- Adjusted EBITDA increases to $11.9 million from $3.7 million -
LISLE, IL, Nov. 6 /CNW/ - SXC Health Solutions Corp. ("SXC" or the
"Company") (NASDAQ: SXCI, TSX: SXC), announces its financial results for the
three- and nine-month periods ended September 30, 2008. Financial references
are in U.S. dollars unless otherwise indicated.
SXC completed the acquisition of National Medical Health Card Systems,
Inc. ("NMHC") on April 30, 2008. Therefore, financial results reported for Q3
2008 and for the nine months ended September 30, 2008 ("year-to-date" or
"YTD") include three and five months of contribution from the acquired NMHC
business, respectively.Q3 2008 Operational Highlights
- Revenue was $318.1 million, compared to $22.2 million in Q3 2007
- Gross profit was $34.9 million compared to $11.9 million in Q3 2007
- Adjusted EBITDA(1) was $11.9 million compared to $3.7 million in Q3
2007
- Net income was $3.5 million, or $0.15 per share (diluted), compared
to $2.7 million, or $0.12 per share (diluted), in Q3 2007
- Non-GAAP adjusted earnings per share(1) (diluted), which excludes the
NMHC transaction-related amortization, was $0.24 for the quarter
- Adjusted prescription claim volume(1) for the PBM segment was
8.9 million
- Gross margin per adjusted prescription for the PBM segment was $2.77
- Transaction processing volume for the HCIT segment, which no longer
includes contribution from informedRx, was 103.3 million
- Strong year-to-date cost synergies achieved from the acquisition of
$5.0 million
- Awarded two contracts in the State of South Dakota, including a
$10 million three-year contract to provide technology and services
related to the development of South Dakota's new Medicaid Management
Information System
- Expanded relationship with the State of Arkansas with the sale of
Pathfinder(TM) PRO
- Achieved successful launch of the three-year $35 million Pharmacy
Benefits Manager (PBM) contract with the State of Tennessee's, Bureau
of TennCare
- Subsequent to quarter-end, went live in the State of Washington to
support prescription drug claims and rebate contract management
services for their Medicaid program"Strong financial performance in Q3 combined with our outlook for the
remainder of the year has enabled us to raise our 2008 guidance. We are
projecting higher results despite the current economic headwinds," said Mark
Thierer, President and CEO of SXC. "Our integration of NMHC is moving along
ahead of plan. During the quarter we won several new contracts including work
with the State of South Dakota - the fifth state where we are supporting
Medicaid programs. As we complete the steps of our integration and move into
2009, we are laying the groundwork to enhance our sales capabilities and
establish the foundation from which SXC can realize its significant growth
potential."Q3 and Year-to-date Financial Review(2)
Revenue and gross profit segmented by PBM and HCIT was as follows:(*)
Three months ended
September 30,
(in thousands)
PBM HCIT Consolidated
----------------- ------------------ --------------------
2008 2007 2008 2007 2008 2007
--------- --------- -------- -------- --------- ---------
Revenue $ 297,178 $ - $ 20,923 $ 22,209 $ 318,101 $ 22,209
Gross
profit $ 24,524 $ - $ 10,362 $ 11,909 $ 34,886 $ 11,909
Gross
profit % 8.3% - 49.5% 53.6% 11.0% 53.6%
Nine months ended
September 30,
(in thousands)
PBM HCIT Consolidated
----------------- ------------------ --------------------
2008 2007 2008 2007 2008 2007
--------- --------- -------- -------- --------- ---------
Revenue $ 502,038 $ - $ 68,135 $ 69,619 $ 570,173 $ 69,619
Gross
profit $ 41,338 $ - $ 36,868 $ 39,996 $ 78,206 $ 39,996
Gross
profit % 8.2% - 54.1% 57.4% 13.7% 57.4%
(*) In reviewing the above tables, it is important to note that the
revenue for SXC's legacy informedRx business is captured in the HCIT
segment for 2007 and in the PBM segment for 2008. As a result, the
HCIT segment shows a slight decline in revenue for the three- and
nine-month periods ended September 30, 2008, due to the inclusion of
some of the previously classified HCIT business now recorded in the
new PBM segment.PBM revenue was $297.2 million for Q3 2008 and $502.0 million for the YTD
period. These figures reflect the addition of the NMHC business, as well as
the informedRX business of SXC. NMHC contracts are recorded on a gross-dollar
basis to the underlying prescription whereas revenues from the majority of
SXC's historical contracts are recorded net as an agent.
