Q2 and Half Year Results
19 8월 2010 - 3:00PM
UK Regulatory
TIDMCBAY
RNS Number : 3029R
CBaySystems Holdings Ltd.
19 August 2010
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS IN THAT JURISDICTION.
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| For Immediate Release | August 19, 2010 |
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CBaySystems Holdings Limited
("CBaySystems", "CBay" or "the Company")
CBay Reports Second Quarter and Half Year Results
CBaySystems Holdings Limited (AIM: CBAY), a leading provider of
technology-enabled clinical documentation, is pleased to announce its results
for the second quarter and half year ended June 30, 2010.
All amounts in this announcement are expressed in United States dollars unless
otherwise stated.
On April 22, 2010, the Company through its subsidiaries, MedQuist and CBay Inc.
("Purchasers"), completed the acquisition ("Acquisition")of substantially all of
the assets of Spheris, Inc. ("Spheris") out of bankruptcy and certain of its
affiliates including the acquisition of the stock of Spheris India Private
Limited ("SIPL") (collectively with Spheris and SIPL "the Sellers"), pursuant to
the terms of the Stock and Asset Purchase Agreement entered into between the
Purchasers and Sellers on April 15, 2010. The financial statements for the
second quarter and the six months ended June 30, 2010 include the results of the
Acquisition from April 22, 2010.
The Acquisition provided the Company with an expanded client base, extensive
operations in both the US and India, and a team of talented executives. The
Company has already begun to realize benefits from the Acquisition, including
the rationalization and integration of Spheris with its MedQuist and CBay
operations. The full benefit of the acquisition and integration, however, is
not expected to be realized until late 2010 or early 2011. Further, it must be
noted that the Company may experience continued reductions in post-acquisition
revenues from the former Spheris customer base through to the end of 2010, as
CBay incurs the lag effect of customer attrition experienced during 2009 and
early 2010, in large part due to the adverse impact of Spheris' deteriorating
financial condition.
Second Quarter Results
Net revenues for the three months ended June 30, 2010 increased $18.1 million or
19.3% to $112.0 million compared to $93.9 million for the three months ended
June 30, 2009. The Acquisition contributed $26.4 million in incremental revenue
for both the three months and six months ended June 30, 2010, which was offset
by value-based price reductions and lower product and field service revenues.
Total operating costs and expenses increased by 21.3% to $108.2 million, from
$89.2 million reported in the second quarter of the prior year, primarily due to
the inclusion of Spheris' operating costs, and Acquisition related costs of $5.1
million. Also included in second quarter costs and expenses were legal
proceedings and settlement expenses and restructuring charges amounting to $1.1
million and $0.9 million, respectively.
Adjusted EBITDA for the second quarter of 2010 increased by 33.1% to $19.7
million, compared to $14.8 million for the second quarter of 2009. The Company's
improved operating performance during the second quarter of 2010 reflects CBay's
ability to provide an attractive value proposition to the Company's clients,
increased use of technology, expanded use of offshore labor, and the Company's
progress in the integration of Spheris. (For more information regarding
Adjusted EBITDA and our use of this non-GAAP financial measure, please refer to
the section titled "Use of non-GAAP Financial Information").
Interest expense for the three months ended June 30, 2010 increased by $3.1
million to $5.5 million, primarily due to the debt incurred by MedQuist to
finance the Acquisition. The Company is currently exploring the refinancing of
its' and its' subsidiaries debt.
The Company incurred a second quarter 2010 loss attributable to CBaySystems
Holdings Limited of $1.5 million compared to net income attributable to
CBaySystems Holdings Limited of $0.4 million for the comparable period of the
prior year.
Year-to-Date Results
Net revenues for the six months ended June 30, 2010 increased by $12.1 million
to $200.6 million, compared to $188.5 million for the six months ended June 30,
2009. The $26.4 million of incremental revenue from Spheris since the
Acquisition was offset by value-based price reductions and lower product and
field service revenues. Adjusted EBITDA increased $5.7 million to $33.7
million, compared to $28.0 million in the comparable period. Net income
attributable to CBaySystems Holdings Limited for the six-months was $0.5 million
compared to a net loss attributable to CBaySystems Holdings Limited of $2.8
million reported in the second quarter of the prior year.
Use of non-GAAP Financial Information
Adjusted EBITDA is net income (loss) excluding taxes, interest, equity in income
of affiliated companies, depreciation, amortization, cost of legal proceedings
and settlements, acquisition and integration related charges, restructuring
charges and certain non-recurring accrual reversals. See below for a
reconciliation of GAAP financial measures to Adjusted EBITDA.
For further information please visit www.cbaysystems.com or contact:
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| CBaySystems Holdings Limited | |
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| Raman Kumar, Vice Chairman and CEO | Tel: +91 22 6641 7575 |
| Clyde Swoger, Chief Financial | |
| Officer | |
| ir@cbaysystems.com | |
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| | |
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| Strand Hanson Limited - Nominated | Tel: +44 (0) 20 7409 3494 |
| Adviser | |
| Rory Murphy | |
| Liam Buswell | |
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| | |
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| Buchanan Communications | |
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| Mark Court / Suzanne Brocks | Tel: +44 (0) 20 7466 |
| markc@buchanan.uk.com | 5000 |
| suzanneb@buchanan.uk.com | |
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| | |
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About CBaySystems Holdings
CBaySystems Holdings Limited is a leading provider of technology-enabled
clinical documentation services and related revenue cycle solutions. CBay serves
healthcare providers with a broad range of solutions including voice capture and
automated speech recognition solutions, medical transcription, document
management, billing, and coding services. These services are provided to more
than 2,400 health systems, hospitals and physician practices throughout the
United States. The Company's services enable customers to improve the quality
and timeliness of clinical data and information, reduce operational costs,
increase physician satisfaction, enhance revenue cycle performance and
facilitate the adoption and utilization of Electronic Health Record (EHR)
systems.
CBay is composed of a portfolio of businesses , including CBay Systems &
Services Inc., CBay Systems (India) Private Ltd, Spheris India Private Ltd.,
Mirrus Systems Inc. and a majority shareholding of approximately 69.5% in
MedQuist Inc. ("MedQuist"). CBay trades under the CBAY symbol on the AIM of the
London Stock Exchange, while MedQuist trades under the MEDQ symbol on the
NASDAQ.
The information contained herein is not for publication or distribution in the
United States of America. These materials do not contain or constitute an offer
of securities for sale in the United States. The ordinary shares of the Company
have not been, and will not be, registered under the US Securities Act or under
the securities laws of any state of the United States, and are "restricted
securities" as defined in Rule 144 under the US Securities Act. For so long as
the ordinary shares are "restricted securities" as defined in Rule 144 under
the US Securities Act, a purchaser of ordinary shares may not re-offer, re-sell,
pledge or otherwise transfer ordinary shares except: (i) pursuant to an
effective registration statement under the US Securities Act, (ii) pursuant to a
transaction meeting the requirements of Regulation S under the US Securities
Act; (iii) to a "qualified institutional buyer" as defined in, and in reliance
on, Rule 144A under the US Securities Act; or (iv) pursuant to an exemption from
the registration requirements of the US Securities Act provided by Rule 144
there under or another exemption there from (if available), provided that, in
the case of a transfer pursuant to (iv) the transferor must deliver an opinion
of counsel in form and substance reasonably satisfactory to the Company as to
the availability of such exemption. Pursuant to the Company's memorandum and
articles of association, the Company is required to refuse to register any
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