Transcend Services Inc. (TRCR, Financial) filed Amended Quarterly Report for the period ended 2009-09-30.
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 $164.6 million; its shares were traded at around $19.37 with a P/E ratio of 25.5 and P/S ratio of 3.4.
General and administrative expenses increased $991,000, or 67%, to $2.5 million in the quarter ended September 30, 2009 compared to $1.5 million in the same period in 2008. General and administrative expenses for DeVenture, TRS and MDSI collectively contributed $419,000 of the increase. Transcend incurred $84,000 of transaction costs related to acquisitions in the third quarter of 2009. The balance of the increase was due primarily to increased compensation, contract services, employee benefits costs, and stock-based compensation expense. General and administrative expenses as a percentage of revenue were 13% and 12% in the quarters ended September 30, 2009 and 2008, respectively.
Revenue increased $14.5 million, or 40%, to $50.4 million in the nine months ended September 30, 2009 compared to revenue of $35.9 million in the same period in 2008. The $14.5 million increase in revenue is attributable to revenue from new customers of $5.8 million, revenue contributed by the acquisition of DeVenture of $3.9 million, revenue contributed by the acquisition of TRS of $3.4 million, revenue contributed by the acquisition of MDSI of $1.2 million and increased revenue from existing customers of $1.7 million, offset by a decrease in revenue of $1.5 million from customers who terminated their contracts since the third quarter of 2008.
General and administrative expenses increased $2.2 million, or 51%, to $6.4 million in the nine months ended September 30, 2009 compared to $4.2 million in the same period in 2008. General and administrative expenses for DeVenture, TRS and MDSI collectively contributed $863,000 of the increase. Transcend incurred $250,000 of transaction costs related to acquisitions in the nine months ended September 30, 2009. The remaining increase is due primarily to increases in compensation costs, contract services, and stock compensation expense. General and administrative expenses as a percentage of revenue were 13% in the nine months ended September 30, 2009 compared to 12% for the nine-months ended September 30, 2008.
Cash used in investing activities was $18.4 million for the nine months ended September 30, 2009, compared to $741,000 for the nine months ended September 30, 2008. The outflow in 2009 was due primarily to the acquisitions of DeVenture for $4.4 million, TRS for $4.5 million and MDSI for $8.8 million.
Cash provided by financing activities was $7.7 million for the nine months ended September 30, 2009 compared to cash used in financing activities of $1.3 million in the same period in 2008. The cash provided during 2009 consisted of the tax benefit for share-based payments of $ 1.2 million, the proceeds on the exercise of stock options of $184,000, and the proceeds of borrowing of $7.0 million, offset by note repayments of $664,000. In 2008, the outflow consisted of note repayments of $1.3 million, offset by proceeds of $61,000 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 $164.6 million; its shares were traded at around $19.37 with a P/E ratio of 25.5 and P/S ratio of 3.4.
Highlight of Business Operations:
Revenue increased $6.3 million, or 52%, to $18.5 million in the quarter ended September 30, 2009 compared to revenue of $12.2 million in the same period in 2008. The $6.3 million increase in revenue is attributable to revenue from new customers of $2.2 million, revenue contributed by the acquisition of TRS of $1.6 million, revenue contributed by the acquisition of DeVenture of $1.4 million, revenue contributed by the acquisition of MDSI of $1.2 million and increased revenue from existing customers of $0.5 million, offset by a decrease in revenue of $0.6 million from customers who terminated their contracts since the third quarter of 2008.General and administrative expenses increased $991,000, or 67%, to $2.5 million in the quarter ended September 30, 2009 compared to $1.5 million in the same period in 2008. General and administrative expenses for DeVenture, TRS and MDSI collectively contributed $419,000 of the increase. Transcend incurred $84,000 of transaction costs related to acquisitions in the third quarter of 2009. The balance of the increase was due primarily to increased compensation, contract services, employee benefits costs, and stock-based compensation expense. General and administrative expenses as a percentage of revenue were 13% and 12% in the quarters ended September 30, 2009 and 2008, respectively.
Revenue increased $14.5 million, or 40%, to $50.4 million in the nine months ended September 30, 2009 compared to revenue of $35.9 million in the same period in 2008. The $14.5 million increase in revenue is attributable to revenue from new customers of $5.8 million, revenue contributed by the acquisition of DeVenture of $3.9 million, revenue contributed by the acquisition of TRS of $3.4 million, revenue contributed by the acquisition of MDSI of $1.2 million and increased revenue from existing customers of $1.7 million, offset by a decrease in revenue of $1.5 million from customers who terminated their contracts since the third quarter of 2008.
General and administrative expenses increased $2.2 million, or 51%, to $6.4 million in the nine months ended September 30, 2009 compared to $4.2 million in the same period in 2008. General and administrative expenses for DeVenture, TRS and MDSI collectively contributed $863,000 of the increase. Transcend incurred $250,000 of transaction costs related to acquisitions in the nine months ended September 30, 2009. The remaining increase is due primarily to increases in compensation costs, contract services, and stock compensation expense. General and administrative expenses as a percentage of revenue were 13% in the nine months ended September 30, 2009 compared to 12% for the nine-months ended September 30, 2008.
Cash used in investing activities was $18.4 million for the nine months ended September 30, 2009, compared to $741,000 for the nine months ended September 30, 2008. The outflow in 2009 was due primarily to the acquisitions of DeVenture for $4.4 million, TRS for $4.5 million and MDSI for $8.8 million.
Cash provided by financing activities was $7.7 million for the nine months ended September 30, 2009 compared to cash used in financing activities of $1.3 million in the same period in 2008. The cash provided during 2009 consisted of the tax benefit for share-based payments of $ 1.2 million, the proceeds on the exercise of stock options of $184,000, and the proceeds of borrowing of $7.0 million, offset by note repayments of $664,000. In 2008, the outflow consisted of note repayments of $1.3 million, offset by proceeds of $61,000 from the exercise of stock options.
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