Q3 2008 revenue for the HCIT segment consisted of $15.6 million of
recurring revenue and $5.3 million of non-recurring revenue, compared to
$17.3 million and $4.9 million, respectively, in the same period last year.
Recurring revenue consisted of transaction processing revenue of
$11.6 million, down 12% from $13.2 million in Q3 2007, and maintenance revenue
of $4.0 million, down 2% from $4.1 million in Q3 2007. The decline in
transaction processing revenue is due to the fact that informedRx revenue is
reported in the PBM segment for 2008 and was reported in the HCIT segment in
2007. Overall, recurring revenue accounted for 75% of HCIT revenue in Q3 2008,
compared to 78% in Q3 2007.
Q3 2008 non-recurring revenue consisted of system sales revenue of
$1.5 million, consistent with $1.5 million last year, and professional service
revenue of $3.8 million, up 12% from $3.4 million in Q3 2007.
Revenue for the YTD period in the HCIT segment was comprised of
$50.5 million of recurring revenue and $17.6 million of non-recurring revenue,
compared to $52.4 million and $17.2 million, respectively, in the same period
last year. Recurring revenue consisted of transaction processing revenue of
$38.2 million, down 5% from $40.1 million last year, and maintenance revenue
of $12.3 million consistent with $12.3 million last year. Overall, recurring
revenue accounted for 74% of HCIT revenue for the YTD period, compared to 75%
in the same period last year.
Non-recurring revenue for the YTD period consisted of system sales
revenue of $6.9 million, down 4% from $7.2 million last year, and professional
service revenue of $10.7 million, up from $10.0 million last year.
Acquisition Synergies
The Company's strong financial performance has been assisted by the
achievement of cost efficiencies related to the acquisition of NMHC.
Year-to-date, the Company has achieved $5.0 million of cost synergies
comprised of approximately $3.5 million of lower SG&A costs and $1.5 million
of savings on the consolidation of capital assets and related depreciation
expense, and additional savings from consolidated tax rates. Achieved in the
first five months following completion of the transaction, these cost
synergies are well in-line with the Company's forecast of $6.0-$8.0 million of
cost synergies within the first 12 months post-acquisition.
Product Development Costs
Q3 2008 product development costs were $2.5 million, compared to $2.4
million for Q3 2007. Product development costs for the YTD period were $7.4
million, compared to $8.0 million in the prior year period.
Selling, General and Administration ("SG&A") Costs
Q3 2008 SG&A costs were $21.9 million compared to $7.3 million for Q3
2007. SG&A for the YTD period was $47.3 million, compared to $20.5 million in
the same period last year. The increase is largely attributable to the
acquisition of NMHC.
Adjusted EBITDA(1)
Q3 2008 adjusted EBITDA was $11.9 million, compared to $3.7 million for
Q3 2007. For the YTD period, adjusted EBITDA was $27.8 million, compared to
$14.9 million in the same period last year. Adjusted EBITDA increased
year-over-year due in part to the addition of the NMHC business, the increase
in overall revenue, synergies generated from the acquisition, and offset in
part by the addition of NMHC's operating expenses.
Income Taxes
Q3 2008 income tax expense was $1.3 million, representing an effective
tax rate of 27%, compared to a $0.3 million income tax benefit in Q3 2007. For
the YTD period, income tax expense was $3.5 million, representing an effective
tax rate of 25%, compared to a $2.6 million income tax expense, representing
an effective tax rate of 22% in the same period last year.
