UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
______________________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 9, 2004
MIM Corporation
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 0-28740 | 05-0489664 |
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 100 Clearbrook Road, Elmsford, New York | 10523 |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (914) 460-1600
________________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements and Exhibits.
(c) Exhibits. The following Exhibit is filed with this Report:
| Exhibit | Description of Exhibit |
| 99.1 | Press Release issued by MIM Corporation on August 9, 2004 |
Item 12. Results of Operations and Financial Condition.
The press release dated August 9, 2004 identified in Exhibit 99.1, and which announces earnings for our second quarter, includes “non-GAAP financial measures” as defined by SEC rules.
The Reconciliation Table presented in our second quarter 2004 press release demonstrates the differences between the non-GAAP financial measures and the most directly comparable GAAP financial measures. As required by Regulation G, the Company has provided a quantitative comparison between the GAAP and disclosed non-GAAP financial measures. We believe that the non-GAAP financial measures presented provide important insight into our ongoing operations and a meaningful comparison of revenue, gross profit, selling, general and administrative expenses, operating income, net income and earnings per share.
We believe that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. For that reason, we believe that investors may find it useful to see the financial results without the effects of the lost TennCare PBM and Synagis business so that they may evaluate the Company's business comparatively while giving consistent effect to material occurrences.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.
| Date: August 9, 2004 | MIM CORPORATION | |||
| By: | \s\ James S. Lusk | |||
| James S. Lusk, Chief Financial Officer |
||||
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EXHIBIT INDEX
| Exhibit Number | Description of Exhibit |
| 99.1 | Press Release issued by MIM Corporation on August 9, 2004 |
MIM Reports 31% Increase in Specialty Revenues and EPS of $0.09 for Second Quarter 2004
Merger with Chronimed Creates One of the Largest U.S. Specialty Pharmacies
ELMSFORD, NY - August 9, 2004 - MIM Corporation (NASDAQ:MIMS) (CBOE:OQX) (PCX:OQX), a pharmaceutical healthcare organization, today reported second quarter 2004 results.
Financial Highlights(1)
• |
Second
quarter Specialty revenues increased 31% over 2Q03 |
|
• |
Second
quarter Specialty and Mail prescriptions dispensed increased 29% over
2Q03 |
|
• |
Second
quarter PBM/Mail revenues increased 15% from 2Q03, excluding TennCare;
and decreased 19% compared to 2Q03, including TennCare |
Richard H. Friedman, Chairman and Chief Executive Officer commented, “We are pleased with the quarter. Our two operating segments are performing well. The implementation of the Natural Living Acquisition has been successful and we continue to deliver substantial growth in our Specialty division. Additionally, we have expanded customer contracts and increased our national base through our strategy of developing local relationships.”
Revenues for the second quarter of 2004 were $154.1 million compared to $161.2 million in the second quarter of 2003. Second quarter revenues increased 22% over the second quarter of 2003, excluding the revenue from TennCare PBM services and Synagis.(1)
Second quarter Specialty revenues grew 31% to $60.4 million compared to $46.2 million for the same period last year. This increase includes the loss of $1.9 million in Synagis sales. Excluding the results from Synagis, the Specialty segment grew 36% over the prior year’s period.
During the second quarter, the Company expanded its relationship with one of its customers to cover a larger geographic area. In return for this expansion, the Company provided certain pricing concessions. These concessions had a negative financial impact on the second quarter. The decline in earnings is expected to be recouped in the fourth quarter as volume from the expanded territories is achieved. This decision is expected to add to revenues and profitability in future quarters.
Second quarter PBM Services segment revenues, which includes Mail Service, were $93.7 million compared to $115.0 million for the same period last year. Excluding TennCare PBM services, PBM revenues grew 15% in the current quarter compared to $81.7 million in the second quarter of 2003.(1)
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“As you know, today we announced a merger with Chronimed to create one of the largest specialty pharmacy businesses in the country,” added Mr. Friedman. “Combined annual revenues for the merged company are estimated to be $1.1 billion. We look forward to combining our established BioScrip brand with Chronimed and leveraging our strong PBM capability across Chronimed’s customer base.”
