OREM, Utah, Nov. 12, 2014 (GLOBE NEWSWIRE) -- ActiveCare Inc. (OTCBB:ACAR), a provider of diabetes management and wellness services for self-insured employers nationwide, today reported restated financial results for the fiscal year ended September 30, 2013 and the quarterly periods ended December 31, 2013, March 31, 2014 and 2013, and June 30, 2014 and 2013.
Michael Z. Jones, CEO of ActiveCare, stated, "Our revenues as restated for nine months ended June 30, 2014 indicate 25% growth when compared to the same period in the prior year. We continue to increase the number of members in our programs who have been diagnosed with diabetes."
Restated Financial Results for Fiscal Year 2013
The Company reported that total revenues decreased by $5,500,000 for fiscal year 2013 from $11,400,000 as previously reported to $5,900,000 as restated. The restatement of revenues was necessary to correct the accounting related to revenue recognition for the Chronic Illness Monitoring segment. The Company determined it was better practice to defer recognition of revenue until the products are shipped to the end users as opposed to the distributors, even though the distributors had taken title to the products and there were no significant rights of return. The recognition of revenue is deferred until later periods and cash flows related to these transactions are not impacted. See below for the changes to quarterly revenue.
The Company also reported the following changes for fiscal year 2013 in connection with the deferral of revenue recognition:
- Gross profit decreased by $1,506,000 from $1,764,000 to $258,000.
- Net loss attributable to common stockholders increased by $1,506,000 from $25,952,000 to $27,458,000.
Restated Financial Results for the Nine Months Ended June 30, 2014
The Company reported that total revenues increased by $1,100,000 for the nine months ended June 30, 2014 from $4,300,000 as previously reported to $5,400,000 as restated. The adjustments to increase revenues were made to correct the accounting related to revenue recognition for the Chronic Illness Monitoring segment as described above.
The Company also reported the following changes for the nine months ended June 30, 2014 in connection with the deferral of revenue recognition:
- Gross deficit decreased by $159,000 from $672,000 to $513,000.
- Net loss attributable to common stockholders decreased by $159,000 from $13,318,000 to $13,159,000.
Restated Revenue Comparisons for the Company's Chronic Illness Monitoring Segment
For fiscal year 2013, the Company reported Chronic Illness Monitoring revenues of $4,245,000 compared to $707,000 for fiscal year 2012. The increase is due to significant new customers during fiscal year 2013.
For the first quarter of fiscal year 2014, or the three months ended December 31, 2013, the Company reported Chronic Illness Monitoring revenues of $2,010,000 compared to $1,953,000 for the first quarter of fiscal year 2013. The increase of $57,000, or 3%, is due to sales to existing customers.
For the second quarter of fiscal year 2014, or the three months ended March 31, 2014 the Company reported Chronic Illness Monitoring revenues of $1,037,000 compared to $605,000 for the second quarter of fiscal year 2013. The increase of $432,000, or 71%, is primarily due to sales to new customers.
- For the third quarter of fiscal year 2014, or the three months ended June 30, 2014 the Company reported Chronic Illness Monitoring revenues of $1,540,000 compared to $1,099,000 for the third quarter of fiscal year 2013. The increase of $441,000, or 40%, is due to sales to new and existing customers and improving our services.
ActiveCare, Inc. provides patented diabetes and chronic disease management and wellness solutions that increase visibility, lower costs and provide real-time care for members resulting in improved outcomes. Utilizing state-of-the-art meters with embedded cellular technology, trained CareSpecialists can intervene in real-time and provide members with the support needed to control their disease 24 hours a day, every day. Headquartered in Orem, Utah and publicly traded on the OTC Bulletin Board under the symbol ACAR, ActiveCare's solution is revolutionizing the way employers, individuals and their health plans monitor chronic disease. To learn more about ActiveCare, Inc., visit the website at www.activecare.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, regulatory uncertainty and economic pressure on the healthcare industry in particular, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with assimilating our recent acquisitions. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.
CONTACT: Company Contact: Bryan Dalton, Director of Market Strategies ActiveCare, Inc. (877) 862-5545 Investor Relations: Capital Markets Group, LLC (212) 398-3486
Released November 12, 2014