Precis, Inc. Announces Third Quarter 2005 Financial Results
November 10 2005 - 4:11PM
PR Newswire (US)
GRAND PRAIRIE, Texas, Nov. 10 /PRNewswire-FirstCall/ -- Precis,
Inc. (NASDAQ:PCIS), a provider of access to affordable healthcare
services to the ever growing number of uninsured and/or
underinsured in the United States, announced its financial results
for the third quarter ended September 30, 2005. For the third
quarter ended September 30, 2005, the Company reported revenue of
$7,536,000, a decrease of $2,755,000, or 27 percent, compared to
$10,291,000 during the comparable quarter in 2004 and a decrease of
$501,000 or 6 percent compared to $8,037,000 during the second
quarter of 2005. The Company posted net income for the third
quarter of 2005 of $130,000, or $0.01 per share, as compared to
$96,000 or $0.01 per share in the comparable quarter of 2004 and a
loss of $10,826,000 or $0.89 per share in the second quarter of
2005. The Company's earnings for the previous quarter and
year-to-date 2005 were adversely impacted by a $9,900,000 non-cash
charge to earnings to reduce the carrying value of goodwill as well
as a charge of approximately $800,000 during the quarter for
officer severance payments. Bob Bintliff, Chief Financial Officer
of Precis, Inc., commented "Throughout 2005, we focused intensely
on reducing our costs as well as pursuing new product and marketing
initiatives. Our cost reduction efforts have been crucial in
allowing us to maintain a profitable operation this quarter in
spite of our declining revenues. Our balance sheet remains strong,
with cash of $6,470,000, working capital of $4,283,000 and no
debt." Nicholas Zaffiris, Chairman of the Board of Precis, Inc.,
commented, "We are pleased to see continued progress toward the
Company's turnaround. The Board of Directors is confident that our
new management team, having successfully implemented cost cutting
measures and operational improvements, can now increase its focus
on developing improved products and services as well as effective
ways to deliver those products and services to our markets." Mr.
Zaffiris continued, "With respect to the lawsuit filed against us
by the State of Texas, we continue to communicate with
representatives of the Attorney General's office and remain hopeful
that we can resolve this matter in the near future. We regret that
we have had to engage in litigation with the State of California
this quarter, but we are confident that we are operating properly
under applicable laws and regulations in California and that the
litigation will be resolved in our favor." Precis, Inc.
(NASDAQ:PCIS) will conduct a conference call to discuss financial
results for the third quarter ended September 30, 2005 on Thursday,
November 10, 2005 at 4:15 p.m. Eastern. Interested parties can
access the call by dialing 877-858-9308 or 706-643-0580 or by
accessing the web cast at
http://www.precis-pcis.com/ir/IRindex.html and clicking on the
third quarter 2005 teleconference icon. A replay of the call will
be available at 800-642-1687 or 706-645-9291, conference ID
2168054, for 3 days following the call; and the web cast can be
accessed at http://www.precis-pcis.com/ir/IRindex.html for 30 days.
About Precis, Inc. Precis, Inc. and its subsidiaries market
non-insurance health care savings programs, provide third party
administration services to self funded employer groups and market a
line of nutraceuticals. For more information on Precis, and its
subsidiaries visit http://www.precis-pcis.com/. Disclaimer Certain
statements included in this news release constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Certain, but not
necessarily all, of such forward-looking statements can be
identified by the use of forward-looking terminology such as
"anticipate", "believes", "expects", "may", "will", or "should", or
other variations thereon, by discussions of strategies that involve
risks and uncertainties. Precis, Inc.'s actual results or industry
results may be materially different from any future results
expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially include
general economic and business conditions; Precis, Inc.'s ability to
implement its business strategies; competition; availability of key
personnel; increasing operating costs; unsuccessful promotional
efforts; changes in brand awareness; acceptance of new product
offerings; retention of members and independent marketing
representatives; and changes in, or the failure to comply with,
government regulations. The Company undertakes no obligation to
update any forward-looking statements or to make any other
forward-looking statement, whether as a result of new information,
future events, or otherwise. Contact: Bob Bintliff Joe Diaz Chief
Financial Officer The RCG Group Precis, Inc. 602-889-9700
972-343-6501 Precis, Inc. and Subsidiaries Condensed Consolidated
Statement of Operations and Balance Sheet Data (Dollars in
Thousands, except per share amounts) For the Three Months For the
Nine Months Ended Ended September 30, September 30, 2005 2004 2005
2004 Statement of Operations Data: Product and service revenues
$7,536 $10,291 $24,273 $29,641 Total operating expenses 7,365
10,000 35,065 27,630 Operating (loss) income 171 291 (10,792) 2,011
(Loss) earnings before income taxes 231 284 (10,693) 1,954
Provision for income taxes 101 188 54 964 Net (loss) earnings
applicable to shareholders $130 $96 $(10,747) $990 (Loss) earnings
applicable to shareholders per share: Basic $0.01 $0.01 $(0.88)
$0.08 Diluted $0.01 $0.01 $(0.88) $0.08 June 31, December 31, 2005
2004 Balance Sheet Data: Cash and cash equivalents $6,470 $8,283
Working capital $4,283 $6,451 Total assets $32,190 $41,320 Total
liabilities $9,852 $8,951 Stockholders' equity $22,338 $32,369
DATASOURCE: Precis, Inc. CONTACT: Bob Bintliff, Chief Financial
Officer of Precis, Inc., +1-972-343-6501; or Joe Diaz of The RCG
Group, +1-602-889-9700, for Precis, Inc. Web site:
http://www.precis-pcis.com/ir/IRindex.html
http://www.precis-pcis.com/
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