Health Revenue Assurance Holdings, Inc. Reports Financial Results For The First Quarter 2013; Company To Host Earnings Conference Call May 16, 2013

Plantation, FL, May 15, 2013 (GLOBE NEWSWIRE) -- Health Revenue Assurance Holdings, Inc. (OTCBB:HRAA), a provider of technology and revenue integrity solutions forhealthcare organizations, announced its financial results for thefirst quarter ended March 31, 2013.

First QuarterHighlights:
  • Total quarterly revenue of $2,156,597 increased 256% ascompared to $605,830 for the prior year's first quarter;
  • Gross profit margins increased 8% this quarter to 54% from 46%last quarter
  • Cash balance of $1,062,910 at the end of the first quarter of2013 as compared to a cash balance of $82,410 in the same period of2012;

"Our performance in the seasonally slow firstquarter exceeded our expectations as we added four new hospitalsfrom the SUMMA Healthcare System, with two licenses being purchasedfor our revolutionary new software solution, ICDVisualizerTM,"stated Andrea Clark, HRAA's Chairman, CEO and Founder. "Wecontinued to expand our coding footprint having now grown from 12hospital customers in the first quarter of 2012 to a total of 36 inthe first quarter of 2013. In the last twelve months, we have grownour organization from 32 to 116 employees to keep up with thegrowing demands of the marketplace for experienced coders and toprepare for the rollout of ICDVisualizerTM  laterthis quarter. This growth has given us greater organizationalefficiencies and economies of scale which have allowed us toenhance our gross profit margins to 54% up from 46% last quarter.We closed the first quarter with the strongest balance sheet in ourhistory and have a solid working capital position that will allowus to execute on our growth plans and accelerate our path toprofitability."  

Mrs. Clark continued, "As we gear up for theanticipated future growth of HRAA, we made two key managerialadditions this quarter which have enabled us to further streamlineour business as we progress closer towards the ICD-10transition.  Our new Chief Medical Information Officer, MikeGallagher MD, has added immediate value with his 15 years ofexperience in healthcare informatics.  In addition, Joe Brophyhas been selected to lead our operating solutions as our Senior VPof Operations. He brings with him 25 years of healthcareoperations, technology, consulting, business and sales expertise.As the ICD-10 deadline approaches, we will continue to addexperienced individuals to our senior leadership team and furtherexpand our pipeline through the execution of our growthstrategy."

First Quarter 2013 FinancialResults

For the first quarter of 2013, total revenueswere $2,156,597, an increase of $1,550,767 or 256%, from revenuesof $605,830 for the first quarter of 2012. 

Operating expenses were $1,469,803 for the firstquarter of 2013, compared to $651,355 for the prior year's firstquarter. The increase in operating expenses is due to increasedSG&A expenses as the company increased its staff from 32employees to 116. The Company had an operating loss in the firstquarter of 2013 of ($298,527), compared to an operating loss of($476,645) for the prior year's first quarter.  

The Company recorded a net loss of ($434,828),or ($0.01) per basic and diluted share, for the first quarter of2013, as compared to a net loss of ($482,567), or ($0.01) per basicand diluted share, for the first quarter of 2012.

Conference Call

The Company will be holding a conference call onThursday, May 16, 2013, at 8:30am ET (5:30am Pacific Time) toreview the first quarter 2013 results. Robert Rubinowitz, Presidentand Chief Operating Officer and Evan McKeown, Chief FinancialOfficer of Health Revenue Assurance Holdings, Inc., will be on-lineto discuss these results.

To listen in, please call one of the followingteleconferencing numbers at least 5 minutes before the conferencecall commences.

Toll-Free:         888-523-1208

Toll:                 719-457-2704

Passcode:       150029

A telephone replay of the call will be availableby contacting HRAA's office at 1-954-472-2340.

About HRAA

HRAA (OTCBB: HRAA) is a leading provider ofrevenue integrity technology and services for healthcareorganizations across the US, interpreting data to ensure thathealthcare is efficient and effective for everyone.  Foundedin 2001 and based out of Plantation, FL, HRAA combines years ofindustry expertise with best-in-breed technology to create marketleading business intelligence products and consulting services toimprove the healthcare delivery experience for doctors, nurses andpatients. HRAA offers a suite of solutions needed to keep upwith the ever-changing healthcare industry, which include: dataanalytics software, business intelligence technology, medicalcoding, auditing, education, revenue cycle consulting, and ICD-10transition solutions. For more information pleasevisit:   http://www.hraa.com

