Emdeon third quarter revenue increases 14.7% to $282.1 million

Emdeon Inc., a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, today announced financial results for the third quarter ended September 30, 2011, as summarized below:

"We are pleased with our financial results for the third quarter.  Our initiatives to address emerging areas of opportunity in payment integrity, clinical information exchange and the government space are resonating with our customer base," said George Lazenby, Emdeon's chief executive officer.  "We are also excited about moving our business strategy forward with Blackstone and Hellman & Friedman, whose in-depth understanding of our business and industry will be beneficial as we continue to evolve our solutions to make healthcare more efficient."

Third quarter revenue was $282.1 million, an increase of 14.7%, compared to $245.9 million for the same period in 2010, as a result of recent acquisitions and organic growth.  GAAP operating income for the third quarter of 2011 was $23.0 million compared to $27.9 million for the same period in 2010, a decrease of 17.6%.  This decrease was primarily due to higher depreciation and amortization expense from 2010 acquisitions and capital expenditures, as well as higher equity compensation expense.  Third quarter Non-GAAP Adjusted EBITDA grew 15.3% to $76.7 million, or 27.2% of revenue, from Non-GAAP Adjusted EBITDA of $66.5 million, or 27.0% of revenue, in the comparable period in 2010.  

GAAP net income (before noncontrolling interest) for the third quarter of 2011 was $6.3 million compared to GAAP net income of $6.6 million for the same period in 2010.  GAAP net income per diluted share for the third quarter of 2011 was $0.04 for both the third quarter of 2011 and 2010.  Non-GAAP Adjusted Net Income per fully diluted share for the third quarter of 2011 was $0.26, using a weighted average fully diluted share count of 124.2 million, compared to $0.23, using a weighted average fully diluted share count of 122.6 million, for the same period in 2010.

A reconciliation of Emdeon's financial results determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP) to certain non-GAAP financial measures has been provided in the financial statement tables included in this release to supplement its unaudited condensed consolidated financial statements presented on a GAAP basis.  An explanation of these non-GAAP measures is also included below under the heading "Explanation of Non-GAAP Financial Measures."