Precis Announces Second Quarter 2006 Financial Results
August 14 2006 - 8:30AM
PR Newswire (US)
GRAND PRAIRIE, Texas, Aug. 14 /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 quarter ended June 30, 2006. Precis reported revenue from
continuing operations of $5.7 million for the second quarter,
compared to $7.8 million during the comparable quarter in 2005. The
Company reported earnings from continuing operations of $360,000,
or $0.03 per fully diluted share, versus a net loss of $10.8
million, or $(0.90) per fully diluted share, for the comparable
quarter in 2005. Precis recorded a loss from discontinued
operations during the quarter of $539,000 to close down its
Vergance nutraceuticals division. Including the impact of
discontinued operations, the Company recorded a net loss for the
quarter of $179,000, or $(0.04) per fully diluted share, compared
to a net loss of $10.8 million, or $(0.90) per fully diluted share,
in the second quarter of the previous year. The Company's
operations provided net cash of $1.25 million during the quarter.
The majority of that cash was from a refund of federal income taxes
previously paid, which were recovered as the result of successfully
implementing several tax strategies at the end of 2005.
Additionally, the Company's earnings for the second quarter were
positively impacted by a successful re-determination of the manner
by which the Company should be assessed Texas franchise taxes. The
re-determination resulted in a reduction of a previously recorded
franchise tax liability of $209,000 as well as recording an
anticipated refund of previously paid taxes of $350,000. Nicholas
Zaffiris, Chairman of Precis, Inc., commented, "We are pleased that
the operating efficiencies that we worked hard to create over the
past year are beginning to impact our cash flow. Our net cash from
operations, largely from the favorable cash effect of tax savings
strategies and the success of our Access HealthSource subsidiary,
has left us with an improved balance sheet." Mr. Zaffiris
continued, "From an operating standpoint, we continue to see a
decline in the overall number of memberships in our discount card
product. This is a matter of concern and we hope that, as our
product and channel development efforts begin to show results, this
trend will be reversed. From a strategic standpoint, we made the
difficult decision to shutdown our Vergance nutraceuticals
division. We did not achieve a return on investment that justified
continuing the operation. In that regard, we will review all of our
operating units to maximize performance as we work our way toward
completing the proposed acquisition of Insuraco USA, LLC. We are
currently carrying out our review of Insuraco and working toward
the completion of other matters necessary for the closing of the
transaction, which we expect to occur during the fourth quarter of
the year." "We expect that the Precis / Insuraco integration will
be seamless and that the combined company will be well-positioned
to present a comprehensive suite of products and services that will
help address the growing problem of escalating healthcare costs. We
believe that the combined products and distribution channels of the
resulting company will provide consumers powerful new
cost-effective solutions to better manage their lifestyles and
quality of life," concluded Mr. Zaffiris. Precis, Inc.
(NASDAQ:PCIS) will conduct a conference call to discuss financial
results for the second quarter ended June 30, 2006 on Monday,
August 14, 2006, at 11:00 a.m. Eastern time. 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
second quarter 2006 teleconference icon. A replay of the call will
be available at 800-642-1687 or 706-645-9291, conference ID
4408968, 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 provide
affordable consumer driven health care solutions as alternatives to
traditional health insurance. The companies market non-insurance
health care savings programs, administer tax- favored reimbursement
accounts, and offer third party claims administration, provider
network management, and utilization management services for
employer groups that utilize partially self funded strategies to
finance their employee benefit programs. For more information on
Precis, its subsidiaries Access Administrators and Care 125, visit
http://www.precis-pcis.com/, http://www.accesshealthsource.com/ and
http://www.care125.com/, respectively. 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 Lytham Partners, LLC Precis, Inc. 602-889-9660
972-343-6501 Condensed Consolidated Statement of Operations and
Balance Sheet Data Dollars in Thousands, Except Per Share Amounts
For the Three Months For the Six Months Ended June 30, Ended June
30, 2006 2005 2006 2005 Statement of Operations Data: Product and
service revenues $5,665 $7,773 $11,771 $16,266 Total operating
expenses 5,857 18,829 11,829 27,272 Operating (loss) income (192)
(10,906) (58) (11,006) (Loss) earnings before income taxes (101)
(10,880) 106 (10,967) (Benefit) provision for income taxes (461)
(31) (465) (63) Net earnings (loss) from continuing operations 360
(10,849) 571 (10,904) (Loss) earnings from discontinued operations
(539) 23 (789) 27 Net (loss) earnings applicable to shareholders
$(179) $(10,826) $218 $(10,877) (Loss) earnings applicable to
shareholders per share: Basic: Continuing operations $0.03 $(0.90)
$0.04 $(0.90) Discontinued operations $(0.04) $0.00 $(0.06) $0.00
Diluted: Continuing operations $0.03 $(0.90) $0.04 $(0.90)
Discontinued operations $(0.04) $0.00 $(0.06) $0.00 June 30,
December 31, 2006 2005 Balance Sheet Data: Cash and cash
equivalents $7,035 $6,261 Working capital $5,205 $4,692 Total
assets $28,058 $30,864 Total liabilities $7,347 $10,500
Stockholders' equity $20,711 $20,364 DATASOURCE: Precis Inc.
CONTACT: Bob Bintliff, Chief Financial Officer of Precis, Inc.,
+1-972-343-6501; or Joe Diaz of Lytham Partners, LLC,
+1-602-889-9660, for Precis, Inc. Web site:
http://www.precis-pcis.com/
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