A.D.A.M., Inc. Announces Fourth Quarter and Year End 2005 Financial Results; A.D.A.M. Reports Record Revenues and Net Income.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- A.D.A.M., Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADAM Adam, the first man, in the Bible Adam (ăd`əm), [Heb.,=man], in the Bible, the first man. In the Book of Genesis, God creates humankind in his image as a species of male and female, giving them dominion over other life. ) today announced financial results for the fourth quarter and year ended December December: see month. 31, 2005. Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) Noland Noland may refer to:
"Furthermore, the investments we are making in our consumer health and wellness platform coupled with newly established distribution partnerships will allow us to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the new trends emerging in care management and consumer driven healthcare that are of critical importance to employers and health plans." Financial highlights for the fourth quarter and year include: --Net income for the year ended December 31, 2005 was $7,062,000 or $0.75 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to net income of $1,621,000, or $0.19 per share on a fully diluted basis, for the year ended December 31, 2004. Net income for the year ended December 31, 2005 includes a $5,500,000 tax benefit. --Revenues for the year ended December 31, 2005 were $10,054,000 as compared to $8,433,000 for the year ago period, a 19% increase. Revenues for the fourth quarter ended December 31, 2005 were $2,507,000 as compared to $2,471,000 in the year ago period. Fourth quarter revenues were impacted by educational sales that were lower than the year ago period. --Excluding the effect of the net income tax benefit of $5,500,000, offset by $644,000 in non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. related to stock option expense for the year, and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. payments of $356,000 related to executive compensation and the settlement of a legal matter, income for the year ended December 31, 2005 would have been $2,562,000 or $0.27 per share on a fully diluted basis, a 58% earnings growth as compared to last year's earnings that contained no tax benefit, stock compensation expense or significant one-time charges. --Net loss for the fourth quarter ended December 31, 2005 was ($505,000) or ($0.05) per share on a fully diluted basis as compared to net income of $676,000 or $0.08 per share on a fully diluted basis for the year ago period. Adjusted income for the fourth quarter was $436,000 or $0.05 per share on a fully diluted basis. Adjusted income excludes $485,000 in non-cash charges related to stock compensation expense, income tax expense of $100,000, and one-time payments of $100,000 and $256,000 for the settlement of a legal matter and executive compensation, respectively. --The Company's cash and investments grew to $10,677,000 as of December 31, 2005 as compared to $6,968,000 at December 31, 2004, an increase of $3,709,000. Operating highlights for the fourth quarter and year include: --Operating margin for the year ended December 31, 2005, excluding $644,000 in non-cash stock compensation charges, was 19% as compared to 18% for the year ago period that included no stock compensation expense. --The Company achieved approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. a 90% renewal rate on its contracted dollars for the year ended December 31, 2005. --During 2005, education revenues increased 35% as compared to 2004. Licensing revenues increased approximately 16% during 2005 compared to 2004 and represent approximately 76% of the company's total revenues. --A.D.A.M. strengthened its position in the health plan market, a key growth area for the company, by adding several new clients and distribution partners. During 2005, revenues into this market increased 64% over 2004. --A.D.A.M. also expanded its portfolio of products, including the addition of a health and wellness portal aimed at consumers and QuickSheets, an application used by clinicians for patient education. Conference Call Information A.D.A.M. will hold its fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. earnings conference call today, March 14, 2006, at 10:00 A.M. ET. To participate in the call, please dial (877) 829-1394 approximately five minutes prior to the start time. International callers may dial (706) 679-8134. About A.D.A.M., Inc. For more than a decade, A.D.A.M.'s unique, visually engaging online health content, decision support tools and educational products, have been helping millions of people get the information they need to better understand and make good decisions about their health and wellness. With one of the largest consumer-oriented medical information libraries in the world, A.D.A.M. markets its solutions to leading healthcare organizations, government, employers, and educational institutions. To learn more about A.D.A.M., visit www.adam.com or call 1-800-408-ADAM. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements, especially revenue, net income and cash flow forecasts, involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors that could affect the company's actual results, performance or developments include general economic conditions, development of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the as a source of health information, pricing actions taken by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , demand for the company's health information, and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes in laws and regulations that impact how the company conducts its business. A.D.A.M. disclaims any obligation or duty to update any of its forward-looking statements.
(In thousands, except per share data)
Three Months Ended
December 31, December 31,
2005 2004
------------ ------------
Revenues, net $ 2,507 $ 2,471
------------ ------------
Operating costs and expenses
Cost of revenues (exclusive of depreciation
shown below) 639 532
General and administrative 1,341 345
Product and content development 353 380
Sales and marketing 602 450
Depreciation and amortization 47 119
------------ ------------
Total operating costs and expenses 2,982 1,826
------------ ------------
Operating income (475) 645
Interest income, net 110 31
Loss on sale of investment (40) -
------------ ------------
Income before taxes (405) 676
------------ ------------
Income tax benefit (100) -
------------ ------------
Net Income $ (505) $ 676
============ ============
Basic net income per common share $ (.06) $ 0.09
============ ============
Basic weighted average number of common
shares outstanding 8,183 7,871
============ ============
Diluted net income per common share $ (.05) $ 0.07
============ ============
Diluted weighted average number of common
shares outstanding 9,671 9,045
============ ============
Twelve Months Ended
December 31, December 31,
2005 2004
Revenues, net $ 10,054 $ 8,433
------------ ------------
Operating costs and expenses
Cost of revenues (exclusive of depreciation
shown below) 2,063 1,717
General and administrative 3,096 1,691
Product and content development 1,456 1,321
Sales and marketing 1,965 1,603
Depreciation and amortization 185 562
------------ ------------
Total operating costs and expenses 8,765 6,894
------------ ------------
Operating income 1,289 1,539
Interest income, net 313 82
Loss on sale of investment (40) -
------------ ------------
Income before taxes 1,562 1,621
------------ ------------
Income tax benefit 5,500 -
------------ ------------
Net Income $ 7,062 $ 1,621
============ ============
Basic net income per common share $ 0.87 $ 0.21
============ ============
Basic weighted average number of common
shares outstanding 8,108 7,879
============ ============
Diluted net income per common share $ 0.75 $ 0.19
============ ============
Diluted weighted average number of common
shares outstanding 9,468 8,742
============ ============
Summary Balance Sheet Data
--------------------------
12/31/2005 12/31/2004
----------- ------------
Cash and short-term investments $10,677 $5,968
Accounts receivable-net 1,840 2,112
Current portion of deferred tax asset 221 -
Total current assets 13,294 8,624
Deferred tax asset, net of current portion 5,279 -
Goodwill 2,043 2,043
Total assets 21,880 13,244
Deferred revenue 3,643 3,615
Short term debt 20 17
Total current liabilities 4,718 4,358
Total liabilities 4,736 4,395
Shareholders' equity 17,144 8,849
Working capital 8,576 4,266
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