PlanVista Reports Results for 1st Quarter

Apr 26, 2001, 01:00 ET from PlanVista Corporation

    TAMPA, Fla., April 26 /PRNewswire/ -- PlanVista Corporation (NYSE:   PVC)
 today announced its financial results for the quarter ended March 31, 2001.
 
     Financial Results
     The Company reported revenues from continuing operations of $8.0 million,
 compared to $6.2 million in the first quarter of 2000, or a 29% increase, and
 a 25% increase over the fourth quarter.  First quarter loss from continuing
 operations totaled $0.3 million, compared to $0.6 million during the first
 quarter of 2000.  Loss per share from continuing operations for the first
 quarter was $0.02, compared to $0.04 during the first quarter of 2000.
     Operating income (defined as revenue less operating expenses before the
 allocation of corporate overhead, interest, depreciation and amortization, and
 taxes) for the first quarter totaled $3.5 million, compared to $2.5 million in
 the first quarter of 2000.  2000 fourth quarter operating income was
 $2.7 million.  EBITDA (defined as operating income less allocable corporate
 overhead) for the first quarter was $2.8 million, compared to $1.9 million for
 the first quarter of 2000.
 
     Operational Activities
     PlanVista established new monthly revenue records in January and March of
 the first quarter.  The Company also achieved a claims processing record of
 245,000 for March, which exceeds the previous record by approximately 25,000.
 Included in this total were 27,000 claims processed over the internet on the
 new ClaimPassXL system, which represents a 125% increase over the monthly
 average prior to the implementation of the internet repricing system.
     PlanVista Solutions signed new business in the first quarter that is
 expected to generate $4.5 million in new revenue in 2001 and $5.6 million on
 an annualized basis.
     As previously reported, PlanVista Solutions launched two new business
 units, PlanServ and PayerServ, in the first quarter of 2001.  The new units'
 mission is to leverage PlanVista Solution's technology to reduce client
 operating costs for network partners and payers.  New product revenues for
 PlanServ and PayerServ are expected during the third and fourth quarters of
 2001.
 
     Divestitures
     On April 2, 2001, PlanVista announced that it entered into a definitive
 stock purchase agreement to sell its Third Party Administration and Managing
 General Underwriter business units to HealthPlan Holdings, Inc., an affiliate
 of Sun Capital Partners, Inc.  The Third Party Administration business
 includes the Small Group Business operations and its associated data
 processing facilities based in Tampa, Florida, as well as the Taft-Hartley
 businesses that operate under the names American Benefit Plan Administrators
 and Southern Nevada Administrators, based in El Monte, California, and Las
 Vegas, Nevada, respectively.  The Managing General Underwriter business is
 Philadelphia-based Montgomery Management Corporation.  In connection with the
 non-cash transaction, Sun Capital will be assuming up to $40 million in
 working capital deficit of the acquired businesses and holding a long-term
 subordinated note from PlanVista of up to $10 million.  The closing of this
 transaction is subject to usual and customary closing conditions, completion
 of due diligence, financing, and the approval of the Company's Lenders.  At
 the closing, the divestiture is expected to generate $20-24 million in tax
 loss benefits, which is expected to reduce the Company's tax payment
 obligations during the next 18 to 24 months.  Losses, net of taxes, on these
 units have been classified as discontinued operations on the Condensed
 Consolidated Statement of Operations.
 
     Outlook
     The Company's 2001 strategy is to expand its business through internal
 growth, technology development, and diversification of product offerings, and
 to reduce and restructure its bank debt.  As revenues increased in the first
 quarter, the Company likewise expects increases in each quarter of 2001.
 Based on current forecasts and anticipated market conditions, the Company
 expects revenue and EBITDA/operating income growth in 2001 of 60% and 75%,
 respectively.
 
     PlanVista is a leading managed health care services company, providing
 medical cost containment and third party administration services for health
 care payers and providers.  PlanVista's medical cost containment business
 includes PlanVista Solutions, one of the nation's largest independently owned
 full-service preferred provider organizations.  PlanVista Solutions provides
 network access, electronic claims repricing, and claims and data management
 services to health care payers and provider networks throughout the United
 States.  PlanVista's third party administration business operates under the
 names HealthPlan Services, American Benefit Plan Administrators, and Southern
 Nevada Administrators, and provides distribution, enrollment, billing and
 collection, and claims administration services for insurance companies, HMOs
 and other managed care organizations, and Taft-Hartley union benefit plans.
 Visit the company's websites at www.healthplan.com and www.planvista.com.
 
     This press release includes forward-looking statements related to
 PlanVista that involve risks and uncertainties including, but not limited to,
 our ability to expand our client base; the success of our divestiture and
 diversification efforts; our ability to manage costs and reduce and
 restructure debt; changes in law; fluctuations in business conditions and the
 economy; and our ability to attract and retain key management personnel.
 These forward-looking statements are made in reliance on the "safe harbor"
 provisions of the Private Securities Litigation Reform Act of 1995.  For
 further information about these factors that could affect the Company's future
 results, please see the Company's filings with the Securities and Exchange
 Commission.  Copies of these filings are available upon request from the
 Company's chief financial officer.  Prospective investors are cautioned that
 forward-looking statements are not guarantees of future performance.  Achieved
 results may differ materially from management expectations.
 
 
     PLANVISTA CORPORATION
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
     (In thousands except per share amount)
 
                                                     Quarter Ended March 31,
                                                      2001              2000
 
     Operating Revenues                              $7,983            $6,154
 
     Operating Expenses                               5,206             4,304
     Other Expenses                                     284                 0
     Gain on Sale of Investments, Net                     0              (285)
     Depreciation and Amortization                    1,108               894
     Interest Expense, Net                            1,817             2,241
 
     Total Expenses                                   8,415             7,154
 
     Loss Before Benefit for Income Taxes,
      Discontinued Operations,
       and Cumulative Effect of Change in
       Accounting Principle                            (432)           (1,000)
     Benefit for Income Taxes                          (164)             (400)
 
     Loss Before Discontinued Operations
      and Cumulative Effect of Change in
      Accounting Principle                             (268)             (600)
 
     (Loss) Earnings from Discontinued
      Operations, Net of Taxes                         (344)              395
     Cumulative Effect of Change in
      Accounting Principle, Net of Taxes                (47)                0
     Net Loss                                         ($659)            ($205)
 
 
     Basic and Diluted Loss Per Share of
      Common Stock:
       Loss from Continuing Operations               ($0.02)           ($0.04)
       (Loss) Earnings from Discontinued
        Operations                                   ($0.03)            $0.03
       Cumulative Effect of Change in
        Accounting Principle                         ($0.00)            $0.00
       Net Loss                                      ($0.05)           ($0.01)
 
     Basic and Diluted Weighted Average
      Number of Shares Outstanding                   13,702            13,673
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X47096250
 
 

SOURCE PlanVista Corporation
    TAMPA, Fla., April 26 /PRNewswire/ -- PlanVista Corporation (NYSE:   PVC)
 today announced its financial results for the quarter ended March 31, 2001.
 
     Financial Results
     The Company reported revenues from continuing operations of $8.0 million,
 compared to $6.2 million in the first quarter of 2000, or a 29% increase, and
 a 25% increase over the fourth quarter.  First quarter loss from continuing
 operations totaled $0.3 million, compared to $0.6 million during the first
 quarter of 2000.  Loss per share from continuing operations for the first
 quarter was $0.02, compared to $0.04 during the first quarter of 2000.
     Operating income (defined as revenue less operating expenses before the
 allocation of corporate overhead, interest, depreciation and amortization, and
 taxes) for the first quarter totaled $3.5 million, compared to $2.5 million in
 the first quarter of 2000.  2000 fourth quarter operating income was
 $2.7 million.  EBITDA (defined as operating income less allocable corporate
 overhead) for the first quarter was $2.8 million, compared to $1.9 million for
 the first quarter of 2000.
 
     Operational Activities
     PlanVista established new monthly revenue records in January and March of
 the first quarter.  The Company also achieved a claims processing record of
 245,000 for March, which exceeds the previous record by approximately 25,000.
 Included in this total were 27,000 claims processed over the internet on the
 new ClaimPassXL system, which represents a 125% increase over the monthly
 average prior to the implementation of the internet repricing system.
     PlanVista Solutions signed new business in the first quarter that is
 expected to generate $4.5 million in new revenue in 2001 and $5.6 million on
 an annualized basis.
     As previously reported, PlanVista Solutions launched two new business
 units, PlanServ and PayerServ, in the first quarter of 2001.  The new units'
 mission is to leverage PlanVista Solution's technology to reduce client
 operating costs for network partners and payers.  New product revenues for
 PlanServ and PayerServ are expected during the third and fourth quarters of
 2001.
 