Operating income for the second quarter was $3.5 million compared to $6.1 million for the second quarter of 2003. As previously reported, the second quarter of 2003 included $0.6 million in employee severance payments related to the loss of TennCare.
Net income for the second quarter of 2004 was $1.9 million or $0.09 per diluted share compared to $3.5 million or $0.16 per diluted share for the second quarter of 2003.
Chief Financial Officer James S. Lusk noted, “Earnings were strong for the quarter, despite the effect of certain pricing concessions on an expanded Specialty contract. Our balance sheet continues to be strong. We enter the Chronimed merger with little debt and a healthy cash flow. Our goal is to pay off the remainder of the line of credit from the Natural Living acquisition by first quarter 2005.”
Cost of revenue for the second quarter was $137.3 million, compared with $142.0 million for the same period last year. Excluding the results from TennCare and Synagis, cost of revenue for the second quarter of 2003 was $109.7 million. (1)
Gross profit for the quarter was $16.8 million or 10.9% compared to $19.3 million or 12.0% in the prior year’s period. Excluding the results from TennCare and Synagis, gross profit for second quarter 2003 was $16.4 million.(1) The decrease in gross margins reflects changes in the Company's product mix and overall industry trends.
Selling, general and administrative expenses were $12.6 million for the second quarter of 2004 compared to $12.8 million for the same period a year ago. The second quarter of 2003 included $0.6 million in employee severance payments related to the loss of Tenncare.
Revenues for the first half of 2004 were $302.2 million compared to $323.4 million for the first half of 2003. Revenues for the period increased 25% over the prior year’s first half, excluding the results from TennCare and Synagis.(1)
Specialty revenues for the first half increased 18% to $118.2 million from $100.4 million for the period in 2003. First half Specialty revenues increased 36% over the same period in 2003, excluding the results from Synagis. (1)
Revenues from PBM Services, which includes Mail, were $184.0 million for the first half of 2004, compared to $223.0 million in the 2003 period. Revenues from PBM Services grew 19% in the first half of 2004, excluding the results from TennCare. (1)
Operating income for the first half was $7.3 million compared to $12.0 million for the same period in 2003. The first half of 2003 included $0.6 million in employee severance payments related to the loss of TennCare. Excluding the results of TennCare and Synagis and this severance charge, operating income for the first half of 2003 was $6.1 million. (1)
2
Net income for the first half was $4.1 million or $0.18 per diluted share compared to $6.9 million or $0.31 per diluted share for the prior year’s period.
Cost of revenue for the first half of 2004 was $268.4 million, compared with $285.5 million for the first half of 2003. Excluding the results from TennCare and Synagis, cost of revenue for the first half of 2003 was $210.5 million. (1)
Gross profit for the first half of 2004 was $33.8 million or 11.2% compared to $37.9 million or 11.7% in the prior year’s period. Excluding the results from TennCare and Synagis, gross profit for the first half of the prior year was $31.4 million. (1)
Selling, general and administrative expenses for the first half of 2004 increased to $25.1 million from $25.0 million for the same period in 2003. Last year included $0.6 million in employee severance payments related to the loss of Tenncare.
Inventory turns remained strong for the quarter at 46. Days sales outstanding decreased to 40 days at June 30, 2004 from 41 days at March 31, 2004.
The Company generated $4.0 million in operating cash flow for the quarter. This includes a rebate payment of $2.5 million to Tenncare MCO’s in the second quarter. Stockholders’ equity for the first half of 2004 increased to $112.2 million from $107.2 million at the end of 2003.
“We are excited about prospects for the merger with Chronimed. We believe it is a winning combination for customers and shareholders, as we combine our individual strengths into a stronger, customer centric and profitable business,” stated Mr. Friedman. “Our businesses are complimentary and distinct. In a rapidly growing and fragmented industry, the combined companies cover a larger piece of the market and offer more access to complete pharmacy and pharmacy services solutions.”