Net Income
Q3 2008 net income was $3.5 million, or $0.15 per share (diluted),
compared to $2.7 million, or $0.12 per share (diluted) in Q3 2007. Net income
for the YTD period was $10.2 million, or $0.44 per share (diluted), compared
to $9.4 million, or $0.43 per share (diluted) in the same period last year.
Q3 2008 non-GAAP adjusted earnings per share(1) was $0.24 per share
(diluted). Non-GAAP adjusted earnings per share(1) for the YTD period was
$0.61 per share (diluted).
Cash from Operations
SXC continues to generate strong cash from operations. For the YTD
period, SXC generated cash from operations of approximately $20.6 million,
compared to $11.7 million in the same period last year. The Company's
quarterly cash flows can be impacted by the timing of pharmacy deposit and
rebate payments it receives for certain customers. Net of pharmacy deposits
and rebates payments, Q3 2008 and YTD cash from operations were approximately
$3.3 million and $24.6 million, respectively. This compares to cash from
operations of $2.6 million and $11.3 million in the corresponding periods of
the prior year.
At September 30, 2008 and December 31, 2007, the Company had cash and
cash equivalents totalling $51.6 million and $90.9 million, respectively. The
decrease is primarily related to the cash paid in the acquisition of NMHC, and
partially offset by the $46.5 million borrowed under a term loan.
2008 Financial Guidance
With today's announcement, SXC is revising its guidance as follows:- Revenue of $840-$855 million, from $825-$875 million
- Gross profit of $112-$114 million, up from $106-$114 million
- Adjusted EBITDA of $39-$40 million, up from $35-$39 million
- Non-GAAP adjusted earnings per share(1) (diluted) of $0.78-$0.82
(excluding the NMHC transaction-related amortization), up
from $0.61-$0.70
- GAAP EPS (diluted) of $0.54-$0.58 (including the amortization
directly related to the NMHC acquisition), up from $0.41-$0.50The Company reconfirms that it is ahead of its objective of generating
$6-$8 million of synergies in the first 12 months following closing of the
NMHC transaction, and $12-$14 million of synergies in the subsequent 12
months.
Notice of Conference Call
SXC will host a conference call on November 6, 2008 at 8:30AM (ET) to
discuss its financial results. Mark Thierer, President and CEO, and Jeff Park,
Executive Vice President Finance and CFO will co-chair the call. All
interested parties can join the call by dialing 416-644-3427 or
1-800-814-4862. Please dial in 15 minutes prior to the call to secure a line.
The conference call will be archived for replay until Thursday, November 13,
2008 at midnight. To access the archived conference call, please dial
416-640-1917 or 1-877-289-8525 and enter the reservation code 21286266
followed by the number sign.
A live audio webcast of the conference call will be available www.sxc.com
and www.newswire.ca. Please connect at least 15 minutes prior to the
conference call to ensure adequate time for any software download that may be
required to join the webcast. An archived replay of the webcast will be
available for 365 days.
(1)Non-GAAP Financial Measures
SXC reports its financial results in accordance with generally accepted
accounting principles in the United States ("GAAP"). SXC's management also
evaluates and makes operating decisions using various other measures. Three
such measures are adjusted earnings per share, adjusted EBITDA, and adjusted
prescription volume, which are non-GAAP financial measures. SXC's management
believes that these measures provide useful supplemental information regarding
the performance of SXC's business operations.
