Company Name: American Caresource Holdings, Inc.
Stock Market: NYSE (ANCI)
Industry Sector: Services-Misc Health & Allied Services
Market Capitalisation: $106.62 million (As of March 3, 2009)
Yearly Revenue: $23.5 million (As of December 31, 2007)
Operating Income: $1.2 million (Loss)
Net Income: $0.8 million (Loss)
Total Assets: $15.2 million
Key People: David Boone (chief executive officer, president), Steven Armond (chief financial officer), and James Robinson, (senior vice president - Sales and Marketing)
Headquarters Address: 5429 Lyndon B. Johnson Freeway, Suite 700, Dallas, Texas 75240
Number of Employees: 38 (As of March 30, 2008)
Website Address: www.anci-care.com
Company Overview
American Caresource Holdings, Inc. (the “Company”) was organised on November 24, 2003, in Delaware as Patient Infosystems, Inc.’s (“PI”) wholly-owned subsidiary to serve as a facilitator of all of the acquired assets of American CareSource Corporation. On December 23, 2005, it started operating as an independent company when 100% of PI shares of the Company were distributed via dividends to PI’s stockholders.
Currently, American Caresource Holdings operates as a provider of supplementary healthcare services and utilises its comprehensive network of supplementary healthcare providers, contracting capabilities, claims management services and customer service support to help third-party administrators, preferred provider organisations (PPOs), self-funded employers, insurance companies, and other sponsors of health benefit plans in reducing their total ancillary healthcare expenses. Its supplementary care services include non-physician and non-hospital services related to surgery centres, infusion and home health services, diagnostic imaging centres, medical equipment supply, laboratory, prosthetics and orthotics, respiratory services, and other services. In addition to these services, it also provides value-added services such as supplementary network analysis, network management, custom networks, systems integration, healthcare claims management, reporting, and data insights. American Caresource Holdings has a subsidiary, Ancillary Care Services, which acts as a negotiator of contracts with over 2,500 providers of supplementary health care.
Current Financial Overview
American Caresource Holdings revenues include the revenues generated from supplementary healthcare service claims. Revenues for the year ending December 31, 2007, were $23,487,911, an increase of 106% compared to $11,418,554 for the year ending December 31, 2006. The increase in these revenues, approximating $8.7 million, came from five additional customers of the Company during 2007. Additionally, its established customers contributed an increase in revenue approximating $5.1 million, as a result of the Company’s expansion of its services for these customers.
The cost of revenue in 2007 was $20,601,600, representing an increase compared to $9,346,927 in 2006. This increase reflects the growth in services fees paid to providers in connection with the Company’s revenue increase, as well as the variation in the mix of its services.
Selling, general and administrative (SG&A) expense was $3,754,175 in 2007 representing an increase compared to $3,005,241 in 2006. Included in SG&A expenses were travel costs, salaries and benefits, sales materials, sales commissions, other marketing expenses, corporate operations costs, human resources, accounting and finance, and other operating expenses. Marketing can also be improved through courtesy items to clients such as personalised usb drives.
merican Caresource Holdings incurred a net loss of $820,230, or $0.06 per share during 2007, a decrease by $493,597 from $1,313,827 for the prior year. This decrease was primarily a result of increased net revenues, offset by the increased costs in service providers, an increase in customer administration fees, increased SG&A expenses and severance expenses for the Company’s former CEO.
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