EX-9 3 ex9-2.txt EX9-2.TXT Exhibit 9.2 News Release NASDAQ: MEDQ FOR IMMEDIATE RELEASE MEDQUIST REPORTS REVENUE AND EPS FOR SECOND QUARTER 2001 (In thousands, except per share data) MARLTON, NJ July 25, 2001 - MedQuist Inc. reported record revenue of approximately $98.0 million for the three months ended June 30, 2001. EBITDA for the second quarter of 2001 was $22.5 million or 22.9% of revenue. Net income was $10.6 million or $0.28 per share on a diluted basis, in line with analyst expectations of $0.28 per share according to First Call. For the six-month period ended June 30, 2001, MedQuist generated $193.1 million in revenue. Proforma EBITDA for the six-month period was $44.1 million or 22.9% of revenue. Proforma net income was $21.3 million or $0.57 per share on a diluted basis. Proforma results exclude approximately $3.0 million of pretax income related to a favorable legal settlement and $600,000 of pretax income related to the adjustment of the restructuring reserves established in 1997 and 1998. David A. Cohen, Chairman and Chief Executive Officer, stated, "MedQuist generated solid results during the second quarter of 2001 in spite of increased expenses related to the April 2nd acquisition of Speech Machines, the application service provider that will serve as the backbone for MedQuist's digital transcription platform. MedQuist remains an extremely strong company, with a blue chip client base, high recurring revenue, strong earnings and consistent cash flow. Management is enthusiastic about leveraging recent acquisitions and technology enhancements into profitable growth in medical document management services." Effective July 1, 2001, MedQuist acquired the assets of Your Office Genie, the fourth largest medical transcription company in the United States. MedQuist is the largest electronic medical transcription service company in the United States. Other than historical information set forth herein, this press release contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ materially from those anticipated or implied in any such forward-looking statements as a result of various risks, including, without limitation, rapidly changing technology; inability to manage and maintain growth; inability to penetrate new markets; inability to make and successfully integrate acquisitions and transition our business strategy; decreased demand for existing products; lack of a market for new products; and failure to successfully negotiate agreements to take advantage of the opportunities facing MedQuist to broaden its service offering. Additional risks associated with the Company's business can be found in its December 31, 2000 Annual Report on Form 10-K and its other periodic filings with the SEC. Contact: Brian J. Kearns, Chief Financial Officer, MedQuist Inc., 856-810-8000 x-4418 Tables Follow MedQuist Inc. Financial Highlights (unaudited) In thousands, except per share data Three Months Ended June 30, 2001 2000(2) ------ --------- Revenue $97,978 $90,989 EBITDA (1) 22,486 22,983 Income before income taxes 17,298 18,338 Net Income 10,638 11,003 Income per common share Basic $0.29 $0.31 Diluted $0.28 $0.30 Weighted average shares outstanding Basic 36,820 35,470 Diluted 37,733 37,063 Six Months Ended June 30, ------------------------- 2001(3) 2000(4) --------- --------- Revenue $193,077 $183,501 EBITDA (1) 44,123 47,486 Income before income taxes 34,620 38,383 Net Income 21,291 23,030 Income per common share Basic $0.58 $0.65 Diluted $0.57 $0.62 Weighted average shares outstanding Basic 36,811 35,584 Diluted 37,622 36,995 (1) Earnings before interest, taxes, depreciation and amortization. (2) Excludes approximately $1,013 of pretax income related to the adjustment of the restructure reserves established in 1997 and 1998. (3) Excludes approximately $3,000 of pretax income related the favorable settlement of a lawsuit and $600 of pretax income related to the adjustment of the restructure reserve established in 1997 and 1998. (4) Excludes approximately $1,013 of pretax income related to the adjustment of the restructure reserves established in 1997 and 1998 and approximately $3,675 of gain from the sale of an investment.