EX-5 4 ex5-2.txt EXHIBIT 5.2 Exhibit 5.2 ----------- News Release NASDAQ: MEDQ FOR IMMEDIATE RELEASE MEDQUIST REPORTS FINANCIAL RESULTS FOR SECOND QUARTER 2003 MARLTON, NJ July 24, 2003 - MedQuist Inc. (NASDAQ:MEDQ) reported revenue of $123.4 million, operating income of $17.5 million and net income of $10.8 million or $0.29 per diluted share for the three months ended June 30, 2003. For the six months ended June 30, 2003 revenue was $248.1 million, operating income was $34.5 million and net income was $21.3 million or $0.57 per diluted share. John Quaintance, President of MedQuist's Medical Transcription Division stated, "Despite the challenging operating environment in the U.S. healthcare market, MedQuist continues to provide our hospital clients with the highest level of service in the industry. As we have done in the past, we plan to continue to expand the suite of products and services we provide to our valued clients. One example of such a service offering is the DocQment Enterprise Platform (DEP), which was designed by MedQuist to bring information systems and decision-making tools to healthcare information management professionals. We have achieved a significant level of momentum in the roll-out of this technology, which is being well received by the hospital market". 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 June 30, 2003 2002 ---- ---- Revenues $123,444 $113,631 Gross profit 33,128 29,377 Gross margin 26.8% 25.9% Selling, general & administrative (7,551) (3,483) % of revenues 6.1% 3.1% Research and development (1,390) -- % of revenues 1.1% n/a Depreciation expense (4,745) (4,349) Amortization expense (1,985) (1,613) Operating income 17,457 19,932 Net interest income 254 376 Equity in loss of investee (132) (247) Pretax income 17,579 20,061 Tax provision (6,767) (7,723) Net income $10,812 $12,338 Net income per basic share $0.29 $0.33 Basic shares outstanding 37,120 36,976 Net income per diluted share $0.29 $0.33 Fully diluted shares outstanding 37,768 37,949
MedQuist Inc. Financial Highlights (Unaudited) In thousands, except per share data and percentages
Six Months Ended June 30, 2003 2002 ---- ---- Revenues $248,106 $227,605 Gross profit 64,988 58,341 Gross margin 26.2% 25.6% Selling, general & administrative (15,394) (7,183) % of revenues 6.2% 3.2% Research and development (2,747) -- % of revenues 1.1% n/a Depreciation expense (9,381) (8,583) Amortization expense (3,744) (3,314) Other income 814 -- Operating income 34,536 39,261 Net interest income 474 689 Equity in loss of investee (316) (431) Pretax income 34,694 39,519 Tax provision (13,357) (15,215) Net income $21,337 $24,304 Net income per basic share $0.58 $0.66 Basic shares outstanding 37,103 36,955 Net income per diluted share $0.57 $0.64 Fully diluted shares outstanding 37,699 37,954
MedQuist Inc. Financial Highlights In thousands
June 30, December 31, 2003 2002 ---- ---- (Unaudited) (Audited) Assets: Current assets: Cash and cash equivalents $ 132,730 $ 103,392 Accounts receivable (net) 77,505 86,465 Other current assets 14,621 14,474 --------- --------- Total current assets 224,856 204,331 Property and equipment (net) 37,150 37,804 Goodwill 136,376 136,127 Other intangible assets (net) 73,135 73,798 Other assets 22,076 22,811 --------- --------- Total assets $ 493,593 $ 474,871 ========= ========= Liabilities and Shareholders' Equity: Current liabilities: Current portion of long term debt $ 31 $ 31 Accounts payable 9,291 9,908 Deferred revenue 18,413 18,789 Accrued expenses 30,098 33,701 --------- --------- Total current liabilities 57,833 62,429 Long term debt 26 54 Other long term liabilities 1,904 1,427 Shareholders' equity 433,830 410,961 --------- --------- Total liabilities and shareholders' equity $ 493,593 $ 474,871 ========= =========