8-K 1 y83089e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Current Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Dated of Report (date of earliest event reported) January 31, 2003 Health Management Systems, Inc. (Exact name of registrant as specified in its charter) New York 0-20946 13-2770433 State of Incorporation Commission File (I.R.S. Employer Number Identification Number) 401 Park Avenue South, New York, New York 10016 (Address of principal executive offices, zip code) (212) 685-4545 (Registrant's telephone number, including area code) Not Applicable (Former name, former address, and former fiscal year, if changed since last report.) Item 5. Other Events. On January 31, 2003, the Company made the announcement contained in the press release furnished as Exhibit 99.1 to the Current Report. Item 7. Financial Statements and Exhibits (c) Exhibits 99.1 Press Release dated January 31, 2003 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: January 31, 2003 HEALTH MANAGEMENT SYSTEMS, INC. ------------------------------ (Registrant) By: /s/ William F. Miller III ------------------------------------- William F. Miller III Chairman and Chief Executive Officer (Principal Executive Officer) By: /s/ Philip Rydzewski ------------------------------------- Philip Rydzewski Chief Financial Officer (Principal Financial Officer and Accounting Officer)

Historical HMS Pro Forma Pro Forma July 31, 2001 Adjustments Consolidated -------------- ----------- ------------- Assets Current assets: Cash and cash equivalents $ 15,783 $ (9,196)(b) $ 24,979 Short term investments 4,675 - 4,675 Accounts receivable, net 17,228 2,941 (a) 14,287 Prepaid expenses and other current assets 4,548 383 (a) 4,165 ---------- ---------- --------- Total current assets 42,234 (5,872) 48,106 Property and equipment, net 4,895 1,231 (a) 3,664 Capitalized software costs 7,452 5,447 (a) 2,005 Goodwill, net 7,160 - 7,160 Deferred income taxes, net 11,086 - 11,086 Other assets 1,894 11 (a) 1,883 ---------- ---------- --------- Total assets $ 74,721 $ 817 $ 73,904 ========== ========== ========= Liabilities & stockholders' equity Current liabilities: Accounts payable and accrued expenses $ 11,718 $ 2,035 (a) $ 10,383 (700)(c) Deferred revenue 2,715 2,715 (a) - Net liabilities of discontinued operations 835 - 835 ---------- ---------- --------- Total current liabilities 15,268 4,050 11,218 Other liabilities 1,039 - 1,039 ---------- ---------- --------- Total liabilities 16,307 4,050 12,257 ---------- ---------- --------- Stockholders' equity: Common stock 192 - 192 Capital in excess of par 72,945 - 72,945 Accumulated deficit (5,650) (3,233)(d) (2,417) Accumulated other comprehensive loss (51) - (51) Treasury stock (8,300) - (8,300) Note receivable from sale of stock (722) - (722) ---------- ---------- --------- Total stockholders' equity 58,414 (3,233) 61,647 ---------- ---------- --------- Total liabilities & stockholders' equity $74,721 $ 817 $ 73,904 ========== ========== =========

Historical HMS Pro Forma nine months ended Adjustments Pro Forma July 31, 2001 Note (a) Consolidated ------------------ ------------- ------------ Revenue $ 62,129 $ 16,921 $ 45,208 Cost of services: Compensation 34,484 8,262 26,222 Data processing 7,074 2,272 4,802 Occupancy 6,218 1,274 4,944 Direct project costs 9,259 1,050 8,209 Other operating expenses 7,514 1,491 6,023 Restructuring costs 785 -- 785 Amortization of intangibles 264 -- 264 -------- -------- -------- 65,598 14,349 51,249 -------- -------- -------- Operating income (loss) (3,469) 2,572 (6,041) Other income: Gain of sale of assets 1,614 -- 1,614 Interest income, net 582 14 568 -------- -------- -------- Total other income 2,196 14 2,182 -------- -------- -------- Income (loss) before income taxes (1,273) 2,586 (3,859) Income tax (benefit) expense (463) 984 (1,447) -------- -------- -------- Income (loss) from continuing operations $ (810) $ 1,602 $ (2,412) ======== ======== ======== Loss per common share data: Basic and diluted $ (0.04) $ (0.14) ======== ======== Weighted average common shares outstanding: Basic and diluted 17,694 17,694 ======== ========

