Plantation, FL, Aug. 9, 2013 (GLOBE NEWSWIRE) -- Health Revenue Assurance Holdings, Inc. (OTCQB: HRAA), a provider of technology and revenue integrity solutions for healthcare organizations, announced its financial results for the second quarter ended June 30, 2013.
Second Quarter Highlights:
- Total quarterly revenue of $2,067,464 increased 101% as compared to $1,028,266 for the prior year's second quarter;
- Gross profit of $1,091,832 at the end of the second quarter of 2013 as compared to a gross profit of $575,033 in the same period of 2012;
"During the second quarter our total revenues more than doubled to $2,067,464, compared to the same period last year as our pipeline for our solutions package, including our revolutionary ICDVisualizerTM, continues to be in demand," stated Andrea Clark, HRAA's Chairman, CEO and Founder. "We had a significant customer win this quarter with the signing of Vanderbilt University Medical Center for our ICD-10 transition services. With over 60 locations and 2,200 clinical provider physicians serving 1.7 million patients annually, VUMC is one of the premier academic medical institutions in Tennessee and Kentucky and will be a benchmark for HRAA's services."
Mrs. Clark continued, "As we near the deadline for ICD-10, we continue to add seasoned professionals to our leadership team. During the quarter, we hired Evan McKeown as our new Chief Financial Officer. Evan is a 25+ year finance veteran in the technology and healthcare industries where he has served in the CFO capacity for more than half his career. We also recently added Peter Russo and Michael Brainerd as new members to our Board of Directors. Peter is the former CFO of magicJack and Michael is an experienced corporate strategist. We are confident their financial experience and industry knowledge are perfect fits for our Company as we continue to meet the increasing demands placed on health systems by the upcoming ICD-10 deadline."
Second Quarter 2013 Financial Results
For the second quarter of 2013, total revenues were $2,067,464, an increase of $1,039,198 or 101%, from revenues of $1,028,266 for the second quarter of 2012.
Operating expenses were $1,960,844 for the second quarter of 2013, compared to $1,081,133 for the prior year's second quarter. The increase in operating expenses is due to increased SG&A expenses as the company increased its staff from 75 employees to 115. The Company had an operating loss in the second quarter of 2013 of $(869,012), compared to an operating loss of $(506,100) for the prior year's second quarter.
The Company recorded a net loss of $(1,097,061), or $(0.02) per basic and diluted share, for the second quarter of 2013, as compared to a net loss of $(511,022), or $(0.01) per basic and diluted share, for the second quarter of 2012.
Conference Call
The Company will be holding a conference call on Monday, August 12, 2013, at 8:00AM ET (5:00AM PT) to review the first quarter 2013 results.
Robert Rubinowitz, President and Chief Operating Officer and Evan McKeown, Chief Financial Officer of Health Revenue Assurance Holdings, Inc., will be on-line to discuss these results.
To listen in, please call one of the following teleconferencing numbers at least 5 minutes before the conference call commences.
Toll-Free: 888-516-2411
Toll: 719-457-2693
Passcode: 163147
A telephone replay of the call will be available by contacting HRAA's office at 1-954-472-2340.
