Third Quarter Highlights
- Adjusted EBITDA increases to $29.8 million, up 21.6%
compared with the prior-year period
- Net Income Available to Common Shareholders increases
to $0.39 per fully diluted share from $0.11 per fully diluted share
in the prior-year period
- Adjusted Net Income per fully diluted share increases
to $0.34, up 30.8% compared with the prior-year
period
- Offshore volume improves to 45% of total volume and
volumes edited post speech recognition increases to
76%
- Affirms guidance for 2011 and issues preliminary
outlook for 2012
The highlights above, as well as the discussion below, contain
certain non-GAAP financial measures that, together with applicable
GAAP financial measures, we utilize to evaluate the results of our
performance. Refer to the section of this release entitled
"Non-GAAP Financial Measures" for further discussion, as well as
the tables attached to this release that reconcile these non-GAAP
financial measures to applicable GAAP financial measures.
MedQuist Holdings Inc. (Nasdaq:MEDH), a leading provider of
integrated clinical documentation solutions for the U.S. healthcare
industry, announced its financial results for the three and nine
months ended September 30, 2011.
"We are pleased with our financial and operational performance
in the third quarter. Our execution was much improved from the
second quarter, and our customers and partners are positively
responding to our enhanced value proposition," noted Vern
Davenport, Chairman and Chief Executive Officer of MedQuist
Holdings. "The execution in our core business reflected
continued improvement in our key metrics, a substantial number of
visible, competitive wins booked, growth in our ecosystem of
strategic partners and successful execution of our MTSO acquisition
strategy. We are also changing the nature of the conversations
we're having with customers through the acquisition of M*Modal and
are proceeding as quickly as possible to convert those
conversations into new growth opportunities."
Operating Results
Net revenues were $327.7 million for the nine months ended
September 30, 2011, compared with $306.8 million for the nine
months ended September 30, 2010. Net revenues were $108.0
million for the third quarter of 2011 compared with
$113.2 million for the third quarter of 2010.
Adjusted EBITDA for the nine months ended September 30, 2011,
was $84.0 million, or 25.6% of net revenues, compared with $57.8
million, or 18.8% of net revenues, for the nine months ended
September 30, 2010. Adjusted EBITDA for the third quarter of 2011
was $29.8 million, or 27.6% of net revenues, compared with $24.5
million, or 21.7% of net revenues, for the third quarter of
2010.
Adjusted net income for the nine months ended September 30,
2011, was $51.0 million, or $0.96 per fully diluted share, compared
with $37.9 million, or $0.73 per fully diluted share, in the nine
months ended September 30, 2010. Adjusted net income for the third
quarter of 2011 was $18.6 million, or $0.34 per fully diluted
share, compared with $17.2 million, or $0.26 per fully diluted
share, in the third quarter of 2010.
Net income available to common shareholders for the nine months
ended September 30, 2011, was $28.4 million, or $0.59 per fully
diluted share, compared with $4.4 million, or $0.12 per fully
diluted share, for the nine months ended September 30, 2010. Net
income available to common shareholders for the third quarter of
2011 was $20.6 million, or $0.39 per fully diluted share, compared
with $5.2 million, or $0.11 per fully diluted share, reported in
the third quarter of 2010. During the three months ended September
30, 2011, the Company had an income tax benefit of $19.2 million.
As a result of the purchase accounting for recent acquisitions, the
Company's valuation allowance against its net deferred tax assets
was reduced, which resulted in this non-cash tax benefit.
During the nine months ended September 30, 2011, the Company
incurred acquisition and restructuring costs of $17.5 million,
which included restructuring charges of $9.5 million related
to a reduction in workforce and a charge related to office
closures. During the three months ended September 30, 2011, the
Company incurred acquisition and restructuring costs of $6.3
million, which included restructuring charges of $2.1 million
related to office closures and the exit of the Company's former
CEO. The benefits from these restructuring efforts are expected to
be fully realized beginning 2012.
Commenting on the financial results, Ron Scarboro, Chief
Financial Officer of MedQuist Holdings, stated, "Gross profit
margin improved 290 basis points from the prior quarter and 433
basis points from the prior-year quarter as our improved execution
allowed us to utilize the build out of offshore capacity that
degraded margins in the second quarter. This contributed to the
strong growth in Adjusted EBITDA this quarter and will allow us to
accelerate investments in our growth strategies."
