Navigation Links
MedQuist Reports First Quarter 2009 Results
Date:5/7/2009

MOUNT LAUREL, N.J., May 7 /PRNewswire-FirstCall/ -- MedQuist Inc., (Nasdaq: MEDQ) a leading provider of medical transcription services, and a leader in technology-enabled clinical documentation workflow, today announced its unaudited operating results for its first quarter ended March 31, 2009.

Net income for the first quarter of 2009 was $6.9 million, an increase of $11.3 million over the first quarter of 2008 when a loss of $4.4 million was reported. Earnings per share for the first quarter of 2009 were $0.18 per compared to a loss of $0.12 per share in the first quarter of 2008.

Adjusted EBITDA (operating income (loss) excluding depreciation, amortization of intangible assets, cost of Investigation and legal proceedings, net) increased 130% to $12.1 million for the first quarter of 2009 compared to $5.3 million for the first quarter of 2008.

Net revenues decreased $4.8 million or 5.7% to $78.9 million for the three months ended March 31, 2009 compared with $83.7 million for the three months ended March 31, 2008. The decrease was due primarily to lower medical transcription revenue of $4.5 million resulting from lower medical transcription volume.

Cost of revenues decreased $7.4 million or 12.1% to $53.9 million for the three months ended March 31, 2009 compared with $61.3 million for the three months ended March 31, 2008. This decrease was due to reduced medical transcription payroll cost of $3.0 million related directly to our increased use of speech recognition technology and $1.9 million related to lower medical transcription payroll cost related to the decrease in medical transcription volume. Additionally, costs decreased $1.6 million resulting from headcount reductions taken in 2008 to better align our operating expenses with our lower revenue levels.

Selling, general and administrative costs decreased $2.5 million or 19.2% to $10.6 million for the three months ended March 31, 2009 compared to $13.1 million for the three months ended March 31, 2008. The decrease was primarily due to lower audit costs and work force reductions taking effect in the first quarter of 2009.

Research and development costs decreased $1.7 million or 41.3% to $2.4 million for the three months ended March 31, 2009 compared with $4.1 million for the three months ended March 31, 2008. The decrease was due to lower compensation expense as a result of workforce reductions and an increase in capitalized software development costs.

As of March 31, 2009 the company had $51.9 million in cash compared to $39.9 million at December 31, 2008. The increase was a result of cash provided by operating activities in the amount of $14.1 million offset by cash used to purchase property and equipment of $1.4 million and capitalized software of $.8 million.

In addition to the United States generally accepted accounting principles, or GAAP, results provided throughout this document, MedQuist has provided a non-GAAP financial measurement. Management believes that the non-GAAP financial measures used to manage the business may provide users additional useful information. The table attached to this press release includes a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure and a description of why the non-GAAP financial measures are useful to investors.

This report contains forward-looking statements that are based on current expectations, estimates, forecasts and projections about us, the industry in which we operate and other matters, as well as management's beliefs and assumptions and other statements regarding matters that are not historical facts. These statements include, in particular, statements about our plans, strategies and prospects. For example, when we use words such as "projects," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "should," "would," "could," "will," "opportunity," "potential" or "may," variations of such words or other words that convey uncertainty of future events or outcomes, we are making forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are only predictions and, as such, are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. For a discussion of these risks, uncertainties and assumptions, any of which could cause our actual results to differ from those contained in the forward-looking statement, see the section of MedQuist's Annual Report on Form 10-K for the year ended December 31, 2008, entitled "Risk Factors" and discussions of potential risks and uncertainties in MedQuist's subsequent filings with the Securities and Exchange Commission.

                  MedQuist Inc. and Subsidiaries
              Consolidated Statements of Operations
             (In thousands, except per share amounts)
                            Unaudited

                                             Three months ended
                                                 March 31,
                                                 ---------
                                                2009    2008
                                                ----    ----

    Net revenues                             $78,944 $83,725
                                             ------- -------

    Operating costs and expenses:
      Cost of revenues                        53,868  61,258
      Selling, general and administrative     10,577  13,095
      Research and development                 2,416   4,119
      Depreciation                             2,552   2,928
      Amortization of intangible assets        1,511   1,361
      Cost of investigation and legal
       proceedings, net                          785   6,398
                                              ------  ------
        Total operating costs and expenses    71,709  89,159
                                              ------  ------

        Operating income (loss)                7,235  (5,434)

    Equity in income of affiliated company        72      16
    Other income                                   -     438
    Interest income, net                          46   1,288
                                                 ---   -----

