American CareSource Holdings, Inc. (NASDAQ: ANCI) today reported third quarter 2011 net revenue of $11.5 million compared to $14.8 million for the third quarter of 2010. The Company reported a net loss of $6.5 million, or $0.38 per diluted share (including a non-cash goodwill impairment charge), compared to net income of $44,000, or $0.00 per diluted share reported in the third quarter of 2010. The non-cash goodwill impairment charge was $2.9 million (net of an income tax benefit of $1.5 million) or $0.16 per diluted share. In addition, American CareSource recorded a non-cash valuation allowance against its deferred tax assets of $2.9 million, or $0.17 per diluted share. Excluding the non-cash goodwill impairment charge and the deferred tax valuation allowance, the net loss for the three months ended September 30, 2011, was $781,000, or $0.05 per diluted share. The Company ended the quarter with $11.1 million of cash and cash equivalents.
“Despite the fact that 2011 has been a difficult year, our Company remains an operationally strong and financially stable partner for our client payors and providers, supplying the necessary foundation for the strategic growth initiatives we are currently pursuing,” said Kenn S. George, chairman and chief executive officer of American CareSource. “The Company’s new leadership team is working aggressively to identify opportunities to enhance profitable revenue and our provider value proposition, to organize our resources to effectively and efficiently capitalize on these opportunities and to preserve our cash balance. As I have stated previously, we do so with a sense of urgency and a commitment to improving the value we deliver to our client payors, providers and shareholders.”
Mr. George continued, “Our results for the third quarter include a non-cash goodwill impairment charge that is primarily the result of the performance of the Company’s stock price and volatile market conditions. While it is significant in size, it has no effect on our cash position or impact on our operations. Our balance sheet remains strong.”