- Following strong quarterly results, SXC increases guidance for fiscal
2009 -
LISLE, IL, Nov. 5 /PRNewswire-FirstCall/ - SXC Health Solutions Corp. ("SXC"
or the "Company") (NASDAQ: SXCI, TSX: SXC), announces its financial results
for the three- and nine-month periods ended September 30, 2009. Financial
references are in U.S. dollars unless otherwise indicated.
Q3 2009 Highlights
------------------
- Revenue was $383.5 million compared to $318.1 million in Q3 fiscal
2008
- Gross profit was $47.7 million compared to $34.9 million in Q3 fiscal
2008
- Adjusted EBITDA(1) was $24.3 million compared to $11.9 million in Q3
fiscal 2008
- GAAP net income increased to $11.2 million, or $0.43 per share
(fully-diluted), compared to $3.5 million, or $0.15 per share (fully-
diluted), in Q3 fiscal 2008
- Non-GAAP adjusted earnings per share(1) (diluted), which excludes the
NMHC transaction-related amortization, was $0.47 compared to $0.24 in
Q3 fiscal 2008
- Cash from operations was $17.9 million compared to $3.3 million in Q3
fiscal 2008
- Adjusted prescription claim volume(1) for the PBM segment was 9.9
million compared to 8.9 million in Q3 fiscal 2008
- Gross margin per adjusted prescription for the PBM segment was $3.67
compared to $2.77 in Q3 fiscal 2008
- Mail order penetration increased to 9.5% compared to 8% in Q3 fiscal
2008
- Transaction processing volume for the HCIT segment was 92.0 million
in Q3 fiscal 2009 compared to 103.3 million in Q3 fiscal 2008
- Awarded a contract with the Ohio Bureau of Workers' Compensation, the
largest workers compensation organization in the U.S.
- Awarded a PBM services contract with Presbyterian Health Plan valued
at $150 million annually
- Renewed a multi-year PBM contract with the Employer-Union Health
Benefits Trust Fund of Hawaii
- Entered into a strategic relationship with Allscripts Misys to
enhance the e-prescribing options available to SXC's clients
- Completed a public offering of 5,175,000 common shares at a price of
$41.50 per share for net proceeds of approximately $204.1 million
- Subsequent to quarter-end, announced a PBM contract with Spectral
Solutions valued at $50 million annually
"Solid execution on our growth strategies combined with sound fundamentals in
our markets led to another strong quarter and an increase to our key guidance
targets," said Mark Thierer, President and CEO of SXC. "In addition to new
customer wins, we are driving both top-line and bottom-line growth by
increasing the mail-order penetration in our customer base and converting a
number of Health Care IT clients to a broader platform of our PBM services.
With future growth in mind, we completed a successful $204 million financing
in the quarter that was oversubscribed by investors. The proceeds provide us
with the resources to explore acquisition opportunities and to pursue the
growing sales pipeline with prospective and existing clients."
Financial Review
----------------
Revenue and gross profit segmented by PBM and HCIT was as follows:
SXC evaluates segment performance based on revenue and gross profit. A
reconciliation of the Company's business segments to the consolidated
financial statements for the three- and nine-month periods ended September 30,
2009 and 2008 is as follows:
Three months ended September 30, (unaudited, in thousands)
PBM HCIT Consolidated
--------------------- --------------------- ---------------------
Q3 2009 Q3 2008 Q3 2009 Q3 2008 Q3 2009 Q3 2008
---------- ---------- ---------- ---------- ---------- ----------
Revenue $ 357,473 $ 297,178 $ 26,056 $ 20,923 $ 383,529 $ 318,101
Gross
profit $ 36,239 $ 24,524 $ 11,441 $ 10,362 $ 47,680 $ 34,886
Gross
profit % 10.1% 8.3% 43.9% 49.5% 12.4% 11.0%
Nine months ended September 30, (unaudited, in thousands)(2)
PBM HCIT Consolidated
--------------------- --------------------- ---------------------
YTD 09 YTD 08 YTD 09 YTD 08 YTD 09 YTD 08
---------- ---------- ---------- ---------- ---------- ----------
Revenue $ 919,158 $ 502,038 $ 76,160 $ 68,135 $ 995,318 $ 570,173
Gross
profit $ 99,550 $ 41,338 $ 34,526 $ 36,668 $ 134,076 $ 78,206
Gross
profit % 10.8% 8.2% 45.3% 53.8% 13.5% 13.7%
PBM revenue was $357.5 million for Q3 2009, compared to $297.2 million for Q3
2008. PBM revenue for the year-to-date ("YTD") period was $919.2 million,
compared to $502.0 million in the prior year.
Q3 2009 HCIT revenue was $26.1 million, which included approximately $1.5
million of performance awards for achieving certain predetermined savings
commitments and service level guarantees, compared to $20.9 million in the
same period in 2008. Recurring revenue consisted of transaction processing
revenue of $16.5 million, compared to $11.6 million in Q3 2008 and maintenance
revenue of $4.7 million, compared to $4.0 million in Q3 2008. Recurring
revenue accounted for 81% of HCIT revenue in Q3 2009, compared to 75% in Q3
2008. Q3 2009 non-recurring revenue consisted of professional service revenue
of $3.2 million, compared to $3.8 million in Q3 2008, and system sales revenue
of $1.7 million, compared to $1.5 million in Q3 2008.
For the YTD period, HCIT revenue increased to $76.2 million, compared to $68.1
million in the prior year period. Transaction processing revenue for the YTD
period was $45.9 million, compared to $38.2 million in the prior year period.
Maintenance revenue for the YTD period was $13.7 million, compared to $12.3
million in the prior year period. Recurring revenue in the YTD period
accounted for 78% of HCIT revenue compared to 74% in the prior year period.
Professional services revenue for the YTD period was $10.6 million, compared
to $10.7 million in the prior year period. System sales revenue for the YTD
period was $6.0 million, compared to $6.9 million in the prior year period.
Product Development Costs
Product development costs for Q3 2009 were $2.8 million, compared to $2.5
million in Q3 2008. Product development costs for the YTD period were $9.0
million, compared to $7.4 million in the prior year period. Product
development remains a key priority for SXC as the Company seeks to develop
enhancements to existing products and the launch of new offerings.
Selling, General and Administration ("SG&A") Costs
SG&A costs for Q3 2009 were $22.2 million, compared to $21.9 million in Q3
2008. SG&A for the YTD period was $64.9 million, compared to $47.3 million in
the prior year period. On a quarter-over-quarter basis, the Company has added
a significant level of new business while keeping SG&A costs relatively flat.
The change in the YTD period is largely attributable to increased operating
expenses due to the acquisition of NMHC.
Adjusted EBITDA(1)
Q3 2009 adjusted EBITDA was $24.3 million, compared to $11.9 million in Q3
2008. Adjusted EBITDA for the YTD period was $64.3 million, compared to $27.8
million in the prior year period. The year-over-year growth in adjusted EBITDA
was due primarily to the addition of the NMHC business, cost and revenue
synergies generated from the acquisition, new contract wins and improved
purchasing efficiencies on prescription drugs.
Income Taxes
The Company recognized income tax expense of $6.8 million in Q3 2009, compared
to an income tax expense of $1.3 million in Q3 2008. Income tax expense for
the YTD period was $14.9 million, representing an effective tax rate of 32.5%,
compared to an income tax expense of $3.5 million in the prior year period,
representing an effective tax rate of 25.3%. The effective income tax rate
increased year-over-year primarily due to greater pre-tax income that has
resulted from the growth in the business.
Net Income
The Company reported Q3 2009 net income of $11.2 million, or $0.43 per share
(fully-diluted), which included $1.7 million of intangible amortization
related to the purchase of NMHC, compared to $3.5 million, or $0.15 per share
(fully-diluted), which included $3.1 million of NMHC intangible amortization,
in Q3 2008. Net income for the YTD period was $30.9 million, or $1.22 per
share (fully-diluted), which also included $5.9 million of NMHC intangible
amortization, compared to net income in the prior year period of $10.2
million, or $0.44 per share (fully-diluted), which included $5.1 million of
NMHC intangible amortization.
Cash from Operations
SXC continues to generate strong cash from operations. For Q3 2009, the
Company generated $17.9 million of cash through its operations, compared to
$3.3 million during Q3 2008. The Company's quarterly cash flows can be
impacted by the timing of pharmacy deposits and rebate payments it receives
for certain customers. For the YTD period, SXC generated cash from operations
of $49.6 million, compared to $20.6 million in the prior year period.
At September 30, 2009 and December 31, 2008, SXC had cash and cash equivalents
totalling $319.5 million and $67.7 million, respectively. On September 23,
2009, SXC completed a public offering of 5,175,000 of its common shares,
including 675,000 shares sold pursuant to the exercise of the underwriters'
over-allotment option, for net proceeds to the Company of approximately $204.1
million.
2009 Financial Guidance
With today's announcement, SXC is revising certain of its 2009 financial
targets for:
- Revenue of $1.375-$1.425 billion versus prior estimate of $1.35-$1.4
billion
- Gross profit of $180-$182 million versus prior estimate of $166-$171
million
- Fully-diluted GAAP EPS (including all transaction-related
amortization) of $1.57-$1.62 versus prior estimate of $1.42-$1.50
- Adjusted EBITDA of $87-$89 million versus prior estimate of $78-$81
million
- Fully-diluted Non-GAAP adjusted earnings per share(1) (excluding the
NMHC transaction-related amortization) of $1.76-$1.81 versus prior
estimate of $1.62-$1.70
Notice of Conference Call
SXC will host a conference call on Thursday, November 5, 2009 at 8:30 a.m. ET
to discuss its financial results. Mark Thierer, President and CEO, and Jeff
Park, EVP and CFO will co-chair the call. All interested parties can join the
call by dialing 1-866-250-4877 or 416-644-3422. Please dial in 15 minutes
prior to the call to secure a line. The conference call will be archived for
replay until Thursday, November 12, 2009 at midnight. To access the archived
conference call, please dial 1-877-289-8525 or 416-640-1917 and enter the
reservation code 4169797 followed by the number sign.
A live audio webcast of the conference call will be available www.sxc.com and
www.newswire.ca. Please connect at least 15 minutes prior to the conference
call to ensure adequate time for any software download that may be required to
join the webcast. An archived replay of the webcast will be available for 365
days.
(1)Non-GAAP Financial Measures
SXC reports its financial results in accordance with generally accepted
accounting principles in the United States ("GAAP"). SXC's management also
evaluates and makes operating decisions using various other measures. Two such
measures are adjusted earnings per share and adjusted EBITDA, which are
non-GAAP financial measures. SXC's management believes that these measures
provide useful supplemental information regarding the performance of SXC's
business operations.
Adjusted earnings per share is a non-GAAP measure which takes earnings per
share and adds back the impact of amortization expense related to the
acquisition of NMHC, net of tax. Acquisition-related amortization expense is a
non-cash expense arising from the acquisition of intangible assets in
connection with the acquisition. SXC excludes acquisition-related amortization
expense from non-GAAP adjusted earnings per share because it believes (i) the
amount of such expenses in any specific period may not directly correlate to
the underlying performance of SXC business operations and (ii) such expenses
can vary significantly between periods as a result of new acquisitions and
full amortization of previously acquired intangible assets. Investors should
note that the use of these intangible assets contribute to revenue in the
period presented as well as future periods and should also note that such
expense will recur in future periods. The 2009 guidance of adjusted earnings
per share was computed by taking the Company's GAAP earnings per share
guidance and adding back the expected impact of acquisition-related
amortization expense, net of tax.
Adjusted EBITDA is a non-GAAP measure that management believes is a useful
supplemental measure of operating performance prior to net interest income
(expense), income taxes, depreciation, amortization and stock-based
compensation. Management believes it is useful to exclude depreciation,
amortization and net interest income (expense) as these are essentially fixed
amounts that cannot be influenced by management in the short term. In
addition, management believes it is useful to exclude stock-based compensation
as this is not a cash expense.
Adjusted prescription volume equals SXC's Mail Service prescriptions
multiplied by three, plus its retail and specialty prescriptions. The Mail
Service prescriptions are multiplied by three to adjust for the fact that they
typically include approximately three times the amount of product days
supplied compared with retail prescriptions.
Management believes that adjusted earnings per share, adjusted EBITDA and
adjusted prescription volume provide useful supplemental information to
management and investors regarding the performance of the Company's business
operations and facilitate comparisons to its historical operating results.
Management also uses this information internally for forecasting and budgeting
as it believes that the measures are indicative of the Company's core
operating results. Note however, that these items are performance measures
only, and do not provide any measure of the Company's cash flow or liquidity.
Non-GAAP financial measures should not be considered as a substitute for
measures of financial performance in accordance with GAAP, and investors and
potential investors are encouraged to review the reconciliation of adjusted
earnings per share and adjusted EBITDA.
Adjusted earnings per share and adjusted EBITDA do not have standardized
meanings prescribed by GAAP. The Company's method of calculating these items
may differ from the methods used by other companies and, accordingly, it may
not be comparable to similarly titled measures used by other companies.
Reconciliation of adjusted EBITDA to net income and adjusted net income to net
income is shown below:
For the three For the nine
months ended months ended
September 30, September 30,
2009 2008 2009 2008
-------- -------- -------- --------
(unaudited) (in thousands)
Adjusted EBITDA $24,310 $11,886 $64,298 $27,795
Amortization of Intangible Assets (2,238) (3,449) (7,478) (6,277)
Depreciation of Property & Equipment (2,037) (1,669) (5,981) (4,715)
Stock-Based Compensation (1,046) (902) (2,476) (3,006)
Other Income (Expense) 20 50 62 15
Interest Income (Expense), Net (987) (1,101) (2,676) (198)
Income Tax (Expense) (6,813) (1,276) (14,881) (3,451)
-------- -------- -------- --------
Net Income $11,209 $3,539 $30,868 $10,163
-------- -------- -------- --------
-------- -------- -------- --------
Non-GAAP Adjusted Earnings Per Share For the For the
3 months 3 months
ended ended
Sept 30, Sept 30,
2009 2008
-------- --------
(unaudited)
(in thousands, except per share data)
Net Income $11,209 $3,539
Amortization of NMHC Intangibles (Net of Taxes) 1,027 2,244
-------- --------
Adjusted Net-Income $12,236 5,783
-------- --------
-------- --------
Adjusted EPS (diluted) $0.47 $0.24
(2)On April 30, 2008, SXC closed the acquisition of NMHC. As a result, SXC has
introduced some new segmentation and presentation of its financial results.
Revenue is now segmented into two groups: Pharmacy Benefits Management ("PBM")
which includes informedRx as well as mail-order and specialty pharmacies, and
Healthcare Information Technology ("HCIT"). SXC records PBM revenue from NMHC
exclusively on a gross basis which equates to the prescription price paid by
consumers plus an administrative fee. The HCIT business records revenue only
on the basis of the administrative fee; drug ingredient cost is not included
in revenues or cost of claims.
The net effect is that SXC's year-over-year revenues have increased
dramatically while gross profit margin and adjusted EBITDA have increased in
absolute dollar terms, but have declined as a percentage of total sales. These
changes do not affect profitability on an absolute dollar or per share basis.
About SXC Health Solutions Corp.
SXC Health Solutions Corp. is a leading provider of pharmacy benefit
management ("PBM") services and Healthcare Information Technology ("HCIT")
solutions to the healthcare benefits management industry. As the industry's
"Technology-Enabled PBM"(TM), SXC's product offerings and solutions combine a
wide range of advanced PBM services, software applications, application
service provider processing services, and professional services to help
healthcare organizations reduce the cost of prescription drugs and deliver
better healthcare to their members. SXC serves many of the largest
organizations in the pharmaceutical supply chain, such as health plans;
employers; Federal, provincial, and state governments; institutional
pharmacies; pharmacy benefit managers; and retail pharmacy chains. SXC is
headquartered in Lisle, Illinois with multiple locations in North America.
Learn more at www.sxc.com.
Forward-Looking Statements
Certain statements included herein, including those that express management's
expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by management at this time,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies. We caution that such forward-looking
statements involve known and unknown risks, uncertainties and other risks that
may cause our actual financial results, performance, or achievements to be
materially different from our estimated future results, performance or
achievements expressed or implied by those forward-looking statements.
Numerous factors could cause actual results to differ materially from those in
the forward-looking statements, including without limitation, our ability to
achieve increased market acceptance for our product offerings and penetrate
new markets; consolidation in the healthcare industry; the existence of
undetected errors or similar problems in our software products; our ability to
identify and complete acquisitions, manage our growth and integrate
acquisitions; our ability to compete successfully; potential liability for the
use of incorrect or incomplete data; the length of the sales cycle for our
healthcare software solutions; interruption of our operations due to outside
sources; our dependence on key customers; maintaining our intellectual
property rights and litigation involving intellectual property rights; our
ability to obtain, use or successfully integrate third-party licensed
technology; compliance with existing laws, regulations and industry
initiatives and future change in laws or regulations in the healthcare
industry; breach of our security by third parties; our dependence on the
expertise of our key personnel; our access to sufficient capital to fund our
future requirements; and potential write-offs of goodwill or other intangible
assets. This list is not exhaustive of the factors that may affect any of our
forward-looking statements. Other factors that should be considered are
discussed from time to time in SXC's filings with the U.S. Securities and
Exchange Commission, including the risks and uncertainties discussed under
that captions "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our 2008 Annual Report on
Form 10-K and subsequent Form 10-Qs, which are available at www.sec.gov.
Investors are cautioned not to put undue reliance on forward-looking
statements. All subsequent written and oral forward-looking statements
attributable to SXC or persons acting on our behalf are expressly qualified in
their entirety by this notice. We disclaim any intent or obligation to update
publicly these forward-looking statements, whether as a result of new
information, future events or otherwise.
Certain of the assumptions made in preparing forward-looking information and
management's expectations include: maintenance of our existing customers and
contracts, our ability to market our products successfully to anticipated
customers, the impact of increasing competition, the growth of prescription
drug utilization rates at predicted levels, the retention of our key
personnel, our customers continuing to process transactions at historical
levels, that our systems will not be interrupted for any significant period of
time, that our products will perform free of major errors, our ability to
obtain financing on acceptable terms and that there will be no significant
changes in the regulation of our business.
SXC HEALTH SOLUTIONS CORP.
Consolidated Balance Sheets
(in thousands, except share data)
September 30, December 31,
------------- -------------
2009 2008
------------- -------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 319,522 $ 67,715
Restricted cash 12,433 12,498
Accounts receivable, net of allowance
for doubtful accounts of
$3,319 (2008 - $3,570) 90,083 80,531
Rebates receivable 20,577 29,586
Unbilled revenue - 73
Prepaid expenses and other assets 4,718 4,382
Inventory 7,023 6,689
Income tax recoverable - 1,459
Deferred income taxes 9,919 10,219
------------- -------------
Total current assets 464,275 213,152
Property and equipment, net of
accumulated depreciation of
$25,388 (2008 - $19,449) 19,543 20,756
Goodwill 141,785 143,751
Other intangible assets, net of
accumulated amortization of
$21,585 (2008 - $14,099) 39,820 46,406
Deferred financing charges 1,154 1,481
Deferred income taxes 1,846 1,323
Other assets 1,293 1,474
------------- -------------
Total assets $ 669,716 $ 428,343
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 5,920 $ 8,302
Customer deposits 12,553 11,875
Salaries and wages payable 13,184 15,681
Accrued liabilities 27,709 32,039
Pharmacy benefit management rebates payable 43,830 36,326
Pharmacy benefit claim payments payable 51,808 51,406
Deferred revenue 8,430 7,978
Current portion of long-term debt 4,800 3,720
------------- -------------
Total current liabilities 168,234 167,327
Long-term debt, less current installments 40,320 43,920
Deferred income taxes 13,032 15,060
Deferred lease inducements 2,867 3,217
Deferred rent 1,327 1,461
Other liabilities 2,929 3,195
------------- -------------
Total liabilities 228,709 234,180
Shareholders' equity
Common shares: no par value,
unlimited shares authorized;
29,979,169 shares issued and
outstanding at September 30, 2009
(2008 - 24,103,032 shares) 360,131 146,988
Additional paid-in capital 14,661 11,854
Retained earnings 66,619 35,751
Accumulated other comprehensive loss (404) (430)
------------- -------------
Total shareholders' equity 441,007 194,163
------------- -------------
Total liabilities and shareholders' equity $ 669,716 $ 428,343
------------- -------------
------------- -------------
SXC HEALTH SOLUTIONS CORP.
Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
--------------------------- ---------------------------
2009 2008 2009 2008
------------- ------------- ------------- -------------
(unaudited) (unaudited)
Revenue:
PBM $ 357,473 $ 297,178 $ 919,158 $ 502,038
HCIT:
Transaction
processing 16,461 11,631 45,852 38,167
Maintenance 4,733 3,998 13,684 12,338
Professional
services 3,187 3,836 10,630 10,693
System sales 1,675 1,458 5,994 6,937
------------- ------------- ------------- -------------
Total revenue 383,529 318,101 995,318 570,173
Cost of revenue:
PBM 321,234 272,654 819,608 460,700
HCIT 14,615 10,561 41,634 31,267
------------- ------------- ------------- -------------
Total cost
of revenue 335,849 283,215 861,242 491,967
------------- ------------- ------------- -------------
Gross profit 47,680 34,886 134,076 78,206
Expenses:
Product
development
costs 2,833 2,486 9,024 7,425
Selling, general
and adminis-
trative 22,153 21,863 64,857 47,291
Depreciation of
property and
equipment 1,467 1,222 4,354 3,416
Amortization
of intangible
assets 2,238 3,449 7,478 6,277
------------- ------------- ------------- -------------
28,691 29,020 85,713 64,409
------------- ------------- ------------- -------------
Operating income 18,989 5,866 48,363 13,797
Interest income (101) (508) (572) (2,209)
Interest expense 1,088 1,609 3,248 2,407
------------- ------------- ------------- -------------
Net interest expense 987 1,101 2,676 198
Other income, net (20) (50) (62) (15)
------------- ------------- ------------- -------------
Income before
income taxes 18,022 4,815 45,749 13,614
Income tax
expense (benefit):
Current 9,215 3,356 15,818 5,335
Deferred (2,402) (2,080) (937) (1,884)
------------- ------------- ------------- -------------
6,813 1,276 14,881 3,451
Net income $ 11,209 $ 3,539 $ 30,868 $ 10,163
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Earnings
per share:
Basic $ 0.45 $ 0.15 $ 1.25 $ 0.45
Diluted $ 0.43 $ 0.15 $ 1.22 $ 0.44
Weighted average
number of
shares used
in computing
earnings
per share:
Basic 25,111,763 23,891,438 24,651,293 22,616,694
Diluted 26,109,202 24,346,740 25,318,349 23,034,651
SXC HEALTH SOLUTIONS CORP.
Consolidated Statements of Cash Flows
(in thousands)
Three months ended Nine months ended
September 30, September 30,
--------------------------- ---------------------------
2009 2008 2009 2008
------------- ------------- ------------- -------------
(unaudited) (unaudited)
Cash flows from
operating activities:
Net income $ 11,209 $ 3,539 $ 30,868 $ 10,163
Items not
involving cash:
Stock-based
compensation 1,046 902 2,477 3,006
Depreciation
of property
and equipment 2,037 1,669 5,981 4,715
Amortization
of intangible
assets 2,239 3,449 7,478 6,277
Deferred lease
inducements
and rent (115) (99) (484) (206)
Deferred
income taxes (2,402) (2,080) (937) (1,884)
Tax benefit on
option exercises (1,341) (719) (3,447) (799)
Gain on foreign
exchange (24) (7) (50) (14)
Changes in
operating assets
and liabilities,
net of effects
from acquisition:
Accounts
receivable (9,070) (4,970) (9,444) 7,858
Rebates
receivable 1,935 1,864 9,009 3,017
Restricted cash 1,702 (335) 65 (4,660)
Unbilled revenue - 2 73 103
Prepaid expenses 862 (407) (302) 915
Inventory (915) 93 (318) (171)
Income tax
recoverable 2,967 1,264 5,205 1,618
Accounts payable (2,466) (768) (2,382) 496
Accrued
liabilities 2,441 1,211 (3,575) (4,452)
Pharmacy benefit
claim payments
payable 9,868 2,585 402 1,049
Pharmacy benefit
management
rebates payable (2,026) (2,632) 7,504 (5,080)
Deferred revenue (63) (139) 409 (393)
Customer deposits (94) (1,172) 678 (1,070)
Other 122 20 383 111
------------- ------------- ------------- -------------
Net cash
provided by
operating
activities 17,912 3,270 49,593 20,599
Cash flows from
investing activities:
Purchases of property
and equipment (865) (2,556) (6,611) (5,970)
Lease inducements
received - - - 373
Acquisitions,
net of cash
acquired - (892) (2,176) (102,562)
------------- ------------- ------------- -------------
Net cash used
in investing
activities (865) (3,448) (8,787) (108,159)
Cash flows
from financing
activities:
Issuance of
long-term debt - - - 48,000
Proceeds from
public offering,
net of issuance
costs 204,107 - 204,107 -
Payment of
financing costs - - - (1,792)
Repayment of
long-term debt (1,200) (120) (2,520) (240)
Proceeds from
exercise of
options 1,569 1,107 5,917 1,440
Tax benefit on
option exercises 1,341 719 3,447 799
------------- ------------- ------------- -------------
Net cash
provided by
financing
activities 205,817 1,706 210,951 48,207
Effect of foreign
exchange on
cash balances 24 7 50 14
------------- ------------- ------------- -------------
Increase (decrease)
in cash and
cash equivalents 222,888 1,535 251,807 (39,339)
Cash and cash
equivalents,
beginning
of period 96,634 50,055 67,715 90,929
------------- ------------- ------------- -------------
Cash and cash
equivalents,
end of period $ 319,522 $ 51,590 $ 319,522 $ 51,590
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SOURCE SXC Health Solutions Corp.
Jeff Park, Chief Financial Officer, SXC Health Solutions, Inc., Tel: (630)
577-3100, investors@sxc.com; Dave Mason, Investor Relations - Canada, The
Equicom Group Inc., (416) 815-0700 ext. 237, dmason@equicomgroup.com; Susan
Noonan, Investor Relations - U.S., The SAN Group, LLC, (212) 966-3650,
susan@sanoonan.com
