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MEDIC ANNOUNCES THIRD QUARTER EARNINGS

 RALEIGH, N.C., Oct. 20 /PRNewswire/ -- Medic Computer Systems, Inc. (NASDAQ: MCSY) announced today the results of its third quarter and the nine months ended Sept. 30, 1993.
 Net income for the third quarter was $1,728,000, or $.17 per share. Net income for the same period in the prior year is not comparable due to the effect of transactions relating to the Company's initial public offering of 2,875,000 shares of common stock in 1992, including a charge for the early extinguishment of long-term debt, the gain from the reduction and payoff of a capital appreciation rights obligation, the recognition as operating expenses of one-time charges, and the recognition of related tax benefits. The net effect of these transactions was an increase to earnings per share in the third quarter of 1992.
 Income from operations for the third quarter was $2,907,000 compared to a loss of $831,000 as restated for the same period in 1992 for the merger with Execu-Flow Systems, Inc. Total net revenues for the third quarter were $19,034,000 compared to $19,241,000 as restated for the same period in the prior year. The company acquired Execu-Flow in a noncash merger transaction completed on June 30, 1993. Medic issued 750,000 shares of its common stock to the shareholders of Execu-Flow in the merger. The transaction was accounted for as a pooling of interests and, accordingly, the company's financial statements have been restated to include the results of Execu-Flow for all periods presented. The loss from operations in the third quarter of 1992 reflects the recognition of the aforementioned operating expenses in the amount of $3,535,000 for one-time charges related to the company's initial public offering. Excluding the one-time charges, income from operations would have been $2,704,000.
 Net income for the nine months ended Sept. 30, 1993 was $3,943,000, or $.38 per share, which includes the net effect of a $121,000 gain from the cumulative effect of a change in accounting principle relating to income taxes, amounting to $.01 per share, the reduction of income tax expense of $492,000 resulting from the recognition of a deferred tax asset as a result of the aforementioned merger, and acquisition-related charges of $577,000. Net income for the same period in the prior year is not comparable due to the effect of transactions relating to the company's initial public offering in 1992 as discussed above.
 Income from operations for the nine months ended Sept. 30, 1993 was $6,032,000 compared to $5,116,000 as restated for the same period in 1992. Income from operations in 1993 includes charges of $577,000 relating to the Execu-Flow acquisition on June 30, 1993 and income from operations in 1992 reflects the recognition of the aforementioned operating expenses in the amount of $3,535,000 for one-time charges relating to the company's initial public offering. Total net revenues for the nine months ended Sept. 30, 1993 were $53,559,000 compared to $56,913,000 as restated for the same period in the prior year.
 Founded in 1982, Medic Computer Systems, Inc. is a Raleigh, North Carolina-based corporation that develops, markets and supports physician practice management systems. Medic is recognized as a national leader in the practice management system market and has developed an innovative product with the flexibility to adapt to changing requirements within the health care industry. Medic's core product, the +Medic System, is a comprehensive set of application software modules which provides automation for the financial, administrative and clinical functions of medical practices. Medic's products serve more than 18,000 physicians in over 4,600 practices nationwide.
 The company's AutoChart product, introduced in 1992, helps medical practices automate medical records functions and has received an enthusiastic response from providers as they seek tangible reductions in overhead and higher efficiency in their practice operations. Medic's electronic clearinghouse product, FastClaim, can increase insurance claim accuracy and improve cash flow for medical practices as the trend for electronically transferred claims increases in importance for health care providers.
 MEDIC COMPUTER SYSTEMS, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (UNAUDITED)
 (dollars in thousands, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30 Sept. 30 Sept. 30 Sept. 30
 1993 1992 1993 1992
 (restated) (restated)
 Net revenues:
 Systems $10,074 $12,539 $28,511 $36,730
 Maintenance, forms
 and other 8,960 6,702 25,048 20,183
 Total net revenues 19,034 19,241 53,559 56,913
 Cost of revenues:
 Systems 6,411 7,680 18,622 22,189
 Maintenance, forms
 and other 4,879 4,151 14,234 12,332
 Total cost of revenues 11,290 11,831 32,856 34,521
 Gross margin 7,744 7,410 20,703 22,392
 Operating expenses:
 Sales and marketing 2,190 2,321 6,522 6,924
 General and
 administrative 1,163 4,615 4,016 6,673
 Amortization of
 intangible assets 625 637 1,875 1,958
 Research and development 859 668 2,258 1,721
 Total operating expenses 4,837 8,241 14,671 17,276
 Income (loss) from
 operations 2,907 (831) 6,032 5,116
 Other expenses (income):
 Interest expense (income),
 including amortization of
 loan discount (34) 247 (54) 1,248
 Provision for Capital
 Appreciation Rights 0 (2,222) 0 (3,345)
 Total other (income) (34) (1,975) (54) (2,097)
 Income before income taxes,
 extraordinary charge and
 cumulative effect of change
 in accounting principle 2,941 1,144 6,086 7,213
 Provision for income taxes 1,213 (2,163) 2,264 48
 Income before extraordinary
 charge and cumulative
 effect of change in
 accounting principle 1,728 3,307 3,822 7,165
 Extraordinary charge, net
 of tax benefit 0 1,278 0 1,278
 Cumulative effect of change
 in accounting principle,
 net of tax 0 0 121 0
 Net income $ 1,728 $ 2,029 $ 3,943 $ 5,887
 Earnings per share:
 Income before
 extraordinary charge
 and cumulative effect
 of change in
 accounting principle $ .17 $ .36 $ .37 $ .88
 Extraordinary charge 0 (.14) 0 (.16)
 Cumulative effect of
 change in accounting
 principle 0 0 .01 0
 Net income $ .17 $ .22 $ .38 $ .72
 Weighted average common
 shares and equivalents
 used in computing net
 income per share 10,439,682 9,212,400 10,442,656 8,122,388
 -0- 10/20/93
 /CONTACT: John McConnell or Judy Mann, of Medic Computer Systems, 919-847-8102/
 (MCSY)


CO: Medic Computer Systems ST: North Carolina IN: CPR HEA SU: ERN

JM -- CH001 -- 4328 10/20/93 07:34 EDT
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Date:Oct 20, 1993
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