Catalyst Health Solutions Inc. (CHSI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Catalyst Health Solutions Inc. has a market cap of $1.86 billion; its shares were traded at around $41.94 with a P/E ratio of 28.2 and P/S ratio of 0.7. CHSI is in the portfolios of Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Selling, general and administrative expenses of $22.2 million for the three months ended March 31, 2010, consisted of $11.5 million in compensation and benefits, which includes $1.3 million in non-cash compensation, $2.7 million in professional fees and technology services, $2.4 million in facility costs, $1.0 million in travel expenses, $1.1 million in insurance and other corporate expenses, $0.3 million in non-employee non-cash compensation expense, $0.6 million in other, which includes $0.1 million in recruitment and temporary help, and $2.6 million in depreciation and amortization.
Selling, general and administrative expenses of $19.3 million for the three months ended March 31, 2009, consisted of $10.1 million in compensation and benefits, which includes $1.0 million in non-cash compensation, $1.4 million in professional fees and technology services, $2.4 million in facility costs, $0.6 million in travel expenses, $0.9 million in insurance and other corporate expenses, $0.5 million in non-employee non-cash compensation expense, $1.0 million in other, which includes and $0.3 million in recruitment and temporary help, and $2.4 million in depreciation and amortization.
Net Cash (Used in) Provided by Operating Activities. Our operating activities used $7.4 million of cash from operations in the three-month period ended March 31, 2010, a $61.4 million change from the $54.0 million cash generated in the comparable prior year period. This $7.4 million in cash used by operating activities in 2010 reflects $17.4 million in net income, plus $6.2 million in net non-cash charges and a $31.0 million net decrease in working capital and other assets and liabilities. This $31.0 million net decrease in working capital was primarily due to changes in accounts receivable of $61.5 million, inventory of $1.4 million and other assets of $3.0 million, offset by changes in income tax receivable of $6.8 million and accounts payable and accrued liabilities of $28.1 million. The $61.5 million change in accounts receivable reflects the impact of a temporary delay in the timing of trade receivables. The $28.1 million change in accounts payable and accrued liabilities reflects the temporary benefit in the timing of payments of our accounts payable. The $54.0 million in cash provided by operating activities in 2009 reflects $13.8 million in net income, plus $4.8 million in non-cash charges and $35.4 million net decrease in working capital and other assets and liabilities.
Net Cash Used in Investing Activities. Net cash used in investing activities for the three months ended March 31, 2010 was $2.3 million compared to $2.5 million in the prior year period. The cash used in the current period reflects $2.4 million in capital expenditures offset by market securities sales of $0.1 million. The $2.5 million of net cash used for the three months ended March 31, 2009 reflects $0.9 million of contingent consideration payments related to prior business acquisitions and $1.6 million in capital expenditures.
Net Cash Provided by Financing Activities. Net cash provided by financing activities for the three months ended March 31, 2010 was $2.4 million compared to $0.6 million in the prior year period. In the current period, we received proceeds of $1.3 million from the exercise of stock options, $0.1 million in proceeds from issuance of common stock pursuant to our employee stock purchase plan and had an income tax benefit of $3.1 million related to the exercise of stock options and restricted stock vesting. Additionally, we purchased $2.0 million of treasury stock during the three months ended March 31, 2010 and incurred $0.1 million in additional deferred financing cost related to our new credit facility. In the prior year period, we received proceeds of $0.2 million from the exercise of stock options, $0.1 million in proceeds from issuance of common stock pursuant to the employee stock purchase plan, had an income tax benefit of $0.1 million related to the exercise of stock options and restricted stock vesting and received proceeds of $1.0 million related to our First Rx Specialty and Mail Services, LLC arrangement. Additionally, during the first quarter of 2009 we purchased $0.8 million of treasury stock.