Liquidity and Capital Structure
As of September 30, 2011, the Company had $37.5 million in cash
and $296.4 million in debt. For the nine months ended September 30,
2011, free cash flow was $46.4 million compared with $40.8 million
for nine months ended September 30, 2010. Free cash flow for
the third quarter of 2011 was $16.8 million compared with $19.2
million in the prior-year period. Capital expenditures for nine
months ended September 30, 2011, were $17.0 million compared with
$9.6 million in the prior-year period. For the third quarter of
2011, capital expenditures were $6.0 million compared with $2.9
million in the prior-year period.
Accounts receivable were $70.5 million, or 60 days outstanding,
as of September 30, 2011, compared with $82.0 million, or 72 days
outstanding, as of December 31, 2010.
Third Quarter Operating
Metrics |
|
Q3 2011 |
|
Q2 2011 |
|
Q1 2011 |
|
Q3 2010 |
|
Total billed equivalent line counts: |
|
1.020 B lines1 |
|
863 M lines |
|
875 M lines |
|
854 M lines |
|
Offshore transcription volumes: |
|
45% |
|
42% |
|
41% |
|
42% |
Transcription volumes edited post speech
recognition: |
|
76% |
|
74% |
|
72% |
|
67% |
1 Includes approximately 150
million total billed equivalent line counts associated with the
acquisition of M*Modal. |
|
|
|
|
|
|
|
|
Performance Goals for 2011
Based on the third quarter results, the Company reaffirmed the
following performance goals for 2011, adjusted to total billed
equivalent line counts and the benefit of the inclusion of
M*Modal:
Net revenues: |
$441 million to $444 million |
Total billed equivalent line counts: |
3.9 billion to 4.0 billion lines |
Adjusted EBITDA: |
$115.5 million to $118 million |
Adjusted Net Income: |
$1.29 to $1.31 per fully diluted share |
These 2011 estimates are based on the following full year
assumptions:
Acquisition and restructuring charges: |
$25 million to $27 million2 |
Weighted average Proforma Shares
Outstanding: |
54.7 million common shares |
Capital expenditures: |
$19 million to $22 million |
2 Includes $13 million of previously disclosed
restructuring and integration charges associated with the
integration of M*Modal and the exits of the Company's former
Chairman and former CEO.
Preliminary Outlook for 2012
Based on the Company's current performance goals for 2011, the
Company has established the following preliminary outlook for
2012. As our organizational integration efforts are still in
process, the Company intends to provide a more detailed fiscal 2012
forecast when it reports results for the fourth quarter of
2011.
Net Revenues: |
The Company expects the percentage increase
in full year net revenues to be in the low- to mid-teens when
compared with the midpoint of the 2011 performance
goals. Growth in the core business is expected to come from
new sales efforts targeted at both same-store and market share
gains; additional revenue growth from the integration of M*Modal in
our transcription platforms; and the acquisition of revenue through
the MTSO roll up strategy. Additionally, the Company will have
the full year benefit from the acquisition of M*Modal as well as
growth opportunities created from the commercialization of its
technologies. |
|
|
Adjusted EBITDA: |
The Company expects the percentage increase
in full year Adjusted EBITDA to be in the range of mid to high
single digits when compared with the midpoint of the 2011
performance goals. The timing of certain operating expenses,
including investments in the sales force and in commercialization
of our technologies, is expected to be weighted toward the first
half of the year. The benefits from these investments are
expected to begin to be realized in the second half of the
year. |
|
|
Adjusted Net Income: |
The Company expects to issue a range of
Adjusted Net Income per fully diluted share for 2012 when it
reports earnings results for the fourth quarter of 2011. The
Company's current tax provision (cash taxes) for 2012 is expected
to have an effective income tax rate of 9% to 15%. |
|
|
Free Cash Flow: |
The Company expects to continue to generate
significant positive free cash flow for the year sufficient to fund
its growth strategies, including the MTSO roll up strategy. The
timing of investments during the year is expected to create
quarter-to-quarter variability. |
"We are on track to deliver on our key objectives for 2011," Mr.
