LOS ANGELES, Aug. 16, 2016 /PRNewswire/ -- Catasys, Inc. (OTCQB: CATS), a provider of proprietary data, predictive analytics modeling and integrated treatment programs for substance dependence, depression and anxiety on behalf of health plans, today reported financial results for the second quarter ended June 30, 2016.

"In the second quarter, we continued to rapidly rollout our OnTrak solution, which is now available in 18 states. Looking ahead, enrollment in our OnTrak program and related revenue are expected to continue to increase throughout the second half of 2016, as contracts with new health plans are added and existing customers continue to expand.  These new agreements are expected to increase the number of equivalent lives¹ under contract, the leading indicator of our future revenue," said Rick Anderson, President and COO of Catasys.

"Care coaches and enrollment specialists are being added in advance of these anticipated new customer launches and existing customer expansions.  At a minimum it is approximately a six-week period before the new hires are operational and efficiently delivering our solution to members.  As the total cost of care coaches and outreach specialists are reflected in cost of services, this implementation period negatively impacts our gross margins ahead of the expected ramping of enrollment over the coming quarters. This is an exciting period for the Company, as we look to continue to expand our customer base and enrollment," concluded Anderson.

Recent Business Highlights

• Catasys' OnTrak solution is now operational in 18 states.
• Recently announced expansion under existing agreements with national health plans to Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.

Second Quarter 2016 Financial Highlights

• Enrollment increased by 22% compared to the three months ended June 30, 2015.
• Revenue was $1.2 million for the second quarter of 2016, an increase of 159% compared to $472,000 during the same period in 2015.
• Deferred revenue was $2.8 million at June 30, 2016, an increase of $1.1 million, or 66%, compared to $1.7 million at December 31, 2015. When fees are received in advance, deferred revenue is recognized over the period the member is enrolled. Any fees subject to performance guarantees are deferred until such time as those performance standards are met; generally calculated annually. Catasys has historically been able to record its deferred revenue as actual revenue during the course of the business cycle, except for limited cases where members terminated from the program early.
• Net loss was $(4.7) million, or $(0.09) per basic and diluted share, for the second quarter of 2016, compared to a net loss of $(0.6) million, or $(0.02) per basic and diluted share, for the second quarter of 2015.
• General and administrative expenses were $2.1 million for the second quarter of 2016, a decrease of 12% compared to $2.4 million for the second quarter of 2015.
• Total operating expenses were $3.3 million for the second quarter of 2016, compared to $3.0 million for the second quarter of 2015.

Six Month 2016 Financial Highlights

• Enrollment increased by 72% compared to the six months ended June 30, 2015.
• Revenue was $1.9 million for the six months ended June 30, 2016, an increase of 116% compared to $905,000 during the same period in 2015.
• Net loss was $(9.0) million, or $(0.16) per basic and diluted share, for the six months ended June 30, 2016, compared to a net loss of $(0.8) million, or $(0.03) per basic and diluted share, for the six months ended June 30, 2015.
• General and administrative expenses were $4.3 million for the six months ended June 30, 2016; a decrease of 16% compared to $5.1 million for the six months ended June 30, 2015.
• Total operating expenses were $6.5 million for the six months ended June 30, 2016, compared to $6.1 million for the six months ended June 30, 2015.

About Catasys, Inc.

Catasys, Inc. provides big data based analytics and predictive modeling driven behavioral healthcare services to health plans and their members through its OnTrak program. Catasys' OnTrak program--contracted with a growing number of national and regional health plans--is designed to improve member health and, at the same time, lower costs to the insurer for underserved populations where behavioral health conditions cause or exacerbate co-existing medical conditions. The program utilizes proprietary analytics and proprietary enrollment, engagement and behavioral modification capabilities to assist members who otherwise do not seek care through a patient-centric treatment that integrates evidence-based medical and psychosocial interventions along with care coaching in a 52-week outpatient program. OnTrak is currently improving member health and, at the same time, is demonstrating reduced inpatient and emergency room utilization, driving a more than 50 percent reduction in total health insurers' costs for enrolled members. Catasys currently operates programs in Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Massachusetts, Missouri, North Carolina, New Jersey, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia and Wisconsin. For further information, please visit www.catasys.com.

¹ The term "Equivalent Lives" ("EL") is calculated based on the number of people eligible, or anticipated to be eligible, to be enrolled into OnTrak™ under Catasys' contracts with health care plans.  Considering Medicare, Medicaid and Dual Eligible plans generally have a higher prevalence of eligible members than commercial health plans and contracts that cover depression and anxiety have greater eligibility than those that cover just substance dependence, EL converts all plans to an equivalent amount of lives for comparison purposes.  EL will generally be higher, and in some cases, significantly higher than the actual number of adults covered under the health plan Catasys is contracted with. 

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in regulations or issuance of new regulations or interpretations, limited operating history, our inability to execute our business plan, increase our revenue and achieve profitability, lower than anticipated eligible members under our contracts, our inability to recognize revenue, lack of outcomes and statistically significant formal research studies, difficulty enrolling new and maintaining existing members in our programs, the risk that treatment programs might not be effective, difficulty in developing, exploiting and protecting proprietary technologies, intense competition and substantial regulation in the health care industry, the risks associated with the adequacy of our existing cash resources and our ability to continue as a going concern, our ability to raise additional capital when needed and our liquidity. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plan," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties we face, please refer to our most recent Securities and Exchange Commission filings which are available on its website at http://www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

 

 

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SOURCE Catasys, Inc.

Related Links

http://www.catasys.com