This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Transcend Reports 22% Revenue Growth For The Fourth Quarter And Record Sales For The Year

Stocks in this article: TRCR

TRANSCEND SERVICES, INC. (NASDAQ: TRCR), a leading provider of clinical documentation solutions to the U.S. healthcare market, today announced its unaudited financial results for the fourth quarter and year ended December 31, 2011.

Fourth Quarter Results

Net income was $8,306,000 and diluted earnings per share was $0.75 for the fourth quarter of 2011 compared to net income of $2,858,000 and diluted earnings per share of $0.26 for the fourth quarter of 2010. Excluding M&A transaction costs, India restructuring costs and resolution of a tax contingency, non-GAAP net income was $2,772,000 and non-GAAP diluted earnings per share was $0.25 for the fourth quarter of 2011. See the table below for a reconciliation of GAAP and non-GAAP results.

Revenue for the fourth quarter of 2011 increased $5,919,000 or 22% to $32,895,000 compared to $26,976,000 for the fourth quarter of 2010. Excluding $7,376,000 contributed in the fourth quarter of 2011 by the Heartland, DTS and Salar acquisitions and $3,722,000 of revenue contributed by the Heartland acquisition in the fourth quarter of 2010, revenue increased 10%.

Gross profit for the fourth quarter of 2011 increased 22% to $12,733,000, or 39% of revenue compared to $10,445,000 or 39% of revenue, for the fourth quarter of 2010.

Operating expenses were impacted by two unusual items: M&A transaction costs of $1,346,000 and India restructuring costs of $662,000. In addition, the company, which is self-insured for medical benefits, experienced extremely high medical claims in the fourth quarter, resulting in expense of $1,342,000 compared to $722,000 in the third quarter of 2011 and $830,000 in the fourth quarter of 2010. Operating expenses for the fourth quarter included $345,000 of stock-based compensation expense and $959,000 of depreciation and amortization expense.

Non-GAAP operating income excluding the M&A transaction costs and India restructuring costs was $4,889,000 or 15% of revenue compared to GAAP operating income of $5,063,000 or 19% of revenue in the fourth quarter of 2010. GAAP operating income for the fourth quarter of 2011 was $2,881,000.

1 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs