04 September 2012 – Craneware plc (AIM: CRW.L), the market leader in automated revenue integrity solutions for the US healthcare market, announces its results for the year ended 30 June 2012.
Financial Highlights (US dollars)
- Continued revenue and profit growth:
- Revenue increased 8% to $41.1m (2011: $38.1m)
- Adjusted EBITDA1 increased 18% to $11.9m (2011: $10.1m)
- Adjusted profit before taxation increased 16% to $10.8m (2011: $9.3m)
- Profit before tax increased 29% to $11.2m (2011: $8.7m)
- Basic adjusted EPS increased 23% to 31.6 cents (2011: 25.6 cents)
- Basic EPS increased 43% to 33.0 cents (2011: 23.1 cents)
- Positive operational cash flow of $10.6m (2011: $10.1m)
- Cash at year end $28.8m (2011: $24.2m) after returning $4.1m to shareholders by way of dividends
- Proposed final dividend of 5.7p (8.9 cents) per share giving total dividend for the year of 10.5p (16.4 cents) per share (2011: 8.8p (14.2 cents) per share)
1. Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortization, share based payments and transaction related costs.
- Extension of market reach through two significant customer deals signed in the year, one providing entry into the Federal and State Healthcare market and the other taking Craneware’s software into a non-competitive parallel market
- Increased sales activity in the second half of the year in core market
- Increasing pressure being placed on hospitals by Medicare Recovery Auditors (formerly known as RAC programme)
- Craneware InSight fully integrated as at 1st July 2012, first cross-sales delivered
- Renewal levels strong at over 100% of dollar value
- Entered 2013 with revenue visibility back at historically high levels
Keith Neilson, CEO of Craneware commented:
“In a mixed trading environment Craneware delivered a solid level of growth across key financial and operational metrics, confirming the health of the business and giving a high degree of confidence for the future.
Added pressures on US hospitals have led to an increased sales and opportunity pipeline for our products as we move into the current financial year. Craneware’s solutions help US healthcare providers drive business improvements that will result in better financial health. In this turbulent, demanding environment, hospitals need financial accuracy, visibility and shared accountability to survive. Fiscal and regulatory drivers are expected to increase in the year ahead as they push for greater transparency and accuracy, and although this creates a challenging ever-evolving marketplace, it ultimately increases the opportunities for Craneware’s solutions.
Craneware is a trusted and established part of the fabric of the US healthcare industry, with a client base consisting of around a quarter of all US hospitals. We are confident that the business is ideally placed with its in-house expertise, industry-leading product suite and balance sheet strength to help US healthcare organisations deal with their increasing fiscal and regulatory pressures. Furthermore with revenue visibility having returned to the historic high levels, we view the future with confidence.”
For further information, please contact:
- +44 (0) 20 7418 8900
- Dan Webster
- Richard Kauffer
- +44 (0) 20 7653 9850
- Caroline Evans-Jones
- Fiona Conroy
Founded in 1999, Craneware has headquarters in Edinburgh, Scotland with offices in Atlanta, Boston, Nashville and Scottsdale employing over 200 staff. Craneware is the leader in automated revenue integrity solutions that improve financial performance for healthcare organisations. Craneware’s market-driven, SaaS solutions help hospitals and other healthcare providers more effectively price, charge, code and retain earned revenue for patient care services and supplies. This optimises reimbursement, increases operational efficiency and minimises compliance risk. By partnering with Craneware, clients achieve the visibility required to identify, address and prevent revenue leakage. To learn more, visit craneware.com.