LifeMD Reports Fourth Quarter 2023 Results


  • Fourth quarter revenue increased 60% year-over-year to $44.9 million with Telehealth revenues increasing 90% versus the year-ago period.
  • Adjusted EPS of $0.15 per share compared with $0.02 in the year-ago period.
  • Consolidated adjusted EBITDA of $5.5 million compared with $1.0 million in the year-ago period.
  • Weight Management subscribers exceeded 22,000 as of year-end 2023, ahead of previous guidance.
  • Telehealth subscribers grew 27% year-over-year to a record 215,000 patients at year-end 2023.

Conference call begins at 4:30 p.m. Eastern time today

NEW YORK, March 11, 2024 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care, today reported financial results for the three and twelve months ended December 31, 2023.   

Management Commentary

“2023 was a record-setting year for LifeMD, characterized by sharp increases in revenue, telehealth subscribers and profitability. During the year, we launched our GLP-1 weight management program which has rapidly grown to become one of the leading providers of medically supported weight loss management services nationwide. In less than nine months, we scaled this business to over 22,000 subscribers and growing. Year to date in 2024, we continue to see record daily performance in the sale of new weight management subscriptions and at a rate in excess of our previous 2024 guidance. We demonstrated the tremendous value of our proprietary telehealth platform and dedicated 50-state, affiliated medical group through the execution of a substantial platform license and investment agreement with Medifast that provided LifeMD with a $10 million collaboration fee plus a $10 million equity investment,” said Justin Schreiber, Chairman and CEO of LifeMD. “Our RexMD business, once again posted double-digit revenue growth with robust contribution margins that continued to exceed 30%. Looking ahead, we are exceptionally well-positioned to meet or exceed our 2024 financial guidance while continuing to expand our position as a market leading disruptor in telemedicine.”

“We exited 2023 with the strongest financial position in our company’s history and are well capitalized to execute upon our aggressive expansion goals. Last year, we produced record cash flow from operations of approximately $9 million compared with negative operating cash flow of almost $23 million in 2022. We achieved this growth in profitability while simultaneously increasing consolidated net revenues by 28% versus the prior year. As a result of the strong performance we’ve seen across our business, led by performance in our growing GLP-1 weight management program, we are raising our 2024 revenue guidance to at least $200 million, up from previous guidance of $195 to $205 million. As this guidance implies, we expect 2024 revenue growth of at least 31% and we re-affirm guidance for adjusted EBITDA growth of 67%,” commented Marc Benathen, Chief Financial Officer of LifeMD.

Fourth Quarter Financial Highlights

  • Revenue increased 60% year-over-year to $44.9 million.
  • Telehealth revenue increased 90% versus the year-ago period and 28% sequentially versus the third quarter of 2023. WorkSimpli revenue increased 16% versus the year-ago period.
  • The number of telehealth active subscribers increased 27% over the year-ago period to approximately 215,000.
  • The number of weight management subscribers exceeded 22,000 as of year-end 2023, a net gain of approximately 12,000 subscribers sequentially versus the third quarter of 2023.
  • Gross margin expanded to a record 88.1%, up from 85.5% in the year-ago period.
  • GAAP net loss was $4.5 million or $0.12 per share, compared with a GAAP net loss of $12.7 million or $0.40 per share in the year-ago period.
  • Adjusted EBITDA increased to $5.5 million compared with $1.0 million in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
  • Adjusted diluted EPS was $0.15 compared with $0.02 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
  • Generated positive GAAP free cash flow of $3.5 million and exited the year with over $33 million of cash.

Full Year 2023 Financial Highlights

  • Revenue increased 28% year-over-year to $152.5 million.
  • Telehealth revenue increased 19% versus 2022. WorkSimpli revenue increased 50% versus 2022.
  • Gross margin expanded to a record 87.6%, up from 84.3% in the year-ago period.
  • GAAP net loss was $23.7 million or $0.70 per share, compared with GAAP net loss of $48.6 million or $1.57 per share in the year-ago period.
  • Adjusted EBITDA increased to $12.0 million compared with a loss of $14.1 million in 2022 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
  • Adjusted diluted EPS was $0.35 compared with a loss of $0.45 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
  • Generated full year positive GAAP cash flow from operations of $8.8 million, as compared with negative cash flow from operations in 2022 of $22.9 million.

