Craneware Reports Year-End Financial Results; Significant Acquisition and Changing Market Landscape Drive Growth

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Aug 30, 2011, 09:11 ET

ATLANTA, Aug. 30, 2011 /PRNewswire/ -- Craneware plc (AIM: CRW.L), the leader in automated revenue integrity solutions for the U.S. healthcare market, today announced its financial results for fiscal year 2011.

Financial Highlights for the Year Ending June 30, 2011 include (all figures in US dollars):

Continued strong revenue and profit growth:
- Revenue increased 34% to $38.1m (2010: $28.4m)
- Adjusted EBITDA(1) increased 32% to $10.1m (2010: $7.6m)
- Adjusted profit before taxation increased 27% to $9.3m (2010: $7.3m)
- Profit before tax increased 19% to $8.7m (2010: $7.3m)
- Basic adjusted EPS increased 17% to 25.6 cents (2010: 21.8 cents)
- Basic EPS increased 6% to 23.1 cents (2010: 21.8 cents)
Positive operational cash flow of $10.1m (2010: $8.9m)
Cash at year end $24.2m (2010: $29.4m) following $9m payment to acquire ClaimTrust in February 2011
Proposed final dividend of 4.8p (7.7 cents) per share giving total dividend for the year of 8.8p (14.2 cents) per share (2010: 8p (12 cents) per share)

(1) Adjusted EBITDA refers to earnings before interest, tax, depreciation, amortization, share based payments and transaction related costs

Operational Highlights for FY2011 include:

Significantly increased market share; approx. 1,500 US hospitals now use Craneware software
Integration of ClaimTrust as Craneware InSight, Inc. proceeding ahead of plan
Leading indicator, the acceleration of the Recovery Audit Contractor program, now taking place and expected to increase demand in future years

"This has been another year of strong growth for Craneware both in operational and financial terms, highlighting the strength of our product offering and business model," said Keith Neilson, CEO of Craneware.

"The financial challenges presented by today's economy and healthcare reform mean it has never been more important for hospitals to increase efficiency and protect revenue in order to meet their objectives of providing increased levels of care to a growing hospital population," added Neilson. "We believe our suite of software combined with our industry expertise uniquely positions us to help hospitals protect themselves against this changing market landscape, automating regulatory updates, increasing accuracy of pricing, charging and coding for procedures, supplies and pharmaceuticals and helping to manage the increasing number of government led audits."

"Consequently with the market drivers, such as the Recovery Audit Contractor program, expected to increase in the year ahead, the robust nature of our business model which provides for strong cash generation and high levels of future revenue visibility, together with our strong pipeline, we look to the future with confidence," Neilson concluded.

About Craneware

Craneware (AIM: CRW.L) is the leader in automated revenue integrity solutions that improve financial performance for healthcare organizations. Craneware's market-driven, SaaS solutions help hospitals and other healthcare providers more effectively price, charge, code and retain earned revenue for patient care services and supplies. This optimizes reimbursement, increases operational efficiency and minimizes compliance risk. By partnering with Craneware, clients achieve the visibility required to identify, address and prevent revenue leakage. To learn more, visit craneware.com and stoptheleakage.com.

To see the full announcement please go to the investor section of the craneware.com website.

SOURCE Craneware