SOURCE: American CareSource Holdings, Inc.

American CareSource Holdings, Inc.

August 11, 2009 17:00 ET

American CareSource Holdings Reports 2009 Second Quarter Financial Results

DALLAS, TX--(Marketwire - August 11, 2009) - American CareSource Holdings, Inc. (NASDAQ: ANCI) today announced financial and operational results for the second quarter and six months ended June 30, 2009. Recent highlights include:

--  Reported quarterly net income of $534 thousand, or $0.03 per diluted
    share. This represents the eighth consecutive profitable quarter for
    the Company.

--  Achieved $17.1 million in revenue for the second quarter, a 32%
    increase in revenues compared to the same prior year period and 7%
    increase compared to the first quarter of 2009.

--  Attained gross margins of approximately 13.7% compared to 14.6% in the
    three months ended June 30, 2008 and 14.3% in the first quarter of
    2009.

--  Generated EBITDA, as adjusted, of approximately $749 thousand for the
    quarter.

     -- EBITDA, as adjusted, (a non-GAAP measure) is defined as income from
        operations less depreciation and amortization, non-cash warrant and
        option compensation expense and executive severance. EBITDA, as
        adjusted, should be considered in addition to, but not in lieu of,
        income (loss) from operations reported under generally accepted
        accounting principles (GAAP).

--  Finished the quarter with approximately $9.9 million in cash and cash
    equivalents on hand and generated approximately $32 thousand in cash
    from operating activities in the second quarter and approximately
    $86 thousand during the first half of 2009.

--  Processed claims volume increased to approximately 121 thousand for
    the second quarter of 2009, up 68% over the second quarter of 2008
    and 34% over the first quarter of 2009.

--  Signed new provider agreement with CVS subsidiary, MinuteClinic, the
    leading provider of prescriptions and related health care services in
    the nation.

--  Surpassed 30,000 contracted provider site mark by adding nearly 4,000
    new network sites around the country since April 1, 2009.

--  Elected David A. George as Chairman of the Board.

Commenting on today's announcement, David S. Boone, stated, "Our second quarter top line results demonstrate a continuation of the strong momentum we are building in the market place. To that end we have invested significantly in our people and our technology to support that growth. During the quarter, we continued investing in our claims administration and provider development organizations to facilitate growth through the enhancement of our network of ancillary care providers, and to strengthen our claims processing and management capabilities. We also continued to recruit sales and marketing resources to further expand our national selling capability and to effectively position the business to realize future growth opportunities.

"An important part of our growth strategy is to expand our provider network. We recently signed an agreement with CVS subsidiary MinuteClinic, which is a health care provider for common conditions when a primary care physician is not available and the hospital emergency room is not appropriate. Through this agreement, American CareSource has entered a new ancillary care segment on a national scale to provide high quality care in a cost effective manner."

During the past several months, the Company expanded its provider network to nearly 4,000 providers operating in over 30,000 sites, an increase of approximately 600 providers and 4,000 sites since April 1, 2009.

Revenues for the second quarter of 2009 rose 32% to $17.1 million compared to $13.0 million in the second quarter of 2008. The Company's second quarter revenues also represent a 7% improvement over reported revenues of $16.1 million for the first quarter of 2009. The quarter-over-quarter improvement was primarily the result of incremental revenue generated from recently implemented clients including HealthMarkets and HealthScope. For the six months ended June 30, 2009, revenues from existing clients grew 26% compared to the same period in 2008. Total reported revenues for the first half of 2009 were $33.2 million, a 35% increase compared to revenues of $24.5 million in the same period of 2008.

During the three months ended June 30, 2009, the number of billed claims increased by 26% and 53%, respectively, compared to the same three month periods ended March 31, 2009 and June 30, 2008. The increase in claim volume was driven by the expansion of existing client relationships, the implementation of new clients during the first half of 2009 as well as the expansion of the service provider network.

