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MedAssets Reports Third Quarter and Nine Month 2012 Financial Results

MedAssets Reports Third Quarter and Nine Month 2012 Financial Results

MedAssets, Inc. has announced results for its third quarter and nine-month periods ended September 30, 2012. Third quarter results are summarized in the table below:

($ in millions, except per share)

3Q-12

3Q-11

% Change

Net Revenue:

Spend and Clinical Resource Mgmt (SCM)

$

99.1

$

90.4

9.6

%

Revenue Cycle Management (RCM)

64.3

53.1

21.1

Total Net Revenue

163.4

143.6

13.9

%

Non-GAAP acquisition-related purchase

accounting revenue adjustments a

--

0.2

nm

Total non-GAAP Net Revenue b

163.4

143.7

13.7

%

Net income (loss)

5.5

(1.0

)

nm

Earnings (loss) per share (EPS) — diluted

0.09

(0.02

)

nm

Non-GAAP adjusted EBITDA

57.0

45.2

26.0

%

Non-GAAP adjusted EPS - diluted

$

0.32

$

0.26

23.1

Weighted average shares - diluted c

59.5

57.4

3.7

%

(a) Non-GAAP acquisition-related purchase accounting revenue adjustments reflect net revenue that would have been recognized after completion of the Broadlane acquisition if not for the GAAP-related purchase accounting revenue adjustments. A detailed explanation is provided under "Use of Non-GAAP Financial Measures" following the accompanying financial schedules.

(b) Column amounts may not add to total amount due to rounding.

(c) Given the Company's net loss for the three months ended September 30, 2011, basic and fully diluted weighted average shares are the same for EPS and non-GAAP adjusted EPS.

Net Revenue

Third Quarter

Total net revenue for the third quarter of 2012 increased 13.9% to $163.4 million from $143.6 million in the third quarter of 2011. Comparing period-over-period organic growth, total net revenue of $163.4 million in the third quarter of 2012 increased 13.7% from total non-GAAP net revenue of $143.7 million (including non-GAAP acquisition-related purchase accounting revenue adjustments) in the third quarter of 2011. Net revenue in the SCM segment grew 9.4% to $99.1 million from non-GAAP net revenue of $90.6 million in the third quarter of 2011 primarily due to continued growth in group purchasing-related net administrative fees as well as the recognition of certain guarantee-related revenue and performance fees. Net revenue in the RCM segment increased 21.1% to $64.3 million from $53.1 million in the third quarter of 2011 as technology-related revenue grew 14.5%, due to growth in subscription fees from multiple products, while services-related revenue increased 36.8% from growth in both new and existing clients.

Nine-Month Period

Total net revenue for the first nine months of 2012 increased 13.0% to $476.3 million from $421.5 million in the first nine months of 2011. Comparing period-over-period organic growth, total net revenue of $476.3 million in the first nine months of 2012 increased 11.4% from total non-GAAP net revenue of $427.7 million in the first nine months of 2011. Net revenue in the SCM segment grew 10.2% to $294.5 million from non-GAAP net revenue of $267.1 million in the first nine months of 2011. Net revenue from the RCM segment increased 13.2% to $181.8 million from $160.6 million in the first nine months of 2011 as technology-related revenue grew 13.0% and services-related revenue increased 13.8%.

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