Florida | 000-22052 | 65-0202059 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1854 Shackleford Court, Suite 200 | ||
Norcross, Georgia | 30093-2924 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230 .425) | ||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
2
| Transaction The sale of substantially all of the net assets of the Companys Cost Containment Business to CAI in exchange for $23.5 million in cash. At closing, $3.0 million of the cash proceeds will be placed in escrow to cover possible indemnification claims, $4.0 million will be used to pay transaction costs and certain Cost Containment Business liabilities, and the remaining $16.5 million will be used to pay down a portion of the Companys senior debt. |
3
ProxyMed, Inc. | Cost | |||||||||||||||
Historical | Containment | Pro Forma | Pro Forma | |||||||||||||
Consolidated(a) | Business(b) | Adjustments(c) | Consolidated | |||||||||||||
(In thousands) | ||||||||||||||||
Cash and Cash Equivalents |
$ | 932 | $ | 66 | $ | 20,500 | (1) | $ | 932 | |||||||
(20,500 | )(2) | |||||||||||||||
66 | (3) | |||||||||||||||
Accounts Receivable Net |
12,696 | 7,993 | 4,703 | |||||||||||||
Note and Other Receivables |
86 | 0 | 86 | |||||||||||||
Inventory |
571 | 0 | 571 | |||||||||||||
Other Current Assets |
1,378 | 266 | 1,112 | |||||||||||||
Total Current Assets |
15,663 | 8,325 | 66 | 7,404 | ||||||||||||
Property and Equipment, Net |
3,901 | 88 | 3,813 | |||||||||||||
Goodwill, Net |
11,870 | 8,176 | 3,694 | |||||||||||||
Purchased Technology, Capitalized Software &
Other Intangible Assets, Net |
10,353 | 7,222 | 3,131 | |||||||||||||
Other Assets |
2,725 | 260 | (1,193 | )(4) | 1,272 | |||||||||||
Total Assets |
$ | 44,512 | $ | 24,071 | $ | (1,127 | ) | $ | 19,314 | |||||||
Accounts payable, accrued expenses and other
current liabilities |
11,918 | 2,150 | (2,000 | )(5) | 7,768 | |||||||||||
Current Portion of Capital Leases |
835 | 0 | 835 | |||||||||||||
Notes Payable and Current Portion of
Long-Term
Debt |
18,901 | 0 | (16,500 | )(6) | 1,601 | |||||||||||
(800 | )(7) | |||||||||||||||
Deferred Revenue |
238 | 0 | 238 | |||||||||||||
Income Taxes payable |
412 | 0 | 412 | |||||||||||||
Total Current Liabilities |
32,304 | 2,150 | (19,300 | ) | 10,854 | |||||||||||
Convertible Notes |
13,137 | 0 | 13,137 | |||||||||||||
Other Long-Term Debt |
89 | 0 | (89 | )(7) | 0 | |||||||||||
Long-Term Capital Leases |
644 | 0 | 644 | |||||||||||||
Long-Term Deferred Revenue and Other
Long-Term Liabilities |
380 | 0 | 380 | |||||||||||||
Total Liabilities |
46,554 | 2,150 | (19,389 | ) | 25,015 | |||||||||||
Stockholders Equity |
||||||||||||||||
Preferred Stock |
0 | 0 | ||||||||||||||
Common Stock |
14 | 0 | 14 | |||||||||||||
Additional Paid-In Capital |
245,448 | 230,483 | 230,483 | (8) | 245,448 | |||||||||||
Retained Earnings (Deficit) |
(247,504 | ) | (208,562 | ) | (230,483 | )(8) | (251,163 | ) | ||||||||
66 | (3) | |||||||||||||||
(1,200 | )(9) | |||||||||||||||
(1,193 | )(4) | |||||||||||||||
20,500 | (1) | |||||||||||||||
89 | (7) | |||||||||||||||
Total Stockholders Equity |
(2,042 | ) | 21,921 | 18,262 | (5,701 | ) | ||||||||||
Total Liabilities and Stockholders Equity |
$ | 44,512 | $ | 24,071 | $ | (1,127 | ) | $ | 19,314 | |||||||
4
ProxyMed, Inc | Cost | |||||||||||||||
Historical | Containment | Pro Forma | Pro Forma | |||||||||||||
Consolidated (a) | Business (b) | Adjustments (c) | Consolidated | |||||||||||||
(In thousands except for share and per share data) | ||||||||||||||||
Net Revenues: |
||||||||||||||||
Transaction fees, cost containment
services
and license fees |
$ | 36,382 | $ | 14,408 | $ | 21,974 | ||||||||||