Revenue per claim declined for the periods presented due to lower than estimated collection rates related to new client relationships, limited benefits offered by certain recently implemented clients and the change in mix of provider specialties driving claim volume during the first six months of 2009. In particular, the Company experienced accelerated growth in categories such as laboratory services with a lower average revenue per claim while other higher average revenue per claim categories such as dialysis services have not grown as rapidly. Revenue per claim can vary significantly depending upon factors including the types of services consumed by clients members, the quantity of services delivered, client negotiated pricing, provider negotiated service rates, the rate of collections based upon the client and members financial responsibility and other factors. The following table provides information with respect to claims processed, claims billed and associated revenue per claim metrics for the periods presented (claim amounts in thousands):

                                 Three months ended
                                June   March    June
                                 30,     31,     30,
                                2009    2009    2008
                               ------- ------- -------
Claims processed                   121      90      72
Claims billed                      101      80      66

Revenue per processed claim    $   142 $   178 $   180
Revenue per billed claim           169     201     197

In the second quarter of 2009, the increase in cost of revenues related to provider payments compared to the first quarter of 2009 was a result of increased claims volume and increased revenues, and the fluctuation in the mix of types of services provided by the Company. The increase in provider payments as a percentage of revenues was due primarily to lower margins in dialysis services and infusion services specialties offset by improvements in diagnostic imaging specialty. These category margins were impacted by the execution of new provider agreements, pricing for associated services on recently implemented and existing client contracts, the mix of services delivered in each category, and the mix of providers delivering the services.

Further, in the second quarter of 2009, administrative fees decreased despite increased revenue and claim volume as compared to the first quarter of 2009. The decrease in administrative fees as a percentage of net revenues was due to a shift in revenues to clients that carry lower contracted administrative fee rates.

In the second quarter or 2009, the costs of claims administration and provider development organizations increased primarily due to headcount investments made to support the growth of claims volume and to facilitate growth through the enhancement of the network of ancillary care providers. As of June 30, 2009, the Company's claims administration organization added eight incremental employees, while its provider development organization added six incremental employees, compared to June 30, 2008.

The following table sets forth a comparison of the components of the cost of revenues as a percentage of revenue. The detail of the costs of claims administration and provider development organizations are attached for further reference.

                                Three months
                                   ended
                                June   March
                                 30,     31,
                                2009    2009   Change
                               ------  ------  ------
Provider payments                75.2%   74.3%    0.9%
Administrative fees               4.5%    5.1%   -0.6%
Claims administration and
  provider development            6.6%    6.3%    0.3%
                               ------  ------
Total cost of revenues           86.3%   85.7%    0.6%
                               ======  ======

The Company reported SG&A expenses of $1,981,000 and $1,901,000 for the quarters ending June 30, 2009 and March 31, 2009, respectively. The approximate $80 thousand increase was due to sales and marketing related investments in people offset by reductions in professional fees and consulting costs. The detail of SG&A related costs is attached for further reference.

The Company reported net income of $534 thousand, or $0.03 per share, for the three months ended June 30, 2009, compared to $621 thousand, or $0.04 per share, in the same period last year. For the six months ended June 30, 2009, the Company reported net income of $813 thousand, or $0.04 per diluted share, compared to $1.1 million, or $0.07 per share, for the same period in 2008. Included in net income during the three and six months ended June 30, 2009, are unrealized gains of $279 thousand and $254 thousand, respectively, related to warrants that are accounted for under Emerging Issues Task Force Issue No. 07-5 ("EITF 07-5"). Because of provisions included in the warrants, EITF 07-5 requires the Company to adjust the related liability based on the fair value of the warrants. During the second quarter, the fair value of the warrants declined, creating the unrealized gains.

Cash provided by operations was $86 thousand for the six months ended June 30, 2009 versus cash provided by operations of $2.1 million during the same period in 2008. Factors affecting the change in operating cash flows included a one-time investment in a key client relationship of $1 million, investments in developing sales and marketing capabilities, the provider development function and other support areas to enable business scale. At June 30, 2009, the Company had approximately $9.9 million in cash and cash equivalents compared to $10.6 million at December 31, 2008.

Conference Call

As previously announced, American CareSource will hold a conference call to discuss financial results of the second quarter ended June 30, 2008 as follows:

Date:   Wednesday, August 12, 2009
        Time: 7:30 a.m. (CT)/8:30 a.m. (ET)
        Dial-in numbers: 888-645-4404 (U.S. & Canada) or 201-604-0169
        Live webcast: www.anci-care.com, under "Events"

The teleconference replay will be available three hours after completion through Wednesday, August 19, 2009 at 888-632-8973 (U.S. & Canada) or 201-499-0429. The replay passcode is 58754250. The archived webcast will be available for one year on the Company's investor website, www.anci-care.com, "Events."

About Ancillary Healthcare Services

American CareSource provides ancillary healthcare services through its network that offers cost effective alternatives to physician and hospital-based services. This market is estimated at $574 billion, and has grown to 30% of total national health expenditures. These providers offer services in over 30 categories, including laboratories, dialysis centers, free-standing diagnostic imaging centers, non-hospital surgery centers, as well as durable medical equipment such as orthotics and prosthetics, and others.

