MISSION VIEJO, Calif., Sept. 7 /PRNewswire-FirstCall/ -- Auxilio, Inc. (BULLETIN BOARD: AUXO) , a provider of Document Image Management services for Healthcare, reported today financial results for the quarter ended June 30, 2005.
As a result of the company's acquisition of the Mayo Group on April 1, 2004, the condensed consolidated financial statements for the six months ended June 30, 2004, are not comparable to the condensed consolidated financial statements for the six months ended June 30, 2005. Our sale of our HR software products to Workstream in March 2004 completed our exit from the previous business model.
Total revenues for the second quarter of 2005 were $1.2 million compared with $4.6 million for the second quarter of 2004, which was included in the income from discontinued operations. Net loss was $0.8 million in the second quarter of 2005 compared to net income from continuing operations of $0.6 million in the second quarter of 2004. Net income for the second quarter of 2004 after income from discontinued operations was $0.6 million. Basic and fully diluted loss per share for the second quarter of 2005 was $0.05 compared with basic and fully diluted income per share from continuing operations of $0.04 for the second quarter of 2004. Basic and fully diluted income per share for the second quarter of 2004 after income from discontinued operations was $0.04.
"Revenue was exceptionally strong during the second quarter of 2004 due to one large transaction. We were happy with the results for the second quarter of 2005, we rolled out our full complement of Document Image Management Services to the San Clemente Campus of Saddleback Memorial Medical Center in Laguna Hills, CA.", stated Joseph J. Flynn, Chairman and CEO of Auxilio, Inc. "Our continued investment in business development has significantly increased the number of hospitals we are assessing and proposing to on the East Coast. This also falls right in line with our goals of national expansion. Although the sales cycle is still long, we believe the company is in an excellent position to increase market share over the next several quarters," added Flynn.
Investor Conference Call Information
The company encourages all interested investors to join a conference call on which company management will discuss the financial results for the second quarter ended June 30, 2005. The call is scheduled at 4:00 p.m. EST / 1:00 p.m. PST on September 7, 2005. The phone number for the call is 800-967- 7188 or 719-457-2636. A re-broadcast of the conference call will be available for two weeks at 888-203-1112 or 719-457-0820 Passcode 9734213.
About Auxilio, Inc.
Auxilio, Inc. provides Document Image Management Services and related financial and business processes for major Healthcare facilities. The company's proprietary technologies and unique processes assist hospitals, health plans and health systems with strategic direction and services that reduce image output expenses, increase operational efficiencies and improve the productivity of their staff. Auxilio's analysts, consultants and resident hospital teams work with senior hospital financial management and department heads to determine the best possible long term strategy for managing the millions of document images produced by their facilities on an annual basis. Auxilio's Document Image Management programs guarantee our clients immediate measurable savings, a fully outsourced process, and unparalleled service. Auxilio's target market includes medium to large hospitals, health plans and health care systems. Customers served by Auxilio, Inc. include health systems such as St. Joseph's Health System, Memorial Health Services, Catholic Healthcare West and Huntington Memorial Hospital.
For more information, see the company's website at http://www.auxilioinc.com/ or contact:
Joseph Flynn
Chairman and CEO
Auxilio, Inc.
27401 Los Altos, Suite 100
Mission Viejo, CA 92691
Phone: 949-614-0700
Fax: 949-614-0701
This Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words "believe," "expect," "anticipate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are estimates of, or expectations or beliefs regarding, our future financial condition or financial performance that are based on current information. Our business is subject to a number of risks and uncertainties that could adversely affect our ability to grow earnings per share, expand net interest margin and maintain asset quality and, therefore, could cause our future financial condition or operating results to differ significantly from our current expectations and beliefs. Certain of those risks and uncertainties are described in our Quarterly Report on Form 10-QSB for the quarter ended June 30, 2005 and in our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004, as filed with the Securities and Exchange Commission. Readers of this Release are urged to read the cautionary statements, which are set forth under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations -Factors That May Affect Future Results" in both our Quarterly and Annual Report. Due to these uncertainties and risks, readers are cautioned not to place undue reliance on forward-looking statements contained in this Release, which speak only as of this date. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
AUXILIO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEET
JUNE 30, 2005
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $2,039,170
Accounts and other receivables, net 1,243,363
Prepaid and other current assets 38,545
Supplies 445,797
Investment in marketable securities 32,500
Other investment 52,728
Total current assets 3,852,103
Property and equipment, net 204,179
Deposits 49,644
Intangible assets, net 980,172
Goodwill 1,547,017
Total assets $6,633,115
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $1,094,742
Accrued compensation and benefits 485,719
Deferred revenue 460,244
Current portion of long-term debt 17,228
Current portion of capital lease obligations 25,137
Note payable, related party 15,750
Total current liabilities 2,098,820
Commitments and contingencies -
Stockholders' equity:
Common stock, par value at $0.001,
33,333,333 shares authorized,
16,048,912 shares issued and outstanding 16,050
Additional paid-in capital 14,839,880
Accumulated deficit (10,321,635)
Total stockholders' equity 4,534,295
Total liabilities and stockholders' equity $6,633,115
AUXILIO, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
Revenue $1,237,850 $4,589,779 $2,021,927 $4,589,779
Cost of revenue 889,466 2,734,357 1,663,640 2,734,357
Gross profit 348,384 1,855,422 358,287 1,855,422
Operating expenses:
Sales and marketing 468,920 642,271 908,175 642,271
General and
administrative 525,752 592,293 1,010,093 642,364
Intangible asset
amortization 93,368 - 186,736 -
Total operating
expenses 1,088,040 1,234,564 2,105,004 1,284,635
Income (loss) from
operations (739,656) 620,858 (1,746,717) 570,787
Other income (expense):
Interest expense (51,598) (6,501) (72,555) (8,433)
Interest income 11,300 1,689 13,511 2,136
Gain (loss) on sale of
marketable securities (41,734) - 362,061 -
Total other income
(expense) (82,032) (4,812) 303,017 (6,297)
Income (loss) before
provision for income
taxes (821,688) 616,046 (1,443,700) 564,490
Provision for income
taxes - - (3,200) (2,400)
Net income (loss) from
continuing operations (821,688) 616,046 (1,446,900) 562,090
Income (loss) from
discontinued operations,
(including gain (loss)
on disposal of ($93,750)
and $674,942 for the
three and six months
ended June 30, 2004,
respectively, net of
tax benefit) - (62,365) - 540,895
Net income (loss) $(821,688) $553,681 $(1,446,900) $1,102,985
Net income (loss) per
share - basic:
Income (loss) per share
continuing operations ($0.05) $0.04 ($0.10) $0.05
Income (loss) per share
discontinued
operations - (0.00) - 0.05
Net income (loss) per
share - basic ($0.05) $0.04 ($0.10) $0.10
Net income (loss) per
share - diluted:
Income (loss) per share
continuing operations ($0.05) $0.04 ($0.10) $0.05
Income (loss) per share
discontinued
operations - (0.00) - 0.05
Net income (loss) per
share - diluted ($0.05) $0.04 ($0.10) $0.10
Number of weighted
average shares -
Basic 15,854,874 13,986,866 15,212,829 11,275,045
Diluted 15,854,874 14,110,059 15,212,829 11,398,239
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