“In conclusion, we will continue to deliver on our strategic initiatives throughout this year and next. We feel confident that with the management team we have in place and the newly combined entity, we will be able to focus on our primary goal of executing against our benchmarks and delivering shareholder value.”
MIM will host a conference call to discuss results today at 6:00 PM ET. Interested parties may participate in the conference call by dialing 800-288-8976 (US), or 612-332-0637 (International), 5-10 minutes prior to the initiation of the call. A replay of the conference call will be available from 9:30 PM ET on August 9 through 11:59 AM ET on August 16, by dialing 800-475-6701 (US), or 320-365-3844 (International), and entering access code 740878. A webcast of the conference call will also be available under the investor information section of the MIM website, www.mimcorporation.com.
MIM Corporation (www.mimcorporation.com) is a pharmaceutical healthcare organization delivering innovative pharmacy benefit and healthcare solutions that provide results beyond expectations. We excel by harnessing our clinical expertise, sophisticated data management, and therapeutic fulfillment capability, and combine it with our
3
dedicated, responsive team of professionals that understands our partners’ needs. The result is cost-effective solutions enhancing the quality of patient life.
Forward
Looking Statements
This press
release may contain statements that constitute forward looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding the intent, belief or current expectations of the Company,
its directors, or its officers with respect to the future operating performance
of the Company. Investors are cautioned that any such forward looking statements
are not guarantees of future performance and involve risks and uncertainties,
and that actual results may differ materially from those in the forward looking
statements as a result of various factors. Important factors that could cause
such differences are described in the Company’s periodic filings with the
Securities and Exchange Commission.
Additional
Information and Where to Find It
This press release
may be deemed to be solicitation material in respect of the merger of MIM
andChronimed.
In connection with the proposed transaction, a registration statement on Form
S-4 will be filed with the SEC. SHAREHOLDERS OF MIM ARE ENCOURAGED TO READ THE
REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
INCLUDING THE JOINT PROXY STATEMENT/ PROSPECTUS THAT WILL BE PART OF THE REGISTRATION
STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER.
The final joint proxy statement/prospectus will be mailed to shareholders of
MIM. Investors and security holders will be able to obtain the documents free
of charge at the SEC’s web site, www.sec.gov, from MIM Investor Relations
at 100 Clearbrook Road, Elmsford, NY 10523.
Participants
In Solicitation
MIM and its directors
and executive officers and other members of management and employees may be
deemed to be participants in the solicitation of proxies in respect of merger.
Information concerning MIM’s participants is set forth in the proxy statement,
dated April 23, 2004, for MIM’s 2004 annual meeting of shareholders as
filed with the SEC on Schedule 14A. Additional information regarding the interests
of participants of MIM in the solicitation of proxies in respect of the merger
will be included in the registration statement and joint proxy statement/prospectus
to be filed with the SEC.