Communication devices and other tangible
goods |
4,940 | 0 | 4,940 | |||||||||||||
41,322 | 14,408 | 26,914 | ||||||||||||||
Cost and expenses: |
||||||||||||||||
Cost of transaction fees, cost
containment
services and license fees, excluding
depreciation and amortization |
9,297 | 4,873 | 4,424 | |||||||||||||
Cost of laboratory communication devices
and other tangible goods, excluding
depreciation and amortization |
2,785 | 0 | 2,785 | |||||||||||||
Selling, general and administrative
expenses |
31,287 | 9,959 | 21,328 | |||||||||||||
Depreciation and amortization |
4,613 | 1,517 | 3,096 | |||||||||||||
Write-off of impaired assets |
21,550 | 14,409 | 7,141 | |||||||||||||
Other expense, net |
0 | 0 | 0 | |||||||||||||
(Gain)/Loss on disposal of assets |
12 | 0 | 12 | |||||||||||||
Litigation settlements |
0 | 0 | 0 | |||||||||||||
Total Expenses |
69,544 | 30,758 | 0 | 38,786 | ||||||||||||
Operating income (loss) |
(28,222 | ) | (16,350 | ) | 0 | (11,872 | ) | |||||||||
Other (Income), net |
0 | 0 | 0 | |||||||||||||
Interest expense, net |
3,308 | 0 | (2,632 | )(1) | 676 | |||||||||||
Income (loss) before income taxes |
(31,530 | ) | (16,350 | ) | 2,632 | (12,548 | ) | |||||||||
Provision for income taxes |
0 | 0 | 0 | 0 | ||||||||||||
Net Income (loss) |
$ | (31,530 | ) | $ | (16,350 | ) | $ | 2,632 | $ | (12,548 | ) | |||||
Basic and diluted weighted average shares
outstanding |
13,422,076 | 13,422,076 | 13,422,076 | 13,422,076 | ||||||||||||
Basic and diluted loss per share |
$ | (2.35 | ) | $ | (1.22 | ) | $ | 0.20 | $ | (0.93 | ) | |||||
5
ProxyMed, Inc | ||||||||||||||||
Historical | Cost Containment | Pro Forma | Pro Forma | |||||||||||||
Consolidated (a) | Business (b) | Adjustments (c) | Consolidated | |||||||||||||
(In thousands except for share and per share data) | ||||||||||||||||
Net Revenues: |
||||||||||||||||
Transaction fees, cost containment
services and license fees |
$ | 42,842 | $ | 18,272 | $ | 24,570 | ||||||||||
Communication devices and other
tangible goods |
6,773 | 0 | 6,773 | |||||||||||||
49,615 | 18,272 | 31,343 | ||||||||||||||
Cost and expenses: |
||||||||||||||||
Cost of transaction fees, cost
containment services and license fees,
excluding depreciation and
amortization |
10,873 | 5,382 | 5,491 | |||||||||||||
Cost of laboratory communication devices
and other tangible goods, excluding
depreciation and amortization |
4,027 | 0 | 4,027 | |||||||||||||
Selling, general and administrative
expenses |
31,930 | 8,733 | 23,197 | |||||||||||||
Depreciation and amortization |
5,554 | 2,208 | 3,346 | |||||||||||||
Write-off of impaired assets |
0 | 0 | 0 | |||||||||||||
Other expense, net |
0 | 0 | 0 | |||||||||||||
(Gain)/Loss on disposal of assets |
0 | 0 | 0 | |||||||||||||
Litigation settlements |
0 | 0 | 0 | |||||||||||||
Total Expenses |
52,384 | 16,323 | 0 | 36,061 | ||||||||||||
Operating income (loss) |
(2,769 | ) | 1,949 | 0 | (4,718 | ) | ||||||||||
Other (Income), net |
0 | 0 | 0 | |||||||||||||
Interest expense, net |
2,239 | 0 | (1,563 | )(1) | 676 | |||||||||||
Income (loss) before income taxes |
(5,008 | ) | 1,949 | 1,563 | (5,394 | ) | ||||||||||
Provision for income taxes |
0 | 760 | 760 | (2) | 0 | |||||||||||
Net Income (loss) |
$ | (5,008 | ) | $ | 1,189 | $ | 803 | $ | (5,394 | ) | ||||||
Basic and diluted weighted average
shares
outstanding |
13,206,994 | 13,206,994 | 13,206,994 | 13,206,994 | ||||||||||||
Basic and diluted loss per share |
$ | (0.38 | ) | $ | 0.09 | $ | 0.06 | $ | (0.41 | ) | ||||||
6
ProxyMed, Inc | ||||||||||||||||
Historical | Cost Containment | Pro Forma | Pro Forma | |||||||||||||