     Divestitures
     On April 2, 2001, PlanVista announced that it entered into a definitive
 stock purchase agreement to sell its Third Party Administration and Managing
 General Underwriter business units to HealthPlan Holdings, Inc., an affiliate
 of Sun Capital Partners, Inc.  The Third Party Administration business
 includes the Small Group Business operations and its associated data
 processing facilities based in Tampa, Florida, as well as the Taft-Hartley
 businesses that operate under the names American Benefit Plan Administrators
 and Southern Nevada Administrators, based in El Monte, California, and Las
 Vegas, Nevada, respectively.  The Managing General Underwriter business is
 Philadelphia-based Montgomery Management Corporation.  In connection with the
 non-cash transaction, Sun Capital will be assuming up to $40 million in
 working capital deficit of the acquired businesses and holding a long-term
 subordinated note from PlanVista of up to $10 million.  The closing of this
 transaction is subject to usual and customary closing conditions, completion
 of due diligence, financing, and the approval of the Company's Lenders.  At
 the closing, the divestiture is expected to generate $20-24 million in tax
 loss benefits, which is expected to reduce the Company's tax payment
 obligations during the next 18 to 24 months.  Losses, net of taxes, on these
 units have been classified as discontinued operations on the Condensed
 Consolidated Statement of Operations.
 
     Outlook
     The Company's 2001 strategy is to expand its business through internal
 growth, technology development, and diversification of product offerings, and
 to reduce and restructure its bank debt.  As revenues increased in the first
 quarter, the Company likewise expects increases in each quarter of 2001.
 Based on current forecasts and anticipated market conditions, the Company
 expects revenue and EBITDA/operating income growth in 2001 of 60% and 75%,
 respectively.
 
     PlanVista is a leading managed health care services company, providing
 medical cost containment and third party administration services for health
 care payers and providers.  PlanVista's medical cost containment business
 includes PlanVista Solutions, one of the nation's largest independently owned
 full-service preferred provider organizations.  PlanVista Solutions provides
 network access, electronic claims repricing, and claims and data management
 services to health care payers and provider networks throughout the United
 States.  PlanVista's third party administration business operates under the
 names HealthPlan Services, American Benefit Plan Administrators, and Southern
 Nevada Administrators, and provides distribution, enrollment, billing and
 collection, and claims administration services for insurance companies, HMOs
 and other managed care organizations, and Taft-Hartley union benefit plans.
 Visit the company's websites at www.healthplan.com and www.planvista.com.
 
     This press release includes forward-looking statements related to
 PlanVista that involve risks and uncertainties including, but not limited to,
 our ability to expand our client base; the success of our divestiture and
 diversification efforts; our ability to manage costs and reduce and
 restructure debt; changes in law; fluctuations in business conditions and the
 economy; and our ability to attract and retain key management personnel.
 These forward-looking statements are made in reliance on the "safe harbor"
 provisions of the Private Securities Litigation Reform Act of 1995.  For
 further information about these factors that could affect the Company's future
 results, please see the Company's filings with the Securities and Exchange
 Commission.  Copies of these filings are available upon request from the
 Company's chief financial officer.  Prospective investors are cautioned that
 forward-looking statements are not guarantees of future performance.  Achieved
 results may differ materially from management expectations.
 
 
     PLANVISTA CORPORATION
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
     (In thousands except per share amount)
 
                                                     Quarter Ended March 31,
                                                      2001              2000
 
     Operating Revenues                              $7,983            $6,154
 
     Operating Expenses                               5,206             4,304
     Other Expenses                                     284                 0
     Gain on Sale of Investments, Net                     0              (285)
     Depreciation and Amortization                    1,108               894
     Interest Expense, Net                            1,817             2,241
 
     Total Expenses                                   8,415             7,154
 
     Loss Before Benefit for Income Taxes,
      Discontinued Operations,
       and Cumulative Effect of Change in
       Accounting Principle                            (432)           (1,000)
     Benefit for Income Taxes                          (164)             (400)
 
     Loss Before Discontinued Operations
      and Cumulative Effect of Change in
      Accounting Principle                             (268)             (600)
 
     (Loss) Earnings from Discontinued
      Operations, Net of Taxes                         (344)              395
     Cumulative Effect of Change in
      Accounting Principle, Net of Taxes                (47)                0
     Net Loss                                         ($659)            ($205)
 
 
     Basic and Diluted Loss Per Share of
      Common Stock:
       Loss from Continuing Operations               ($0.02)           ($0.04)
       (Loss) Earnings from Discontinued
        Operations                                   ($0.03)            $0.03
       Cumulative Effect of Change in
        Accounting Principle                         ($0.00)            $0.00
       Net Loss                                      ($0.05)           ($0.01)
 
     Basic and Diluted Weighted Average
      Number of Shares Outstanding                   13,702            13,673
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X47096250
 
 SOURCE  PlanVista Corporation