Medical Manager and CareInsite in Discussions With Strategic Partners; Medical Manager Announces Fourth Quarter and Year-end Results.ELMWOOD PARK Elmwood Park, village (1990 pop. 23,206), Cook co., NE Ill., a suburb of Chicago; inc. 1914. It is chiefly residential. , N.J.--(BUSINESS WIRE)--August 24, 1999-- Recently Acquired Medical Manager Health Systems Subsidiary to Restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state Six Month Results Medical Manager Corporation (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 : MMGR MMGR Medical Manager MMGR Metalliferous Mines General Regulations ), formerly Synetic Synetic GmbH is a German video game company specialising in racing games. The company was founded in 1996 in Gütersloh by 5 former members of Ascaron. All 5 original members are still working for the company. , Inc., announced today financial results for the quarter and year ended June June: see month. 30, 1999, exclusive of results for its recently acquired subsidiary Medical Manager Health Systems, Inc. (formerly Medical Manager Corporation or "MMHS MMHS Milliken Mills High School MMHS Martin Memorial Health Systems MMHS Military Message Handling System MMHS Mark Morris High School (Washington) MMHS Mira Mesa High School (California) "). As previously announced, Synetic, Inc. and Medical Manager Corporation completed a merger, accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. transaction, effective July July: see month. 23, 1999 and the name of Synetic was changed to Medical Manager Corporation. As required by accounting rules, combined results reflecting the merger will be presented after the issuance of post-combination results for the quarter ended September September: see month. 30, 1999. Effective today, Medical Manager will trade under the symbol "MMGR". The Company now operates three lines of business: physician practice management information systems through its recently acquired subsidiary Medical Manager Health Systems; healthcare electronic commerce through its 72% owned subsidiary CareInsite, Inc. (NASDAQ:CARI CARI Consejo Argentino para las Relaciones Internacionales (French) CARI Canadian Association of Recycling Industries CARI Central Agricultural Research Institute (Sri Lanka) ); and plastics and filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids technologies through Porex Corporation. The Company's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the three months ended June 30, 1999, excluding the MMHS subsidiary, were $31,434,000, as compared to $18,235,000 in the prior year, an increase of 72%. Excluding an after-tax charge of $958,000 or $0.04 per share relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expenses, net income for the quarter was $1,092,000 or $0.04 per share, as compared to $2,883,000 or $0.14 per share in the prior year. Net sales for the year ended June 30, 1999, excluding the MMHS subsidiary, were $100,164,000, as compared to $64,945,000 in the prior year, an increase of 54%. Excluding the effect of after-tax charges of $2,586,000 or $0.12 per share relating to litigation expenses and $1,524,000 or $0.07 per share related to a previously announced one-time write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software costs resulting from the transaction with Cerner Corporation which was completed in January 1999, net income for the year was $6,497,000 or $0.30 per share, as compared to $9,044,000 or $0.46 per share in the prior year. The decrease in net income and earnings per share reflects the increased investment in the development of CareInsite's business. These results do not include any merger-related expenses related to the acquisition of the Company's MMHS subsidiary, which the Company expects to recognize in the first quarter of fiscal year 2000. The Company announced that it will restate the previously reported pre-acquisition results of MMHS for the three months ended March 31, 1999 (unaudited) and three months ended June 30, 1999 (unaudited). The Company determined that the accounting treatment previously accorded to five transactions involving the bulk sale of software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. entered into concurrently with business combinations and other related transactions should be restated to reflect the software license revenue as a reduction of the acquisition price of the related transactions. These transactions represented $5,532,000 of revenue and $3,502,000 of net income for the six months ended June 30, 1999, of which $2,766,000 of revenue and $1,706,000 of net income are attributable to the three months ended March 31, 1999 and $2,766,000 of revenue and $1,796,000 of net income are attributable to the three months ended June 30, 1999. The Company also noted that it completed a review for significant similar sales transactions for the years ended December 31, 1998 and 1997 and concluded that no adjustments to these periods were necessary. The Company reviewed its conclusions with MMHS's independent public accountants, PricewaterhouseCoopers LLP LLP - Lower Layer