Davenport added. "The sales and implementation teams are competing
and executing well, and the integration of M*Modal is on schedule
and already having a direct impact on new business generation.
Customer recognition of the value we are now bringing to accelerate
their EHR adoption for meaningful use, manage their transition to
ICD-10 and support clinical decisions has validated our strategy
and exceeded my initial expectations. Our leadership in the
transcription outsourced market and our innovative technologies
position us well for the continued consolidation of the
transcription market and for operational and financial success in
2012."
Investor Conference Call and Web Simulcast
MedQuist Holdings will host a conference call on November 10,
2011, at 7:30 a.m. CT (8:30 a.m. ET) to discuss its results of
operations for the third quarter of 2011. The number to call for
the interactive teleconference is (212) 231-2901. A replay of
the conference call will be available through Thursday, November
17, 2011, by dialing (402) 977-9140 and entering the confirmation
number, 21543416.
A live broadcast of MedQuist Holdings quarterly conference call
will be available online at the Company's website,
www.medquist.com, under Investor Relations on November 10, 2011,
beginning at 7:30 a.m. CT (8:30 a.m. ET). The online
replay will follow shortly after the call and continue for one
year.
About MedQuist Holdings
MedQuist is a leading provider of clinical narrative capture
services, Speech Understanding technology from M*Modal and clinical
documentation workflow. MedQuist's enterprise solutions – including
mobile voice capture devices, speech recognition, Web-based
workflow platforms and global network of medical editors – help
healthcare facilities facilitate adoption of electronic health
records (EHR), improve patient care, increase physician
satisfaction and lower operational costs. For more information,
please visit www.medquist.com.
Forward-Looking Statements
Information provided and statements contained in this press
release that are not purely historical, such as
statements regarding our 2011 financial and operating performance,
our preliminary 2012 outlook, the timing of the benefits from
restructuring efforts from the MedQuist Inc. integration, the
timing of the investments in our growth strategies, our position
for the consolidation of the transcription market and the timing of
a detailed 2012 forecast, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements only
speak as of the date of this press release and the Company assumes
no obligation to update the information included in this press
release. Statements made in this press release that are
forward-looking in nature may involve risks and uncertainties.
Accordingly, readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict, including, without limitation, specific factors
discussed herein and in other releases and public filings made by
the Company (including filings by the Company with the Securities
and Exchange Commission). Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable as of the date made, expectations may prove to have been
materially different from the results expressed or implied by such
forward-looking statements. Unless otherwise required by law, the
Company also disclaims any obligation to update its view of any
such risks or uncertainties or to announce publicly the result of
any revisions to the forward-looking statements made in this press
release.
Non-GAAP Financial Measures
In addition to the United States generally accepted
accounting principles, or GAAP, results provided throughout this
document, MedQuist Holdings Inc. has provided certain
non-GAAP financial measures to help evaluate the results of our
performance. The Company believes that these non-GAAP financial
measures, when presented in conjunction with comparable GAAP
financial measures, are useful to both management and investors in
analyzing the Company's ongoing business and operating performance.
The Company believes that providing the non-GAAP information to
investors, in addition to the GAAP presentation, allows investors
to view the Company's financial results in the way that management
views financial results. The tables attached to this press release
include a reconciliation of these historical non-GAAP financial
measures to the most directly comparable GAAP financial
measures.
We also present Adjusted EBITDA and Adjusted Net Income on a
forward-looking basis as part of our performance goals for fiscal
2011 and 2012. We are unable to present a quantitative
reconciliation of these forward-looking non-GAAP financial measures
to the most directly comparable forward-looking GAAP financial
measures because management cannot predict, with sufficient
reliability, contingencies relating to potential changes in tax
valuation allowances, potential changes to customer accommodation
accruals, potential restructuring impacts, contingencies related to
past and future acquisitions, and changes in fair values of our
derivative instruments, all of which are difficult to estimate
primarily due to dependencies on future events.