Historical HMS Pro Forma for the year ended Adjustments Pro Forma October 31, 2000 Note (a) Consolidated ---------------- ----------- ------------ Revenue $ 98,087 $ 21,781 $ 76,306 Cost of services: Compensation 62,986 11,098 51,888 Data processing 4,488 2,221 2,267 Occupancy 10,788 1,869 8,919 Direct project costs 11,187 1,256 9,931 Other operating expenses 11,389 2,049 9,340 Restructuring costs 3,483 -- 3,483 Amortization of intangibles 948 -- 948 --------- -------- -------- 105,269 18,493 86,776 --------- -------- -------- Operating income (loss) (7,182) 3,288 (10,470) Other income: Interest income, net 1,158 47 1,111 --------- -------- -------- Income (loss) before income taxes (6,024) 3,335 (9,359) Income tax (benefit) expense (2,563) 1,417 (3,980) --------- -------- -------- Income (loss) from continuing operations $ (3,461) $ 1,918 $ (5,379) ========= ======== ======== Loss per common share data: Basic and diluted $ (0.20) $ (0.31) ======== ======== Weighted average common shares outstanding: Basic and diluted 17,467 17,467 ======== ========

Historical HMS Pro Forma for the year ended Adjustments Pro Forma October 31, 1999 Note (a) Consolidated ------------------ ------------ ------------- Revenue $ 114,055 $ 21,829 $ 92,226 Cost of services: Compensation 64,253 12,307 51,946 Data processing 6,746 1,524 5,222 Occupancy 9,377 1,908 7,469 Direct project costs 11,214 681 10,533 Other operating expenses 11,328 3,072 8,256 Amortization of intangibles 840 -- 840 -------- ------- ------ 103,758 19,492 84,266 -------- ------- ------ Operating income 10,297 2,337 7,960 Other income: Interest income, net 1,277 13 1,264 -------- ------- ------ Income before income taxes 11,574 2,350 9,224 Income tax expense 4,091 930 3,161 -------- ------- ------ Income from continuing operations $ 7,483 $ 1,420 $ 6,063 ======= ======== ======= Earnings per common share data: Basic $ 0.43 $ 0.35 ======= ====== Diluted $ 0.43 $ 0.35 ======= ====== Weighted average common shares outstanding: Basic 17,357 17,357 ======= ======= Diluted 17,419 17,419 ======= =======

Historical HMS Pro Forma for the year ended Adjustments Pro Forma October 31, 1998 Note (a) Consolidated ------------------- ----------- ------------ Revenue $ 105,252 $ 24,451 $ 80,801 Cost of services: Compensation 59,288 13,478 45,810 Data processing 8,771 2,004 6,767 Occupancy 9,663 1,841 7,822 Direct project costs 5,068 - 5,068 Other operating expenses 12,838 4,231 8,607 Amortization of intangibles 1,964 - 1,964 ---------- ---------- --------- 97,592 21,554 76,038 ---------- ---------- --------- Operating income 7,660 2,897 4,763 Other income: Interest and other income, net 2,297 617 1,680 ---------- ---------- --------- Income before income taxes 9,957 3,514 6,443 Income tax expense 3,869 1,468 2,401 ---------- ---------- --------- Income from continuing operations $ 6,088 $ 2,046 $ 4,042 ========== ========== ========= Earnings per common share data: Basic $ 0.35 $ 0.23 ========== ========= Diluted $ 0.34 $ 0.23 ========== ========= Weighted average common shares outstanding: Basic 17,366 17,366 ========== ========= Diluted 17,833 17,833 ========== =========

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