Adjusted earnings per share is a non-GAAP measure which takes earnings
per share and adds back the impact of amortization expense related to the
acquisition of NMHC, net of tax. Acquisition-related amortization expense is a
non-cash expense arising from the acquisition of intangible assets in
connection with the acquisition. SXC excludes acquisition-related amortization
expense from non-GAAP adjusted earnings per share because it believes (i) the
amount of such expenses in any specific period may not directly correlate to
the underlying performance of SXC business operations and (ii) such expenses
can vary significantly between periods as a result of new acquisitions and
full amortization of previously acquired intangible assets. Investors should
note that the use of these intangible assets will contribute to revenue in the
future period presented and periods beyond that and should also note that such
expense will recur in future periods. The 2008 guidance of adjusted earnings
per share were computed by taking the Company's GAAP earnings per share
guidance and adding back the expected impact of acquisition-related
amortization expense, net of tax.
Adjusted EBITDA is a non-GAAP measure that management believes is a
useful supplemental measure of operating performance prior to net interest
income (expense), income taxes, depreciation, amortization, stock-based
compensation, and certain other one-time charges. Management believes it is
useful to exclude depreciation, amortization and net interest income (expense)
as these are essentially fixed amounts that cannot be influenced by management
in the short term. In addition, management believes it is useful to exclude
stock-based compensation as this is not a cash expense. Lastly, certain other
one-time charges (including losses on disposals of capital assets) are
excluded as these are not considered to be recurring items.
Adjusted prescription volume equals SXC's Mail Service prescriptions
multiplied by three, plus its retail and specialty prescriptions. The Mail
Service prescriptions are multiplied by three to adjust for the fact that they
typically include approximately three times the amount of product days
supplied compared with retail prescriptions.
Management believes that adjusted earnings per share, adjusted EBITDA and
adjusted prescription volume provide useful supplemental information to
management and investors regarding the performance of the Company's business
operations and facilitate comparisons to its historical operating results.
Management also uses this information internally for forecasting and budgeting
as it believes that the measures are indicative of the Company's core
operating results. Note however, that these items are performance measures
only, and do not provide any measure of the Company's cash flow or liquidity.
Non-GAAP financial measures should not be considered as a substitute for
measures of financial performance in accordance with GAAP, and investors and
potential investors are encouraged to review the reconciliation of adjusted
earnings per share and adjusted EBITDA.
Adjusted earnings per share, adjusted EBITDA and adjusted prescription
volume do not have standardized meanings prescribed by GAAP. The Company's
method of calculating these items may differ from the methods used by other
companies and, accordingly, it may not be comparable to similarly titled
measures used by other companies. Reconciliation of adjusted EBITDA to net
income is shown below:For the three months For the nine months
ended September 30, ended September 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (in thou-
sands)
Adjusted EBITDA $ 11,886 $ 3,687 $ 27,795 $ 14,869
Amortization of Deal-
Related Intangibles (3,053) - (5,089) -
Depreciation &
Amortization (2,065) (1,438) (5,903) (4,130)
Stock-Based Compensation (902) (1,101) (3,006) (2,250)
Net Loss on Disposal of
Assets - - - (133)
Other Income 50 41 15 239
Interest (Expense)
Income, Net (1,101) 1,192 (198) 3,350
Income Tax Expense (1,276) 299 (3,451) (2,576)
---------- ---------- ---------- -----------
Net Income $ 3,539 $ 2,680 $ 10,163 $ 9,369
---------- ---------- ---------- -----------
---------- ---------- ---------- -----------
Non-GAAP Adjusted For the three months For the nine months
Earning Per Share ended Sept 30, ended Sept 30,
2008 2008
--------------------- ---------------------
(unaudited)
(in thousands, except per share data)
Net Income $ 3,539 $ 10,163
Deal-Related Amortization
(Net of Taxes) 2,244 3,801
---------- -----------
Adjusted Net-Income 5,783 13,964
---------- -----------
---------- -----------
Adjusted EPS (diluted) $ 0.24 $ 0.61
(2) On April 30, 2008, SXC closed the acquisition of NMHC. As a result,
SXC has introduced some new segmentation and presentation of its financial
results. Revenue is now segmented into two groups: Pharmacy Benefits
Management ("PBM") which includes informedRx, mail-order operations and
specialty pharmacy, and Health Care Information Technology ("HCIT"). SXC
records PBM revenue from NMHC exclusively on a gross basis which equates to
the prescription price paid by consumers plus an administrative fee. The HCIT
business records revenue only on the basis of the administrative fee; drug
ingredient cost is not included in revenues or cost of claims.