Adjusted EBITDA
Adjusted EBITDA is a metric used by management to measure
operating performance. Adjusted EBITDA is defined as net income
attributable to MedQuist Holdings Inc., as applicable, plus net
income attributable to noncontrolling interests, income taxes, net
interest expense, depreciation and amortization, cost (benefit) of
legal proceedings, settlements, and accommodations, acquisition and
restructuring charges, discontinued operations, equity in income of
affiliated company, share based compensation and other non-cash
awards, realized gain on settlement of foreign currency hedges,
excluding other (income) expense. The realized gain on
settlement of foreign currency hedges is a component of other
(income) expense, as reported in the Consolidated Statements of
Operations. Share-based compensation and other non-cash awards
represents only the portion of such expense that is a component of
selling, general and administrative expense, as reported in the
Consolidated Statements of Operations, as it excludes such expense
attributable to the Company's restructuring actions.
We present Adjusted EBITDA as a supplemental performance measure
because we believe it facilitates operating performance comparisons
from period to period and company to company by backing out the
following:
- potential differences caused by variations in capital
structures (affecting interest expense, net), tax positions
(such as the impact on periods or companies for changes in
effective tax rates), the age and book depreciation of fixed assets
(affecting depreciation expense);
- the impact of non-cash charges; and
- the impact of acquisition and integration related charges,
restructuring charges, and certain unusual or nonrecurring
items.
Because Adjusted EBITDA facilitates internal comparisons of
operating performance on a more consistent basis, we also use
Adjusted EBITDA in measuring our performance relative to that of
our competitors. Adjusted EBITDA is not a measurement of our
financial performance under GAAP and should not be considered as an
alternative to net income, operating income or any other
performance measures derived in accordance with GAAP or as an
alternative to cash flow from operating activities as measures of
our profitability or liquidity. We understand that although
Adjusted EBITDA is frequently used by securities analysts, lenders
and others in their evaluation of companies, Adjusted EBITDA has
limitations as an analytical tool, and you should not consider it
in isolation, or as a substitute for analysis of our results as
reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect changes in, or cash
requirements for, our working capital needs;
- Although depreciation is a non-cash charge, the assets being
depreciated will often have to be replaced in the future, and
Adjusted EBITDA does not reflect any cash requirements for such
replacements; and
- Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a
comparative measure.
Free Cash Flow
Free Cash Flow, a non-GAAP financial measure, is defined by the
Company as Adjusted EBITDA less consolidated interest expense (net
of non-cash interest), less capital expenditures (including
capitalized software development costs), and less tax provision
(net of deferred tax provision). Management believes that
utilization of Free Cash Flow is an important non-GAAP measure of
the Company's ability to convert operating results into cash.
Adjusted Net Income
Adjusted Net Income, a non-GAAP financial measure, is defined by
the Company as Adjusted EBITDA less amortization expense for
capitalized intangible assets (excluding acquired intangibles),
less interest expense (net of non-cash interest), and less current
tax provision. We measure Adjusted Net Income based on Proforma
Shares Outstanding (see below). Management believes that
utilization of Adjusted Net Income is an important non-GAAP
financial measure of our normalized operating results.
Proforma Shares Outstanding
For purposes of evaluating our results on per-share metrics,
many of our computations utilize proforma share
computations. Our measure of proforma shares includes our
Basic and Diluted share computations utilized for GAAP purposes,
plus our estimate of the impacts of common stock equivalents which
consists of stock options, restrictive stock issuable to certain
key employees, shares issued to former principal stockholders,
shares issued to former principal stockholders and shares issued in
our initial public offering, our private exchange offer, our public
exchange offer and our short-form merger with MedQuist Inc.
Total Billed Equivalent Line Counts
Total billed equivalent line counts are defined as the number of
lines and line equivalents billed for the period, as defined by a
customer's contract, and includes volume transcribed or edited on
the Company's transcription platforms, as well as technology volume
(speech recognition).
