Craneware Reports Year-End Financial Results

Company Enters 2013 Fiscal Year with Revenue Visibility at Historically High Levels

ATLANTA, Sept. 5, 2012 /PRNewswire/ -- Craneware plc (AIM: CRW.L), the market leader in automated revenue integrity solutions for the U.S. healthcare market, today announced its financial results for fiscal year 2012.

Financial Highlights for the Year Ending June 30, 2012 include (all figures in U.S. dollars):

  • Continued revenue and profit growth:
    • Revenue increased 8% to $41.1m (2011: $38.1m)
    • Adjusted EBITDA1 increased 18% to $11.9m (2011: $10.1m)
    • Adjusted profit before taxation increased 16% to $10.8m (2011: $9.3m)
    • Profit before tax increased 29% to $11.2m (2011: $8.7m)
    • Basic adjusted EPS increased 23% to 31.6 cents (2011: 25.6 cents)
    • Basic EPS increased 43% to 33.0 cents (2011: 23.1 cents)
  • Positive operational cash flow of $10.6m (2011: $10.1m)
  • Cash at year end $28.8m (2011: $24.2m) after returning $4.1m to shareholders by way of dividends
  • Proposed final dividend of 5.7p (8.9 cents) per share giving total dividend for the year of 10.5p (16.4 cents) per share (2011: 8.8p (14.2 cents) per share)

1.  Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortisation, share based payments, released deferred consideration and transaction related costs

Operational Highlights for FY2012 include:

  • Extension of market reach through two significant client deals signed in the year, one providing entry into the federal and state healthcare market and the other taking Craneware's software into a non-competitive parallel market
  • Increased sales activity in the second half of the year in core market
  • Increasing pressure being placed on hospitals by Medicare Recovery Auditors (formerly known as the RAC program)
  • Craneware InSight fully integrated as at 1st July 2012, first cross-sales delivered
  • Renewal levels strong at over 100% of dollar value
  • Entered 2013 with revenue visibility back at historically high levels 

"In a mixed trading environment Craneware delivered a solid level of growth across key financial and operational metrics, confirming the health of the business and giving a high degree of confidence for the future," said Keith Neilson, CEO of Craneware. "Added pressures on U.S. hospitals have led to an increased sales and opportunity pipeline for our products as we move into the current financial year. Craneware's solutions help U.S. healthcare providers drive business improvements that will result in better financial health. In this turbulent, demanding environment, hospitals need financial accuracy, visibility and shared accountability to survive. Fiscal and regulatory drivers are expected to increase in the year ahead as they push for greater transparency and accuracy, and although this creates a challenging, ever-evolving marketplace, it ultimately increases the opportunities for Craneware's solutions."

"Craneware is a trusted and established part of the fabric of the U.S. healthcare industry, with a client base consisting of around a quarter of all U.S. hospitals. We are confident that the business is ideally placed with its in-house expertise, industry-leading product suite and balance sheet strength to help U.S. healthcare organizations deal with their increasing fiscal and regulatory pressures. Furthermore, with revenue visibility having returned to the historic high levels, we view the future with confidence," Neilson concluded.

About Craneware

Craneware (AIM: CRW.L) is the leader in automated revenue integrity solutions that improve financial performance for healthcare organizations. Craneware's market-driven, SaaS solutions help hospitals and other healthcare providers more effectively price, charge, code and retain earned revenue for patient care services and supplies. This optimizes reimbursement, increases operational efficiency and minimizes compliance risk. By partnering with Craneware, clients achieve the visibility required to identify, address and prevent revenue leakage. To learn more, visit craneware.com and stoptheleakage.com.

To see the full announcement please go to the investor section of the craneware.com website.

SOURCE Craneware