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Catalyst Health Solutions Inc. has a market cap of $1.86 billion; its shares were traded at around $41.94 with a P/E ratio of 28.2 and P/S ratio of 0.7. CHSI is in the portfolios of Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On July 16, 2009, we purchased Total Script, LLC, management PBM company with a strategic focus on the small-to mid-sized employer group markets. Total consideration for the acquisition of Total Script consisted of cash payments of $13.5 million. We incurred approximately $0.2 million of acquisition-related costs, which are included in selling, general and administrative expenses in our consolidated statements of operations for the year ended December 31, 2009. Additionally, the purchase agreement includes contingent consideration payable over a three-year period based on the achievement of certain milestones and on net new business contracted. The fair value of the net contingent consideration recognized on the acquisition date, which was determined using expected present value techniques, was approximately $13.4 million. As of March 31, 2010 and December 31, 2009, there were decreases of $0.3 million and $0.1 million, respectively, in the fair value of recognized amounts for the contingent consideration primarily due to revised assumptions regarding net new business contracted.Selling, general and administrative expenses of $22.2 million for the three months ended March 31, 2010, consisted of $11.5 million in compensation and benefits, which includes $1.3 million in non-cash compensation, $2.7 million in professional fees and technology services, $2.4 million in facility costs, $1.0 million in travel expenses, $1.1 million in insurance and other corporate expenses, $0.3 million in non-employee non-cash compensation expense, $0.6 million in other, which includes $0.1 million in recruitment and temporary help, and $2.6 million in depreciation and amortization.
Selling, general and administrative expenses of $19.3 million for the three months ended March 31, 2009, consisted of $10.1 million in compensation and benefits, which includes $1.0 million in non-cash compensation, $1.4 million in professional fees and technology services, $2.4 million in facility costs, $0.6 million in travel expenses, $0.9 million in insurance and other corporate expenses, $0.5 million in non-employee non-cash compensation expense, $1.0 million in other, which includes and $0.3 million in recruitment and temporary help, and $2.4 million in depreciation and amortization.
Net Cash (Used in) Provided by Operating Activities. Our operating activities used $7.4 million of cash from operations in the three-month period ended March 31, 2010, a $61.4 million change from the $54.0 million cash generated in the comparable prior year period. This $7.4 million in cash used by operating activities in 2010 reflects $17.4 million in net income, plus $6.2 million in net non-cash charges and a $31.0 million net decrease in working capital and other assets and liabilities. This $31.0 million net decrease in working capital was primarily due to changes in accounts receivable of $61.5 million, inventory of $1.4 million and other assets of $3.0 million, offset by changes in income tax receivable of $6.8 million and accounts payable and accrued liabilities of $28.1 million. The $61.5 million change in accounts receivable reflects the impact of a temporary delay in the timing of trade receivables. The $28.1 million change in accounts payable and accrued liabilities reflects the temporary benefit in the timing of payments of our accounts payable. The $54.0 million in cash provided by operating activities in 2009 reflects $13.8 million in net income, plus $4.8 million in non-cash charges and $35.4 million net decrease in working capital and other assets and liabilities.
Net Cash Used in Investing Activities. Net cash used in investing activities for the three months ended March 31, 2010 was $2.3 million compared to $2.5 million in the prior year period. The cash used in the current period reflects $2.4 million in capital expenditures offset by market securities sales of $0.1 million. The $2.5 million of net cash used for the three months ended March 31, 2009 reflects $0.9 million of contingent consideration payments related to prior business acquisitions and $1.6 million in capital expenditures.
Net Cash Provided by Financing Activities. Net cash provided by financing activities for the three months ended March 31, 2010 was $2.4 million compared to $0.6 million in the prior year period. In the current period, we received proceeds of $1.3 million from the exercise of stock options, $0.1 million in proceeds from issuance of common stock pursuant to our employee stock purchase plan and had an income tax benefit of $3.1 million related to the exercise of stock options and restricted stock vesting. Additionally, we purchased $2.0 million of treasury stock during the three months ended March 31, 2010 and incurred $0.1 million in additional deferred financing cost related to our new credit facility. In the prior year period, we received proceeds of $0.2 million from the exercise of stock options, $0.1 million in proceeds from issuance of common stock pursuant to the employee stock purchase plan, had an income tax benefit of $0.1 million related to the exercise of stock options and restricted stock vesting and received proceeds of $1.0 million related to our First Rx Specialty and Mail Services, LLC arrangement. Additionally, during the first quarter of 2009 we purchased $0.8 million of treasury stock.
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