MedQuist Holdings Inc.
and Subsidiaries |
|
Consolidated Statements
of Operations |
|
(In thousands, except
per share amounts) |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
Net revenues |
$ 108,034 |
$ 113,200 |
$ 327,709 |
$ 306,792 |
Cost of revenues |
62,068 |
69,936 |
193,542 |
194,886 |
Gross Profit |
45,966 |
43,264 |
134,167 |
111,906 |
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
Selling, general and administrative |
15,469 |
15,565 |
46,365 |
45,664 |
Research and development |
2,181 |
3,351 |
7,073 |
8,944 |
Depreciation and amortization |
9,219 |
9,125 |
26,516 |
23,745 |
Cost (benefit) of legal proceedings,
settlements and accommodations |
44 |
633 |
(6,888) |
2,785 |
Acquisition and restructuring |
6,251 |
1,797 |
17,520 |
8,808 |
Total operating costs and
expenses |
33,164 |
30,471 |
90,586 |
89,946 |
Operating income |
12,802 |
12,793 |
43,581 |
21,960 |
Equity in income of affiliated company |
-- |
70 |
-- |
616 |
Other income (expense) |
(4,033) |
482 |
(2,560) |
560 |
Interest expense, net |
(7,081) |
(4,663) |
(21,079) |
(11,969) |
Income from continuing operations
before income taxes and noncontrolling interests |
1,688 |
8,682 |
19,942 |
11,167 |
Income tax provision (benefit) |
(19,226) |
229 |
(17,196) |
(153) |
Net income from continuing
operations |
$ 20,914 |
$ 8,453 |
$ 37,138 |
$ 11,320 |
|
|
|
|
|
Income from discontinued
operations, net of tax |
-- |
155 |
-- |
338 |
Net
income |
20,914 |
8,608 |
37,138 |
11,658 |
Less: Net income attributable to
noncontrolling interests |
(361) |
(2,737) |
(2,138) |
(5,234) |
Net income attributable to
MedQuist Holdings Inc. |
$ 20,553 |
$ 5,871 |
$ 35,000 |
$ 6,424 |
|
|
|
|
|
Net income per common share
from continuing operations |
|
|
|
|
Basic |
$ 0.40 |
$ 0.15 |
$ 0.60 |
$ 0.11 |
Diluted |
$ 0.39 |
$ 0.11 |
$ 0.59 |
$ 0.11 |
|
|
|
|
|
Net income per common share
from discontinued operations |
|
|
|
|
Basic |
$ -- |
$ -- |
$ -- |
$ 0.01 |
Diluted |
$ -- |
$ -- |
$ -- |
$ 0.01 |
|
|
|
|
|
Net income per
common share attributable to MedQuist Holdings
Inc. |
|
|
|
Basic |
$ 0.40 |
$ 0.15 |
$ 0.60 |
$ 0.12 |
Diluted |
$ 0.39 |
$ 0.11 |
$ 0.59 |
$ 0.12 |
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
Basic |
51,195 |
35,158 |
47,136 |
35,083 |
Diluted |
52,478 |
49,121 |
48,450 |
35,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of net income
available for common shareholders |
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Net income attributable to MedQuist
Holdings |
$ 20,553 |
$ 5,871 |
$ 35,000 |
$ 6,424 |
Less: amount attributable to former principal
shareholders |
-- |
(688) |
(6,619) |
(2,063) |
Net income available for common
shareholders |
20,553 |
5,183 |
28,381 |
4,361 |
|
|
MedQuist Holdings Inc.
and Subsidiaries |
Consolidated Balance
Sheets |
(In thousands, except
par value) |
Unaudited |
|
|
|
|
September 30, |
December 31, |
|
2011 |
2010 |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 37,453 |
$ 66,779 |
Accounts receivable, net of allowance of
$1,720 and $1,466, respectively |
70,483 |
82,038 |
Other current assets |
28,645 |
23,706 |
Total current assets |
136,581 |
172,523 |
|
|
|
Property and equipment, net |
23,857 |
23,018 |
Goodwill |
152,841 |
90,268 |
Other intangible assets, net |
163,274 |
107,962 |
Deferred income taxes |
6,703 |
6,896 |
Other assets |
26,209 |
14,212 |
|
|
|
Total assets |
$509,465 |
$ 414,879 |
|
|
|
Liabilities and Equity |
|
|
Current liabilities: |
|
|
Current portion of long-term debt |
$ 16,883 |
$ 27,817 |
Accounts payable |
13,238 |
11,358 |
Accrued expenses |
35,543 |
36,917 |
Accrued compensation |
13,108 |
16,911 |
Deferred acquisition payments |
16,127 |
-- |
Deferred revenue |
8,352 |
10,570 |
Total current liabilities |
103,251 |
103,573 |
Long-term debt |
279,505 |
266,677 |
Deferred income taxes |
15,560 |
4,221 |
Deferred acquisition payments,
non-current |
10,290 |
3,537 |
Other non-current liabilities |
2,607 |
2,360 |
Total liabilities |
411,213 |
380,368 |
Commitments and contingencies |
|
|
Total equity: |
|
|
Preferred stock -- $0.10 par value;
authorized 25,000 shares; none issued or outstanding |
-- |
-- |
Common stock -- $0.10 par value;
authorized 300,000 shares; 55,035 and 35,158 shares issued and
outstanding, respectively |
5,505 |
3,516 |
Additional paid-in-capital |
167,075 |
148,265 |
Treasury Stock |
(250) |
-- |
Accumulated deficit |
(72,179) |
(107,179) |
Accumulated other comprehensive loss |
(1,933) |
(663) |
Total MedQuist Holdings Inc.
