American CareSource Holdings Inc. (NASDAQ: ANCI) today announced third quarter 2010 revenues of $14.8 million compared to $18.2 million reported during the third quarter of 2009. Net income for the period was $44,000, or $0.00 per diluted share, compared to $147,000, or $0.01 per diluted share, reported during the year ago period. Net income for the third quarter 2010 included a federal income tax provision of $43,000, which was not included in net income for the third quarter 2009.
“Revenue was in-line with our expectations. We are continuing to confront the decline of our two largest clients’ business by aggressively adding new clients and diversifying our client portfolio. Currently, we have added thirteen new accounts during 2010, seven of which have been added since the end of the last quarter. We continue to be encouraged by the level of activity in the marketplace and the strength of our pipeline,” said David Boone, Chief Executive Officer of American CareSource. “As previously discussed, 2010 has been about transitioning our sales strategy toward direct payors, with reliable, long-term organic growth potential. We anticipated that this strategic change would initially have minimal impact; however we are confident that this will position the Company with a more enduring and stable client mix.”
Boone added, “I am also pleased to announce the election of William J. Simpson to our Board of Directors. He has an extensive healthcare background, having been the former President and Chief Executive Officer of Intrepid USA Healthcare and the Chief Operating Officer at LifeCare Management. Bill’s election further signals the Board’s commitment to the company and its long term growth potential; I look forward to working with him and know he will make valuable contributions.”
Revenues for the third quarter of 2010 decreased to $14.8 million compared to $18.2 million reported during the third quarter of 2009. Claims volumes from the company’s two key client accounts decreased 37% during the period and represented 71% of third quarter revenues, which compares to 84% reported during the corresponding prior year period. The decline was partially offset by $1.8 million of revenue generated from ten new clients implemented during 2010. Excluding the Company’s two key accounts, revenues grew 45% as compared to the third quarter of 2009.