HMS Holdings Corp HMSY
Q4 2011 Earnings Call Transcript

Transcript Call Date 02/17/2012

Operator: Good morning. My name is Evelyn Jacobs and I will be your conference operator today. At this time, I would like to welcome everyone to the HMS Holdings Corp Fourth quarter and Full Year 2011 Earnings Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Before we begin, let me remind you that some of the information presented today, regarding the company's future expectations, plans and prospects, are considered forward-looking statements under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations, and the actual events may differ materially from those expectations. We refer you to the company filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly report on Form 10-Q, which identify important risk factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. The company disclaims any intent or obligation to update any forward-looking statements as a result of developments occurring after today's call.

During this call, the company will also be referring to several non-GAAP measures. The press release issued this morning, includes a reconciliation of these measures to GAAP measures and is available on the Investor Relations tab of the company's website.

Thank you. Mr. Lucia, you may begin your conference.

William C. Lucia - President and CEO: Thank you, Evelyn. Good morning everyone. It's a pleasure to have you join our fourth quarter and full year 2011 earnings call. I'm Bill Lucia, CEO of HMS Holdings. I'll be hosting the call along with Walter Hosp, our CFO.

Our fourth quarter revenue was $99.7 million, up 14.3% year-over-year. For the full year, revenue was up 20.1% over 2010 and GAAP EPS increased 17.1% over the full year to $0.55 per share. After adjusting for HDI related transaction items, GAAP EPS was up 27.7%, $0.60 per diluted common share. Our accomplishments this quarter and throughout 2011 proved once again the growing need for HMS's cost containment services across all of our markets. We are pleased to have made significant strategic progress and our multiyear growth plan, including the transformational acquisition of HealthDataInsights or HDI. We are also affirming our prior 2012 guidance of $520 million of revenue and $0.98 of adjusted EPS. To start off this morning, Walter will take you through our Q4 and full year financial results. Then, I will briefly provide an overview of the quarter and the year. Then, we will take your questions. Walter?

Walter D. Hosp - SVP and CFO: Thank you, Bill, and good morning, everyone. I will walk through our fourth quarter 2011 results first and then turn to the full year results. Revenues for the fourth quarter of 2011 increased 14.3% year-over-year to $99.7 million. This included $2.2 million of revenue from the acquisition of HDI from December 16th through the 31st which we will refer to as the HDI stub period. Excluding this HDI stub period, revenue for the quarter was $97.5 million, up 11.8% over the prior year and $1.3 million below the implied revenue guidance for the quarter.

Read our Earnings Call Transcript disclaimer.
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