Netsmart Announces Record First Quarter Results
12 May 2006 - 5:00AM
PR Newswire (US)
Health and Human Services Software Provider Reports 31st
Consecutive Quarter of Profitability GREAT RIVER, N.Y., May 11
/PRNewswire-FirstCall/ -- Netsmart Technologies, Inc.
(NASDAQ:NTST), a leading provider of enterprise-wide software for
health and human services organizations, today reported results for
the first quarter ended March 31, 2006. Revenue for the quarter was
$13,856,000, an 87 percent increase from $7,429,000 for the quarter
ended March 31, 2005. Net income for the first quarter was $510,000
or $.08 per share basic and diluted, as compared to $363,000 or
$.07 per share basic and diluted for the same quarter in 2005.
Backlog of orders, including ongoing maintenance and data center
contracts for behavioral health information systems, was $43.3
million at March 31, 2006 compared to $24.9 million at March 31,
2005. Recurring revenue for the quarter ended March 31, 2006 was
nearly $7.6 million, compared to approximately $3.2 million for the
quarter ended March 31, 2005. "We're pleased with another very
strong first quarter that reflects return from our investments last
year from scaling sales, marketing and business development efforts
and the ongoing integration of CMHC Systems and other acquisitions
made in 2005, "said James L. Conway, chairman and chief executive
officer, Netsmart Technologies. "Of special note is that EBITDA for
the quarter increased 106 percent to more than $1.9 million
compared with $948,000 for the same quarter last year. The
significant positive impact of the CMHC Systems acquisition can
also be seen in the 137 percent increase in recurring revenue
compared with the same quarter last year. When recurring revenue
for the first quarter is annualized, recurring revenue for this
year is nearly $30.2 million." Reconciliation of Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) to Net
Income EBITDA is calculated for any period as the sum of net
income, plus net interest expense, income tax expense, and
depreciation and amortization expense. We consider EBITDA to be a
widely accepted financial indicator of a company's ability to
service debt, fund capital expenditures and expand its business.
EBITDA is not calculated in the same way by all companies and
therefore may not be comparable to similarly titled measures
reported by other companies. EBITDA is not a measure in accordance
with accounting principles generally accepted in the United States.
EBITDA should not be considered as an alternative to net income, as
an indicator of operating performance or as an alternative to cash
flow as a measure of liquidity. The funds depicted by this measure
may not be available for management's discretionary use due to
legal or functional requirements, debt service, or other
commitments and uncertainties. Three Months Ended March 31, 2006
2005 EBITDA $1,950,000 $948,000 Less: Depreciation and Amortization
(1,063,000) (407,000) Interest Income (expense), net 35,000 38,000
Income Taxes (412,000) (216,000) Net Income $510,000 $363,000
NETSMART TECHNOLOGIES, INC. Comparative Operating Results for the
Three Months Ended March 31, Three Months 2006 2005 Revenue
$13,856,000 $7,429,000 Net Income $510,000 $363,000 Net Income Per
Share Basic $0.08 $0.07 Weighted Average Shares of Common Stock
Outstanding Basic 6,494,477 5,342,489 Net Income Per Share Diluted
$0.08 $0.07 Weighted Average Shares of Common Stock Outstanding
Diluted 6,781,100 5,551,848 About Netsmart Technologies, Inc.
Netsmart Technologies, Inc., based in Great River, N.Y., is an
established, leading supplier of enterprise-wide software solutions
for health and human services providers, with more than 1,250
clients, including 30 systems with state agencies. Netsmart's
clients include health and human services organizations, public
health agencies, mental health and substance abuse clinics,
psychiatric hospitals, and managed care organizations. Netsmart's
products are full-featured information systems that operate on a
variety of operating systems, hardware platforms, and mobile
devices, and offer unlimited scalability. Statement on Behalf of
Netsmart Technologies, Inc. Statements in this press release may be
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as
"anticipate," "believe," "estimate," "expect," "intend" and similar
expressions, as they relate to the company or its management,
identify forward-looking statements. These statements are based on
current expectations, estimates and projections about the company's
business based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may, and probably will,
differ materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, including those
described above and those risks discussed from time to time in
Netsmart's filings with the Securities and Exchange Commission. In
addition, such statements could be affected by risks and
uncertainties related to product demand, market and customer
acceptance, competition, pricing and development difficulties, as
well as general industry and market conditions and growth rates,
and general economic conditions. Any forward-looking statements
speak only as of the date on which they are made, and the company
does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
release. Information on Netsmart's website does not constitute a
part of this release. DATASOURCE: Netsmart Technologies, Inc.
CONTACT: Anthony Grisanti, Executive Vice President and CFO,
Netsmart Technologies, 1-800-451-7503 Web site:
http://www.netsmartech.com/
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