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FOR IMMEDIATE RELEASE
Neil Berkman, Investor Relations, 310-826-5051, 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
July 29, 2010
(BW) (TRANSCEND SERVICES, INC.) (TRCR)
TRANSCEND REPORTS SECOND QUARTER RESULTS 31% REVENUE
GROWTH AND SIGNIFICANT SEQUENTIAL MARGIN IMPROVEMENT
Atlanta, Georgia. TRANSCEND SERVICES, INC. (NASDAQ: TRCR), a leading provider of clinical documentation services to the U.S. healthcare market, today announced its unaudited financial results for the second quarter ended June 30, 2010.
Second Quarter Results
Revenue for the second quarter of 2010 increased 31% to $22,209,000 compared to $16,966,000 for the second quarter of 2009. Excluding revenue contributed by Transcends two most recent acquisitions, revenue increased 12%.
Net income for the second quarter of 2010 was $1,568,000, or $0.15 per diluted share, including $601,000 of pre-tax costs related to an unsuccessful bid to acquire Spheris and a $445,000 pre-tax, non-cash cumulative stock compensation expense adjustment related to the period from January 1, 2006 through March 31, 2010. Excluding these costs, non-GAAP net income increased 29% to $2,273,000, or $0.21 per diluted share, for the second quarter of 2010 compared to $1,756,000, or $0.20 per diluted share, for the second quarter of 2009 (see table below for a reconciliation of non-GAAP to GAAP financial measures). The effect of the December 2009 issuance of 1,725,000 shares of common stock in a public offering was approximately ($0.03) per diluted share in the second quarter of 2010.
Transcends gross profit margin for the second quarter of 2010 increased by two percentage points - from 34% to 36% - compared to the first quarter of 2010. Compared to 2009, gross profit increased 31% to $8,031,000, or 36% of revenue, for the second quarter of 2010 compared to $6,115,000, or 36% of revenue, for the second quarter of 2009.
Operating income was $2,692,000 for the second quarter of 2010 compared to $2,822,000 for the second quarter of 2009. Excluding the costs mentioned above, non-GAAP operating income for the second quarter of 2010 increased 32% to $3,738,000, or 17% of revenue (see reconciliation table below).
The Company had $27,735,000 of cash, cash equivalents and short-term investments on hand and $2,067,000 of debt outstanding as of June 30, 2010. The number of days of revenue in accounts receivable was 39 days as of June 30, 2010.
Six Month Results
For the first six months of 2010, revenue increased 39% to $44,415,000 compared to $31,896,000 for the first six months of 2009. The gross profit margin was 35% for the first six months of this year compared to 36% for the first six months of last year. Operating income for the first six months of this year was $5,136,000, including $1,279,000 of expenses related to the attempt to acquire Spheris described above and $676,000 related to pre-tax, non-cash cumulative stock compensation expense adjustments. Net income for the first six months of 2010 was $3,047,000, or $0.28 per diluted share. Excluding the $1,955,000 of costs mentioned above, non-GAAP net income for the first six months of 2010 was $4,309,000, or $0.40 per diluted share (see reconciliation table below).
The following information was filed by Transcend Services Inc (TRCR) on Thursday, July 29, 2010 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.
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