Consolidated (a) | Business (b) | Adjustments (c) | Consolidated | |||||||||||||
(In thousands except for share and per share data) | ||||||||||||||||
Net Revenues: |
||||||||||||||||
Transaction fees, cost containment services
and license fees |
$ | 56,240 | $ | 23,886 | $ | 32,354 | ||||||||||
Communication devices and other tangible
goods |
9,222 | 0 | 9,222 | |||||||||||||
65,462 | 23,886 | 41,576 | ||||||||||||||
Cost and expenses: |
||||||||||||||||
Cost of transaction fees, cost containment
services and license fees, excluding
depreciation and amortization |
13,944 | 6,869 | 7,075 | |||||||||||||
Cost of laboratory communication devices
and other tangible goods, excluding
depreciation and amortization |
5,389 | 0 | 5,389 | |||||||||||||
Selling, general and administrative
expenses |
41,787 | 11,830 | 29,957 | |||||||||||||
Depreciation and amortization |
7,379 | 2,919 | 4,460 | |||||||||||||
Write-off of impaired assets |
0 | 0 | 0 | |||||||||||||
Other expense, net |
0 | 0 | 0 | |||||||||||||
(Gain)/Loss on disposal of assets |
12 | (7 | ) | 19 | ||||||||||||
Litigation settlements |
321 | 0 | 321 | |||||||||||||
Total Expenses |
68,832 | 21,611 | 0 | 47,221 | ||||||||||||
Operating income (loss) |
(3,370 | ) | 2,275 | 0 | (5,645 | ) | ||||||||||
Other (Income), net |
0 | 0 | 0 | |||||||||||||
Interest expense, net |
3,240 | 0 | (2,340 | )(1) | 900 | |||||||||||
Income (loss) before income taxes |
(6,610 | ) | 2,275 | 2,340 | (6,545 | ) | ||||||||||
Provision for income taxes |
0 | 887 | 887 | (2) | 0 | |||||||||||
Net Income (loss) |
$ | (6,610 | ) | $ | 1,388 | $ | 1,453 | $ | (6,545 | ) | ||||||
Basic and diluted weighted average shares
outstanding |
13,207,789 | 13,207,789 | 13,207,789 | 13,207,789 | ||||||||||||
Basic and diluted loss per share |
$ | (0.50 | ) | $ | 0.11 | $ | 0.11 | $ | (0.50 | ) | ||||||
7
ProxyMed, Inc | ||||||||||||||||
Historical | Cost Containment | Pro Forma | Pro Forma | |||||||||||||
Consolidated (a) | Business (b) | Adjustments (c) | Consolidated | |||||||||||||
(In thousands except for share and per share data) | ||||||||||||||||
Net Revenues: |
||||||||||||||||
Transaction fees, cost containment
services and license fees |
$ | 67,909 | $ | 27,943 | $ | 39,966 | ||||||||||
Communication devices and other
tangible goods |
9,610 | 0 | 9,610 | |||||||||||||
77,519 | 27,943 | 49,576 | ||||||||||||||
Cost and expenses: |
||||||||||||||||
Cost of transaction fees, cost
containment
services and license fees, excluding
depreciation and amortization |
20,674 | 10,265 | 10,409 | |||||||||||||
Cost of laboratory communication
devices and other tangible goods,
excluding depreciation and
amortization |
6,150 | 0 | 6,150 | |||||||||||||
Selling, general and administrative
expenses |
47,962 | 12,826 | 35,136 | |||||||||||||
Depreciation and amortization |
9,305 | 4,421 | 4,884 | |||||||||||||
Write-off of impaired assets |
96,416 | 70,313 | 26,103 | |||||||||||||
Other expense, net |
0 | 0 | 0 | |||||||||||||
(Gain)/Loss on disposal of assets |
14 | 0 | 14 | |||||||||||||
Litigation settlements |
175 | 175 | 0 | |||||||||||||
Total Expenses |
180,696 | 98,000 | 0 | 82,696 | ||||||||||||
Operating income (loss) |
(103,177 | ) | (70,057 | ) | 0 | (33,120 | ) | |||||||||
Other (Income), net |
(1 | ) | 0 | (1 | ) | |||||||||||
Interest expense, net |
2,118 | ) | 0 | (1,218 | )(1) | 900 | ||||||||||
Income (loss) before income taxes |
(105,294 | ) | (70,057 | ) | 1,218 | (34,019 | ) | |||||||||
Provision for income taxes |
0 | 0 | 0 | |||||||||||||
Net Income (loss) |
$ | (105,294 | ) | $ | (70,057 | ) | $ | 1,218 | $ | (34,019 | ) | |||||
Basic and diluted weighted average