Fourth Quarter Key Performance Metrics

      
($ in 000s) Three Months Ended Dec 31, Y-o-Y
Key Performance Metrics  2023  2022  % Growth
Revenue     
Telehealth $31,256 $16,419  90%
WorkSimpli $13,604 $11,701  16%
Total Revenue $44,860 $28,120  60%
      
Subscription Revenue as % of Total  96% 94% 2%
      
Active Subscribers     
Telehealth Active Subscribers  215,203  169,065  27%
WorkSimpli Active Subscribers  158,364  167,751  -6%
           

Financial Guidance

For the first quarter of 2024, the Company expects:

  • Revenue to be between $42 million and $43 million.
  • Adjusted EBITDA to be between $1 million and $2 million.
  • Cash-basis adjusted EBITDA (adjusted EBITDA including the increase in Deferred Revenue from multi-month, prepaid subscriptions primarily from our weight management program) is expected to be between $5 million and $6 million.

For the full year 2024, the Company expects:

  • Revenue to be at least $200 million reflecting performance to date in our GLP-1 weight management program exceeding previous guidance, raised from previous guidance of $195 million to $205 million.
  • Adjusted EBITDA guidance of between $18 million and $22 million, consistent with previous guidance.

Conference Call

LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows:

Toll-free dial-in number:877-704-4453
International dial-in number:201-389-0920
Conference ID:13743864
  

A replay of the webcast will be available in the Investors section of the Company’s website at ir.lifemd.com.

About LifeMD

LifeMD is a leading provider of virtual primary care. LifeMD offers telemedicine, laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically-integrated, proprietary digital care platform, a 50-state affiliated medical group, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit ir.lifemd.com

Cautionary Note Regarding Forward Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.

Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.

Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.

Investor Contact
LifeMD, Inc.
Marc Benathen, CFO
marc@lifemd.com

Media Contact
press@lifemd.com

Tables to Follow
++++++

 
 
 
LIFEMD, INC.
CONSOLIDATED BALANCE SHEETS
 
      
 December 31, 2023 December 31, 2022
ASSETS       
      
Current Assets     
Cash$33,146,725  $3,958,957 
Accounts receivable, net 5,277,250   2,834,750 
Product deposit 485,850   127,265 
Inventory, net 2,759,932   3,703,363 
Other current assets 934,510   687,022 
Total Current Assets 42,604,267   11,311,357 
      
Non-current Assets     
Equipment, net 476,303   476,441 
Right of use asset 594,897   1,206,009 
Capitalized software, net 11,795,979   8,840,187 
Intangible assets, net 3,009,263   3,831,859 
Total Non-current Assets 15,876,442   14,354,496 
      
Total Assets$58,480,709  $25,665,853 
      
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)     
      
Current Liabilities     
Accounts payable$11,084,855  $10,106,793 
Accrued expenses 13,937,494   12,166,509 
Notes payable, net 327,597   2,797,250 
Current operating lease liabilities 603,180   756,093 
Deferred revenue 8,828,598   5,547,506 
Total Current Liabilities 34,781,724   31,374,151 
      
Long-term Liabilities     
Long-term debt, net 17,927,727   - 
Noncurrent operating lease liabilities 73,849   574,136 
Contingent consideration 131,250   443,750 
Purchase price payable -   579,319 
Total Liabilities 52,914,550   32,971,356 
      
Commitments and Contingencies     
Mezzanine Equity     
Preferred Stock, $0.0001 par value; 5,000,000 shares authorized     
        
Series B Preferred Stock, $0.0001 par value; 5,000 shares authorized, zero and 3,500 shares issued and outstanding, as of December 31, 2023 and 2022, respectively. Liquidation value approximately $0 and $1,305 per share as of December 31, 2023 and 2022, respectively -   4,565,822 
      
