Emdeon first quarter revenue increases 5.4% to $286.0 million

Emdeon Inc., a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, today announced financial results for the first quarter ended March 31, 2012, as summarized below:

"Our operating results for the first quarter were solid, and particularly strong in pharmacy services and revenue cycle management," said George Lazenby, Emdeon's chief executive officer.  "Following the quarter, we also made significant progress strategically through our recently announced acquisition of TC3™ Health, Inc., a leading provider of cost containment solutions, to further bolster Emdeon's already robust Payment Integrity offerings for healthcare payers."

First quarter revenue was $286.0 million, an increase of 5.4%, compared to $271.5 million for the same period in 2011.  First quarter revenue was reduced by $2.0 million due to acquisition method adjustments related to the Blackstone transaction, which occurred in the fourth quarter of 2011 (the "2011 Transaction").

Net income (loss) for the first quarter of 2012 was $(17.3) million compared to net income of $7.3 million for the same period in 2011.  This loss was primarily due to increased interest and other expenses associated with the 2011 Transaction, which more than offset the impact of business growth as compared to the prior year period.

First quarter Non-GAAP Adjusted EBITDA grew 14.0% to $78.4 million, or 27.4% of revenue, from Non-GAAP Adjusted EBITDA of $68.8 million, or 25.4% of revenue, for the comparable period in 2011.