Contacts:
| James S. Lusk | Rachel Levine |
| Executive Vice President/Chief Financial Officer | Investor Relations |
| MIM Corporation | The Anne McBride Co. |
| 914-460-1648 | 212-983-1702 x.207 |
| Email: jlusk@mimcorporation.com | Email: rlevine@annemcbride.com |
| (1) | See Table of Reconciliation for the differences between the non-GAAP financial measures and the most directly comparable GAAP measures. As required by Regulation G, the Company has provided a quantitative comparison between the GAAP and disclosed non-GAAP financial measures. The non-GAAP measures presented provide important insight into the ongoing operations and a meaningful comparison of revenue, gross profit, selling, general and administrative expenses, operating income, net income and earnings per share. |
4
FINANCIAL TABLES AND SUPPLEMENTAL DATA FOLLOW
5
MIM
Corporation and Subsidiaries
Consolidated
Balance Sheets
(In
thousands, except share amounts)
| June 30, 2004 | December 31, 2003 | ||||||
| |
|||||||
| ASSETS | (Unaudited) | ||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 2,499 | $ | 9,428 | |||
| Receivables, less allowance for doubtful accounts of $3,673 and | |||||||
| $3,870 at June 30, 2004 and December 31, 2003, respectively | 66,338 | 60,861 | |||||
| Inventory | 7,657 | 8,553 | |||||
| Prepaid expenses and other current assets | 1,497 | 2,160 | |||||
| Short term deferred taxes | 2,183 | 3,235 | |||||
| |
|
||||||
| Total current assets | 80,174 | 84,237 | |||||
| Property and equipment, net | 4,558 | 5,247 | |||||
| Long term deferred taxes, net | 4,554 | 4,554 | |||||
| Other assets and investments | 471 | 514 | |||||
| Goodwill, net | 70,983 | 61,085 | |||||
| Intangible assets, net | 19,111 | 15,554 | |||||
| |
|
||||||
| Total assets | $ | 179,851 | $ | 171,191 | |||
| |
|
||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Current portion of capital lease obligations | $ | 237 | $ | 399 | |||
| Line of credit | 10,585 | - | |||||
| Accounts payable | 16,710 | 16,857 | |||||
| Claims payable | 30,158 | 27,359 | |||||
| Payables to plan sponsors | 2,636 | 11,228 | |||||
| Accrued expenses and other current liabilities | 7,283 | 8,111 | |||||
| |
|
||||||
| Total current liabilities | 67,609 | 63,954 | |||||
| Capital lease obligations, net of current portion and other current liabilities | - | 35 | |||||
| |
|
||||||
| Total liabilities | 67,609 | 63,989 | |||||
| Stockholders’ equity | |||||||
| Common stock, $.0001 par value; 40,000,000 shares authorized, | |||||||
| 22,266,658 and 22,101,827 shares issued and outstanding at | |||||||
| June 30, 2004, and December 31, 2003, respectively | 2 | 2 | |||||
| Treasury stock, 2,198,076 shares at cost at June 30, 2004 | |||||||
| And December 31, 2003 | (8,002 | ) | (8,002 | ) | |||
| Additional paid-in capital | 130,497 | 129,583 | |||||
| Accumulated deficit | (10,255 | ) | (14,381 | ) | |||
| |
|
||||||
| Total stockholders’ equity | 112,242 | 107,202 | |||||
| |
|
||||||
| Total liabilities and stockholders’ equity | $ | 179,851 | $ | 171,191 | |||
| |
|
||||||
6
MIM
Corporation and Subsidiaries
Consolidated Statements of Operations
(In
thousands, except per share amounts)
| For the three months ended June 30, | ||||||
| 2004 | 2003 | |||||
| |
|
|||||
| Revenue | $ | 154,125 | $ | 161,230 | ||
