Alliance HealthCard Reports Fiscal 2002 Results.Business Editors/Health/Medical Writers ATLANTA--(BUSINESS WIRE)--Dec. 9, 2002 Alliance HealthCard (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : ALHC ALHC American Lindy Hop Championships (swing dancing competition) ALHC Associate, Life & Health Claims ) today reported its unaudited results for its fourth quarter and fiscal year ended September September: see month. 30, 2002. Robert 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. D. Garces, Chairman and Chief Executive Officer, announced that Alliance ended its fiscal year with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 180,000 health benefits cards outstanding, an increase of nearly 178,000 from September 30, 2001. "Alliance has achieved significant card growth as a result of its ability to win major accounts such as State Farm Mutual Automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of Insurance Company and Bankers Fidelity Fidelity is a notion that at its most abstract level implies a truthful connection to a source or sources. Its original meaning dealt with loyalty and attentiveness to one's duty to a lord or a king, in a broader sense than the related concept of fealty. Life Insurance. At the same time, we have realized card growth under our contract with CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. Pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , Inc. Based upon the month September, 2002, our revenue run rate was in excess of $3,500,000." As of December December: see month. 9, the Company had approximately 267,000 cards outstanding. Conference Call The Company will host its earnings conference call on Tuesday Tuesday: see week. , December 10, at 4 pm EST EST electroshock therapy. EST abbr. electroshock therapy . If you wish to participate, please call (800) 992-7413 at least ten minutes before the conference call is scheduled to begin. The password A secret word or code used to serve as a security measure against unauthorized access to data. It is normally managed by the operating system or DBMS. However, the computer can only verify the legitimacy of the password, not the legitimacy of the user. See NCSC. for the call is "Alliance HealthCard." A replay of the conference call will be available until midnight EST December 24. Callers should dial (800) 839-0860 and enter 1208 as the PIN to hear the replay. Fourth Quarter Results Net revenues for the Company increased from $14,809 for the three months ended September 30, 2001 to $810,769 for the three months ended September 30, 2002. The increase in cards issued under the CVS Pharmacy, Inc. and State Farm Mutual Automobile Insurance Company contracts accounted for the revenue increase for the quarter. Gross profit increased $498,370 to $445,355 for the three months ended September 30, 2002 from a loss of $53,015 for the comparable 2001 period. The increase in gross profit was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in net revenues from the CVS contract plus a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expense reduction associated with a credit issued by a Company vendor. The vendor credits were for customer service expenses associated with a CVS direct mail campaign incurred during the prior three quarters. Marketing and sales expenses increased to $280,632 for the fourth quarter from $43,424 in the same prior year period primarily due to additional cards issued under the CVS contract and the resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials increased royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. expense. General and administrative expenses increased to $484,640 for the three months ended September 30, 2002 from $229,822 in the same prior year period. The increase of $254,818 was attributable to the following: (a) an increase in compensation expense; (b) an increase in general office expenses and (c) an increase in credit card fees and postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. for card administration. Interest expense decreased to $2,106 for the three months ended September 30, 2002 from the same prior year quarter because of a credit adjustment to the Company's line of credit. The Company reported a net loss of $322,023 for the three months ended September 30, 2002 compared to a loss of $331,128 for the same prior year period. The decrease of $9,105 resulted from the increase in gross profits related to the CVS and State Farm contracts that was nearly offset by the increase in marketing and sales, and general administrative expenses as mentioned above. Fiscal Year Ended September 30, 2002 Results Net revenues for the company increased $1,360,061 to $1,384,830 for the year ending September 30, 2002 from $24,769 for the same prior year period. The increase was primarily the result of an increase in membership cards related to the CVS and State Farm contracts. Gross profit increased $465,355 to $361,038 for the year ended 2002 from a loss of $104,317 for the same prior year. The increase in gross profit is principally attributable to an increase in net revenues from the CVS contract. Marketing and sales expenses increased $527,054 to $623,340 for the year ending September 30, 2002 from $96,286 for the year ending September 30, 2001 principally as a result of the additional cards outstanding under the CVS contract that resulted in higher royalty expense. General and administrative expenses increased to $1,350,575 for the year ending September 30, 2002 from $752,625 in the prior year. The increase of $597,950 is attributable to the following: (a) an increase in compensation expense for additional personnel; (b) an increase in credit card fees and postage for card administration; (c) an increase in general office expenses including rent, telephone and other office expenses associated with personnel additions and the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of the Company to larger office space. Other income decreased for the year ending September 30, 2002 as a result of a decline in consulting fees received for certain Company personnel who performed services for an affiliated af·fil·i·ate v. af·fil·i·at·ed, af·fil·i·at·ing, af·fil·i·ates v.tr. 1. To adopt or accept as a member, subordinate associate, or branch: Company. Interest expense decreased for the year as a result of a lower average outstanding principal balance on the Company's line of credit. The Company reported a net loss of $1,632,811 in 2002 compared to a net loss of $978,596 for the prior year. The increase in the net loss is principally a result of the increase in general and administrative expenses related to the abovementioned a·bove·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. additional personnel, card administration expenses and general office expenses incurred to continue to develop the infrastructure of the Company to support expected growth. Outlook We expect to be profitable in the third fiscal quarter of 2003 if our pipeline business closes and comes on stream on the dates anticipated and on the budgets for implementation. Alliance is still an emerging company and very sensitive to the timing of new business implementations and staying on their fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. budgets, especially accounts bringing a large number of new cardholders such as State Farm and Bankers Fidelity. Similarly, this outlook anticipates the timely and successful implementation of the Company's new product for workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. funds. 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. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements. This press release contains forward-looking statements regarding the intent, belief or current expectations of the Company and members of its senior management team. While the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Factors that would cause actual results to differ materially from those contemplated within this press release include, but are not limited to, those associated with general business conditions; client concentration; dependence on network providers; the timely and efficient implementation of customer contracts; developments in health care reform and other 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. issues and changes in laws and regulations in key states where the Company operates; future capital needs; control by directors and officers; and the loss of key management personnel. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements contained herein to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date of this release or to reflect the occurrence of unanticipated events.
