LOS ANGELES, April 15, 2004 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced audited results for the fiscal year ended December 31, 2003.
The Company reported that net revenues for the year ended December 31, 2003 increased 82%, to $3,379,258, as compared to net revenues for the year ended December 31, 2002 of $1,852,934. The Company reported net income of $623,414, or a basic net income per common share of $0.07 and a fully diluted net income per common share of $0.01 for the year ended December 31, 2003 compared to a net loss of $95,244, or a basic and diluted net loss per common share of $0.02 for the year ended December 31, 2002.
Commenting on the year's results, Michael Manahan, PracticeXpert's chief financial officer, stated, "Revenues increased during the year in part as a result of our acquisition strategy, which saw us complete two additional acquisitions during 2003, and one more in the first quarter of 2004. Revenues also increased as a result of new business generated through our sales and marketing activities.
"While we did generate a profit for the year, it is important for our stockholders to understand that the results in 2003 were skewed by a number of one-time and non-recurring items that impacted our financial results, most significant of which was a $3.4 million gain on the disposal of subsidiaries related to discontinued operations of the predecessor company. In addition, we incurred significant expenses related to the search for funding, consultants and advisors for acquisitions, the initiation of a corporate sales and marketing program, costs associated with being a public company and clearing up certain expenses related to the predecessor company. Fortunately, we were able to obtain approximately $1.9 million in services to cover most of these expenses through the issuance of stock. In accordance with prescribed accounting regulations, services acquired through the issuance of restricted stock are valued based upon the market value of an equivalent quantity of free trading stock at the time the stock is issued.
"As a result of being able to use stock to pay for certain expenses, the cash flow generated by our operating divisions, and cash provided through financing activities, we were able to invest during the year in acquisitions, and the corporate infrastructure necessary to continue our acquisition strategy, and provide support and oversight to those acquisitions once acquired."
Also commenting on the year's results, Jonathan Doctor, PracticeXpert's chief executive officer, said, "There is no question that 2003 was a milestone year for PracticeXpert. I count amongst our accomplishments in 2003 some of the following successes: taking our company public through a reverse merger in April 2003; completing two acquisitions; building a significant pipeline of potential acquisitions; initiating a corporate sales and product branding strategy; revamping our website; obtaining an asset backed credit facility; developing a number of beneficial strategic relationships and strengthening our corporate team in the areas of business development, acquisitions and strategy.
"I see 2003 as a year of preparation. We created a great deal of value that doesn't appear in the financial statement and established the underlying foundation that is now allowing us to aggressive execute on our strategy. Already in 2004 we have had significant events, including our working relationship with NextGen Healthcare Information Systems, Inc., the acquisition of Singer MedScript, substantial new business in the pipeline and ongoing discussions with more than ten acquisition candidates. Throughout 2004 we expect to deliver to our stockholders substantial revenue growth as we move toward profitability."
As of December 31, 2003 PracticeXpert's four operating divisions had 53 customers in 14 states, which included approximately 200 physicians, and had approximately 30 hand-held devices utilizing its PXpert Revenue Management System being used by those customers.
About PracticeXpert, Inc.
PracticeXpert, Inc. is in the business of providing "turn-key" administrative services to, as well as developing and deploying systems, technologies and services designed to improve operational efficiencies, reduce billing errors and enhance cash flow for, medical practitioners. Our services revolve around our flagship Revenue Management System, PXpert(tm), and include medical billing and accounts receivable management, practice management, transcription, and consulting. Where applicable, PracticeXpert bundles its technology applications with its billing and other practice management services to provide a complete and integrated solution to its physician customers. To find out more about PracticeXpert, Inc. (OTCBB: PXPT), visit our website at www.practicexpert.com.
Note: Any statements released by PracticeXpert, Inc. that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.
PRACTICEXPERT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
2003 2002
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Net revenue $ 3,379,258 $ 1,852,934
Operating expenses 5,580,721 2,112,533
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Loss from operations (2,201,463) (259,599)
Non-operating Income (expense):
Gain on forgiveness of debt -- 302,779
Net loss on legal settlement (30,630) --
Gain on sales of assets 32,361 --
Impairment of client list (175,678) --
Impairment of fixed assets (25,727) --
Interest income 2,842 4,665
Interest expense (87,739) (102,489)
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Total non-operating income
(expense) (284,571) 204,955
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Loss from continuing operations
before income
taxes (2,486,034) (54,644)
Income taxes 2,400 1,600
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Loss from continuing operations (2,488,434) (56,244)
Discontinued operations
Gain on disposal of subsidiaries,
net 3,433,069 --
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Net income (loss) 944,635 (56,244)
Dividend requirement for
preferred stock (321,221) (39,000)
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Net income (loss) applicable
to common shareholders $ $ 623,414 $ (95,244)
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Basic weighted average number of
common stock outstanding $ 9,545,365 $ 4,190,195
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Basic net income (loss) per share $ 0.07 $ (0.02)
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Diluted weighted average number of
common stock outstanding 45,009,233 4,190,195
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Diluted net income (loss) per share 0.01 (0.02)
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