) posted a 12.0% rise in adjusted earnings per share to 28 cents
for the fourth quarter of 2013 from 25 cents in the same quarter
of 2012. With this, earnings significantly beat the Zacks
Consensus Estimate by 4 cents per share.
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Adjusted net earnings rose 19.6% to $17.1 million from $14.3
million in the year-ago quarter. Following the favorable earnings
announcement, shares of the company rose 10.8% till the last
Net revenues went up 4.1% to $170.5 million, exceeding the Zacks
Consensus Estimate of $166.0 million. Administrative fees (net)
rose 10.4% to $73.0 million but Other service fees fell 0.2% to
$97.4 million in the quarter.
Net revenues in the
Spend and Clinical Resource Management (SCM)
segment grew 7.4% to $106.4 million, driven by a rise in group
purchasing net administrative fees as well as consulting and
other service fees, partially offset by an anticipated
year-over-year decline in performance-related fees.
However, net revenues in the
Revenue Cycle Management (RCM)
segment dipped 1.0% to $64.0 million in the quarter as
technology-related revenues (comprising about 73.0% of RCM
segment revenues) rose 4.9% while services-related revenues fell
14.2% due to lower fees and the loss of two clients in early
For full year 2013, MedAssets reported a 14.6% rise in adjusted
earnings per share to $1.18 per share from $1.03 in 2012.
Adjusted net earnings rose 22.5% to $72.2 million from $58.9
million a year ago.
Net revenues went up 6.3% to $680.4 million. Revenues increased
7.8% to $424.5 million in the SCM segment and grew 3.8% to $256.0
million in the RCM segment as technology-related revenues
(comprising about 70.5% of RCM segment revenues) escalated 6.2%
and services-related revenues slid 1.4%.
MedAssets had cash and cash equivalents of $2.8 million as of Dec
31, 2013, down significantly by 79.7% from $13.7 million as of
Dec 31, 2012. Finance obligation declined 2.6% to $9.0 million as
of Dec 31, 2013 compared with $9.3 million as of Dec 31, 2012.
In 2013, cash flow from operating activities went down 3.1% to
$152.9 million from $157.9 million in 2012. Capital expenditure
fell 32.7% to $17.6 million compared with $26.2 million in 2012.
The board of directors authorized the repurchase of up to $75
million of MedAssets' common stock over the next 12 months. As of
Feb 24, 2014, MedAssets had approximately 61.8 million of
outstanding common stock.
For 2014, MedAssets anticipates revenues in the band of
$700.0-$714.0 million, reflecting a growth of 2.9-4.9% over 2013.
Total revenues for the year include SCM revenues of $438.0-446.0
million (implying a growth of 3.2-5.1%) and RCM revenues of
$261.0-$269.0 million (indicating a growth of 2.0-5.1%). The
current Zacks Consensus Estimate of $707 million lies within the
MedAssets also expects adjusted earnings per share in the range
of $1.13 to $1.23 for the year. The current Zacks Consensus
Estimate of $1.22 lies within the guided range.
Headquartered in Alpharetta, GA, MedAssets is a financial and
performance improvement company, providing innovative solutions
to healthcare providers. It uses proprietary technology to
increase visibility and allows hospitals to assess profitability.
Currently, MedAssets retains a Zacks Rank #3 (Hold). Some
better-ranked stocks in the medical services industry include
ICON Public Limited Co.
Quintiles Transnational Holdings Inc.
). ICON Public Limited and Quintiles Transnational Holdings carry
a Zacks Rank #1 (Strong Buy), while Covance carries a Zacks Rank