| Cost of revenue | 137,275 | 141,955 | ||||
| |
|
|||||
| Gross profit | 16,850 | 19,275 | ||||
| Selling, general & administrative expenses | 12,607 | 12,753 | ||||
| Amortization of intangibles | 768 | 447 | ||||
| |
|
|||||
| Income from operations | 3,475 | 6,075 | ||||
| Interest income (expense), net | (231 | ) | (215 | ) | ||
| |
|
|||||
| Income before taxes | 3,244 | 5,860 | ||||
| Provision for income taxes | 1,298 | 2,344 | ||||
| |
|
|||||
| Net income | $ | 1,946 | $ | 3,516 | ||
| |
|
|||||
| Weighted average number of shares outstanding: | ||||||
| Basic | 22,214 | 21,969 | ||||
| Diluted | 22,780 | 22,459 | ||||
| Earnings per share (basic) | $ | 0.09 | $ | 0.16 | ||
| Earnings per share (diluted) | $ | 0.09 | $ | 0.16 | ||
7
MIM
Corporation and Subsidiaries
Consolidated Statements of Operations
(In
thousands, except per share amounts)
| For the six months ended June 30, | ||||||
| 2004 | 2003 | |||||
| |
|
|||||
| Revenue | $ | 302,178 | $ | 323,381 | ||
| Cost of revenue | 268,364 | 285,505 | ||||
| |
|
|||||
| Gross profit | 33,814 | 37,876 | ||||
| Selling, general & administrative expenses | 25,102 | 24,981 | ||||
| Amortization of intangibles | 1,408 | 893 | ||||
| |
|
|||||
| Income from operations | 7,304 | 12,002 | ||||
| Interest income (expense), net | (427 | ) | (467 | ) | ||
| |
|
|||||
| Income before taxes | 6,877 | 11,535 | ||||
| Provision for income taxes | 2,751 | $ | 4,614 | |||
| |
|
|||||
| Net income | $ | 4,126 | $ | 6,921 | ||
| |
|
|||||
| Weighted average number of shares outstanding: | ||||||
| Basic | 22,187 | 22,263 | ||||
| Diluted | 22,724 | 22,680 | ||||
| Earnings per share (basic) | $ | 0.19 | $ | 0.31 | ||
| Earnings per share (diluted) | $ | 0.18 | $ | 0.31 | ||
8
MIM
Corporation and Subsidiaries
Consolidated
Statements of Cash Flows
(In
thousands)
| For the six monthsended June 30, | ||||||
| 2004 | 2003 | |||||
| |
||||||
| (Unaudited) | ||||||
| Cash flows from operating activities: | ||||||
| Net Income | $ | 4,126 | $ | 6,921 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 2,453 | 2,700 | ||||
| Issuance of stock to employees | 44 | 201 | ||||
| Provision for losses on receivables | 776 | 845 | ||||
| Changes in assets and liabilities, net of acquired assets: | ||||||
| Receivables, net | (3,683 | ) | (1,026 | ) | ||
| Inventory | 1,681 | 2,671 | ||||
| Prepaid expenses and other current assets | 768 | 1,212 | ||||
| Accounts payable | (3,278 | ) | (297 | ) | ||
| Claims payable | 2,799 | 1,108 | ||||
| Payables to plan sponsors and others | (8,592 | ) | (7,264 | ) | ||
| Accrued expenses and other current and non current liabilities | 103 | 3,110 | ||||
| |
||||||
| Net cash (used in) provided by operating activities | (2,803 | ) | 10,181 | |||
| |
||||||
| Cash flows from investing activities: | ||||||
| Purchases of property and equipment, net of disposals | (355 | ) | (756 | ) | ||
| Costs of acquisitions, net of cash acquired | (14,256 | ) | -- | |||
| (Increase) decrease in other assets | (24 | ) | 133 | |||
| |
||||||
| Net cash used in investing activities | (14,635 | ) | (623 | ) | ||
| |
||||||
| Cash flows from financing activities: | ||||||
| Borrowings on line of credit | 10,585 | (4,608 | ) | |||
| Purchase of treasury stock | -- | (5,068 | ) | |||
