LOS ANGELES, May 23, 2005 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced its results for the three months ended March 31, 2005.
Net revenues were $5,024,101, an increase of 441% or $4,094,630, for the three months ended March 31, 2005, as compared to revenues of $929,471 for the three months ended March 31, 2004. Revenues in 2005 increased over 2004 primarily as a result of acquisitions that occurred during the year, in addition to new business generated by the Company's sales and marketing activities.
Operating expenses for the three months ended March 31, 2005, were $5,938,809, as compared to $1,498,214 for the three months ended March 31, 2004. Operating expenses increased in 2005 over 2004 due to expenses related to servicing new business and due to the operating expenses of companies acquired during the year. Also, during the year, expenses increased as the Company continued to expand its business unit support services, such as sales and marketing, human resources, accounting and IT support.
The net loss for the three months ended March 31, 2005 was $937,137, or a basic and diluted net loss per common share of $0.01, as compared to a net loss of $672,968, or a basic and diluted net loss per common share of $0.03, for the three month ended March 31, 2004.
The net loss for 2005 includes $850,150 in depreciation and amortization, which is primarily related to the amortization of client lists and acquired software. In addition, the net loss includes $362,210 of operating expenses relating to the operations of Physician Informatics, Inc., which was acquired in January 2005. Under the terms of the purchase agreement, the previous owners are obligated to reimburse the Company for these operating expenses. However, the Company's auditors have determined that the proper accounting treatment for these expenses is to include them on the income statement as expenses, and to credit the payments due from the previous owners against the goodwill of the business.
Michael Manahan, CFO of PracticeXpert, Inc., stated, "With adding-back the expenses that are due to be reimbursed to the Company by the previous owners of Physician Informatics, Inc., we achieved earnings before interest, taxes, deprecation and amortization (EBITDA) of $336,848. We consider the expenses that will be reimbursed by the previous owners of Physician Informatics, Inc., for the purposes of this calculation to be non-cash expenses. Our goal is to work diligently to achieve growth in EBITDA and achieve profitability.
"I urge all of our shareholders to study in detail our Form 10-QSB for the period ended March 31, 2005, as filed with Securities and Exchange Commission, because it includes more detailed information than is included in this press release. And, of course, please feel free to contact the Company directly, if you have any further questions or comments."
Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "Obviously, we are pleased to see continued strong growth in our revenues, as well as improving our bottom line results. This quarter's results continue to demonstrate that we are moving forward with our goal of becoming one of the leading providers of integrated administrative services to physicians. However, what these results do not tell our investors is the tremendous strides our management and employees have made in developing our infrastructure and getting our business both organized and prepared to handle continued growth. Initiatives being worked on internally include customer service, business process improvement and cost management. On a daily basis, we are recording successes across our entire organization."
About PracticeXpert, Inc.
PracticeXpert is a national provider of turn-key practice management services and software solutions that improve operational efficiencies and enhance cash flow for private practice physicians, medical clinics and outpatient facilities. PracticeXpert's services include practice management, medical billing, accounts receivable management, transcription, consulting, seminars and financial services. Software systems include practice management software and electronic medical records software. PracticeXpert bundles its software applications with its billing and other practice management services to provide a complete and integrated solution for physician customers. To find out more about PracticeXpert, Inc. (OTCBB:PXPT), visit our website at www.practicexpert.com.
Note: Any statements released by PracticeXpert, Inc. that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.
PRACTICEXPERT, INC.
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2005 AND 2004
(Unaudited)
2005 2004
------------- -------------
Net revenues $ 5,024,101 $ 929,471
Operating expenses 5,938,809 1,498,214
------------- -------------
Loss from operations (914,708) (568,743)
Non-operating Income
(expense):
Gain on settlement of
debts 39,196 --
Loss on disposal of
asset -- (1,706)
Interest income 839 55
Interest expense (60,064) (33,052)
------------- -------------
Total non-operating
income (expense) (20,029) (34,703)
------------- -------------
Loss before income tax (934,737) (603,446)
Income taxes 2,400 6,400
------------- -------------
Net loss (937,137) (609,846)
Dividend requirement
for preferred stock -- (63,122)
------------- -------------
Net loss applicable to
common shareholders $ (937,137) $ (672,968)
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Basic weighted average
number of common stock
outstanding 126,751,100 22,363,521
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Basic and diluted net
loss per share $ (0.01) $ (0.03)
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