Stockholders’ Equity (Deficit)     
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares authorized, 1,400,000 shares issued and outstanding, liquidation value approximately $29.99 and $27.84 per share as of December 31, 2023 and 2022, respectively 140   140 
Common Stock, $0.01 par value; 100,000,000 shares authorized, 38,358,641 and 31,552,775 shares issued, 38,255,601 and 31,449,735 outstanding as of December 31, 2023 and 2022, respectively 383,586   315,528 
Additional paid-in capital 217,550,583   179,015,250 
Accumulated deficit (214,265,236)  (190,562,994)
Treasury stock, 103,040 and 103,040 shares, at cost, as of December 31, 2023 and 2022, respectively (163,701)  (163,701)
Total LifeMD, Inc. Stockholders’ Equity (Deficit) 3,505,372   (11,395,777)
Non-controlling interest 2,060,787   (475,548)
Total Stockholders’ Equity (Deficit) 5,566,159   (11,871,325)
Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)$58,480,709  $25,665,853 
      


LIFEMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
   
             
  Fourth Quarter Ended December 31, Year Ended December 31,
  2023  2022  2023  2022 
Revenues            
Telehealth revenue, net $31,256,199  $16,418,643  $98,152,919  $82,649,845 
WorkSimpli revenue, net  13,603,648   11,701,073   54,394,087   36,383,675 
Total revenues, net  44,859,847   28,119,716   152,547,006   119,033,520 
             
Cost of revenues            
Cost of telehealth revenue  4,954,646   3,801,642   17,480,533   17,843,754 
Cost of WorkSimpli revenue  400,913   266,058   1,419,931   824,274 
Total cost of revenues  5,355,559   4,067,700   18,900,464   18,668,028 
             
Gross profit  39,504,288   24,052,016   133,646,542   100,365,492 
             
Expenses             
Selling and marketing expenses  20,389,121   17,440,781   76,451,466   78,369,430 
General and administrative expenses  15,573,509   9,203,072   51,694,232   46,960,782 
Other operating expenses  1,656,631   1,640,975   6,297,321   6,717,795 
Customer service expenses  2,058,549   1,605,370   7,632,283   5,033,468 
Development costs  1,998,015   1,019,163   6,060,513   2,970,202 
Goodwill and intangible asset impairment charges  -   6,127,596   -   8,862,596 
Change in fair value of contingent consideration  -   (2,614,000)  -   (5,101,000)
Total expenses  41,675,825   34,422,957   148,135,815   143,813,273 
             
Operating loss  (2,171,537)  (10,370,941)  (14,489,273)  (43,447,781)
             
Other expenses            
Interest expense, net  (622,685)  (843,541)  (2,596,586)  (1,275,946)
(Loss) gain on debt extinguishment  -   -   (325,198)  63,400 
             
Net loss before provision for income taxes  (2,794,222)  (11,214,482)  (17,411,057)  (44,660,327)
             
Income tax provision  (428,000)  (360,700)  (428,000)  (360,700)
             
Net loss  (3,222,222)  (11,575,182)  (17,839,057)  (45,021,027)
             
Net income attributable to noncontrolling interests  509,880   360,168   2,756,935   514,632 
             
Net loss attributable to LifeMD, Inc.  (3,732,102)  (11,935,350)  (20,595,992)  (45,535,659)
             
Preferred stock dividends  (776,562)  (776,562)  (3,106,250)  (3,106,250)
             
Net loss attributable to LifeMD, Inc. common stockholders $(4,508,664) $(12,711,912) $(23,702,242) $(48,641,909)
             
Basic loss per share attributable to LifeMD, Inc. common stockholders $(0.12) $(0.40) $(0.70) $(1.57)
Diluted loss per share attributable to LifeMD, Inc. common stockholders $(0.12) $(0.40) $(0.70) $(1.57)
             
Weighted average number of common shares outstanding:            
Basic  36,710,746   31,410,065   33,905,155   30,976,455 
Diluted  36,710,746   31,410,065   33,905,155   30,976,455 
             


LIFEMD, INC. 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
     
             
 Fourth Quarter Ended December 31, Year Ended December 31, 
 2023  2022  2023  2022  
         
CASH FLOWS FROM OPERATING ACTIVITIES            
Net loss$(3,222,222) $(11,575,182) $(17,839,057) $(45,021,027) 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:            
  Amortization of debt discount 100,444   -   333,939   -  
  Amortization of capitalized software 1,637,094   934,908   5,424,810   2,681,807  
  Amortization of intangibles 245,968   259,760   971,464   926,542  
Accretion of consideration payable 18,740   101,081   167,221   273,822  
Depreciation of fixed assets 57,666   44,877   203,952   161,885  
Write-down of inventory 537,685   103,417   537,685   103,417  
Sales return reserve -   338,193   -   338,193  
Loss (gain) on debt extinguishment -   -   325,198   (63,400) 
Change in fair value of contingent consideration -   (2,614,000)  -   (5,101,000) 
Goodwill and intangible asset impairment charges -   6,127,596   -   8,862,596  
Deferred income tax provision -   354,000   -   354,000  
Operating lease payments 204,207   83,241   766,280   546,439  
Stock issued for legal settlement -   -   532,000   816,000  
Stock compensation expense 3,645,607   1,884,614   12,489,343   13,734,614  
             
