AUXILIO Reports Second Quarter 2011 Financial Results

- Second quarter 2011 net revenue increased 34% over second quarter 2010 –

MISSION VIEJO, Calif.--(BUSINESS WIRE)-- AUXILIO, Inc. (OTCBB: AUXO), the nation’s pioneer and leading Managed Print Services (MPS) company for health care, announced its financial results for the quarter ended June 30, 2011. The company will host its second quarter 2011 financial results conference call today at 1:30 p.m. PDT / 4:30 p.m. EDT, the details for which follow.

“Second quarter 2011 revenue grew 34% over the second quarter 2010 as we started to gain traction from the MPS contracts we signed over the past 12 months,” stated Joseph J. Flynn, president and CEO of AUXILIO, Inc. “During the quarter we secured a marketing alliance with Sodexo, which provides us with increased resources and deepens our market reach into health care facilities across the country and enhances our visibility in the U.S. health care market. In addition, we continued to build our presence in our current markets by expanding our relationship with Saint Alphonsus Health System in Idaho, Saint Joseph’s Medical Center of Yonkers in New York and MemorialCare Health System in Southern California. Most recently, we built on this momentum by signing a three-year contract with Holy Cross Hospital in Maryland. This continued track record of growth in customers and contracts further validates the value of our MPS business model. We intend to build on this momentum to expand our market presence and ultimately return value to our shareholders.”

Financial Results

For the quarter ended June 30, 2011, AUXILIO reported net revenue of $4.8 million, an increase of 34% when compared to net revenue of $3.6 million in the same period of 2010. Cost of revenues was $4.0 million for the second quarter of 2011, compared to $2.8 million in the same period of 2010. Gross profit for the second quarter of 2011 was $785,000 or 16% of sales, compared to $790,000 million or 22% of sales, in the same period of 2010. Operating expenses for the second quarter of 2011 were $1.4 million, compared to $1.1 million in the same period of 2010. Net loss for the second quarter of 2011 was $570,000, or $0.03 per share, compared to a net loss of $353,000 or $0.02 per share, in the same period of 2010.

For the six months ended June 30, 2011, the company reported net revenue of $9.5 million, an increase of 30% when compared to $7.3 million in the same period of 2010. Gross profit for the first six months of 2011 was $1.1 million, compared to $1.8 million for the first six months of 2010. Net loss for the first six months of 2011 was $1.4 million compared to $348,000 in the first six months of 2010.

Paul Anthony, CFO of AUXILIO, Inc., stated: “Our strong revenue growth was largely driven by the five new MPS contracts beginning in the fourth quarter of 2010. Also contributing to revenue was our solid recurring revenue base that reflects our 100% customer retention rate. As expected, our gross margins were impacted by the cost of implementing our services with new customers. We absorb our new customer’s legacy contracts with third-party vendors. As we implement our programs we strive to improve upon these legacy contracts thus reducing costs over the term of the contract and improving margins.”

Conference Call Information

The company will host its second quarter 2011 financial results conference call today at 1:30 p.m. PDT / 4:30 p.m. ET, the details for which follow. To access the call in the U.S. please dial 1-877-941-1427 and for international calls dial 1-480-629-9664 approximately 10 minutes prior to the start of the conference. The conference ID is 4458395. The conference call will also be broadcast live over the Internet and available for replay for 15 days at www.auxilioinc.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 1-800-406-7325 and internationally, 1-303-590-3030. Enter access code 4458395.

About AUXILIO, Inc.

AUXILIO, Inc. is the pioneer of managed print services for the health care industry, working exclusively with hospitals and hospital systems throughout the United States. We are vendor independent and provide intelligent solutions, a risk free program and guaranteed savings. AUXILIO assumes all costs related to print business environments through customized, streamlined and seamless integration of services at predictable fixed rates that are unmatched in the industry. We work collaboratively to assist our health care-partners in the delivery of quality patient care. The service and solutions provided by our on-site Centers of Excellence professional print strategy consultants deliver unparalleled customer service across the industry. For more information about AUXILIO, visit www.auxilioinc.com.

Forward Looking Statements

This release contains certain forward-looking statements relating to the business of AUXILIO, Inc. that can be identified by the use of forward-looking terminology such as ``believes,'' ``expects,'' “anticipates,” “may” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product/services development, long and uncertain sales cycles, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, future capital requirements, competition from other providers and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. AUXILIO, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

 
AUXILIO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
  JUNE 30, 2011  

DECEMBER 31, 2010

(unaudited)
ASSETS
Current assets:

 

Cash and cash equivalents $ 1,783,366 $ 2,249,907
Accounts receivable, net 1,012,171 1,160,251
Supplies 666,939 687,845
Prepaid and other current assets   177,006     331,483  
Total current assets   3,639,482     4,429,486  
 
Property and equipment, net 206,121 234,975
Deposits 28,013 28,013
Goodwill   1,517,017     1,517,017  
$ 5,390,633   $ 6,209,491  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 2,563,144 $ 2,538,828
Accrued compensation and benefits 734,176 772,532
Deferred revenue 252,324 255,802
Advances on convertible debt offering 375,000 -
Current portion of capital lease obligations   52,345     41,776  
Total current liabilities   3,976,989     3,608,938  
 
Capital lease obligations, noncurrent   74,071     79,524  
 
Commitments and contingencies - -
 
Stockholders' equity:

Common stock, par value at $0.001, 33,333,333 shares authorized,
19,336,651 and 19,336,651 shares issued and outstanding at June
30, 2011 and December 31, 2010, respectively

19,338 19,338
Additional paid-in capital 20,669,945 20,417,584
Accumulated deficit   (19,349,710 )   (17,915,893 )
Total stockholders' equity   1,339,573     2,521,029  
Total liabilities and stockholders’ equity $ 5,390,633   $ 6,209,491  
 
AUXILIO, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
  Three Months   Six Months
Ended June 30, Ended June 30,
  2011       2010     2011       2010  
Revenues $ 4,803,793 $ 3,587,851 $ 9,486,894 $ 7,286,473
Cost of revenues   4,019,128     2,797,753     8,358,340     5,453,583  
 
Gross profit   784,665     790,098     1,128,554     1,832,890  
 
Operating expenses:
Sales and marketing 467,265 316,858 825,406 637,267
General and administrative expenses   884,013     825,563     1,728,653     1,539,297  
 
Total operating expenses   1,351,278     1,142,421     2,554,059     2,176,564  
 
Loss from operations   (566,613 )   (352,323 )   (1,425,505 )   (343,674 )
 
Other income (expense):
Interest expense (3,292 ) (1,109 ) (6,528 ) (1,566 )
Interest income   209     134     616     148  
 
Total other income (expense)   (3,083 )   (975 )   (5,912 )   (1,418 )
 
Loss before provision for income taxes (569,696 ) (353,298 ) (1,431,417 ) (345,092 )
 
Income tax expense   -     -     (2,400 )   (2,400 )
 
Net loss $ (569,696 ) $ (353,298 ) $ (1,433,817 ) $ (347,492 )
 
Net loss per share:
Basic $ (.03 ) $ (.02 ) $ (.07 ) $ (.02 )
Diluted $ (.03 ) $ (.02 ) $ (.07 ) $ (.02 )
 
Number of weighted average shares:
Basic   19,336,651     19,237,365     19,336,651     19,143,743  
Diluted   19,336,651     19,237,365     19,336,651     19,143,743  



CONTACT:

AUXILIO
Clare Eckert, 401-855-2601
or
IR Agency
Becky Herrick, 415-433-3777

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:   Technology  Hardware  Software  Health  Hospitals

MEDIA:

Suggested Articles

Nearly 10,000 patients involved in research studies were impacted by a third-party privacy breach that may have exposed their medical diagnoses.

Veterans Health Administration medical facilities currently have a paper medical record backlog that if stacked up would be 5.15 miles high, according to the…

The Department of Health and Human Services announced proposed changes to privacy restrictions on patients' substance use treatment records.