        Income (loss) before income taxes      7,353  (3,692)

    Income tax provision                         499     725
                                                 ---     ---

         Net income (loss)                    $6,854 $(4,417)
                                              ====== =======

    Net income (loss) per share:
      Basic                                    $0.18  $(0.12)
                                               -----  ------
      Diluted                                  $0.18  $(0.12)
                                               -----  ------

    Weighted average shares outstanding:
      Basic                                   37,556  37,544
                                              ------  ------
      Diluted                                 37,556  37,544
                                              ------  ------



                     MedQuist Inc. and Subsidiaries
                       Consolidated Balance Sheets
                             (In thousands)
                                Unaudited

                                             March 31,  December 31,
                                                 2009          2008
                                                 ----          ----
    Assets
    Current assets:
      Cash and cash equivalents               $51,854       $39,918
      Accounts receivable, net of
       allowance of $4,148 and $4,802,
       respectively                            46,465        50,374
      Income tax receivable                       174           154
      Other current assets                      7,133         8,053
                                                -----         -----
          Total current assets                105,626        98,499

    Property and equipment, net                13,916        15,785
    Goodwill                                   40,372        40,545
    Other intangible assets, net               39,053        39,877
    Deferred income taxes                       1,178         1,204
    Other assets                                6,385         6,295
                                                -----         -----

          Total assets                       $206,530      $202,205
                                             ========      ========

    Liabilities and Shareholders' Equity
    Current liabilities:
      Accounts payable                         $7,129        $7,487
      Accrued expenses                         10,238        11,994
      Accrued compensation                     12,126        11,204
      Customer accommodation                   11,994        12,055
      Deferred income taxes                       651           651
      Deferred revenue                         14,207        15,630
                                               ------        ------
          Total current liabilities            56,345        59,021

    Deferred income taxes                       1,104           799
    Other non-current liabilities               2,090         2,033
                                                -----         -----

    Commitments and contingencies (Note 10)
    Shareholders' equity:
      Common stock - no par value; authorized
       60,000 shares; 37,556 and 37,556 shares
       issued and outstanding, respectively   237,955       237,907
      Accumulated deficit                     (92,342)      (99,198)
      Accumulated other comprehensive
       income                                   1,378         1,643
                                                -----         -----

          Total shareholders' equity          146,991       140,352
                                              -------       -------

          Total liabilities and
           shareholders' equity              $206,530      $202,205
                                             ========      ========




                       MedQuist Inc. and Subsidiaries
                   Consolidated Statements of Cash Flows
                               (In thousands)
                                 Unaudited

                                                     Three months ended
                                                          March 31,
                                                          ---------
                                                        2009      2008
                                                        ----      ----
    Operating activities:
      Net income (loss)                               $6,854   $(4,417)
      Adjustments to reconcile net income (loss)
       to cash provided by (used in) operating
       activities:
        Depreciation and amortization                  4,063     4,289
        Equity in income of affiliated company           (72)      (16)
        Deferred income tax provision                    309       719
        Stock option expense                              48        92
        Provision for doubtful accounts                 (105)      263
        Loss on disposal of property and equipment        24        26
        Changes in operating assets and liabilities
         excluding effects of acquisitions:
          Accounts receivable                          3,920    (3,700)
          Income tax receivable                          (20)       78
          Other current assets                           923      (189)
          Other non-current assets                       (18)       70
          Accounts payable                               392    (2,773)
          Accrued expenses                            (1,739)     (746)
          Accrued compensation                           930      (999)
          Customer accommodation                           -      (459)
          Deferred revenue                            (1,424)    1,441
          Other non-current liabilities                   63       (70)
                                                         ---       ---
    Net cash provided by (used in) operating
     activities                                      $14,148   $(6,391)
                                                     -------   -------

    Investing activities:
        Purchase of property and equipment            (1,393)   (1,837)
        Capitalized software                            (766)     (611)
    Net cash used in investing activities             (2,159)   (2,448)
                                                      ------    ------

    Financing activities:
    Net cash provided by financing activities              -         -
                                                         ---       ---

    Effect of exchange rate changes                      (53)      (32)
                                                         ---       ---

    Net increase (decrease) in cash and cash
     equivalents                                      11,936    (8,871)
                                                      ------    ------

    Cash and cash equivalents - beginning of period   39,918   161,582
                                                      ------   -------

    Cash and cash equivalents - end of period        $51,854  $152,711
                                                     =======  ========

    Supplemental cash flow information:

