ProxyMed Reports Significant Reduction in Operating Losses, Focused on Growth Opportunities

Strategic Insights -

ProxyMed, Inc. announced its operating results for the first quarter ended March 31, 1995, reporting a sharp reduction in operating losses from the third and fourth quarters of 1994. The company's operating loss decreased to $707,690 in the first quarter, down from $1.29 million and $1.65 million in the third and fourth quarters of 1994, respectively. On a net basis, ProxyMed reported a loss of $2,671,398 or ($.84 per share), which includes a one-time loss of $1.9 million on the sale of certain HMO prescription drug dispensing assets to Eckerd Corporation in March 1995. This loss will be offset by future payments from Eckerd, contingent upon business retention.

ProxyMed's chairman and chief executive officer, Harold Blue, expressed encouragement about the company's dramatic reduction in operating losses and its focus on growth opportunities in the pharmacy benefit management and health care information technology businesses. The company is developing and marketing its point-of-care health care technology system, which consists of ProxyScript and ProxyNet. This system allows physicians to access prescription information and electronically write and transmit prescriptions to participating pharmacies, effective in containing costs while enhancing the quality of care.

Key Takeaways:

  • ProxyMed reported a $707,690 operating loss in the first quarter of 1995, a significant reduction from $1.29 million and $1.65 million in the third and fourth quarters of 1994, respectively.
  • The company's net loss was $2,671,398 or ($.84 per share), including a one-time loss of $1.9 million on the sale of HMO prescription drug dispensing assets to Eckerd Corporation.
  • Future payments from Eckerd, contingent upon business retention, will offset the loss and potentially result in a nominal gain in the future.
  • Harold Blue, chairman and chief executive officer, cited the company's focus on growth opportunities in pharmacy benefit management and health care information technology businesses.
  • ProxyMed is developing and marketing its point-of-care health care technology system, which includes ProxyScript and ProxyNet, designed to enhance the quality of care while containing costs.
  • The company operates three subsidiaries: ProxyFusion, ProxyCare, and a pharmacy benefit management business.
  • ProxyMed is a "next generation" pharmacy benefit management company providing physician-oriented clinical pharmacy services and products to primary care physicians and specialists.

Statistics:

  • Operating loss: $707,690 (Q1 1995)
  • Operating loss (Q3 and Q4 1994): $1.29 million and $1.65 million
  • Net loss (Q1 1995): $2,671,398
  • Net loss (Q1 1994): $396,141
  • Revenues (Q1 1995): $4,730,089
  • Revenues (Q1 1994): $3,394,473
  • Price per share (Q1 1995): $.84
  • Price per share (Q1 1994): $.16

Sources:

  • ProxyMed, Inc. (PRNewswire, May 12, 1995)
  • ProxyMed, Inc. (SEC Filings)