EX-5 4 ex5-2.txt EXHIBIT 5.2 Exhibit 5.2 ----------- News Release NASDAQ: MEDQ FOR IMMEDIATE RELEASE MEDQUIST REPORTS FINANCIAL RESULTS FOR FIRST QUARTER 2003 MARLTON, NJ April 24, 2003 - MedQuist Inc. (NASDAQ:MEDQ) reported revenue of $124.7 million, operating income of $17.1 million and net income of $10.5 million or $0.28 per diluted share for the three months ended March 31, 2003. Operating income for the three months ended March 31, 2003 included income of $814 thousand from the sale of a building. David A. Cohen, Chairman and Chief Executive Officer, stated, "The first quarter of 2003 continued to demonstrate the recurring revenue and strong cash flow MedQuist has earned from our blue chip client base. MedQuist continues to be the provider of choice in the medical transcription market. Management remains committed to MedQuist's growth prospects and exploring new technologies and services in order to streamline our healthcare clients' document management, transcription and health information management efforts." MedQuist is a leading provider of electronic medical transcription, health information and document management services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services. MedQuist is a member of the Philips Group of Companies. Other than historical information set forth herein, this press release may contain forward-looking statements such as our anticipated future earnings growth, 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, inability to predict future economic or market conditions, 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, 2002 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 ext. 4418 Tables Follow MedQuist Inc. Financial Highlights (Unaudited) In thousands, except per share data and percentages Three Months Ended March 31, 2003 2002 ---- ---- Revenues $124,662 $113,974 Gross profit 31,860 28,964 Gross margin 25.6% 25.4% Selling, general & administrative (7,843) (3,700) % of revenues 6.3% 3.2% Research and development (1,357) -- % of revenues 1.1% n/a Depreciation expense (4,636) (4,234) Amortization expense (1,759) (1,701) Other income 814 -- Operating income 17,079 19,329 Net interest income 220 313 Equity in loss of investee (184) (184) Pretax income 17,115 19,458 Tax provision (6,590) (7,492) Net income 10,525 11,966 Net income per diluted share $0.28 $0.32 Fully diluted shares outstanding 37,630 37,958 MedQuist Inc. Financial Highlights In thousands March 31, December 31, 2003 2002 ---- ---- (Unaudited) (Audited) Assets: Current assets: Cash and cash equivalents $124,838 $ 103,392 Accounts receivable (net) 79,299 86,465 Other current assets 14,721 14,474 -------- --------- Total current assets 218,858 204,331 Property and equipment (net) 37,580 37,804 Goodwill 135,883 136,127 Other intangible assets (net) 75,088 73,798 Other assets 22,690 22,811 -------- -------- Total assets $490,099 $474,871 ======== ======== Liabilities and Shareholders' Equity: Current liabilities: Current portion of long term debt $ 30 $ 31 Accounts payable 8,259 9,908 Deferred revenue 19,772 18,789 Accrued expenses 38,397 33,701 -------- -------- Total current liabilities 66,458 62,429 Long term debt 54 54 Other long term liabilities 1,697 1,427 Shareholders' equity 421,890 410,961 -------- -------- Total liabilities and Shareholders' $490,099 $474,871 ======== ========