Transcend Services Inc. (TRCR, Financial) filed Amended Quarterly Report for the period ended 2009-03-31.
Transcend Services Inc. believes that accurate reliable and timely transcription creates the foundation for the patient medical record. To this end the Company has created Internet-based speech-recognition enabled voice-to-text systems that allow its skilled medical language specialists to securely and quickly produce the highest quality medical documents. The Company's wide range of transcription and editing services encompass everything needed to securely receive type edit format and distribute electronic copies of physician-dictated medical documents from overflow projects to complete transcription outsourcing Transcend Services Inc. has a market cap of $155.4 million; its shares were traded at around $18.28 with a P/E ratio of 24 and P/S ratio of 3.1.
General and administrative expenses increased $429,000, or 32%, to $1,766,000 in the quarter ended March 31, 2009 compared to $1,337,000 in the same period in 2008. General and administrative expenses for DeVenture contributed $118,000 of the increase. Transcend incurred $65,000 of transaction costs related to acquisitions in the first quarter of 2009. The balance of the increase was due primarily to increased audit fees, employee benefits costs, and stock-based compensation expense. General and administrative expenses as a percentage of revenue were 12% and 11% in the quarters ended March 31, 2009 and March 31, 2008, respectively.
Depreciation and amortization expense was $255,000 in the quarter ended March 31, 2009 compared to $196,000 in the same period in 2008. Amortization of intangible assets resulting from the acquisition of DeVenture contributed $28,000 of the increase.
As of March 31, 2009, the Company had cash and cash equivalents of $9.7 million, working capital of $13.8 million, availability of approximately $3.6 million on its line of credit based on eligible accounts receivable and $2.0 million available on its acquisition term loan facility (see Note 5). The Company had $569,000 of debt outstanding as of March 31, 2009.
Cash used in investing activities was $4.4 million for the three months ended March 31, 2009, compared to $185,000 for the three months ended March 31, 2008. The outflow in 2009 was due primarily to the acquisition of DeVenture for $4.25 million.
Cash used in financing activities was $76,000 for the three months ended March 31, 2009 compared to an outflow of $1,227,000 in 2008. The outflow during 2009 consisted of note repayments of $150,000, offset by proceeds on the exercise of stock options of $74,000. In 2008, the outflow consisted of note repayments of $1,278,000, offset by proceeds of $51,000 from the exercise of stock options.
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Transcend Services Inc. believes that accurate reliable and timely transcription creates the foundation for the patient medical record. To this end the Company has created Internet-based speech-recognition enabled voice-to-text systems that allow its skilled medical language specialists to securely and quickly produce the highest quality medical documents. The Company's wide range of transcription and editing services encompass everything needed to securely receive type edit format and distribute electronic copies of physician-dictated medical documents from overflow projects to complete transcription outsourcing Transcend Services Inc. has a market cap of $155.4 million; its shares were traded at around $18.28 with a P/E ratio of 24 and P/S ratio of 3.1.
Highlight of Business Operations:
Revenue increased $3.2 million, or 27%, to $14.9 million in the quarter ended March 31, 2009 compared to revenue of $11.7 million in the same period in 2008. The $3.2 million increase in revenue is attributable to revenue from new customers of $1.5 million, revenue contributed by the acquisition of Deventure of $1.2 million and increased revenue from existing customers of $0.7 million, offset by a decrease in revenue of $0.2 million from customers who terminated their contracts since the first quarter of 2008.General and administrative expenses increased $429,000, or 32%, to $1,766,000 in the quarter ended March 31, 2009 compared to $1,337,000 in the same period in 2008. General and administrative expenses for DeVenture contributed $118,000 of the increase. Transcend incurred $65,000 of transaction costs related to acquisitions in the first quarter of 2009. The balance of the increase was due primarily to increased audit fees, employee benefits costs, and stock-based compensation expense. General and administrative expenses as a percentage of revenue were 12% and 11% in the quarters ended March 31, 2009 and March 31, 2008, respectively.
Depreciation and amortization expense was $255,000 in the quarter ended March 31, 2009 compared to $196,000 in the same period in 2008. Amortization of intangible assets resulting from the acquisition of DeVenture contributed $28,000 of the increase.
As of March 31, 2009, the Company had cash and cash equivalents of $9.7 million, working capital of $13.8 million, availability of approximately $3.6 million on its line of credit based on eligible accounts receivable and $2.0 million available on its acquisition term loan facility (see Note 5). The Company had $569,000 of debt outstanding as of March 31, 2009.
Cash used in investing activities was $4.4 million for the three months ended March 31, 2009, compared to $185,000 for the three months ended March 31, 2008. The outflow in 2009 was due primarily to the acquisition of DeVenture for $4.25 million.
Cash used in financing activities was $76,000 for the three months ended March 31, 2009 compared to an outflow of $1,227,000 in 2008. The outflow during 2009 consisted of note repayments of $150,000, offset by proceeds on the exercise of stock options of $74,000. In 2008, the outflow consisted of note repayments of $1,278,000, offset by proceeds of $51,000 from the exercise of stock options.
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