The net effect is that SXC's year-over-year revenues have increased
dramatically while gross profit margin and adjusted EBITDA have increased in
absolute dollar terms, but have declined as a percentage of total sales. These
changes do not affect profitability on an absolute dollar or per share basis.About SXC Health Solutions Corp.
SXC Health Solutions Corp. is a leading provider of pharmacy benefits
management (PBM) services and Health Care Information Technology (HCIT)
solutions to the healthcare benefits management industry. The Company's
product offerings and solutions combine a wide range of software applications,
application service provider (ASP) processing services and professional
services, designed for many of the largest organizations in the pharmaceutical
supply chain, such as Federal, provincial, and, state and local governments,
pharmacy benefit managers, managed care organizations, retail pharmacy chains
and other healthcare intermediaries. SXC is headquartered in Lisle, Illinois
with 13 locations in the US and Canada. For more information please visit
www.sxc.com.
Forward-Looking Statements
Certain statements included herein, including those that express
management's expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by management at this time,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies. We caution that such forward-looking
statements involve known and unknown risks, uncertainties and other risks that
may cause our actual financial results, performance, or achievements to be
materially different from our estimated future results, performance or
achievements expressed or implied by those forward-looking statements.
Numerous factors could cause actual results to differ materially from those in
the forward-looking statements, including without limitation, our ability to
achieve increased market acceptance for our product offerings and penetrate
new markets; consolidation in the healthcare industry; the existence of
undetected errors or similar problems in our software products; our ability to
identify and complete acquisitions, manage our growth and integrate
acquisitions; our ability to compete successfully; potential liability for the
use of incorrect or incomplete data; the length of the sales cycle for our
healthcare software solutions; interruption of our operations due to outside
sources; our dependence on key customers; maintaining our intellectual
property rights and litigation involving intellectual property rights; our
ability to obtain, use or successfully integrate third-party licensed
technology; compliance with existing laws, regulations and industry
initiatives and future change in laws or regulations in the healthcare
industry; breach of our security by third parties; our dependence on the
expertise of our key personnel; our access to sufficient capital to fund our
future requirements; and potential write-offs of goodwill or other intangible
assets. This list is not exhaustive of the factors that may affect any of our
forward-looking statements. Other factors that should be considered are
discussed from time to time in SXC's filings with the U.S. Securities and
Exchange Commission, including the risks and uncertainties discussed in our
2007 Annual Report on Form 10-K and 2008 Form 10-Qs, which are available at
www.sec.gov. Investors are cautioned not to put undue reliance on
forward-looking statements. All subsequent written and oral forward-looking
statements attributable to SXC or persons acting on our behalf are expressly
qualified in their entirety by this notice. We disclaim any intent or
obligation to update publicly these forward-looking statements, whether as a
result of new information, future events or otherwise.
Certain of the assumptions made in preparing forward-looking information
and management's expectations include: maintenance of our existing customers
and contracts, our ability to market our products successfully to anticipated
customers, the impact of increasing competition, the growth of prescription
drug utilization rates at predicted levels, the retention of our key
personnel, our customers continuing to process transactions at historical
levels, that our systems will not be interrupted for any significant period of
time, that our products will perform free of major errors, our ability to
obtain financing on acceptable terms and that there will be no significant
changes in the regulation of our business.SXC HEALTH SOLUTIONS CORP.