Caution Regarding Forward LookingStatements

Certain statements in this news release and suchconference call are forward-looking, including (without limitation)expectations or guidance respecting customer contract expansion,growing revenues and profits through organic growth andacquisitions, attracting new business that will increase HRAA'srevenues, continuing to maintain costs and consummating anytransactions. Undue reliance should not be placed on suchforward-looking statements because the matters they describe aresubject to known and unknown risks, uncertainties and otherunpredictable factors, many of which are beyond the Company'scontrol. The Company's actual results, performance and trends coulddiffer materially from those indicated or implied by suchstatements as a result of various factors, including (withoutlimitation) the continued strengthening of HRAA's selling andmarketing functions, continued customer satisfaction and contractrenewal, new product development, continued availability of capablededicated personnel, continued cost management, the success andavailability of acquisitions, availability of financing and otherfactors, as well as by factors applicable to most companies such asgeneral economic, competitive and other business and civilconditions. Information regarding certain of those and other riskfactors and cautionary statements that could affect future results,performance or trends are discussed in HRAA's most recent annualreport on Form 10-K, quarterly reports on Form 10-Q, and otherfilings made with the Securities and Exchange Commission from timeto time. All of the Company's forward-looking statements areexpressly qualified by all such risk factors and other cautionarystatements.

-Tables Follow-

HEALTH REVENUEASSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATEDBALANCE SHEETS
             
    March 31,     December31,  
    2013     2012  
    (unaudited)        
Assets  
Cash   $ 1,062,910     $ 893,458  
Accounts receivable     1,293,431       1,246,814  
Prepaid expenses     --       3,600  
Other current assets     45,757       688  
   Total CurrentAssets     2,402,098       2,144,560  
                 
Property and Equipment, net     425,250       365,017  
                 
Software     590,264       258,933  
Other assets     8,865       8,871  
Finance costs, net     2,395       2,477  
   Total OtherAssets     601,524       270,281  
                 
   TotalAssets   $ 3,428,872     $ 2,779,858  
                 
Liabilities andStockholders' Equity  
                 
Accounts payable   $ 283,802     $ 207,741  
Due to officer     75,000       75,000  
Accrued expenses     97,280       64,077  
Accrued payroll     527,698       412,186  
Loan payable to factor     439,474       827,075  
Accrued interest     8,743       4,524  
Lines of credit, current portion     72,115       25,000  
Capital Leases, current portion     28,706       16,923  
Notes payable, current portion, net ofdiscount     431,649       202,557  
Long term debt, current portion     36,134       37,513  
Settlement Payable     69,167       115,278  
   Total CurrentLiabilities     2,069,768       1,987,874  
Capital Leases (net of current portion)     40,978       23,974  
Lines of credit (net of current portion)     118,750       125,000  
Notes payable (net of current portion), netof discount     548,031       273,751  
Long term debt (net of current portion)     173,034       181,457  
   TotalLiabilities     2,950,561       2,592,056  
                 
Commitments and Contingencies                
                 
Stockholders' Equity:                
Common stock ($0.001 par value, 75,000,000shares authorized,     44,727       39,055  
    44,726,562shares and 39,054,867 issued and outstanding at          
    March 31, 2013 andDecember 31, 2012, respectively)                
Additional paid-in capital     3,453,210       2,738,545  
Subscription receivable     --       (5,000 )
Accumulated deficit     (3,019,626 )     (2,584,798 )
   Total Stockholders'Equity     478,311       187,802  
                 
   Total Liabilitiesand Stockholders' Equity   $ 3,428,872     $ 2,779,858  
HEALTH REVENUEASSURANCE HOLDINGS, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATEDSTATEMENTS OF OPERATIONS (unaudited)  
             
    For the threemonths ended  
    March 31,     March 31,  
    2013     2012  
             
Revenues   $ 2,156,597     $ 605,830  
                 
Cost of Revenues     985,321       431,120  
Gross Profit     1,171,276       174,710  
                 
Operating Expenses                
Selling and administrative expenses (includesstock compensation of $27,984 and $0 in 2013 and 2012,respectively)     1,444,085       609,270  
Research and development     289       32,213  
Depreciation and amortization     25,429       9,872  
Total Operating Expenses     1,469,803       651,355  
                 
Operating Loss     (298,527 )     (476,645 )
                 
Other Expense                
Other expense     (283 )     --  
Interest expense     (136,018 )     (5,922 )
Total Other Expense, net     (136,301 )     (5,922 )
                 
Loss before provision for incometaxes     (434,828 )     (482,567 )
                 
Provision for income taxes     --       --  
                 
Net Loss   $ (434,828 )   $ (482,567 )
                 
Net Loss Per Share                
basic and diluted   $ (0.01 )   $ (0.01 )
Weighted Average Number of SharesOutstanding                
basic and diluted     43,792,483       32,231,559  
CONTACT: Investor Contacts:         KCSA Strategic Communications         Philip Carlson / Alex Woodbury         +1 212.896.1233 / +1 212.896.1267         pcarlson@kcsa.com / awoodbury@kcsa.com

HRAA

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