    Cash paid (recovered) for income taxes             $(131)      $95
                                                       -----       ---
    Accommodation payments paid with credits             $61      $404
                                                         ---      ----




                        MedQuist Inc. and Subsidiaries
     Reconciliation of GAAP financial measures to the non-GAAP measures
                              Adjusted EBITDA
                              (In thousands)
                                Unaudited



                                                  Three months ended
                                                      March 31,
                                                      ---------
                                                     2009    2008
                                                     ----    ----

      GAAP operating (loss)                        $7,235 $(5,434)

      Add: Depreciation                             2,552   2,928

      Add: Amortization of intangible assets        1,511   1,361

      Add: Cost of investigation and legal
       proceedings, net                               785   6,398
                                                  -------  ------
      Adjusted EBITDA                             $12,083  $5,253
                                                  =======  ======



Adjusted EBITDA is a financial measure not computed in accordance with United States generally accepted accounting principles, or GAAP. The Company believes that this non-GAAP measure, when presented in conjunction with comparable GAAP measures, is 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. Management believes Adjusted EBITDA is useful as supplemental measures of the Company's financial results because it removes costs not related to the Company's operating performance. Management believes that Adjusted EBITDA should be considered in addition to, but not as a substitute for items presented in accordance with GAAP that are presented in this press release. A reconciliation of Adjusted EBITDA to Operating income (loss) is provided above.


'/>"/>
SOURCE MedQuist Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. MedQuist Names Dominick J. Golio as Chief Financial Officer
2. MedQuist Names Alan J. Gold as Senior Vice President, Sales and Marketing
3. MedQuist Announces Entry of Final Judgment Approving Settlement and Dismissing Medical Transcriptionist Class Action
4. MedQuist Announces Resolution of SEC Investigation
5. MedQuist Reports Fourth Quarter and Year End 2008 Results
6. MedQuist Announces Resolution of the DOJ Investigation and Dismissal of Shareholder Lawsuits
7. New Jersey-Based MedQuist Pays U.S. $6.6 Million to Resolve False Claims Act Allegations
8. MedQuist and Primordial to Demonstrate Integrated Applications at RSNA
9. MedQuist and Clario Form Partnership to Integrate zVision Radiology Practice Management Software with SpeechQ for Radiology
10. MedQuist Introduces SpeechQ for Radiology Integrated with RadWorkFlow
11. MedQuist Reports Third Quarter 2008 Results
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:12/8/2016)... ... 2016 , ... CURE Media Group, the nation’s leading digital and print media ... Lung Cancer in efforts to combat lung cancer, announced CURE Media Group President Michael ... Media Group is honored to team up with Upstage Lung Cancer in order to ...
(Date:12/8/2016)... ... 08, 2016 , ... SunView Software aims to redefine IT ... both engaging and easy to use. Coming off the heels of a successful ... its plans to roll out new AI-powered self-service enhancements to help organizations implement ...
(Date:12/8/2016)... ... , ... STAT courier is pleased to announce that due to customer demand, ... expanding their presence in Dallas. One of the most exciting parts for STAT is ... the Dallas and Forth Worth market. STAT takes pride in treating their employees with ...
(Date:12/8/2016)... San Francisco, California (PRWEB) , ... December 08, 2016 , ... ... health coaches, has raised an $18M Series B led by Canvas Ventures . ... use the capital to scale its mobile platform to serve more consumers who are ...
(Date:12/8/2016)... ... December 08, 2016 , ... ... that serve communities in and around the greater Phoenix metropolitan region, is announcing ... Connection. , The mission of the Homeless Youth Connection is to promote community ...
Breaking Medicine News(10 mins):
(Date:12/8/2016)... 2016 Research and Markets has announced the ... offering. ... The global chromatography market to grow at a CAGR ... 2016-2020, has been prepared based on an in-depth market analysis with inputs ... prospects over the coming years. The report also includes a discussion of ...
(Date:12/8/2016)... 8, 2016  Boehringer Ingelheim announced today that it ... (CEI). This is the ninth time that the company ... a Best Place to Work for LGBT Equality. Administered ... a national benchmarking report on corporate policies and practices ... transgender (LGBT) employees. "We are committed ...
(Date:12/8/2016)... Dec. 8, 2016  Avelas Biosciences, Inc., a ... patient care from diagnosis through treatment, today presented ... Phase 1b study in breast cancer patients utilizing ... Breast Cancer Symposium. Jonathan Unkart , M.D., ... San Diego Health, delivered the presentation titled "Intraoperative ...
Breaking Medicine Technology: