Key Developments: SXC Health Solutions Corp. (SXC.TO)
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Latest Key Developments
SXC Health Solutions, Corp. Reaffirms FY 2010 Revenue Guidance; Raises FY 2010 Earnings Guidance
SXC Health Solutions, Corp. revised fiscal 2010 guidance and expects revenue of $1.9-$2.0 billion, gross profit of $198 to $208 million versus prior estimate of $195-$205 million, adjusted EBITDA of $111-$115 million versus prior estimate of $108-$112 million, fully-diluted GAAP EPS (including all transaction-related amortization) of $1.84 to $1.92 versus prior estimate of $1.79 to $1.87 and fully-diluted non-GAAP adjusted EPS (excluding the NMHC transaction-related amortization) of $1.96 to $2.05 versus prior estimate of $1.92 to $2.00. According to Reuters Estimates, analysts on an average were expecting the Company to report revenues of $2.0 billion, EBITDA of $109 million and EPS of $2.03 for fiscal 2010.
SXC Health Solutions, Corp. Issues FY 2010 Mixed Outlook
SXC Health Solutions, Corp. announced that for fiscal 2010, it expects revenue of $1.9 billion to $2.0 billion, gross profit of $195 million to $205 million, adjusted EBITDA of $108 million to $112 million, fully-diluted GAAP EPS of $1.79 to $1.87and adjusted EPS of $1.92 to $2.00. According to Reuters Estimates, analysts on an average are expecting the Company to report revenue of $1.8 billion, EBITDA of $108 million and non-GAAP earnings per share (EPS) of $2.04 for fiscal 2010.
SXC Health Solutions, Corp. Signs PBM Contract With HealthSpring Inc.
SXC Health Solutions, Corp. announced that its informedRx PBM unit has been awarded a contract with HealthSpring Inc. (HealthSpring) having an initial term of three years with provisions for two additional one-year extensions. HealthSpring, based in Nashville, Tennessee, offers Medicare Advantage plans across seven states to over 193,000 members and a national stand-alone Medicare prescription drug plan to 387,000 members. SXC will provide HealthSpring with its full suite of PBM services which include mail order pharmacy, specialty pharmacy, retail network management, Medicare compliance services, and patient care clinical services, managing an anticipated drug spend of approximately $1 billion annually. HealthSpring will deploy mail and specialty pharmacy services beginning in 2010, with implementation of the full PBM services on January 1, 2011.
SXC Health Solutions, Corp Comments On H2 2009 Revenue Guidance; Comments On FY 2009 Earnings Guidance-Conference Call
SXC Health Solutions, Corp announced that for second half of 2009, it expects revenues to grow over 30%. For fiscal 2009, the Company suggests earnings per share (EPS) to grow 250% and from EBITDA perspective, the Company expects EBITDA will have doubled over what it was in fiscal 2008. The Company reported EPS of $0.89 and EBITDA of $38.39 million in fiscal 2008.
SXC Health Solutions, Corp. Announces PBM Contract Renewal With Boston Medical Center HealthNet
SXC Health Solutions, Corp. announced the renewal of its informedRx full-service PBM contract with Boston Medical Center (BMC) HealthNet for a five-year period effective January 1, 2010. BMC HealthNet, a health maintenance organization located in Massachusetts, manages healthcare coverage for more than 250,000 members with an annual drug spend of approximately $150 million. Under the agreement, SXC is providing full-service PBM services including mail order, specialty distribution and patient care clinical programs.
SXC Health Solutions, Corp. Raises FY 2009 Guidance
SXC Health Solutions, Corp. revised fiscal 2009 guidance and expects revenue of $1.375-$1.425 billion versus prior estimate of $1.35-$1.4 billion, fully-diluted GAAP earnings per share (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 and fully-diluted non-GAAP adjusted EPS (excluding the NMHC transaction-related amortization) of $1.76-$1.81 versus prior estimate of $1.62-$1.70. According to Reuters Estimates, analysts were expecting the Company to report revenues of $1.382 billion, EBITDA of $79 million and GAAP EPS o $1.48 for the same period.
SXC Health Solutions, Corp.'s InformedRx PBM Unit Announces $50 Million PBM Contract With Spectral Solutions, LLC
SXC Health Solutions, Corp. announced that its informedRx PBM unit has been awarded a four year contract to provide PBM services to Spectral Solutions LLC (Spectral), a Pharmacy Benefit Administrator that manages an annual drug spend of more than $50 million.
SXC Health Solutions, Corp. Announces Closing Of Public Offering Of Common Shares And Exercise Of Underwriters' Over-allotment Option
SXC Health Solutions, Corp. announced that it completed its public offering of 5,175,000 of its common shares at a price to the public of $41.50 per share, which includes 675,000 shares sold pursuant to the exercise of the underwriters' over-allotment option. The net proceeds to SXC from the offering are approximately $203.3 million, after deducting the underwriting discounts and commissions and estimated offering expenses. SXC intends to use the net proceeds from the offering for general corporate purposes, which may include financing potential acquisitions and strategic transactions, funding capital expenditures and providing working capital to enhance capital and maintain financial flexibility. The offering was conducted as a public offering pursuant to an effective shelf registration statement under the Securities Act of 1933 and, in Canada, pursuant to a prospectus supplement to the Company's base shelf prospectus dated September 14, 2009 (the Canadian Prospectus). J.P. Morgan Securities Inc. acted as the sole book-running manager for the offering. The lead managers of the offering were Dougherty Company LLC, SunTrust Robinson Humphrey, Inc. and Versant Partners Inc., and the co-managers were Oppenheimer Co. Inc. and Paradigm Capital U.S. Inc.
SXC Health Solutions, Corp. Announces Pricing Of Upsized Public Offering Of Common Shares
SXC Health Solutions, Corp. announced the pricing of its previously announced public offering of common shares. Under the offering, SXC will sell 4,500,000 common shares at a price to the public of $41.50 per share. The offering was increased from the previously announced offering size of 3,500,000 common shares. In connection with the offering, SXC has granted the underwriters a 30 day option to purchase up to an additional 675,000 of its common shares at the public offering price to cover over allotments, if any. The offering is expected to close on September 23, 2009. SXC expects to receive net proceeds from the offering of approximately $176.6 million (or approximately $203.3 million if the underwriters exercise their over allotment option in full), after deducting the underwriting discounts and commissions and estimated offering expenses. SXC intends to use the net proceeds from the offering for general corporate purposes, which may include financing potential acquisitions and strategic transactions, funding capital expenditures and providing working capital to enhance capital and maintain financial flexibility. J.P. Morgan Securities Inc. is acting as the sole book running manager for the offering. The lead managers of the offering are Dougherty & Company LLC, SunTrust Robinson Humphrey, Inc. and Versant Partners Inc..
SXC Health Solutions, Corp. Announces Public Offering Of Common Shares
SXC Health Solutions, Corp. announced that it has commenced an underwritten public offering of 3,500,000 of its common shares. In connection with the offering, SXC will grant the underwriters a 30-day option to purchase up to an additional 525,000 of its common shares to cover over-allotments, if any. The offering is being conducted as a public offering pursuant to an effective shelf registration statement under the Securities Act of 1933 and, in Canada, pursuant to a draft prospectus supplement to a base shelf prospectus filed with certain of the Canadian securities commissions J.P. Morgan Securities Inc. is acting as the sole book-running manager for the offering.
UPDATE 2-SXC Health Q2 beats Street, raises FY10 EPS view
(Recasts lead, adds analyst comment, details, updates stock movement)
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