FOR IMMEDIATE RELEASE
Neil Berkman, Investor Relations, 310-477-3118, email@example.com
Larry Gerdes, Chief Executive Officer, 678-808-0600, firstname.lastname@example.org
Lance Cornell, Chief Financial Officer, 678-808-0600, email@example.com
(BW) (TRANSCEND SERVICES, INC.) (TRCR)
TRANSCEND REPORTS EARNINGS PER SHARE OF $0.34 FOR THE FIRST QUARTER OF 2011 - 32% REVENUE GROWTH AND SIGNIFICANT MARGIN IMPROVEMENT
Atlanta, Georgia. TRANSCEND SERVICES, INC. (NASDAQ: TRCR), a leading provider of clinical documentation solutions to the U.S. healthcare market, today announced its unaudited financial results for the first quarter ended March 31, 2011.
First Quarter Results
Transcend's diluted earnings per share of $0.34 for the first quarter of 2011 was stronger than expected due to continued margin improvement and the contribution from the October 21, 2010 acquisition of Spryance Inc. d/b/a Heartland (“Heartland”).
Revenue for the first quarter of 2011 increased 32% to $29,298,000 compared to $22,206,000 for the first quarter of 2010, including $4,941,000 of revenue contributed by Heartland. Excluding the Heartland business, revenue increased 10%.
Gross profit for the first quarter of 2011 increased 63% to $12,164,000, or 42% of revenue, compared to $7,480,000, or 34% of revenue, for the first quarter of 2010.
Operating income for the first quarter of 2011 increased 157% to $6,285,000, or 21% of revenue, compared to $2,444,000, or 11% of revenue, for the first quarter of 2010. The results for the first quarter of 2010 include $678,000 of fees related to an attempted acquisition. Excluding this expense for comparability purposes, operating income would have increased 101%.
The effective income tax rate for the first quarter of 2011 was 40% compared to 39% in the first quarter of 2010.
Net income for the first quarter of 2011 increased 154% to $3,761,000 compared to $1,479,000 for the first quarter of 2010 and diluted earnings per share increased to $0.34 compared to $0.14 for the first quarter of 2010. The impact of the acquisition expense described above on diluted earnings per share in the first quarter of 2010 was approximately $(0.04).
During the first quarter of 2011, the Company generated $5,707,000 of cash flow from operations and invested $1,307,000 in capital expenditures and capitalized software development costs, including $882,000 related to Transcend's new Encore transcription platform. As of March 31, 2011, the Company had $31,639,000 of cash, cash equivalents and short-term investments on hand, $35,168,000 of net working capital and nominal
The following information was filed by Transcend Services Inc (TRCR) on Thursday, May 5, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.