|
TriZetto Reports First Quarter Results
NEWPORT BEACH, Calif. – April 23, 2002 – The TriZetto(R) Group, Inc. (Nasdaq:TZIX) reported financial results today for the first quarter ended March 31, 2002. For the tenth consecutive quarter, the company's performance was within the guidance range previously provided to the investment community.
First Quarter Highlights
- Total revenue grew to $59.7 million in the first quarter of 2002, an increase of 30% over the $46.0 million reported in the first quarter of 2001. Most of the increase was from existing operations.
- Net loss for the first quarter of 2002 improved to $4.6 million or $0.10 per diluted share compared with a net loss of $17.9 million or $0.50 per diluted share in the first quarter last year.
- Diluted pro forma earnings per share improved to $0.03 in the first quarter of 2002, compared with a diluted pro forma loss per share of $0.13 in the first quarter of 2001. (Note: pro forma numbers exclude amortization of acquisition-related intangibles and deferred stock compensation, write-offs of in-process research and development costs, restructuring and related impairment charges and related taxes.)
- TriZetto achieved positive first quarter EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.1 million, compared with negative EBITDA of $2.8 million in the first quarter of 2001.
- Total revenue backlog at March 31, 2002 was approximately $630 million. Twelve-month revenue backlog at March 31, 2002 was approximately $175 million.
- 50 contracts were signed in the first quarter, with a total value of $29.4 million. 21 of these were business services contracts (software hosting and other outsourcing services) and 29 were software license contracts.
- Days sales outstanding were 72 for the first quarter 2002.
"In the first quarter we achieved our growth objectives while continuing to progress toward profitability and increase our financial strength," said Jeffrey H. Margolis, TriZetto's chief executive officer. "The majority of our revenue increase in the quarter was generated by existing operations, and first quarter EBITDA improved by $6.9 million compared with same quarter last year. As anticipated, our first quarter revenue and EBITDA were lower than the fourth quarter of 2001, but at the high end of the guidance range we provided previously. We expect revenue and EBITDA to increase as the year progresses. Further, at the end of the first quarter our financial position remained solid, with over $88.6 million in cash and equivalents on the balance sheet."
TriZetto signed software license contracts with a total value of $8.4 million in the first quarter, including agreements for its proprietary Facets(R), Facts(R), QicLink(TM) and HealthWeb(R) products. The largest license contract win in the quarter was Providence Health Plans, with over one million members in Oregon and Southern Washington. Providence selected three of TriZetto's proprietary products: the Facets managed care administrative system, HealthWeb Internet platform and new HIPAA Gateway application. HIPAA Gateway receives, routes, stores and queries electronic transactions in compliance with the Health Insurance Portability and Accountability Act of 1996. In addition, TriZetto will manage Providence's current administrative software until the new systems are implemented.
TriZetto signed business services contracts (software hosting, other outsourcing) in the first quarter with a total value of $21 million. The most significant was a five-year contract with a nine million-member managed behavioral health organization that prefers to remain unnamed. TriZetto will host and manage Facets and assume responsibility for some of the plan's business transactions.
Subsequent to the end of the quarter, TriZetto entered into two transactions with UnitedHealth Group, Inc. (NYSE:UNH), one of the nation's leading healthcare organizations. One is a 5-year hosting arrangement under which TriZetto will provide Facets, HealthWeb and HIPAA Gateway for UnitedHealth's Specialized Care Services (SCS) division. Initially, TriZetto will serve SCS's dental benefits and life insurance enrollees nationwide. The second is a 30-month license and software support agreement, under which TriZetto will provide maintenance and support for a customized broker application developed by ChannelPoint, Inc. As previously announced, in support of this contract TriZetto acquired certain personnel, intellectual property and assets from the health care division of ChannelPoint. "Part of our growth strategy is to penetrate the top tier health plans in the country," Margolis commented. "We are pleased that our efforts are beginning to bear fruit."
"We are encouraged by the discussions we are having with health plans of all sizes," Margolis concluded. "We are winning new accounts because we focus exclusively on healthcare and offer what our customers want, from market-leading software to application hosting and other outsourcing. Given the cost and regulatory pressures in healthcare, we believe that demand for our products and services will continue to increase."
Financial Review/Outlook
The financial guidance issued on January 8, 2002 remains unchanged. Go to www.trizetto.com "Investor Relations," "Financial Reports," to view 2002 guidance by quarter and for the year.
Revenue -- First quarter revenue totaled $59.7 million, up 30% from $46.0 million in the first quarter of 2001. Recurring revenue totaled $39.8 million in the first quarter of 2002 and non-recurring revenue was $19.9 million. Comparing the first quarter of 2002 with same period in 2001, organic growth was 24%.
Recurring revenue in the first quarter was 67% of total revenue, compared with 66% in the first quarter of 2001 and 64% in the fourth quarter of 2001. Given the anticipated growth rates of its various business lines, TriZetto expects recurring revenue as a percent of total revenue to increase over time.
EBITDA -- TriZetto posted positive EBITDA of $4.1 million in the first quarter of 2002, compared with an EBITDA loss of $2.8 million in the first quarter of 2001 and positive EBITDA of $9.2 million in the fourth quarter of 2001. The sequential EBITDA decline reflects anticipated seasonal fluctuations in TriZetto's software business.
Net Loss/Per Share Data -- TriZetto reported a net loss of $4.6 million in the first quarter of 2002, or a loss per diluted share of $0.10, compared with a loss of $17.9 million or $0.50 per diluted share in the first quarter of 2001.
TriZetto's pro forma net income in the first quarter of 2002 was $1.3 million, or $0.03 per diluted share, compared to a pro forma net loss of $4.8 million or a $0.13 loss per share in the first quarter of 2001.
Cash Resources -- Cash, cash equivalents, restricted cash and short-term investments totaled $88.6 million at March 31, 2002. TriZetto generated approximately $10.6 million in cash from operations during the first quarter of 2002.
Conference Call
TriZetto will host a conference call to discuss its first quarter results today at 7:30 a.m. Pacific Time. To listen to the conference call via the Internet, go to TriZetto's Web site at www.trizetto.com, click on "investor relations," and follow the instructions provided.
About TriZetto
The TriZetto(R) Group, Inc., offers a broad portfolio of healthcare information technology products and services that can be delivered individually or combined to create a comprehensive solution. The company provides proprietary and third-party software on a licensed or hosted basis, e-business applications, consulting services and business services, such as claims, billing and enrollment processing. Focused exclusively on healthcare, TriZetto serves more than 550 payers, providers and benefits administrators. Its payer customers serve more than 100 million health plan members, or approximately 40 percent of the insured population of the United States. Headquartered in Newport Beach, Calif., TriZetto can be reached at (800) 569-1222, www.trizetto.com.
This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements about future net revenues, profits, and financial results, the market for TriZetto's services, future service offerings, client and partner relationships, and TriZetto's operational capabilities. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the effectiveness of TriZetto's implementation of its business plan, the market's acceptance of TriZetto's services, risks associated with management of growth, reliance on third parties to supply key components of TriZetto's services, attraction and retention of employees, variability of quarterly operating results, competitive factors, risks associated with acquisitions, changes in demand for third party products or solutions, which form the basis of TriZetto's service offerings, financial stability of our customers, changes in government laws and regulations and risks associated with rapidly changing technology, as well as the other risks identified in TriZetto's Form 10-K and other SEC filings.
CONTACTS:
The TriZetto Group, Inc.
Anna Marie Dunlap (Investor Relations)
949-719-2236
am.dunlap@trizetto.com
The TriZetto Group, Inc.
Margie McCarthy (Media Relations)
303-495-7225
margie.mccarthy@trizetto.com
|
Information
|
|
For more detailed information, please call 1-800-569-1222 or click on the link below.
|
|
|
| Home
| Contact Us
| Site Map
| Search |
