LOS ANGELES, April 28, 2006 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced its results for the twelve month period ended December 31, 2005.
Consolidated net revenues for the year ended December 31, 2005 were $17,725,144, as compared to consolidated net revenues for the year ended December 31, 2004 of $11,096,512, an increase of $6,628,632, or 59.7%. Revenues increased during 2005 primarily as a result of the acquisition of Physician Informatics, Inc. in January 2005. In addition, revenue increased as the revenue of Cancer Care Network, which was acquired on April 29, 2004 is included for the full year 2005. Revenue also increased as a result of our sales and marketing activities, which generated additional business from new clients during 2005.
Consolidated operating expenses for the year ended December 31, 2005 were $29,386,692, as compared to consolidated operating expenses for the year ended December 31, 2004 of $15,040,965, an increase of $14,345,727, or 95.3%. Operating expenses increased, in part, as a result of the recording of eleven months of expenses for Physician Informatics, Inc. and four months of expenses attributable to Cancer Care Network. Expenses also increased as a result of additional costs incurred relating to managed practices and the expansion of corporate support services to our operating units, such as corporate management, human resources, accounting and IT support.
The Company reported a net loss of $12,205,819, or a basic and fully diluted net loss per common share of $0.09, for the year ended December 31, 2005 compared to a net loss of $4,263,138, or a basic net loss per common share of $0.05 and a fully diluted net loss per common share of $0.05 for the year ended December 31, 2004.
Michael Manahan CEO of PracticeXpert, Inc. said, "There is no question that 2005 was not a good year for PracticeXpert. Reorganization, restructuring, write-down in the value of intangible assets, unprofitable contracts, and the elimination of a number of our business units all added to our losses. Included in our losses were non-cash expenses totaling $8.2 million, relating to depreciation and amortization, revaluation of intangibles, loss on the sale of transcription client lists, and other non-cash expenses. A further $1 million represents operating losses on major contracts that have since been terminated. On the positive side, we entered 2006 a smaller and leaner enterprise, more focused on our two core product lines, outsourced medical billing, and practice management and electronic medical records software. We look forward to improved results going forward."
Manahan continued, "I urge all of our shareholders to study in detail our Form 10-KSB for the year ended December 31, 2005, as filed with Securities and Exchange Commission, because it includes more detailed information than is included in this press release. And, of course, please feel free to contact the company directly, if you have any further questions or comments."
About PracticeXpert, Inc.
PracticeXpert provides revenue cycle management services and technology solutions to medical practitioners that improve operational efficiencies and enhance cash flow. PracticeXpert offerings include medical billing, accounts receivable management, practice management software, electronic medical records software and related services. PracticeXpert bundles its technology applications with its billing and other 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.
This release and other written or oral statements made from time to time by PracticeXpert may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "intends", "expects", "assumes", "projects", "anticipates", "estimates", "we believe", "could be", and other words of similar meaning, are forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: PracticeXpert's success in obtaining, retaining and selling additional services to clients; the pricing of products and services; changes in laws regulating medical billing, practice management and electronic medical record systems; market and economic conditions, including interest rate trends; competitive conditions; stock market activity; changes in technology; availability of skilled employees and associates, the impact of new acquisitions and divestitures, and other factors discussed in PracticeXpert's filings with the Securities and Exchange Commission. PracticeXpert disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
PRACTICEXPERT, INC.
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004
2005 2004
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NET REVENUES:
Medical billings and related services $ 7,604,956 $ 7,343,846
Management Services 6,655,338 3,752,666
Software products 3,464,850 --
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TOTAL NET REVENUE $ 17,725,144 $ 11,096,512
OPERATING EXPENSES
Legal settlement 12,000 250,750
Impairment of goodwill, client lists 4,146,751 411,963
Impairment of intangible assets -- 416,827
Medical billing and related services 14,206,232 10,312,077
Management services 5,975,597 3,649,348
Software Products 4,822,418 --
Other expense 223,694 --
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TOTAL OPERATING EXPENSES 29,386,692 15,040,965
LOSS FROM OPERATIONS (11,661,548) (3,944,453)
NON-OPERATING INCOME (EXPENSE):
Gain on settlement of debts 39,196 70,988
Loss on disposal of asset -- (4,706)
Interest income 1,672 382
Interest expense (548,937) (249,419)
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Total non-operating expense (508,069) (182,755)
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LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES DISCONTINUED
OPERATIONS AND EXTRAORDINARY ITEM (12,169,617) (4,127,208)
INCOME TAXES 1,502 5,600
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LOSS BEFORE DISCONTINUED OPERATIONS
AND EXTRAORDINARY ITEM (12,171,119) (4,132,808)
DISCONTINUED OPERATIONS:
Loss from operations to be disposed, net (312,159) --
Loss on sale of business (322,541) (66,590)
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LOSS BEFORE EXTRAORDINARY ITEM (12,805,819) (4,199,398)
EXTRAORDINARY ITEM
Gain on conversion of note 600,000 --
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NET LOSS (12,205,819) (4,199,398)
Dividend requirement for preferred stock -- (63,740)
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NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS $(12,205,819) $ (4,263,138)
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BASIC WEIGHTED AVERAGE NUMBER OF
COMMON STOCK OUTSTANDING 134,930,115 80,670,149
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BASIC NET LOSS PER SHARE $ (0.09) $ (0.05)
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DILUTED NET LOSS PER SHARE $ (0.09) $ (0.05)
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