FOR IMMEDIATE RELEASE
Neil Berkman, Investor Relations, 310-477-3118, firstname.lastname@example.org
Larry Gerdes, Chief Executive Officer, 678-808-0600, email@example.com
Lance Cornell, Chief Financial Officer, 678-808-0600, firstname.lastname@example.org
(BW) (TRANSCEND SERVICES, INC.) (TRCR)
TRANSCEND REPORTS 22% REVENUE GROWTH FOR THE FOURTH QUARTER
AND RECORD SALES FOR THE YEAR
ORGANIC REVENUE GROWTH RATE INCREASES TO 10%
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 fourth quarter and year ended December 31, 2011.
Fourth Quarter Results
Net income was $8,306,000 and diluted earnings per share was $0.75 for the fourth quarter of 2011 compared to net income of $2,858,000 and diluted earnings per share of $0.26 for the fourth quarter of 2010. Excluding M&A transaction costs, India restructuring costs and resolution of a tax contingency, non-GAAP net income was $2,772,000 and non-GAAP diluted earnings per share was $0.25 for the fourth quarter of 2011. See the table below for a reconciliation of GAAP and non-GAAP results.
Revenue for the fourth quarter of 2011 increased $5,919,000 or 22% to $32,895,000 compared to $26,976,000 for the fourth quarter of 2010. Excluding $7,376,000 contributed in the fourth quarter of 2011 by the Heartland, DTS and Salar acquisitions and $3,722,000 of revenue contributed by the Heartland acquisition in the fourth quarter of 2010, revenue increased 10%.
Gross profit for the fourth quarter of 2011 increased 22% to $12,733,000, or 39% of revenue compared to $10,445,000 or 39% of revenue, for the fourth quarter of 2010.
Operating expenses were impacted by two unusual items: M&A transaction costs of $1,346,000 and India restructuring costs of $662,000. In addition, the company, which is self-insured for medical benefits, experienced extremely high medical claims in the fourth quarter, resulting in expense of $1,342,000 compared to $722,000 in the third quarter of 2011 and $830,000 in the fourth quarter of 2010. Operating expenses for the fourth quarter included $345,000 of stock-based compensation expense and $959,000 of depreciation and amortization expense.
Non-GAAP operating income excluding the M&A transaction costs and India restructuring costs was $4,889,000 or 15% of revenue compared to GAAP operating income of $5,063,000 or 19% of revenue in the fourth quarter of 2010. GAAP operating income for the fourth quarter of 2011 was $2,881,000.
Other expense, net was impacted by $297,000 of foreign exchange losses due to the 8.2% decline in the Indian Rupee relative to the U.S. dollar between September 30 and December 31, 2011. This is approximately
The following information was filed by Transcend Services Inc (TRCR) on Thursday, February 2, 2012 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.