About American CareSource Holdings, Inc.

American CareSource Holdings, the first national, publicly traded ancillary care network services company, offers a comprehensive national network of approximately 4,000 ancillary service providers at over 30,000 sites through its subsidiary, Ancillary Care Services. The Company's ancillary network and management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both federal and local governments. For additional information, please visit www.anci-care.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements that are not historical facts contained in this release, including with respect to future engagements by clients, revenue growth, earnings, and guidance are forward-looking statements. It is possible that the assumptions made by American CareSource Holdings, Inc. for purposes of such statements may prove to be inaccurate or may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve further risks and uncertainties, including but not limited to those relating to demand for our services, pricing, market acceptance, our ability to integrate with our clients, consolidation in the industry that may affect our key clients, our ability to attract and maintain providers, our ability to manage growth, the effect of economic, political and regulatory conditions, the effect of competition, risks in product development, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.

(Tables to Follow)

                    AMERICAN CARESOURCE HOLDINGS, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                (unaudited)


                        Three months ended           Six months ended
                             June 30,                    June 30,
                    --------------------------- --------------------------
                        2009          2008          2009          2008
                    ------------- ------------  ------------  ------------
Net Revenues        $  17,134,653 $ 13,012,528  $ 33,190,303  $ 24,518,203
Cost of revenues:
  Provider payments    12,879,496    9,554,966    24,815,331    17,945,576
  Administrative
   fees                   778,146      751,018     1,593,672     1,452,694
  Claims administration
   and provider
   development costs    1,131,167      804,609     2,135,740     1,513,445
                    ------------- ------------  ------------  ------------
Total cost of
 revenues              14,788,809   11,110,593    28,544,743    20,911,715
                    ------------- ------------  ------------  ------------
  Contribution
   margin               2,345,844    1,901,935     4,645,560     3,606,488

Selling, general
 and administrative
 expenses               1,980,887    1,194,504     3,881,565     2,307,358
Depreciation and
 amortization             132,315       96,606       245,112       188,672
                    ------------- ------------  ------------  ------------
  Total operating
   expenses             2,113,202    1,291,110     4,126,677     2,496,030
                    ------------- ------------  ------------  ------------

  Operating income        232,642      610,825       518,883     1,110,458

Interest income            35,706       31,240        76,668        71,908
Interest expense                -       (1,606)         (312)       (3,444)
Unrealized gain on
 warrant derivative       278,591            -       254,109             -
                    ------------- ------------  ------------  ------------
Total other income,
 net                      314,297       29,634       330,465        68,464
                    ------------- ------------  ------------  ------------

Income before income
 taxes                    546,939      640,459       849,348     1,178,922
Income tax provision       13,163       19,019        36,512        36,064
                    ------------- ------------  ------------  ------------
Net Income          $     533,776 $    621,440  $    812,836  $  1,142,858
                    ============= ============  ============  ============


Earnings per common
 share:
  Basic             $        0.03 $       0.04  $       0.05  $       0.08
                    ============= ============  ============  ============
  Diluted           $        0.03 $       0.04  $       0.04  $       0.07
                    ============= ============  ============  ============

Basic weighted
 average common
 shares outstanding    15,425,774   15,069,007    15,422,144    14,973,213
                    ============= ============  ============  ============
Diluted weighted
 average common
 shares outstanding    18,054,976   17,435,365    18,171,233    17,343,860
                    ============= ============  ============  ============


Reconciliation of non-GAAP financial measures to reported GAAP financial
measures

Reconciliation of EBITDA and EBITDA,
 as adjusted:
                          Three months ended        Six months ended
                              June 30,                   June 30,
                         2009         2008          2009         2008
                    ------------- ------------  ------------  ------------
Operating income    $     232,642 $    610,825  $    518,883  $  1,110,458
Depreciation and
 amortization             132,315       96,606       245,112       188,672
                    ------------- ------------  ------------  ------------
  EBITDA                  364,957      707,431       763,995     1,299,130
Non-cash
 stock-based
 compensation
 expense                  356,180      171,848       616,969       342,601
Other non-cash
 charges                   28,011            -        56,022             -
Executive severance             -            -             -        21,844
                    ------------- ------------  ------------  ------------
  EBITDA, as
   adjusted         $     749,148 $    879,279  $  1,436,986  $  1,663,575
                    ============= ============  ============  ============


                    AMERICAN CARESOURCE HOLDINGS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS



                                                  (unaudited)
                                                    June 30,   December 31,
                                                      2009         2008
                                                  ------------ ------------
ASSETS

Current assets:
Cash and cash equivalents                         $  9,906,816 $ 10,577,829
Accounts receivable, net                             6,875,211    5,788,457
Prepaid expenses and other current assets              781,802      495,814
                                                  ------------ ------------
  Total current assets                              17,563,829   16,862,100

Property and equipment, net                          1,508,935      915,224

Other assets:
Other non-current assets                             1,131,703    1,127,114
Intangible assets, net                               1,216,623    1,280,656
Goodwill                                             4,361,299    4,361,299
                                                  ------------ ------------

Total assets                                      $ 25,782,389 $ 24,546,393
                                                  ============ ============

LIABILITIES and SHAREHOLDERS' EQUITY

Current Liabilities:
Due to service providers                          $  6,750,646 $  5,964,392
Accounts payable and accrued liabilities             2,029,555      311,862
                                                  ------------ ------------
  Total current liabilities                          8,780,201    6,276,254

Warrant derivative liability                            87,693            -
Long-term debt                                               -        3,053
Shareholders' equity                                16,914,495   15,467,086
                                                  ------------ ------------

Total liabilities and shareholders' equity        $ 25,782,389 $ 21,746,393
                                                  ============ ============



                    AMERICAN CARESOURCE HOLDINGS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (unaudited)

                                                      Six months ended
                                                          June 30,
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
Cash flows from operating activities:
  Net income                                      $   812,835  $ 1,142,858
  Adjustments to reconcile net income to net
   cash provided by operations:
      Stock-based compensation expense                616,969      316,147
      Depreciation and amortization                   245,112      188,672
      Unrealized gain on warrant derivative          (254,109)           -
      Amortization of long-term client
       agreement                                      125,000            -
      Client administration fee expense related
       to warrants                                     56,022       26,455
      Changes in operating assets and
       liabilities:
            Accounts receivable                    (1,086,754)    (770,020)
            Prepaid expenses and other assets        (168,312)      13,876
            Accounts payable and accrued
             liabilities                           (1,047,071)     285,403
            Due to service providers                  786,254      881,081
                                                  -----------  -----------
             Net cash provided by operating
              activities                               85,946    2,084,472
                                                  -----------  -----------

Cash flows from investing activities:
  Investment in software development costs           (329,347)    (284,085)
  Additions to property and equipment                (437,471)    (105,461)
                                                  -----------  -----------
            Net cash used in investing activities    (766,818)    (389,546)
                                                  -----------  -----------

Cash flows from financing activities:
  Payments on long-term debt                           (5,501)     (27,360)
  Proceeds from exercise of stock warrants             12,650            -
  Proceeds from exercise of stock options               2,710      137,331
                                                  -----------  -----------
            Net cash provided by financing
             activities                                 9,859      109,971
                                                  -----------  -----------

Net increase (decrease) in cash and cash
 equivalents                                         (671,013)   1,804,897
Cash and cash equivalents at beginning of period   10,577,829    4,272,498
                                                  -----------  -----------
Cash and cash equivalents at end of period        $ 9,906,816  $ 6,077,395
                                                  ===========  ===========



                    American CareSource Holdings, Inc.
           Claims Administration and Provider Development Costs
                                (Unaudited)
                                  (000)

                          Quarter Ended                Quarter Ended
                             June 30,                    March 31,
                    ------------------------------  ----------------------
                                       Increase                Increase
                     2009    2008     (Decrease)     2009     (Decrease)
                    ------  ------  --------------  ------  --------------
Claims Administration
  Total wages,
   incentives and
   benefits         $  608  $  430  $  178      41% $  534  $   74      14%
  Contract labor
   and consulting
   fees                172     240     (68)    -28%    117      55      47%
  Capitalized
   development
   costs              (215)   (203)    (12)      6%   (114)   (101)     89%
  Other                 37      34       3       9%     26      11      42%
  Allocation of
   shared overheads    (18)      8     (26)   -325%    (29)     11     -38%
                    ------  ------  ------  ------  ------  ------  ------
                    $  584  $  509  $   75      15% $  534  $   50       9%
                    ======  ======  ======  ======  ======  ======  ======