| Proceeds from exercise of stock options | 588 | 107 | ||||
| Principal payments on short term debt | (467 | ) | -- | |||
| Principal payments on capital lease obligations | (197 | ) | (320 | ) | ||
| |
||||||
| Net cash provided by (used in) financing activities | 10,509 | (9,889 | ) | |||
| |
||||||
| Net decrease in cash and cash equivalents | (6,929 | ) | (331 | ) | ||
| Cash and cash equivalents—beginning of period | 9,428 | 5,751 | ||||
| |
||||||
| Cash and cash equivalents—end of period | $ | 2,499 | $ | 5,420 | ||
9
MIM
Corporation and Subsidiaries
Consolidated
Statements of Cash Flows
(In
thousands)
| For the six months ended June 30, | ||||||
| 2004 | 2003 | |||||
| (Unaudited) | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||
| Cash paid during the period for interest | $ | 387 | $ | 235 | ||
| |
|
|||||
| Cash paid during the period for income taxes | $ | 1,810 | $ | 1,167 | ||
| |
|
|||||
| SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION: | ||||||
| Increase in equity from change in deferred tax assets | $ | 282 | $ | 321 | ||
| |
|
|||||
10
Supplemental
Data
(In
thousands, except per Rx amounts)
| Three months ended June 30, | ||||||
| 2004 | 2003 | |||||
| PBM pharmacy network claims processed | 2,338 | 3,426 | ||||
| Mail (adjusted) and specialty pharmacy prescriptions dispensed internally | 922 | 717 | ||||
| Gross profit per Rx | $ | 5.17 | $ | 4.65 | ||
| Revenue per Rx | $ | 47.28 | $ | 38.92 | ||
| Six months ended June 30, | ||||||
| 2004 | 2003 | |||||
| PBM pharmacy network claims processed | 4,658 | 6,882 | ||||
| Mail (adjusted) and specialty pharmacy prescriptions dispensed internally | 1,756 | 1,395 | ||||
| Gross profit per Rx | $ | 5.27 | $ | 4.58 | ||
| Revenue per Rx | $ | 47.11 | $ | 39.07 | ||
11
MIM
Corporation and Subsidiaries Consolidated Statement of Operations
Reconciliation
Between Non-GAAP and GAAP Measures
(In
thousands, except share amounts)
| For the Three Months Ended June 30, 2003 | |||||||||||||||
| Business | |||||||||||||||
| As Reported | TennCare | Synagis | Restructuring | As Adjusted | |||||||||||
| Revenue | |||||||||||||||
| Specialty | $ | 46,237 | $ | - | $ | (1,885 | ) | $ | - | $ | 44,352 | ||||
| PBM/Mail | $ | 114,993 | $ | (33,274 | ) | $ | - | $ | - | $ | 81,719 | ||||
| |
|
|
|
|
|||||||||||
| Total Revenue | $ | 161,230 | $ | (33,274 | ) | $ | (1,885 | ) | $ | - | $ | 126,071 | |||
| Cost of Revenue | |||||||||||||||
| Specialty | $ | 36,116 | $ | - | $ | (1,761 | ) | $ | - | $ | 34,355 | ||||
| PBM/Mail | $ | 105,839 | $ | (30,479 | ) | $ | - | $ | - | $ | 75,360 | ||||
| |
|
|
|
|
|||||||||||
| Total Cost of Revenue | $ | 141,955 | $ | (30,479 | ) | $ | (1,761 | ) | $ | - | $ | 109,715 | |||
| Gross Profit | |||||||||||||||
| Specialty | $ | 10,121 | $ | - | $ | (124 | ) | $ | - | $ | 9,997 | ||||
| GP% | 21.9 | % | 22.5 | % | |||||||||||
| PBM/Mail | $ | 9,153 | $ | (2,795 | ) | $ | - | $ | - | $ | 6,359 | ||||
| GP% | 8.0 | % | 7.8 | % | |||||||||||
| |
|
|
|
|
|||||||||||
| Total Gross Profit | $ | 19,275 | $ | (2,795 | ) | $ | (124 | ) | $ | - | $ | 16,356 | |||
| GP% | 12.0 | % | 8.4 | % | 6.6 | % | 13.0 | % | |||||||
| Selling, general & administrative | $ | 12,753 | $ | - | $ | - | $ | (617 | ) | $ | 12,136 | ||||
| expenses | |||||||||||||||
