750,954

2,319,202

CBCA Care Management, Inc.

(1,889)

535,411

-

716,400

Segment total

934,932

1,472,232

2,750,954

3,035,602

American Caresource Holdings, Inc.

818,195

818,195

-

171,331

Total Other

1,753,127

2,290,427

2,750,954

3,206,933

 

 

 

 

 

Net loss

 

 

 

 

Patient Infosystems, Inc.

(1,431,464)

(1,431,464)

(3,377,961)

(2,946,209)

CBCA Care Management, Inc.

696,394

832,602

-

233,396

Segment total

(735,070)

(598,862)

(3,377,961)

(2,712,813)

American Caresource Holdings, Inc.

(2,831,238)

(2,831,238)

-

(3,575,164)

Total net loss

(3,566,308)

(3,430,100)

(3,377,961)

(6,287,977)

 

 

 

 

 

Dividends

(826,738)

(826,738)

(7,671,557)

(8,265,390)

Net loss attributable to

 

 

 

 

common shareholders

(4,393,046)

(4,256,838)

(11,049,518)

(14,553,367)

Net loss per share basic and diluted

$ (0.56)

$ (0.54)

$ (11.96)

$ (2.93)

Weighted average common shares

7,815,063

7,815,063

924,109

4,960,339

 

 

 

 

 

About Patient Infosystems:

 

Patient Infosystems is a leader in disease and demand management programs that reduce healthcare costs and increase patient quality of life and service. The company, through its wholly owned subsidiary, American Caresource, is also a pioneer in ancillary benefits management. For more information on Patient Infosystems please go to www.ptisys.com.

 

This release contains information about management's view of the company's future expectations, plans and prospects, our ability to reduce costs for our clients, to benefit their businesses and our ability to recognize our goals for 2005 that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the company's financial condition, its ability to sell its products, its ability to compete with competitors and the growth of the healthcare market as well as other factors that are discussed in the company's filed Annual Report on Form 10-KSB, as well as other documents filed with the Securities and Exchange Commission.

 

--------------------------------------------------------------------------------

Contact:

 

PATY Investor Relations

 

 

Lipman Capital Group Inc.

 

John Lipman, 212-737-9803

 

jlipman@lipmangrp.com