A.D.A.M., Inc. Reports Record Results for Third Quarter 2005; Revenues up 19%, Adjusted Net Income Doubles.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: 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 its third quarter ended September September: see month. 30, 2005. Revenues for the third quarter were $2,720,000, an increase of 19% compared to $2,278,000 in the year-ago period. Net income for the third quarter of 2005 was $6,412,000 or $0.67 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 after the effect of an income tax benefit as described below. Adjusted net income for the third quarter of 2005, which excludes the effect of this tax benefit, was $812,000, or $0.09 per share on a fully diluted basis, compared to net income of $405,000, or $0.05 per share on a fully diluted basis, in the same period of 2004, an increase to net income of 100%. Historically, A.D.A.M. has fully reserved its deferred tax assets, which are mostly a result of net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. tax carry-forwards. During the third quarter ended September 30, 2005, A.D.A.M. concluded that it is more likely than not that some portion of the deferred tax assets will be realized. Consequently, a credit to income taxes of $5,600,000 or $0.59 per share on a fully diluted basis has been recorded. This credit is included in net income in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). but is excluded from what we refer to as adjusted net income for comparative purposes. "We are pleased with excellent growth in our revenues, expanding operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and our ability to generate cash," said Robert S Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . Cramer Cramer in English, a surname, is commonly pronounced ['kɹeɪ.mə(ɹ)], and is from the German surname Krämer which also means "Kleinhändler"[1] , Jr., A.D.A.M.'s Chairman and chief executive officer. "We continue to believe we are in a strong position to provide the health information and decision support solutions that our health plan, employer and distribution partners need to compete in the rapidly changing landscape of the consumer driven healthcare marketplace." Kevin KEVIN Keepers of the Eternal Vigilance of the Islamic Nation (fictional, from White Teeth by Zadie Smith) S. Noland Noland may refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , added, "Third quarter results show strong year over year improvement without the benefit of several new distribution agreements we signed late in the quarter. We see these types of indirect sales relationships as excellent revenue and margin enhancers and look forward to additional opportunities for distribution we currently have in the pipeline." Nine-Months 2005 Results For the nine-month period ended September 30, 2005, revenues were $7,547,000, up 27% from $5,962,000 for the same period last year. Adjusted net income for the nine-month period ended September 30, 2005 was $1,967,000, or $0.21 on a fully diluted basis, as compared to $945,000, or $0.11 on a fully diluted basis, for the same period of 2004, an increase of 108%. Third Quarter 2005 Revenue Highlights For the third quarter ended September 30, 2005, revenues from the healthcare market increased $198,000, or 13%, to $1,767,000 compared to $1,569,000 in the year-ago period. Revenues during the third quarter of 2005 from the education market increased $247,000, or 61%, to $654,000 compared to $407,000 in the same period of 2004. The increase in education revenues was primarily attributable to increased sales of A.D.A.M. Interactive Anatomy anatomy (ənăt`əmē), branch of biology concerned with the study of body structure of various organisms, including humans. Comparative anatomy is concerned with the structural differences of plant and animal forms. 4.0, A.D.A.M.'s flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. for education. Balance Sheet Highlights As of September 30, 2005, A.D.A.M.'s cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments totaled $10,020,000, an increase of $4,052,000 from December December: see month. 31, 2004. Capital expenditures through the third quarter of 2005 were approximately $500,000. Deferred revenue as of September 30, 2005 was $3,619,000 as compared to $2,854,000 as of September 30, 2004, an increase of approximately 27%. Conference Call Information A.D.A.M. will hold its third quarter earnings conference call today, November November: see month. 1, 2005, at 10:00 A.M. ET. To participate in the call, please dial (800) 731-2911 approximately five minutes prior to the start time. International callers may dial (303) 957-1333. 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, 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.
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
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Revenues, net $2,720 $2,278 $7,547 $5,962
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Operating costs and expenses
Cost of revenues (exclusive
of depreciation shown
below) 452 457 1,424 1,185
General and administrative 560 508 1,755 1,346
Product and content
development 441 382 1,103 941
Sales and marketing 509 405 1,363 1,153
Depreciation and
amortization 47 146 138 443
----------------------------------------
Total operating costs and
expenses 2,009 1,898 5,783 5,068
----------------------------------------
Operating income 711 380 1,764 894
Interest income, net 101 25 203 51
----------------------------------------
Income before taxes 812 405 1,967 945
----------------------------------------
Income tax benefit 5,600 - 5,600 -
----------------------------------------
Net Income $6,412 $405 $7,567 $945
========================================
Basic net income per common
share $0.79 $0.05 $0.94 $0.12
========================================
Basic weighted average number
of common shares outstanding 8,168 7,904 8,084 7,881
========================================
Diluted net income per common
share $0.67 $0.05 $0.80 $0.11
========================================
Diluted weighted average
number of common shares
outstanding 9,533 8,735 9,422 8,649
========================================
Summary Balance Sheet Data
----------------------------
9/30/2005 12/31/2004
-------------------------
Cash and short-term investments $10,020 $5,968
Accounts receivable-net 1,563 2,112
Current portion of deferred tax asset 794 -
Total current assets 13,032 8,624
Deferred tax asset, net of current portion 4,806 -
Goodwill 2,043 2,043
Total assets 21,231 13,244
Deferred revenue 3,619 3,615
Short term debt 19 17
Total current liabilities 4,310 4,358
Total liabilities 4,333 4,395
Shareholders' equity 16,898 8,849
Working capital 8,722 4,266
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