Connecting to LinkedIn...

Blank

MedAssets Inc. revenue up 16 per cent

Fourth Quarter

(In millions, except per share)

4Q'14

4Q'13

% Change

Net Revenue:

Spend and Clinical Resource Mgmt (SCM)

$125.3

$106.4

17.7%

Revenue Cycle Management (RCM)

 73.0

 64.0

 13.9

Total Net Revenue a

 198.2

 170.5

 16.3%

Net (loss) income

 (42.4)

 7.8

 nm 

(Loss) earnings per share (EPS) - diluted

 (0.71)

 0.13

 nm 

Non-GAAP adjusted EBITDA

63.5

52.8

20.4%

Non-GAAP adjusted EPS - diluted

$0.39

$0.30

30.0%

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

Net Revenue

Total net revenue for the fourth quarter of 2014 increased 16.3% to $198.2 millionfrom $170.5 million for the fourth quarter of 2013. Excluding the contribution from Sg2 (acquired on September 22, 2014), fourth quarter total net revenue growth was 10.0% on a year-over-year basis.

Net revenue in the SCM segment increased 17.7% to $125.3 million from $106.4 million for the fourth quarter of 2013 due to the addition of Sg2 and growth in other service fees and performance-related fees. Excluding the contribution from Sg2, fourth quarter SCM net revenue growth was 7.7%. Net revenue in the RCM segment increased 13.9% to $73.0 million from $64.0 million for the fourth quarter of 2013 as technology-related revenue (68.6% of RCM segment revenue) increased 7.0%, while services-related revenue rose 32.5%.

Non-GAAP Adjusted EBITDA

Total non-GAAP adjusted EBITDA for the fourth quarter of 2014 increased 20.4% to$63.5 million, or 32.0% of total net revenue, from total non-GAAP adjusted EBITDA of$52.8 million, or 30.9% of total net revenue, for the fourth quarter of 2013.

Net (Loss) Income and Non-GAAP Adjusted (Loss) Earnings Per Share (EPS)

Net loss for the fourth quarter of 2014 was $42.4 million, or a loss of $0.71 per share, compared with net income of $7.8 million, or $0.13 per share, for the fourth quarter of 2013. The net loss in the fourth quarter of 2014 was due to a $52.5 millionimpairment charge to write off goodwill associated with the company's Revenue Cycle Services business unit, which is described in more detail below.

Non-GAAP adjusted EPS (defined as EPS excluding non-cash acquisition-related intangible amortization and depreciation, non-cash share-based compensation, certain restructuring, acquisition and integration-related expenses and other non-recurring items on a tax-adjusted basis) rose 30.0% to $0.39 per share for the fourth quarter of 2014, compared with $0.30 per share for the fourth quarter of 2013.

Twelve-Month Period

(In millions, except per share)

 FY'14

 FY'13

 % Change

Net Revenue:

Spend and Clinical Resource Mgmt (SCM)

 $ 445.6

 $ 424.5

5.0%

Revenue Cycle Management (RCM)

 274.6

 256.0

 7.3

Total Net Revenue b

 720.2

 680.4

 5.9%

Net (loss) income

 (20.4)

 27.4

 nm 

(Loss) earnings per share (EPS) - diluted

 (0.34)

 0.45

 nm 

Non-GAAP adjusted EBITDA

 234.0

 220.8

6.0%

Non-GAAP adjusted EPS - diluted

$1.35

$1.32

2.3%

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

Net Revenue

Total net revenue for the twelve months ended December 31, 2014 increased 5.9% to$720.2 million from $680.4 million for full-year 2013. Excluding the contribution from Sg2, full-year total net revenue growth was 4.1% when compared with 2013. Net revenue in the SCM segment grew 5.0% to $445.6 million from $424.5 million for 2013. Excluding the contribution from Sg2, full-year SCM net revenue growth was 2.2%. Net revenue in the RCM segment rose 7.3% to $274.6 million from $256.0 million for full-year 2013 as technology-related revenue (68.8% of RCM segment revenue) increased 4.8% while services-related revenue increased 13.3%.

Non-GAAP Adjusted EBITDA

For the full-year 2014, total non-GAAP adjusted EBITDA was $234.0 million, or 32.5% of total net revenue, a 6.0% increase from total non-GAAP adjusted EBITDA of $220.8 million, or 32.5% of total net revenue, for 2013.

Net (Loss) Income and Non-GAAP Adjusted EPS

Net loss for full-year 2014 was $20.4 million, or a loss of $0.34 per share, which was due to a $52.5 million impairment charge described in more detail below. This compared with net income of $27.4 million, or $0.45 per share, for 2013. Non-GAAP adjusted EPS was $1.35 per share for 2014, a 2.3% increase from $1.32 per share for full-year 2013.

Cash Flow and Capital Resources

Cash provided by operating activities in the twelve months of 2014 was $139.0 million versus $152.9 million in 2013. Non-GAAP free cash flow (defined as cash provided by operating activities less purchases of property, equipment and software and capitalized software development costs) decreased to $75.8 million from $94.1 million in 2013. The company's balance sheet at December 31, 2014 included $868.9 million in total bank and bond debt, net of cash and cash equivalents. Total net debt equates to leverage of approximately 3.7 times total non-GAAP adjusted EBITDA for the trailing twelve-month period.

Tags:

Articles similar to

Articles similar to