Consolidated Balance Sheets
(in thousands of U.S. dollars except share data)
(unaudited)
September 30, December 31,
2008 2007
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 51,590 $ 90,929
Restricted cash 17,790 -
Accounts receivable, net of allowance
for doubtful accounts of $3,960
(December 31, 2007 - $605) 80,511 17,990
Rebates receivable 24,186 -
Unbilled revenue 1,092 1,195
Prepaid expenses and other 3,574 2,361
Inventory 6,777 242
Income tax recoverable 519 1,073
Deferred income tax asset, current 4,136 3,246
------------ ------------
Total current assets 190,175 117,036
Property and equipment, net of accumulated
depreciation of $17,717 (December 31, 2007
- $13,004) 20,216 13,629
Goodwill 145,695 15,996
Other intangible assets, net of accumulated
amortization of $7,562 (December 31, 2007
- $4,734) 47,804 9,661
Deferred financing charges 1,595 -
Deferred income tax asset 6,122 3,157
Other assets 1,397 -
------------ ------------
Total assets $ 413,004 $ 159,479
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 7,003 $ 1,344
Customer deposits 13,801 2,506
Salaries and wages payable 11,254 2,909
Accrued liabilities 26,895 4,807
Pharmacy benefit management rebates payable 29,941 2,766
Pharmacy benefit claim payments payable 60,812 2,059
Deferred revenue 3,897 4,244
Current portion of long-term debt 2,640 -
------------ ------------
Total current liabilities 156,243 20,635
Long-term debt, less current installments 45,120 -
Accrued liabilities 1,833 764
Deferred income tax liability 15,733 1,091
Deferred revenue 177 223
Deferred lease inducements 3,316 3,222
Deferred rent 1,460 1,087
Other 665 -
------------ ------------
Total liabilities 224,547 27,022
------------ ------------
Shareholders' equity
Common stock: no par value, unlimited shares
authorized; 24,043,382 issued and outstanding
at September 30, 2008 (December 31, 2007
- 20,985,934) 146,207 103,520
Additional paid-in capital 11,449 8,299
Retained earnings 30,801 20,638
------------ ------------
Total shareholders' equity 188,457 132,457
------------ ------------
Total liabilities and shareholders' equity $ 413,004 $ 159,479
------------ ------------
------------ ------------
SXC HEALTH SOLUTIONS CORP.
Consolidated Statements of Operations
(in thousands of U.S. dollars except share data)
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Revenue:
PBM $ 297,178 $ - $ 502,038 $ -
HCIT:
Transaction
processing 11,631 13,180 38,167 40,106
Maintenance 3,998 4,142 12,338 12,330
Professional services 3,836 3,395 10,693 10,002
System sales 1,458 1,492 6,937 7,181
----------- ----------- ----------- -----------
Total revenue 318,101 22,209 570,173 69,619
Cost of revenue:
PBM 272,654 - 460,700 -
HCIT 10,561 10,300 31,267 29,623
----------- ----------- ----------- -----------
Total cost of revenue 283,215 10,300 491,967 29,623
----------- ----------- ----------- -----------
Gross profit 34,886 11,909 78,206 39,996
Expenses:
Product development costs 2,486 2,419 7,425 7,999
Selling, general
and administration 21,863 7,295 47,291 20,501
Depreciation of property
and equipment 1,222 651 3,416 1,819
Amortization of
intangible assets 3,449 396 6,277 1,188
Net loss on disposal
of capital assets - - - 133
----------- ----------- ----------- -----------
29,020 10,761 64,409 31,640
----------- ----------- ----------- -----------
Operating income 5,866 1,148 13,797 8,356
Interest income (508) (1,219) (2,209) (3,435)
Interest expense 1,609 27 2,407 85
----------- ----------- ----------- -----------
Net interest
expense (income) 1,101 (1,192) 198 (3,350)
Other income (50) (41) (15) (239)
----------- ----------- ----------- -----------
Income before income taxes 4,815 2,381 13,614 11,945
Income tax expense
(benefit):
Current 3,356 (92) 5,335 3,033
Deferred (2,080) (207) (1,884) (457)
----------- ----------- ----------- -----------
1,276 (299) 3,451 2,576
----------- ----------- ----------- -----------
Net income and
comprehensive income $ 3,539 $ 2,680 $ 10,163 $ 9,369
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Earnings per share:
Basic $ 0.15 $ 0.13 $ 0.45 $ 0.45
Diluted $ 0.15 $ 0.12 $ 0.44 $ 0.43
Weighted average number
of shares used in
computing earnings
per share:
Basic 23,891,438 20,852,239 22,616,694 20,698,438
Diluted 24,346,740 21,785,207 23,034,651 21,682,929
SXC HEALTH SOLUTIONS CORP.
Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Cash flows from
operating activities:
Net income $ 3,539 $ 2,680 $ 10,163 $ 9,369
Items not
involving cash:
Stock-based
compensation 902 1,101 3,006 2,250
Depreciation of
property and
equipment 1,669 1,042 4,715 2,942
Amortization of
intangible assets 3,449 396 6,277 1,188
Deferred lease
inducements
and rent (99) 83 (206) 468
Loss on disposal
of property and
equipment - - - 133
Deferred income
taxes (2,080) (207) (1,884) 64
Tax benefit on
option exercises (719) (179) (799) (2,395)
Gain on foreign
exchange (7) 15 (14) (150)
Changes in operating
assets and liabilities,
net of effects from
acquisition:
Accounts receivable (4,970) (3,706) 7,858 (3,882)
Rebates receivable 1,864 - 3,017 -
Restricted cash (335) - (4,660) -
Unbilled revenue 2 674 103 687
Prepaid expenses (407) (233) 915 10
Inventory 93 (16) (171) (22)
Income tax recoverable 1,264 (1,472) 1,618 6
Income taxes payable - - - (594)
Accounts payable (768) 769 496 1,026
Accrued liabilities 1,211 693 (4,452) (255)
Pharmacy benefit claim
payments payable 2,585 2,284 1,049 (677)
Pharmacy benefit
management rebates
payable (2,632) 1,687 (5,080) 1,093
Deferred revenue (139) 705 (393) 785
Customer deposits (1,172) 295 (1,070) (313)
Other 20 - 111 -
-----------------------------------------------
Net cash provided by
operating activities 3,270 6,611 20,599 11,733
Cash flows from investing
activities:
Purchases of property
and equipment (2,556) (529) (5,970) (6,710)
Lease inducements received - - 373 391
Acquisition (892) - (102,562) -
Proceeds from disposal
of property and equipment - - - 9
----------- ----------- ----------- -----------
Net cash used in
investing activities (3,448) (529) (108,159) (6,310)
Cash flows from financing
activities:
Issuance of
long-term debt - - 48,000 -
Payment of
financing costs - - (1,792) -
Repayment of
long-term debt (120) - (240) -
Proceeds from exercise
of options 1,107 173 1,440 2,203
Tax benefit on option
exercises 719 179 799 2,395
----------- ----------- ----------- -----------
Net cash provided by
financing activities 1,706 352 48,207 4,598
Effect of foreign exchange
on cash balances 7 (15) 14 150
----------- ----------- ----------- -----------
Increase(decrease) in
cash and cash equivalents 1,535 6,419 (39,339) 10,171
Cash and cash equivalents,
beginning of period 50,055 74,695 90,929 70,943
----------- ----------- ----------- -----------
Cash and cash equivalents,
end of period $ 51,590 $ 81,114 $ 51,590 $ 81,114
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------%SEDAR: 00001439E
For further information: Jeff Park, Chief Financial Officer, SXC Health
Solutions, Inc., Tel: (630) 577-3206, investors@sxc.com; Dave Mason, Investor
Relations - Canada, The Equicom Group Inc., (416) 815-0700 ext. 237,
dmason@equicomgroup.com; Susan Noonan, Investor Relations - U.S., The SAN
Group, LLC, (212) 966-3650, susan@sanoonan.com
