ExamWorks Posts Narrower Loss, Guides 2014 - Analyst Blog


ExamWorks Group, Inc . ( EXAM ) posted loss of 4 cents per share in the fourth quarter of 2013, narrower than the Zacks Consensus Estimate loss of 7 cents and the year-ago loss of 8 cents per share.

An improved top line drove the outperformance at the company.

Behind the Headlines

Total revenue of ExamWorks grossed nearly $160.1 million in the quarter, increasing 11.2% year over year. Both organic and inorganic sources contributed to the improvement. Results comfortably outpaced the Zacks Consensus Estimate of $152 million.

Cost of revenues increased 13.4% year over year to $105.0 million, attributable to increased medical panel fees resulting from higher revenues. Total costs and expenses increased 12.2% to $154.6 million.

Adjusted earnings before income taxes, interest expenses, interest income, depreciation and amortization (EBITDA) improved 26.1% year over year to $25.6 million.

Full Year Highlights

ExamWorks incurred loss of 29 cents per share for full year 2013, improving from loss of 44 cents per share incurred in 2012.

Full-year revenues of $616 million improved 18% over 2012.

Financial Update

ExamWorks exited 2013 with cash and cash equivalents of $12.8 million, increasing substantially from $8.6 million as of Dec 31, 2012.

Cash flow from operating activities was $36.4 million in 2013, up from 24.8% in 2012.

Long-term debt was $343.5 million at the end of 2013. The company paid back $51.8 million in debt in 2013 and total leverage stood at 3.43x as on Dec 31, 2013.

2014 Guidance

ExamWorks expects to generate revenues of $165 million to $170 million in first quarter of 2014, which translates into to a year-over-year increase of 11-14% on a reported basis and 5-7% on an organic basis.  

Adjusted EBITDA margin for the quarter has been estimated at around 16%.

For 2014, revenues are expected to increase by 13.5%-15.5% on a reported basis and 6.5%-8.5% on an organic basis.

Adjusted EBITDA margin for the year has been estimated at around 16.5-17.5%.

Acquisition Update

ExamWorks announced the acquisition of Assess Medical, an IME business based in Sydney, Australia.

The company also completed six acquisitions in the last three months for a total consideration of $100 million. The acquisitions have grossed annualized revenues of $53.0 million and adjusted EBITDA of $15.0 million.

Zacks Rank

ExamWorks presently holds a Zacks Rank #3 (Hold).

Performances of Other Business Service Providers

SouFun Holdings Ltd . ( SFUN ) reported fourth-quarter operating earnings of $1.41 per share which exceeded the Zacks Consensus Estimate by 34.5%. Results also surged 86% year over year.

Rentrak Corporation ( RENT ) delivered fourth-quarter 2013 operating loss of 3 cents per share, narrower than the Zacks Consensus Estimate loss of 13 cents and year-ago loss of 15 cents per share.

Viad Corp .  ( VVI ) posted fourth-quarter loss per share of 20 cents, wider than the Zacks Consensus Estimate loss of 17 cents but narrower than the year-ago quarter loss of 34 cents per share.

EXAMWORKS GROUP (EXAM): Free Stock Analysis Report

RENTRAK CORP (RENT): Free Stock Analysis Report

SOUFUN HLDG-ADR (SFUN): Free Stock Analysis Report

VIAD CORP (VVI): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: EXAM , RENT , SFUN , VVI



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