ExamWorks Posts Narrower Loss, Guides 2014 - Analyst Blog

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



This article appears in: Investing , Business , Stocks

Referenced Stocks: EXAM , RENT , SFUN , VVI

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