stockholders' equity |
98,218 |
43,939 |
Noncontrolling interests |
34 |
(9,428) |
Total equity |
98,252 |
34,511 |
|
|
|
Total liabilities and equity |
$509,465 |
$ 414,879 |
|
MedQuist Holdings Inc.
and Subsidiaries |
Consolidated Statements
of Cash Flows |
(In
thousands) |
Unaudited |
|
|
|
|
|
|
|
Nine Months Ended
September 30, |
|
2011 |
2010 |
Operating activities: |
|
|
Net income |
$ 37,138 |
11,658 |
Adjustments to reconcile net income to
cash provided by operating activities: |
|
|
Depreciation and amortization |
26,516 |
24,377 |
Equity in income of affiliated
company |
-- |
(616) |
Deferred income taxes |
(19,228) |
1,169 |
Share based compensation |
3,517 |
486 |
Provision for doubtful accounts |
299 |
1,571 |
Non-cash interest expense |
2,463 |
3,328 |
Other |
3,085 |
(1,106) |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
15,795 |
(1,267) |
Other current assets |
(2,098) |
(4,532) |
Other non-current assets |
(11,989) |
(1,391) |
Accounts payable |
(1,386) |
2,114 |
Accrued expenses and other current
liabilities |
(4,863) |
(9,058) |
Accrued compensation |
(4,277) |
2,535 |
Deferred revenue |
(2,545) |
286 |
Other non-current liabilities |
1,093 |
(898) |
Net cash provided by operating
activities |
43,520 |
28,656 |
|
|
|
Investing activities: |
|
|
Purchase of property and equipment |
(8,651) |
(4,345) |
Purchases of capitalized intangible
assets |
(8,356) |
(5,275) |
Payments for acquisitions and interests
in affiliates, net of cash acquired |
(56,605) |
(97,710) |
Net cash used in investing activities |
(73,612) |
(107,330) |
|
|
|
Financing activities: |
|
|
Proceeds from debt |
30,352 |
110,095 |
Repayment of debt |
(27,379) |
(29,866) |
Debt issuance costs |
-- |
(7,031) |
Related party payments |
(5,597) |
|
Treasury stock transactions |
(250) |
0 |
Net proceeds from issuance of common
stock |
4,979 |
0 |
Net cash provided by financing
activities |
2,105 |
73,198 |
|
|
|
Effect of exchange rate changes |
(1,339) |
(132) |
Net decrease in cash and cash
equivalents |
(29,326) |
(5,608) |
Cash and cash equivalents - beginning of
period |
66,779 |
29,633 |
|
|
|
Cash and cash equivalents - end of
period |
$ 37,453 |
$ 24,025 |
|
MedQuist Holdings Inc.