Protocol , in connection with the audit of the MMHS financial statements for each of the fiscal years ended June 30, 1999 and 1998. Commenting on the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. , Martin J. Wygod, Chairman of Medical Manager Corporation, said, "Since first being advised of this accounting issue late Friday by the senior management of the acquired business, we have spent the last three days reviewing the situation with both MMHS senior management and their independent public accountants. We have concluded that changing the accounting treatment for these transactions is necessary." Mr. Wygod stated, "The principal benefits of the Medical Manager merger remain unchanged. Medical Manager's strategic relationship with physicians is an extremely valuable asset as our economy is rapidly transforming towards e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. . CareInsite's innovative services and Medical Manager's strong presence in the physician marketplace is a powerful strategic combination which creates significant competitive advantages and opportunities for the new combined company. We anticipate being in a position to further demonstrate this by announcing key strategic transactions in the coming weeks." Mr. Wygod stated, "CareInsite is in advanced stages of negotiations regarding certain key strategic transactions which the Company anticipates will be finalized See finalization. within the next two weeks. These strategic transactions will substantially strengthen Medical Manager's position with physicians and CareInsite's relationships with key payers and trading partners. Medical Manager believes that these transactions, if consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. , together with other significant initiatives underway at Medical Manager, will materially benefit Medical Manager, as well as CareInsite." Medical Manager cautioned that there can be no assurances that these transactions will be completed. In commenting on the fourth quarter and year-end results for CareInsite, Mr. Wygod said, "In addition to the successful completion of CareInsite's initial public offering, we continued to strengthen our foothold foot·hold n. 1. A place providing support for the foot in climbing or standing. 2. A firm or secure position that provides a base for further advancement. foothold Noun 1. in the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. as well as build our regional presence with national payers. During the quarter, contracts were signed with Horizon Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of New Jersey, Caremark, National Prescription Administrators NPA was formed in 1977 as a privately held full-service PBM. The company grew to become a leading provider for labor unions and government groups in the northeast United States. Express Scripts acquired NPA on April 22, 2002. and Prudential Prudential is the name of two different companies and buildings named after them: Companies:
For the year ended June 30, 1999, the Company also noted that its plastics and filtration technologies subsidiary, Porex Corporation, reported an increase in pre-tax income of 38% over the prior year. During the year, Porex acquired Point Plastics, a manufacturer of high-volume disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. plastic products and the KippGroup, a designer, developer and manufacturer of high performance plastic injection molds and injection molded mold 1 n. 1. A hollow form or matrix for shaping a fluid or plastic substance. 2. A frame or model around or on which something is formed or shaped. 3. Something that is made in or shaped on a mold. plastic products for the medical device industry. This acquisition of KippGroup provided the foundation for Porex's new Medical Products Group which complements its existing divisions, the Porous porous /por·ous/ (por´us) penetrated by pores and open spaces. po·rous adj. 1. Full of or having pores. 2. Admitting the passage of gas or liquid through pores. Products Group, the Bio Products Group and the Surgical Products Group. Due to the vertically integrated nature of the KippGroup's business, there are unique opportunities in cross-marketing and distribution to the other businesses within Porex. Commenting on Porex, Mr. Wygod said, "Reorganizing Porex into four distinct product groups provides diverse product innovation, cross-marketing opportunities, vast technological resources, and extensive customer service. Porex continues to focus on identifying new opportunities both in the U.S. and internationally. Multinational medical and pharmaceutical companies can now buy from the company across the four business groups on a global basis. Porex's sales and acquisition pipeline is active and we expect to see continued growth in fiscal year 2000." A report on Medical Manager's financial results for the quarter and fiscal year ended June 30, 1999 is as follows: -0-
MEDICAL MANAGER CORPORATION
SUMMARY FINANCIAL INFORMATION
JUNE 30, 1999
IN THOUSANDS, EXCEPT PER SHARE DATA
(Excludes Medical Manager Health Systems, Inc.)