shares
outstanding |
12,707,695 | 12,707,695 | 12,707,695 | 12,707,695 | ||||||||||||
Basic and diluted loss per share |
$ | (8.29 | ) | $ | (5.51 | ) | $ | 0.10 | $ | (2.68 | ) | |||||
8
ProxyMed, Inc | ||||||||||||||||
Historical | Cost Containment | Pro Forma | Pro Forma | |||||||||||||
Consolidated (a) | Business (b) | Adjustments (c) | Consolidated | |||||||||||||
(In thousands except for share and per share data) | ||||||||||||||||
Net Revenues: |
||||||||||||||||
Transaction fees, cost containment
services and license fees |
$ | 73,538 | 26,913 | $ | 46,625 | |||||||||||
Communication devices and other
tangible goods |
16,708 | 0 | 16,708 | |||||||||||||
90,246 | 26,913 | 63,333 | ||||||||||||||
Cost and expenses: |
||||||||||||||||
Cost of transaction fees, cost
containment
services and license fees, excluding
depreciation and amortization |
22,626 | 8,788 | 13,838 | |||||||||||||
Cost of laboratory communication
devices and other tangible goods,
excluding depreciation and
amortization |
11,586 | 0 | 11,586 | |||||||||||||
Selling, general and administrative
expenses |
48,023 | 10,967 | 37,056 | |||||||||||||
Depreciation and amortization |
9,763 | 4,123 | 5,640 | |||||||||||||
Write-off of impaired assets |
0 | 0 | 0 | |||||||||||||
Other expense, net |
0 | 0 | 0 | |||||||||||||
(Gain)/Loss on disposal of assets |
47 | 0 | 47 | |||||||||||||
Litigation settlements |
175 | 175 | 0 | |||||||||||||
Total Expenses |
92,220 | 24,053 | 0 | 68,167 | ||||||||||||
Operating income (loss) |
(1,974 | ) | 2,860 | 0 | (4,834 | ) | ||||||||||
Other (Income), net |
(134 | ) | 0 | (134 | ) | |||||||||||
Interest expense, net |
1,920 | 0 | (1,020 | )(1) | 900 | |||||||||||
Income (loss) before income taxes |
(3,760 | ) | 2,860 | 1,020 | (5,600 | ) | ||||||||||
Provision for income taxes |
40 | 1,115 | 1,115 | (2) | 40 | |||||||||||
Net Income (loss) |
$ | (3,800 | ) | 1,745 | $ | (95 | ) | $ | (5,640 | ) | ||||||
Basic and diluted weighted average
shares
outstanding |
11,617,601 | 11,617,601 | 11,617,601 | 11,617,601 | ||||||||||||
Basic and diluted loss per share |
$ | (0.33 | ) | 0.15 | $ | (0.01 | ) | $ | (0.49 | ) | ||||||
9
10
11
12
Pro-forma interest | Pro-forma interest | |||||||||||||||
Amount of | expense nine | expense twelve | ||||||||||||||
Interest expense (in thousands) | Total rate | borrowing | month periods | month periods | ||||||||||||
Senior debt |
10.0% | $ | 1,690 | $ | 127 | $ | 169 | |||||||||
Convertible debt |
4.0% | $ | 13,137 | $ | 394 | $ | 525 | |||||||||
Other |
7.0% | $ | 1,479 | $ | 78 | $ | 104 | |||||||||
Total interest expense |
$ | 599 | $ | 798 | ||||||||||||
Amortization of deferred
financing costs (in
thousands) |
||||||||||||||||
Senior debt |
$ | 77 | $ | 102 | ||||||||||||
Total amortization of deferred
financing costs |
$ | 77 | $ | 102 | ||||||||||||
Total interest expense and
amortization of deferred
financing
costs |
$ | 676 | $ | 900 | ||||||||||||
ProxyMed, Inc. Historical | ||||||||
Interest and amortization expense (in thousands) | Consolidated | Pro forma Adjustment | ||||||
Nine months ended September 30, 2007 |
$ | 3,308 | $ | 2,632 | ||||
Nine months ended September 30, 2006 |
$ | 2,239 | $ | 1,563 | ||||
Twelve months ended December 31, 2006 |
$ | 3,240 | $ | 2,340 | ||||
Twelve months ended December 31, 2005 |
$ | 2,118 | $ | 1,218 | ||||
Twelve months ended December 31, 2006 |
$ | 1,920 | $ | 1,020 |
13
Exhibit No. | Description | |
99.1
|
Press Release dated February 1, 2008 |
14
ProxyMed, Inc. (registrant) |
||||
February 5, 2008 | By: | /s/ John G. Lettko | ||
John G. Lettko, President | ||||
and Chief Executive Officer | ||||
15