May 5 2011
MedAssets, Inc. (NASDAQ: MDAS) today announced results for its first quarter ended March 31, 2011, as summarized below:
Net Revenue
First Quarter
Total net revenue for the first quarter of 2011 increased 39.8% to $130.6 million from $93.4 million in the first quarter of 2010, due primarily to the acquisition of The Broadlane Group (Broadlane) in the fourth quarter of 2010.
Comparing period-over-period organic growth, non-GAAP acquisition-affected total net revenue of $136.1 million in the first quarter of 2011 increased 0.2% from non-GAAP acquisition-affected total net revenue of $135.9 million in the first quarter of 2010. Total non-GAAP net revenue in the SCM segment grew 1.1% to $84.9 million from $84.0 million in the first quarter of 2010 as solid growth in group purchasing-related administrative fees were offset by lower decision support services revenue and flat growth in other services and clinical consulting fees. Total non-GAAP net revenue from the RCM segment declined 1.3%, as expected, to $51.2 million from $51.9 million in the first quarter of 2010 due to lower services-related revenue, offset by an increase in technology solutions revenue.
Non-GAAP Adjusted EBITDA
First Quarter
In the first quarter of 2011, total non-GAAP adjusted EBITDA was $40.9 million, or 31.4% of total net revenue, a 47.2% increase over total non-GAAP adjusted EBITDA of $27.8 million, or 29.8% of total net revenue, in the first quarter of 2010.
Comparing period-over-period organic growth, total acquisition-affected non-GAAP adjusted EBITDA in the first quarter of 2011 was $40.9 million, or 30.1% of non-GAAP acquisition-affected total net revenue, an increase of 6.3% from acquisition-affected non-GAAP adjusted EBITDA of $38.5 million, or 28.3% of non-GAAP acquisition-affected total net revenue, in the first quarter of 2010.
Net (Loss) Income and Per Share
First Quarter
Net loss in the first quarter of 2011 was $16.2 million, or a loss of $0.28 per diluted share, versus net income of $5.5 million, or earnings of $0.09 per diluted share, in the first quarter of 2010. The net loss in the first quarter of 2011 was primarily due to acquisition and integration-related costs as well as increased amortization and interest expense related to the purchase of Broadlane.
Non-GAAP cash EPS, defined as EPS excluding non-cash acquisition-related intangible amortization, share-based compensation, acquisition-related expenses and other non-recurring items on a tax-adjusted basis, was $0.17 per diluted share in the first quarter of 2011, versus non-GAAP cash EPS of $0.19 per diluted share in the first quarter of 2010.
Cash Flow and Capital Resources
Net cash provided by operating activities in the first quarter of 2011 increased 5.5% to $18.0 million from $17.1 million in the first quarter of 2010. The company's balance sheet at March 31, 2011 included $901.0 million in total bank and bond debt, net of cash and cash equivalents, which represented leverage of approximately 5.3 times trailing 12-month non-GAAP acquisition-affected adjusted EBITDA.
Reconfirmed 2011 Financial Guidance
Management reiterated its full-year 2011 financial guidance, as follows:
Contracted Revenue Estimates
At March 31, 2011, the Company's rolling 12-month non-GAAP contracted revenue was an estimated $555.4 million ($212.6 million from the RCM segment and $342.8 million from the SCM segment). This is a sequential increase of 1.9% from the first quarter of 2010, and a year-over-year increase of 8.4% excluding contracted revenue added through the Broadlane acquisition.