and Subsidiaries |
Reconciliation of Net
Income to Adjusted EBITDA |
(In
thousands) |
Unaudited |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Net income attributable to MedQuist Holdings
Inc. |
$ 20,553 |
$ 5,871 |
$ 35,000 |
$ 6,424 |
Net income attributable to noncontrolling
interests |
361 |
2,737 |
2,138 |
5,234 |
Discontinued operations |
-- |
(155) |
-- |
(338) |
Income tax provision (benefit) |
(19,226) |
229 |
(17,196) |
(153) |
Interest expense, net |
7,081 |
4,663 |
21,079 |
11,969 |
Other (income) expense |
4,033 |
(482) |
2,560 |
(560) |
Realized gain on settlement of foreign
currencies |
93 |
-- |
627 |
-- |
Depreciation and amortization |
9,219 |
9,125 |
26,516 |
23,745 |
Acquisition and restructuring charges |
6,251 |
1,797 |
17,520 |
8,808 |
Cost (benefit) of legal proceedings,
settlements and accommodations |
44 |
633 |
(6,888) |
2,785 |
Share-based compensation and other non-cash
awards |
1,360 |
164 |
2,681 |
486 |
Equity in income of affiliated company |
-- |
(70) |
-- |
(616) |
Adjusted EBITDA |
$ 29,769 |
$ 24,512 |
$ 84,037 |
$ 57,784 |
Adjusted EBITDA as a percentage of net
revenues |
27.6% |
21.7% |
25.6% |
18.8% |
|
|
MedQuist Holdings Inc.
and Subsidiaries |
Free Cash
Flow |
(In
thousands) |
Unaudited |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Free cash flow: |
|
|
|
|
Adjusted EBITDA |
$29,769 |
$ 24,512 |
$84,037 |
$57,784 |
Consolidated interest expense |
(7,081) |
(4,663) |
(21,079) |
(11,969) |
Non-cash interest |
774 |
1,482 |
2,463 |
3,328 |
Capital expenditures |
(5,959) |
(2,907) |
(17,007) |
(9,620) |
Tax (provision) benefit |
19,226 |
(229) |
17,196 |
153 |
Deferred tax provision (benefit) |
(19,933) |
964 |
(19,228) |
1,169 |
Free cash flow |
$16,796 |
$ 19,159 |
$46,382 |
$40,845 |
|
|
|
|
|
Adjusted net income: |
|
|
|
|
Adjusted EBITDA |
$29,769 |
$ 24,512 |
$84,037 |
$57,784 |
Less: Amortization (excluding
acquired intangibles) |
4,116 |
4,894 |
12,381 |
12,613 |
Cash interest (total expenses less
non-cash) |
6,307 |
3,181 |
18,616 |
8,641 |
Current tax provision (benefit) |
707 |
(735) |
2,032 |
(1,322) |
Adjusted net income |
$18,639 |
$ 17,172 |
$51,008 |
$37,852 |
|
|
|
|
|
Adjusted net income per share: |
|
|
|
|
Basic |
$ 0.35 |
$ 0.34 |
$ 0.99 |
$ 0.74 |
Diluted |
0.34 |
0.26 |
0.96 |
0.73 |
|
MedQuist Holdings Inc.
and Subsidiaries |
Share
Calculation |
(In
thousands) |
Unaudited |
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
MedQuist Holdings shares |
|
|
|
|
Basic outstanding |
51,195 |
35,158 |
47,136 |
35,083 |
Effect of diluted options |
1,283 |
13,963 |
1,314 |
810 |
Diluted shares |
52,478 |
49,121 |
48,450 |
35,893 |
|
|
|
|
|
Proforma impact of fully dilutive shares
(1) |
|
|
|
|
Basic |
1,814 |
15,775 |
4,575 |
15,775 |
Diluted |
2,023 |
16,005 |
4,784 |
16,005 |
|
|
|
|
|
Proforma Shares |
|
|
|
|
Proforma basic |
53,009 |
50,933 |
51,711 |
50,858 |
Proforma diluted |
54,501 |
65,126 |
53,234 |
51,898 |
|
|
|
|
|
|
|
|
|
|
(1) Fully dilutive shares
includes common stock equivalents which consists of stock options,
restricted stock issuable to certain key employees, shares issued
to former principal stockholders, shares issued in our Initial
Public Offering, Private Exchange and Initial Exchange Offer and
shares issuable to remaining noncontrolling shareholders of
MedQuist Inc. |
CONTACT: Investor Contacts:
Ron Scarboro
Chief Financial Officer
ronald.scarboro@medquist.com
(615) 798-4350
Tripp Sullivan
Corporate Communications, Inc
tripp.sullivan@cci-ir.com
(615) 324-7335
Grafico Azioni Medx (CE) (USOTC:MEDH)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Medx (CE) (USOTC:MEDH)
Storico
Da Mag 2023 a Mag 2024