                         Quarter Ended                Quarter Ended
                             June 30,                    March 31,
                    ------------------------------  ----------------------
                                       Increase                Increase
                     2009    2008     (Decrease)     2009     (Decrease)
                    ------  ------  --------------  ------  --------------
Provider Development
  Total wages,
   incentives and
   benefits         $  372  $  216  $  156      72% $  308  $   64      21%
  Contract labor
   and consulting
   fees                 69      10      59     590%     50      19      38%
  Other                  6       5       1      20%     26     (20)    -77%
  Allocation of
   shared overheads    100      65      35      54%     87      13      15%
                    ------  ------  ------  ------  ------  ------  ------
                    $  547  $  296  $  251      85% $  471  $   76      16%
                    ======  ======  ======  ======  ======  ======  ======


                           Quarter Ended                Quarter Ended
                             June 30,                    March 31,
                    ------------------------------  ----------------------
                                       Increase                Increase
                     2009    2008     (Decrease)     2009     (Decrease)
                    ------  ------  --------------  ------  --------------
Total Claims
 Administration
  and Provider
   Development
  Total wages,
   incentives and
   benefits         $  980  $  646  $  334      52% $  842  $  138      16%
  Contract labor
   and consulting
   fees                241     250      (9)     -4%    167      74      44%
  Capitalized
   development
   costs              (215)   (203)    (12)      6%   (114)   (101)     89%
  Other                 43      39       4      10%     52      (9)    -17%
  Allocation of
   shared overheads     82      73       9      12%     58      24      41%
                    ------  ------  ------  ------  ------  ------  ------
                    $1,131  $  805  $  326      40% $1,005  $  126      13%
                    ======  ======  ======  ======  ======  ======  ======



                                              Year To Date June 30,
                                        ----------------------------------
                                                              Increase
                                          2009     2008      (Decrease)
                                        -------  -------  ----------------
Claims Administration
  Total wages, incentives and benefits  $ 1,142  $   827  $   315       38%
  Contract labor and consulting fees        289      346      (57)     -16%
  Capitalized development costs            (329)    (284)     (45)      16%
  Other                                      63       58        5        9%
  Allocation of shared overheads            (47)      65     (112)    -172%
                                        -------  -------  -------  -------
                                        $ 1,118  $ 1,012  $   106       10%
                                        =======  =======  =======  =======


                                               Year To Date June 30,
                                        ----------------------------------
                                                              Increase
                                          2009     2008      (Decrease)
                                        -------  -------  ----------------
Provider Development
  Total wages, incentives and benefits  $   680  $   374  $   306       82%
  Contract labor and consulting fees        119       10      109     1090%
  Other                                      32        6       26      433%
  Allocation of shared overheads            187      111       76       68%
                                        -------  -------  -------  -------
                                        $ 1,018  $   501  $   517      103%
                                        =======  =======  =======  =======


                                              Year To Date June 30,
                                        ----------------------------------
                                                              Increase
                                          2009     2008      (Decrease)
                                        -------  -------  ----------------
Total Claims Administration
 and Provider Development
  Total wages, incentives and benefits  $ 1,822  $ 1,201  $   621       52%
  Contract labor and consulting fees        408      356       52       15%
  Capitalized development costs            (329)    (284)     (45)      16%
  Other                                      95       64       31       48%
  Allocation of shared overheads            140      176      (36)     -20%
                                        -------  -------  -------  -------
                                        $ 2,136  $ 1,513  $   623       41%
                                        =======  =======  =======  =======




                    American CareSource Holdings, Inc.
                Selling, General & Administative Expenses
                                (Unaudited)
                                  (000)

                                  Quarter Ended           Quarter Ended
                                     June 30,                March 31,
                           --------------------------- --------------------
                                           Increase             Increase
                            2009   2008   (Decrease)    2009   (Decrease)
                           ------ ------ ------------  ------ ------------
Finance & Administration
  Total wages,
   commissions, incentives
   and benefits            $  453 $  381 $  72     19% $  370 $  83     22%
  Professional fees
   (legal, accounting and
   consulting)                173    103    70     68%    269   (96)   -36%
  Stock-based compensation
   expense                    285    159   126     79%    243    42     17%
  Investor relations costs     64     42    22     52%     72    (8)   -11%
  Recruiting costs             35     76   (41)   -54%     30     5     17%
  Banking fees                 41     31    10     32%     35     6     17%
  Other                        87     89    (2)    -2%     73    14     19%
  Allocation of shared
   overheads                  122    137   (15)   -11%    117     5      4%
                           ------ ------ -----  -----  ------ -----  -----
                           $1,260 $1,018 $ 242     24% $1,209 $  51      4%
                           ====== ====== =====  =====  ====== =====  =====


