HMS Holdings Corp. (NASDAQ: HMSY) today announced its financial and operating results for the second quarter of 2012.
Q2 2012 Financial Summary
For the quarter ended June 30, 2012, revenue increased 34.4% to $120.1 million, compared to $89.3 million for the same period a year ago. Net income for the quarter increased 4% to $13.0 million compared to net income of $12.4 million for the same period a year ago. Fully diluted GAAP EPS for the quarter increased 7.1% y/y to $0.15 and adjusted EPS increased 35.3% y/y to $0.23.
For the first half of 2012, revenue increased 32% to $227.4 million compared to revenue of $171.8 million for the same period in the prior year. Net income for the first half of the year was $20.0 million versus net income of $22.2 million for the prior year period. Fully diluted GAAP EPS for the first half decreased 11% y/y to $0.23 and adjusted EPS increased 23% y/y to $0.38."The Supreme Court’s decision to uphold the Affordable Care Act was a great outcome for HMS, providing support for our long-term growth strategy,” said Bill Lucia, CEO of HMS. “States are now focused on evaluating alternatives to comply with the ACA and expediting key program integrity initiatives, including the Medicaid Recovery Audit Contractor program,” Lucia added. “HMS is working with our clients—including six new states signed this quarter—to help them achieve compliance with the federal law. Politics aside, everyone agrees that fraud, waste, and abuse must be rooted out of the healthcare system, and HMS is uniquely positioned to drive that agenda forward.” Webcast and Conference Call Information HMS will be hosting its second quarter 2012 conference call and webcast with the investment community on Friday, July 27, 2012 at 9:00 am Eastern Time. Individuals can access the webcast at http://investor.hms.com/events.cfm or listen to the call at 1-888-500-6974. International participants can listen to the call at 1-719-457-2710. The webcast will be archived on the website at http://investor.hms.com/events.cfm. Individuals can listen to the replay at 1-888-203-1112. International participants can listen to the replay at 1-719-457-0820. The passcode is 6347257. The replay will be available at 11 a.m. ET on July 27 through 11:59 p.m. ET on August 3, 2012. The HMS Form 10-Q for the quarter June 30, 2012 will be filed and available on our website at http://investor.hms.com on or about August 9, 2012, and will contain additional information about our results of operations for the fiscal year-to-date. This press release and the interim financial statements herein will be available at http://investor.hms.com for at least a 12-month period. Shareholders and interested investors are welcome to contact Investor Relations at 212-857-5986. About HMS Holdings Corp. HMS Holdings Corp., through its subsidiaries, is the nation's leader in coordination of benefits and program integrity services for healthcare payers. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 135 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the Company's services, clients recovered over $2.5 billion in 2011, and saved nearly $7 billion through the prevention of erroneous payments. Use of Non-GAAP Financials This press release includes presentations of earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation expense. EBITDA is a measure commonly used by the capital markets to value enterprises. EBITDA is a non-GAAP financial measure and is reconciled to income before income taxes, which the Company's management believes to be the most comparable generally accepted accounting principles ("GAAP") measure. Adjusted EBITDA results are calculated by adjusting GAAP income before income taxes to exclude the effects of depreciation, amortization of intangible assets, stock-based compensation expense, and net interest expense.