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In a release on May 14, the Company noted that net revenue for the three months ended March 31, increased $4.6 million, or 58 percent, to $12.4 million from $7.8 million in last year's comparable period. The revenue improvement was derived from several sources, including the addition in 2008 of new medical service contracts, the contracts acquired from both Emergency Medicine Documentation Consultants P.C. in February 2008 and the CMHS acquisition in November 2008 plus the expansion of services and price adjustments on contracts with several counties which were already customers of Conmed.
"Our record financial performance in the first quarter of 2009 reflects extraordinary growth across the board, from revenue through profitability," said Richard Turner, Chairman and Chief Executive Officer of Conmed Healthcare Management. "We maintained the pace of rapid growth that we achieved throughout 2008."
Dr. Turner continued, "We are proud to report that the first quarter of 2009 was our third consecutive quarter of profitability. We believe that our expanding client base and highly-recurring revenue base combined with the operating leverage in our financial model is resulting in rapid growth at the bottom line. In addition, our operating expenses decreased as a percentage of revenues to 19.7 percent compared to 26.7 percent in the year-ago period, which reflects a 700 basis point decrease and demonstrates substantial improvement in operating leverage. The addition of behavioral health services as a result of our CMHS acquisition has allowed us to expand our national behavioral healthcare services and has already generated add-on business. We expect this synergy to continue to contribute to our top- and bottom-lines going forward and expect to continue to pursue a variety of options, including additional acquisitions, to fuel future growth."
Total healthcare expenses for the period ended March 31, were $9.8 million compared to $6.4 million in the year-ago period. The increase reflects increased staffing and medical services to support new business resulting primarily from the increase in medical service contracts. Gross profit for the first quarter of 2009 was up 81 percent to $2.7 million, representing a 21.5 percent gross margin, compared to $1.5 million and 18.8 percent, respectively, in last year's same period.
Total operating expenses were $2.5 million for the quarter ended March 31, compared to $2.1 million for the year-ago period. Operating expenses as a percentage of sales were 19.7 percent compared to 26.7 percent in the year-ago period. Selling, general and administrative expenses for the first quarter were $1.8 million or 14.6 percent of revenue compared to $1.6 million or 20.3 percent of revenue for the year-ago quarter, and reflects investments in additional management and administrative personnel required to support the new contracts and services added in 2008, as well as to sustain the Company during anticipated future growth.
Conmed reported operating income of approximately $215,000 in the first quarter compared to an operating loss of approximately $(616,000) in the first quarter last year. Net income was approximately $118,000 or $0.01 per basic and fully diluted share compared to a loss of approximately $(552,000) last year, or $(0.05) per basic and fully diluted share.
For the first quarter of 2009, adjusted EBITDA, a non-GAAP measure, grew to approximately $1.0 million compared to approximately $3,000 in the prior year first quarter.
The Company generated approximately $951,000 in operating cash flow in the quarter ended March 31, and had $8.3 million in cash and cash equivalents as of March 31, compared to $7.5 million at December 31, 2008. Shareholders' equity decreased to $12.5 million at March 31, compared to $14.9 million at December 31, 2008.
((Comments on this story may be sent to health@closeupmedia.com))
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