Alliance HealthCard, Inc.
Statements of Operations
Three Months Ending Twelve Months Ending
September 30, September 30,
------------------------- -------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Net revenues $ 810,769 $ 14,809 $ 1,384,830 $ 24,769
Direct costs 365,414 67,824 1,023,792 129,086
------------ ------------ ------------ ------------
Gross Profit 445,355 (53,015) 361,038 (104,317)
Marketing and sales
expenses 280,632 43,424 623,340 96,286
General and
administrative
expenses 484,640 229,822 1,350,575 752,625
------------ ------------ ------------ ------------
Operating loss (319,917) (326,261) (1,612,877) (953,228)
Other income
(expense):
Other - - - 5,156
Interest, net (2,106) (4,867) (19,934) (30,524)
------------ ------------ ------------ ------------
(2,106) (4,867) (19,934) (25,368)
------------ ------------ ------------ ------------
Net loss $ (322,023) $ (331,128) $(1,632,811) $ (978,596)
============ ============ ============ ============
Per share data:
Basic loss $ (0.07) $ (0.09) $ (0.39) $ (0.27)
============ ============ ============ ============
Diluted loss $ (0.07) $ (0.09) $ (0.39) $ (0.27)
============ ============ ============ ============
Basic and diluted
weighted average
shares outstanding 4,347,858 3,831,972 4,179,405 3,681,421
============ ============ ============ ============
Alliance HealthCard, Inc.
Balance Sheets
September 30,
--------------------------
2002 2001
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 1,175,945 $ 175,631
Accounts receivable, net 908,259 59,985
Prepaid expenses and other
current assets 536,830 19,475
------------ ------------
Total current assets 2,621,034 255,091
Furniture and equipment, net 38,778 32,875
Other assets 10,249 -
------------ ------------
Total assets $ 2,670,061 $ 287,966
============ ============
Liabilities and stockholders' equity
Current Liabilities
Accounts payable $ 1,305,228 $ 54,863
Accrued salaries and benefits 115,153 36,342
Deferred revenue 1,678,870 -
Other accrued liabilities 117,656 125,311
Notes payable 654,172 305,000
Current portion of capital lease
obligations 11,193 11,421
------------ ------------
Total current liabilities 3,882,272 532,937
Capital lease obligation 4,250 14,294
Commitments
Stockholders' equity:
Common stock, $.001 par value;
100,000,000 shares authorized;
4,428,896 shares issued and outstanding
at September 30, 2002 and 3,945,919
shares issued and outstanding at
September 30, 2001 2,227 1,747
Additional paid-in-capital 2,792,907 2,117,772
Accumulated deficit (4,011,595) (2,378,784)
------------ ------------
Total stockholders' equity (1,216,461) (259,265)
------------ ------------
Total liabilities and stockholders'
equity $ 2,670,061 $ 287,966
============ ============
Alliance HealthCard, Inc.
Statements of Cash Flows
For The Year Ending
September 30,
---------------------------
2002 2001
------------ ------------
Cash flows from operating activities
Net loss $(1,632,811) $ (978,596)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 21,348 15,467
Stock issued in connection with
employment services 40,000 -
Change in operating assets and
liabilities:
Accounts receivable (848,274) (56,486)
Prepaid expenses (517,355) (12,080)
Deposits (10,249) 4,637
Accounts payable 1,250,365 45,639
Accrued wages 78,811 (71,422)
Other accrued expenses 1,671,215 97,929
------------ ------------
Net cash provided by (used in) operating
activities 53,050 (954,912)
------------ ------------
Cash flows from investing activities
Purchase of equipment (27,251) (16,435)
------------ ------------
Net cash used in investing activities (27,251) (16,435)
------------ ------------
Cash flows from financing activities
Borrowings (repayments) from short-term
debt 349,172 (45,000)
Sale of stock and other issuances 635,615 1,077,409
Repayments of capital lease obligations (10,272) (622)
------------ ------------
Net cash provided by financing activities 974,515 1,031,787
------------ ------------
Net increase in cash 1,000,314 60,440
Cash at beginning of period 175,631 115,191
------------ ------------
Cash at end of period $ 1,175,945 $ 175,631
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