                                   Quarter Ended           Quarter Ended
                                     June 30,                March 31,
                           --------------------------- --------------------
                                          Increase              Increase
                            2009   2008  (Decrease)     2009   (Decrease)
                           ------ ------ ------------  ------ ------------
Sales & Marketing/Client
 Development
  Total wages,
   commissions, incentives
   and benefits            $  440 $  114 $ 326    286% $  423 $  17      4%
  Professional consulting
   fees                        40     18    22    122%     60   (20)   -33%
  Marketing costs              76     10    66    660%     79    (3)    -4%
  Other                        95     11    84    764%     63    32     51%
  Allocation of shared
   overheads                   70     24    46    192%     67     3      4%
                           ------ ------ -----  -----  ------ -----  -----
                           $  721 $  177 $ 544    307% $  692 $  29      4%
                           ====== ====== =====  =====  ====== =====  =====


                                  Quarter Ended           Quarter Ended
                                     June 30,                March 31,
                           --------------------------- --------------------
                                          Increase              Increase
                            2009   2008  (Decrease)     2009   (Decrease)
                           ------ ------ ------------  ------ ------------
Selling, general and
 administrative expenses
  Total wages,
   commissions, incentives
   and benefits            $  893 $  495 $ 398     80% $  793 $ 100     13%
  Professional fees
   (legal, accounting and
   consulting)                213    121    92     76%    329  (116)   -35%
  Stock-based compensation
   expense                    285    159   126     79%    243    42     17%
  Investor relations costs     64     42    22     52%     72    (8)   -11%
  Recruiting costs             35     76   (41)   -54%     30     5     17%
  Banking fees                 41     31    10     32%     35     6     17%
  Marketing costs              76     10    66    660%     79    (3)    -4%
  Other                       182    100    82     82%    136    46     34%
  Allocation of shared
   overheads                  192    161    31     19%    184     8      4%
                           ------ ------ -----  -----  ------ -----  -----
Total selling, general and
 administrative expenses   $1,981 $1,195 $ 786     66% $1,901 $  80      4%
                           ====== ====== =====  =====  ====== =====  =====




                                              Year To Date June 30,
                                        -----------------------------------
                                                              Increase
                                          2009     2008      (Decrease)
                                        -------- -------- ----------------
Finance & Administration
  Total wages, commissions, incentives
   and benefits                         $    823 $    728 $    95       13%
  Professional fees (legal, accounting
   and consulting)                           442      313     129       41%
  Stock-based compensation expense           528      316     212       67%
  Investor relations costs                   136       62      74      119%
  Recruiting costs                            65       82     (17)     -21%
  Banking fees                                76       58      18       31%
  Other                                      160      142      18       13%
  Allocation of shared overheads             241      273     (32)     -12%
                                        -------- -------- -------  -------
                                        $  2,471 $  1,974 $   497       25%
                                        ======== ======== =======  =======


                                              Year To Date June 30,
                                        -----------------------------------
                                                              Increase
                                          2009     2008      (Decrease)
                                        -------- -------- ----------------
Sales & Marketing/Client Development
  Total wages, commissions, incentives
   and benefits                         $    863 $    236 $   627      266%
  Professional consulting fees               100       18      82      456%
  Marketing costs                            155       13     142     1092%
  Other                                      158       20     138      690%
  Allocation of shared overheads             135       46      89      193%
                                        -------- -------- -------  -------
                                        $  1,411 $    333 $ 1,078      324%
                                        ======== ======== =======  =======


                                              Year To Date June 30,
                                        -----------------------------------
                                                              Increase
                                          2009     2008      (Decrease)
                                        -------- -------- ----------------
Selling, general and administrative
 expenses
  Total wages, commissions, incentives
   and benefits                         $  1,686 $    964 $   722       75%
  Professional fees (legal, accounting
   and consulting)                           542      331     211       64%
  Stock-based compensation expense           528      316     212       67%
  Investor relations costs                   136       62      74      (12)
  Recruiting costs                            65       82     (17)      99
  Banking fees                                76       58      18       40
  Marketing costs                            155       13     142     1092%
  Other                                      318      162     156       96%
  Allocation of shared overheads             376      319      57       18%
                                        -------- -------- -------  -------
Total selling, general and
 administrative expenses                $  3,882 $  2,307 $ 1,575       68%
                                        ======== ======== =======  =======

Contact Information

  • Contact:
    Steven J. Armond
    Chief Financial Officer
    American CareSource Holdings, Inc.
    Tel: 972-308-6847