Businessweek

Healthways Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the period, the company reported revenues of $165,165,000 against $165,218,000 for the same period in the last year. Operating loss was $2,723,000 against $929,000 for the same period in the last year. Loss before income taxes was $6,044,000 against $4,116,000 for the same period in the last year. Net loss was $3,949,000 or $0.12 per basic and diluted share against $2,665,000 or $0.08 per basic and diluted share for the same period in the last year. Net cash flows provided by operating activities were $26,029,000 against net cash flows used in operating activities of $11,574,000 for the same period in the last year. Acquisition of property and equipment (capital expenditures) was $11,264,000 against $15,085,000 for the same period in the last year. Free cash flow contributed to a $21.5 million net debt reduction from the end of 2012. Based on the company's first quarter financial and operating results and its outlook for the remainder of 2013, the company affirmed its previously issued financial guidance for 2013. The company's guidance for 2013 revenues is a range of $710 million to $750 million. This range represents a 5% to 11% increase over 2012 revenues, despite reduced revenues of approximately $80 million in 2013, as compared to 2012, from the two terminated contracts. The company expects its revenues to grow sequentially throughout 2013, particularly in the second half of the year. This sequential growth is driven primarily by the significant contracts signed in 2012 that are expected to ramp for as long as 24 to 36 months before reaching an average target revenue run rate. In addition, a vast majority of the company's performance-based revenue for 2013 is expected to be recognized in the second half of the year. As previously discussed, the company expects its existing contract base at the end of 2012 to produce revenue growth for 2014 over 2013 of more than $85 million, before considering any future contract wins or losses. The company continues to expect to produce net cash flows from operations of $70 million to $80 million for 2013, with anticipated capital expenditures of $45 million. The company's guidance for 2013 EBITDA margin remains in a range of 10.5% to 12.5%, compared to an EBITDA margin of 11.9% for 2012. In addition to the impact of the two terminated contracts, the company's EBITDA margin guidance reflects the fact that, for many of the large contracts signed during 2012, implementation costs are incurred ahead of the revenue ramp anticipated during 2013. As a result of these dynamics, the company expects expansion in EBITDA margin through the sequential quarters of 2013. The company's guidance for 2013 net income per diluted share remains in the range of $0.25 to $0.35. Consistent with guidance for 2013 EBITDA, the company expects net income per diluted share to ramp through the sequential quarters of 2013, including a net loss of approximately $0.05 per share for the second quarter of the year before returning to profitability in the third quarter.

Sul América SA announced a five-year strategic agreement with Healthways Inc. This collaboration in Brazil allows Healthways access to more than 1.5 million of SulAmérica's adult members and establishes SulAmérica's growth platform as the premier driver of well-being and performance improvement for employers and individuals in Brazil. Beginning in the second quarter of 2013, Healthways will serve the large population ever managed in one single contract in Brazil and Latin America. The five-year contract is also the first model between a U.S. company and a Brazilian health insurer designed to actively manage and improve a population's health and well-being. Initially, the focus of services will be a comprehensive assessment of the health and well-being of a significant portion of the SulAmérica population. During 2013, the two companies will jointly develop a progression plan for the implementation of additional elements of the Healthways Well-Being Improvement Solution (WBIS).

Healthways Inc., Q1 2013 Earnings Call, Apr 18, 2013

Healthways Inc. announced that they will report Q1, 2013 results at 5:00 PM, Eastern Standard Time on Apr 18, 2013

Healthways Inc. Presents at Barclays Global Healthcare Conference, Mar-13-2013 09:30 AM. Venue: Lowes Miami Hotel, Miami, Florida, United States. Speakers: Ben R. Leedle, Chief Executive officer, President and Executive Director.