Three Months Ended Year Ended
June 30, June 30,
1999(a)(c) 1998 1999(b)(c) 1998
---- ---- ---- ----
Net revenues $31,434 $18,235 $100,164 $64,945
Income/(loss) before
provision for
income taxes:
Porex 6,895 5,772 24,880 18,018
CareInsite (5,293) (2,545) (20,010) (10,335)
Corporate and
other (165) 1,380 1,337 7,149
----------- -------- --------- ---------
1,437 4,607 6,207 14,832
Provision for
income taxes 1,303 1,724 3,820 5,788
----------- -------- --------- --------
Net income $ 134 $ 2,883 $ 2,387 $ 9,044
-------- -------- -------- --------
Income per share -
basic $ 0.01 $ 0.16 $ 0.12 $ 0.51
Income per share -
diluted $ 0.01 $ 0.14 $ 0.11 $ 0.46
Weighted average
shares outstanding
- basic 20,552 17,727 19,370 17,671
Weighted average
shares outstanding
- diluted 24,490 20,659 21,942 19,834
(a) The three months ended June 30, 1999 for CareInsite includes
charges related to the litigation with Merck & Co., Inc. and
Merck-Medco Managed Care, L.L.C. of $1,800 pre-tax and $958
after-tax. This amount represents an $0.05 per share (basic) and
$0.04 per share (diluted) charge for the three months ended June
30, 1999.
(b) The year ended June 30, 1999 for CareInsite includes charges
related to the litigation with Merck & Co., Inc. and Merck-Medco
Managed Care, L.L.C. of $4,300 pre-tax and $2,586 after-tax. This
amount represents a $0.13 per share (basic) and $0.12 per share
(diluted) charge for the year ended June 30, 1999. The year ended
June 30, 1999 for CareInsite also includes the previously
announced one time write-off of capitalized software costs
resulting from a transaction with Cerner Corporation of $2,381
pre-tax and $1,524 after-tax or $.08 per share (basic) and $.07
per share (diluted).
(c) Net revenues for the three months and year ended June 30, 1999
include $12,537 and $31,086, respectively, related to the
combined revenues of Point Plastics and the KippGroup
acquisitions for which there were no sales in the comparable
prior year periods.
A report on Medical Manager Health System's financial results for
the quarter and fiscal year ended June 30, 1999 is as follows:
MEDICAL MANAGER HEALTH SYSTEMS, INC.
(formerly Medical Manager Corporation)
SUMMARY FINANCIAL INFORMATION
JUNE 30, 1999
IN THOUSANDS, EXCEPT PER SHARE DATA
(Unaudited)
Three Months Ended Year Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
Before restatement $44,447 $34,608 $163,400 $119,569
After restatement 41,681 34,608 157,868 119,569
Income before income taxes:
Before restatement 8,975 7,019 29,125 21,204
After restatement 6,211 7,019 23,737 21,204
Net income:
Before restatement 5,835 4,668 18,801 13,196
After restatement 4,039 4,668 15,299 13,196
This press release contains certain forward looking statements relating to the Company's future operations, potential strategic transactions, initiatives at the Company, dealings with customers and partners, development and deployment of its products and services and external transactions. These statements are based on the Company's current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be different from those described or implied by such forward looking statements. The risks and uncertainties of the Company's businesses include, but are not limited to, product demand and market acceptance risks, costs or operational difficulties relating to integrating the businesses of the Company and Medical Manager Health Systems, the successful completion of negotiations regarding, and the consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of, strategic transactions, the feasibility of developing commercially profitable services, the effect of economic conditions, user acceptance, the impact of competitive products or services, pricing, product development, commercialization and technological difficulties, risks associated with the integration and management of acquired businesses, risks and uncertainties inherent in the outcome of certain litigation, risks and uncertainties associated with the effect of the litigation on the Company and other risks detailed in the Company's Securities and Exchange Commission filings. Further information about these matters can be found in the Company's Securities and Exchange Commission filings. The Company expressly disclaims any intent or obligation to update these forward looking statements. |
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