About HRAA
HRAA (OTCQB: HRAA) interprets data to ensure that healthcare is efficient and effective for everyone by pulling medical data together to create a predictive window to understand cost and revenues looking back and going forward.Founded in 2001 and based out of Plantation, FL, HRAA combines years of industry expertise with best-in-breed technology to create market leading business intelligence products and consulting services to ensure hospitals are reimbursed for every pill they prescribe, every procedure they perform and every test they administer. HRAA both trains and supplies the high tech workforce to hospitals to generate the predictive data used by the whole healthcare system and offers a full suite of solutions needed to keep up with the ever-changing healthcare industry including data analytics software, business intelligence technology, medical coding, auditing, education, revenue cycle consulting, and ICD-10 transition solutions. For more information please visit: http://www.hraa.com
Caution Regarding Forward Looking Statements
Certain statements in this news release and such conference call are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, growing revenues and profits through organic growth and acquisitions, attracting new business that will increase HRAA's revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of HRAA's selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in HRAA's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
-Tables Follow-
HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, | Dec 31, | |||||||
| 2013 | 2012 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Cash | $ | 171,183 | $ | 893,458 | ||||
| Accounts receivable | 1,510,690 | 1,246,814 | ||||||
| Prepaid expenses | 91,270 | 3,600 | ||||||
| Other current assets | 12,831 | 688 | ||||||
| Total Current Assets | 1,785,974 | 2,144,560 | ||||||
| Property and Equipment, net | 411,120 | 365,017 | ||||||
| Software | 940,305 | 258,933 | ||||||
| Other assets | 8,865 | 8,871 | ||||||
| Finance costs, net | 2,313 | 2,477 | ||||||
| Total Other Assets | 951,483 | 270,281 | ||||||
| Total Assets | $ | 3,148,577 | $ | 2,779,858 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Accounts payable | $ | 338,296 | $ | 207,741 | ||||
| Due to officer | 75,000 | 75,000 | ||||||
| Accrued expenses | 136,152 | 64,077 | ||||||
| Accrued payroll | 641,621 | 412,186 | ||||||
| Loan payable to factor | 552,439 | 827,075 | ||||||
| Accrued interest | -- | 4,524 | ||||||
| Lines of credit, current portion | 74,791 | 25,000 | ||||||
| Capital Leases, current portion | 21,972 | 16,923 | ||||||
| Notes payable, current portion, net of discount | 574,718 | 202,557 | ||||||
| Long term debt, current portion | 32,610 | 37,513 | ||||||
| Settlement Payable | 23,056 | 115,278 | ||||||
| Total Current Liabilities | 2,470,655 | 1,987,874 | ||||||
| Capital Leases (net of current portion) | 30,565 | 23,974 | ||||||
| Line of credit (net of current portion) | 111,637 | 125,000 | ||||||
| Notes payable (net of current portion), net of discount | 287,355 | 273,751 | ||||||
| Long term debt (net of current portion) | 168,029 | 181,457 | ||||||
| Total Liabilities | $ | 3,068,241 | $ | 2,592,056 | ||||
| Stockholders' Equity: | ||||||||
| Common stock ($0.001 par value, 75,000,000 shares authorized, | 46,511 | 39,055 | ||||||
| 46,511,409 shares and 39,054,867 issued and outstanding at | ||||||||
| June 30, 2013 and December 31, 2012, respectively) | ||||||||
| Additional paid-in capital | 4,150,511 | 2,738,545 | ||||||
| Subscription receivable | -- | (5,000 | ) | |||||
| Accumulated deficit | (4,116,686 | ) | (2,584,798 | ) | ||||
| Total Stockholders' Equity | 80,336 | 187,802 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 3,148,577 | $ | 2,779,858 | ||||
HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| (for the three months ended) | ||||||||
| June 30, | June 30, | |||||||
| 2013 | 2012 | |||||||
| Revenues | $ | 2,067,464 | $ | 1,028,266 | ||||
| Cost of Revenues | _975,632 | 453,233 | ||||||
| Gross Profit | 1,091,832 | 575,033 | ||||||
| Operating Expenses | ||||||||
| Selling and administrative expenses | 1,941,675 | 1,047,334 | ||||||
| Research and development | -- | 20,920 | ||||||
| Depreciation and amortization | 19,169 | 12,879 | ||||||
| Total Operating Expenses | 1,960,844 | 1,081,133 | ||||||
| Operating Loss | (869,012 | ) | (506,100 | ) | ||||
| Other Income (Expense) | ||||||||
| Other income, net | 635 | -- | ||||||
| Interest expense | (228,684 | ) | (4,922 | ) | ||||
| Total Other Income (Expense), net | (228,049 | ) | (4,922 | ) | ||||
| Loss before provision for income taxes | (1,097,061 | ) | (511,022 | ) | ||||
| Provision for income taxes | -- | -- | ||||||
| Net Loss | $ | (1,097,061 | ) | $ | (511,022 | ) | ||
| Net Loss Per Share | ||||||||
| basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | ||
| Weighted Average Number of Shares Outstanding | ||||||||
| basic and diluted | 45,422,517 | 35,229,195 | ||||||