Changes in Assets and Liabilities            
  Accounts receivable (858,668)  (634,825)  (2,442,500)  (2,192,888) 
  Product deposit (401,082)  (19,214)  (358,585)  76,291  
  Inventory 493,029   (130,649)  405,746   (2,183,012) 
  Other current assets 369,450   127,554   (247,488)  106,168  
  Change in operating lease liability (218,624)  (77,710)  (808,368)  (455,805) 
  Deferred revenue 2,589,244   3,194,354   3,281,092   4,047,626  
  Accounts payable 1,447,465   (576,066)  978,062   1,251,037  
  Accrued expenses (932,373)  993,497   4,678,757   (1,309,968) 
  Other operating activity -   (888,485)  (579,319)  (888,486) 
Net cash provided by (used in) operating activities 5,713,630   (1,969,039)  8,820,232   (22,935,149) 
             
CASH FLOWS FROM INVESTING ACTIVITIES            
Cash paid for capitalized software costs (2,107,307)  (1,783,259)  (8,380,602)  (8,526,205) 
Purchase of equipment (109,332)  12,244   (203,814)  (366,633) 
Purchase of intangible assets -   -   (148,868)  (4,000,500) 
Acquisition of business, net of cash acquired -   -   -   (1,012,395) 
Net cash used in investing activities (2,216,639)  (1,771,015)  (8,733,284)  (13,905,733) 
             
CASH FLOWS FROM FINANCING ACTIVITIES            
Proceeds from long-term debt, net -   -   19,466,887   -  
Proceeds from common stock issued to Medifast 10,000,000   -   10,000,000   -  
Proceeds from notes payable -   2,906,000   2,347,691   2,906,000  
Sale of common stock under ATM, net 5,303,092   -   6,202,659   -  
Cash proceeds from exercise of warrants -   -   -   38,500  
Cash proceeds from exercise of options 94,500   -   94,500   90,400  
Preferred stock dividends (776,562)  (776,562)  (3,106,250)  (3,106,250) 
Net payments for membership interest of WorkSimpli -   -   (305,625)  12,150  
Contingent consideration payment for ResumeBuild (125,000)  (62,500)  (312,500)  (156,250) 
Distributions to non-controlling interest (36,000)  (36,000)  (144,000)  (144,000) 
Repayment of notes payable, net of prepayment penalty (98,626)  (168,750)  (5,142,542)  (168,750) 
Net cash provided by (used in) financing activities 14,361,404   1,862,188   29,100,820   (528,200) 
             
Net increase (decrease) in cash 17,858,395   (1,877,866)  29,187,768   (37,369,082) 
             
Cash at beginning of period 15,288,330   5,836,823   3,958,957   41,328,039  
             
Cash at end of period$33,146,725  $3,958,957  $33,146,725  $3,958,957  
             
Cash paid for interest            
Cash paid during the period for interest$663,212  $189,000  $2,148,454  $189,000  
             
Non-cash investing and financing activities:            
Cashless exercise of options$-  $-  $744  $297  
Cashless exercise of warrants$793  $-  $793  $-  
Consideration payable for Cleared acquisition$-  $-  $-  $8,079,367  
Consideration payable for ResumeBuild acquisition$-  $-  $-  $500,000  
Stock issued for noncontingent consideration payments$642,000  $-  $2,568,000  $-  
Stock issued for debt conversion$1,000,000  $-  $1,000,000  $-  
Series B Preferred Stock conversion$-  $-  $5,072,814  $-  
Principal of Paycheck Protection Program loans forgiven$-  $-  $-  $63,400  
Warrants issued for debt instruments$-  $-  $873,100  $-  
Right of use asset$-  $89,595  $155,168  $89,595  
Right of use lease liability$-  $94,168  $155,168  $94,168  
             

About the Use of Non-GAAP Financial Measures: 
To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA and adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors.

Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to common shareholders, its most directly comparable GAAP financial measure.

Adjusted EPS is defined as the diluted net loss attributable to LifeMD, Inc common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EPS to Diluted loss per share attributable to LifeMD, Inc common shareholders, its most directly comparable GAAP financial measure.

We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms adjusted EBITDA and adjusted EPS may vary from that of others in our industry. Adjusted EBITDA and adjusted EPS should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.

Reconciliation of GAAP Net Loss to Adjusted EBITDA
(in whole numbers, unaudited)
 Fourth Quarter Ended December 31, Year Ended December 31,
  2023   2022   2023   2022 
Net loss attributable to common shareholders$(4,508,664) $(12,711,912) $(23,702,242) $(48,641,909)
        
Interest expense (excluding amortization of debt discount) 522,241   728,856   1,755,656   820,946 
Depreciation, amortization and accretion expense 1,959,468   1,340,626   6,767,447   4,044,056 
Amortization of debt discount 100,444   -   333,939   - 
Loss (gain) on debt extinguishment -   -   325,198   (63,400)
Financing transactions expense 38,431   98,333   773,932   250,348 
Litigation costs 168,600   168,162   1,594,930   1,685,521 
Inventory and reserve adjustments 404,694   699,057   637,324   929,718 
Deferred revenue adjustment -   2,918,942   -   2,918,942 
Severance costs 17,400   181,824   25,092   360,914 
Acquisitions expenses 30,909   127,539   158,047   392,692 
Change in fair value of contingent consideration -   (2,614,000)  -   (5,101,000)
Goodwill and intangible asset impairment charges -   6,127,596   -   8,862,596 
Insurance acceptance readiness 252,250   -   318,884   - 
Sarbanes Oxley readiness 151,248   -   199,824   - 
Accrued interest on Series B Convertible Preferred Stock -   114,685   506,991   455,000 
Foreign exchange (gain) loss 368,793   393,147   1,165,412   1,078,389 
Taxes 428,000   360,700   498,378   360,700 
Dividends 1,399,560   812,562   5,371,450   3,250,250 
Stock-based compensation expense 3,645,607   1,884,614   12,489,343   13,734,614 
Net income attributable to noncontrolling interests 509,880   360,168   2,756,935   514,632 
        
Adjusted EBITDA$5,488,861  $990,899  $11,976,540  $(14,146,991)
        

 

Reconciliation of GAAP Diluted Loss per Share Attributable to Common Shareholders to Adjusted EPS       
(unaudited)Fourth Quarter Ended December 31, Year Ended December 31,
  2023   2022   2023   2022 
Diluted loss per share attributable to LifeMD, Inc. common shareholders$(0.12) $(0.40) $(0.70) $(1.57)
        
Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS       
Interest expense (excluding amortization of debt discount) 0.01   0.02   0.05   0.03 
Depreciation, amortization and accretion expense 0.05   0.04   0.20   0.13 
Amortization of debt discount -   -   0.01   - 
Loss (gain) on debt extinguishment -   -   0.01   - 
Financing transactions expense -   -   0.02   0.01 
Litigation costs 0.01   0.01   0.05   0.06 
Inventory and reserve adjustments 0.01   0.02   0.02   0.03 
Deferred revenue adjustment -   0.09   -   0.10 
Severance costs -   0.01   -   0.01 
Acquisitions expenses -   -   0.01   0.01 
Change in fair value of contingent consideration -   (0.08)  -   (0.16)
Goodwill and intangible asset impairment charges -   0.20   -   0.29 
Insurance acceptance readiness 0.01   -   0.01   - 
Sarbanes Oxley readiness 0.01   -   0.01   - 
Accrued interest on Series B Convertible Preferred Stock -   -   0.01   0.01 
Foreign exchange (gain) loss 0.01   0.01   0.03   0.03 
Taxes 0.01   0.01   0.01   0.01 
Dividends 0.04   0.02   0.16   0.10 
Stock-based compensation expense 0.10   0.06   0.37   0.44 
Net income attributable to noncontrolling interests 0.01   0.01   0.08   0.02 
        
Adjusted EPS$0.15  $0.02  $0.35  $(0.45)