| Amortization | $ | 447 | $ | - | $ | - | $ | - | $ | 447 | |||||
| |
|
|
|
|
|||||||||||
| Income from Operations | $ | 6,075 | $ | (2,795 | ) | $ | (124 | ) | $ | 617 | $ | 3,773 | |||
| Interest Income (Expense) | $ | (215 | ) | $ | - | $ | - | $ | - | $ | (215 | ) | |||
| |
|
|
|
|
|||||||||||
| Income Before Taxes | $ | 5,860 | $ | (2,795 | ) | $ | (124 | ) | $ | 617 | $ | 3,558 | |||
| Taxes | $ | 2,344 | $ | (1,118 | ) | $ | (49 | ) | $ | 247 | $ | 1,424 | |||
| % | 40.0 | % | 40.0 | % | 40.0 | % | 40.0 | % | 40.0% | ||||||
| Net Income | $ | 3,516 | $ | (1,677 | ) | $ | (75 | ) | $ | 370 | $ | 2,134 | |||
| |
|
||||||||||||||
| Weighted average number of shares outstanding | |||||||||||||||
| Basic shares | 21,969,005 | 21,969,005 | |||||||||||||
| Diluted shares | 22,459,371 | 22,459,371 | |||||||||||||
| Earnings per share (basic) | $ | 0.16 | $ | 0.10 | |||||||||||
| Earnings per share (diluted) | $ | 0.16 | $ | 0.10 | |||||||||||
12
MIM
Corporation and Subsidiaries Consolidated Statement of Operations
Reconciliation
Between Non-GAAP and GAAP Measures
(In
thousands, except share amounts)
| For the Six Months Ended June 30, 2003 | |||||||||||||||
| Business | |||||||||||||||
| As Reported | TennCare | Synagis | Restructuring | As Adjusted | |||||||||||
| Revenue | |||||||||||||||
| Specialty | $ | 100,349 | $ | - | $ | (13,731 | ) | $ | - | $ | 86,618 | ||||
| PBM/Mail | $ | 223,032 | $ | (67,817 | ) | $ | - | $ | - | $ | 155,215 | ||||
| Total Revenue | $ | 323,381 | $ | (67,817 | ) | $ | (13,731 | ) | $ | - | $ | 241,833 | |||
| Cost of Revenue | |||||||||||||||
| Specialty | $ | 80,064 | $ | - | $ | (12,825 | ) | $ | - | $ | 67,239 | ||||
| PBM/Mail | $ | 205,441 | $ | (62,214 | ) | $ | - | $ | - | $ | 143,227 | ||||
| Total Cost of Revenue | $ | 285,505 | $ | (62,241 | ) | $ | (12,825 | ) | $ | - | $ | 210,466 | |||
| Gross Profit | |||||||||||||||
| Specialty | $ | 20,285 | $ | - | $ | (906 | ) | $ | - | $ | 19,379 | ||||
| GP% | 20.2 | % | 22.4 | % | |||||||||||
| PBM/Mail | $ | 17,591 | $ | (5,603 | ) | $ | - | $ | - | $ | 11,988 | ||||
| GP% | 7.9 | % | 7.7 | % | |||||||||||
| Total Gross Profit | $ | 37,876 | $ | (5,603 | ) | $ | (906 | ) | $ | - | $ | 31,367 | |||
| GP% | 11.7 | % | 8.3 | % | 6.6 | % | 13.0 | % | |||||||
| Selling, general & administrative | $ | 24,981 | $ | - | $ | - | $ | (617 | ) | $ | 24,364 | ||||
| expenses | |||||||||||||||
| Amortization | $ | 893 | $ | - | $ | - | $ | - | $ | 893 | |||||
| Income from Operations | $ | 12,002 | $ | (5,603 | ) | $ | (906 | ) | $ | 617 | $ | 6,110 | |||
| Interest Income (Expense) | $ | (467 | ) | $ | - | $ | - | $ | - | $ | (467 | ) | |||
| Income Before Taxes | $ | 11,535 | $ | (5,603 | ) | $ | (906 | ) | $ | 617 | $ | 5,643 | |||
| Taxes | $ | 4,614 | $ | (2,241 | ) | $ | (363 | ) | $ | 247 | $ | 2,257 | |||
| % | 40.0 | % | 40.0 | % | 40.0 | % | 40.0 | % | 40.0 | % | |||||
| Net Income | $ | 6,921 | $ | (3,362 | ) | $ | (543 | ) | $ | 370 | $ | 3,386 | |||
| Weighted average number of shares outstanding | |||||||||||||||
| Basic shares | 22,262,718 | 22,262,718 | |||||||||||||
| Diluted shares | 22,680,374 | 22,680,374 | |||||||||||||
| Earnings per share (basic) | $ | 0.31 | $ | 0.15 | |||||||||||
| Earnings per share (diluted) | $ | 0.31 | $ | 0.15 | |||||||||||
13