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The Advisory Board Company Reports 3Q 2011 Fiscal Year ResultsFeb 10, 2011 (Close-Up Media via COMTEX) -- The Advisory Board Company announced financial results for the quarter ended December 31, 2010, the third quarter of its 2011 fiscal year. In a release on February 3, the Company noted details: Revenue for the quarter increased 23.5 percent to $75.2 million, from $60.9 million in the quarter ended December 31, 2009. Contract value increased 18.3 percent to $300.2 million as of December 31, 2010, up from $253.7 million as of December 31, 2009. For the quarter ended December 31, 2010, net income was $3.9 million, or $0.24 per diluted share, and EBITDA was $8.1 million. Included in net income for the third quarter of fiscal 2011 was a fair value adjustment to one of the Company's acquisition-related earn out liabilities of $1.1 million. Excluding the effects of this adjustment, adjusted net income was $4.6 million, non-GAAP earnings per diluted share were $0.28, and adjusted EBITDA was $9.2 million for the third quarter of fiscal 2011. For the quarter ended December 31, 2009, net income was $4.3 million, or $0.27 per diluted share, and EBITDA was $7.6 million. For the nine months ended December 31, 2010, revenue increased 21.1 percent to $213.0 million, from $175.9 million for the nine months ended December 31, 2009. Net income was $13.4 million, or $0.82 per diluted share, and EBITDA was $27.0 million. Included in net income for the nine months ended December 31, 2010 were fair value adjustments to the Company's acquisition-related earn out liabilities of $1.5 million. Excluding the effects of this adjustment, adjusted net income was $14.4 million, non-GAAP earnings per diluted share were $0.88, and adjusted EBITDA was $28.5 million for the nine months ended December 31, 2010. For the nine months ended December 31, 2009, net income was $6.4 million, or $0.41 per diluted share, and, excluding certain non-cash charges, adjusted net income was $12.5 million, non-GAAP earnings per diluted share were $0.80, and adjusted EBITDA was $22.6 million. Robert Musslewhite, Chief Executive Officer of The Advisory Board Company, said, "Overall, we were pleased with our results for the quarter and for the calendar year. The strong value that we provide to hospitals and health systems, as well as colleges and universities, drove the continued momentum that we saw across 2010 in both renewals and sales while strengthening our member relationships and providing the foundation for additional relationship expansion in the future." Musslewhite continued, "Our strong top and bottom-line growth in calendar 2010, combined with the inherent visibility of our business model, affords us clarity into another strong year in 2011. We are excited to continue to deliver the formula of consistent double digit growth and margin expansion, particularly in this time of tremendous change in health care when we have before us enormous opportunities to serve our members in new, deeper ways. We are very pleased that our growth trajectory permits us to make the critical investments that will allow us to seize these opportunities and set up future growth while still delivering solid bottom-line results in the shorter term." Acquisition of Cielo MedSolutions The Company also announced the acquisition, as of February 1, of Cielo MedSolutions, a provider of population management analytics and patient registry software in the ambulatory environment. The cash transaction enhances The Advisory Board Company's existing suite of physician performance management solutions through the addition of analytics and workflow tools that give providers visibility across a patient population to enable appropriate clinical decisions. Robert Musslewhite commented, "We are excited to add Cielo's outstanding tools to our portfolio and the talented Cielo team to the Advisory Board. As the market moves towards value-based payment structures, there is increasing urgency for physicians practicing at hospitals and health systems to understand care provided to their patients across all settings. The addition of Cielo to the portfolio allows us to provide these population management analytics and patient registry capabilities in a physician-friendly interface through the Crimson platform. In addition, as our members build capabilities to manage patients across the full continuum of care and work with us to develop the structures to do so—for example through our Medical Home Collaborative, now more than 200 hospitals strong—Cielo's solutions will also provide key value to them." Cielo's Chief Executive Officer David Morin added, "The Advisory Board's Crimson platform, deep knowledge base of best practices, and network of over 2,900 members provides the ideal environment to leverage the strengths and capabilities of the Cielo tool. I—along with the entire Cielo team—am thrilled to join forces with the Advisory Board to enhance our impact on physician practice across care settings. We are excited about the large market opportunity ahead of us and the new ways we will work together to help members provide greater value in patient care." Musslewhite concluded, "We are very excited about the acquisition and the opportunities to incorporate Cielo into our work. Hospitals and physicians look to us as their solution for physician performance, and since patient registry is a key tool that they use, the addition of this functionality to our portfolio will greatly enhance our ability to serve member needs in this terrain." Share Repurchase During the three months ended December 31, 2010, the Company repurchased 41,190 shares of its common stock at a total cost of approximately $2.0 million. As of December 31, 2010, the Company had repurchased 7,484,698 shares of its common stock at a total cost of approximately $314.5 million. Outlook for Calendar Year 2011 The Company is providing financial guidance for calendar year 2011. For the calendar year, the Company expects revenue to be in a range of approximately $318 million to $326 million. In order to provide greater clarity and to better reflect its operating performance, the Company is providing adjusted EBITDA and non-GAAP earnings per diluted share guidance. Adjusted EBITDA for calendar year 2011 will exclude share-based compensation expense and adjustments to acquisition-related earn out liabilities. Non-GAAP earnings per diluted share for calendar year 2011 will exclude share-based compensation expense, amortization from acquisition-related intangible assets, and adjustments to acquisition-related earn out liabilities. The Company expects calendar year 2011 adjusted EBITDA to be in a range of approximately $56 million to $60 million and calendar year 2011 non-GAAP earnings per diluted share to be in a range of approximately $1.85 to $2.00. For calendar year 2011 the Company expects share-based compensation expense to be approximately $10 million, and expects amortization from acquisition-related intangible assets to be approximately $4.5 million. For fiscal year 2012, the Company expects an effective tax rate of approximately 36.5 percent to 37.5 percent. This guidance includes the effects of the acquisition of Cielo. The Advisory Board Company provides best practices research and analysis, business intelligence and software tools, and installation support and management and advisory services to approximately 2,985 organizations, including hospitals, health systems, pharmaceutical and biotech companies, health care insurers, medical device companies, colleges, universities, and other educational institutions. Members of each program typically are charged a fixed fee and have access to an integrated set of services that may include best practice research studies, executive education seminars, customized research briefs, web-based access to the program's content database, and software tools. ((Comments on this story may be sent to [email protected])) |