|By Business Wire||
|March 12, 2014 10:21 AM EDT||
Accretive Health, Inc. (NYSE:AH) today announced that following discussions with its independent auditors, the Company has determined that although its work associated with its financial restatement is substantially complete, it has taken longer than anticipated and more time is needed. As a result, the Company will not be in a position to complete its financial restatement by the previously disclosed March 19, 2014 New York Stock Exchange (NYSE) deadline to file its Annual Report on Form 10-K with the Securities and Exchange Commission (SEC).
Accretive Health has made substantial progress on its Form 10-K for the year ended December 31, 2013, including the financial statements for the years ended December 31, 2013 and 2012 and the restated financial statements for the year ended December 31, 2011, on which audits are underway. The Company is currently in the process of working with its auditors to complete the audits as soon as possible.
As a result, the Company expects to receive a delisting determination letter from the NYSE indicating that the Company’s common stock will be suspended from trading on the NYSE effective prior to the opening of the market on March 17, 2014. Immediately following the suspension of NYSE listing, the Company expects that trading will continue uninterrupted through the facilities of the OTC Markets Group Inc. The Company has provided information regarding the market change in the FAQ section of its investor relations website.
The Company continues to expect the restatement will have no net impact on total cash flows in any reporting period, or on the Company’s cash balance. The Company’s cash and cash equivalents as of December 31, 2013 were approximately $228 million. The Company had no debt outstanding as of December 31, 2013.
“While we are disappointed with the delay, we continue our relentless mission to deliver outstanding service to our clients. We have used this time to strengthen our value proposition and enhance our client focus, including increasing our investment in IT and reinforcing our front-line teams. We are moving our entire organization forward to help provider clients optimize their financial performance, in the face of ongoing industry change, to ensure the sustainability of their missions,” said Steve Schuckenbrock, president and chief executive officer of Accretive Health. “I have every confidence in our ability to complete the necessary work to file our restatement and regain our stock exchange listing. I would like to acknowledge all Accretive Health employees, our auditors, and advisors for their extensive work and contributions to the restatement process, and thank our clients and our shareholders for their continued patience as we work to complete this process.”
As previously disclosed, the Company’s Audit Committee on March 4, 2013 determined that the Company will restate its financial statements to correct errors related to the timing of revenue recognition under a significant number of its revenue cycle management agreements. The Company subsequently determined that a significant portion of the base fee revenues from its revenue cycle management agreements should have been presented in the Company’s previously reported financial statements net of associated operating costs rather than based on the gross amount of base fees billed to clients. In the Company’s Form 12b-25 filed with the SEC on March 4, 2014, it disclosed it has also reviewed its capitalization of internally developed software and has determined that a portion should have been expensed as incurred rather than initially capitalized and subsequently amortized to expense in later periods. Accordingly, the Company will revise its financial statements to correct these errors.
Accretive Health has taken substantial steps over the past year to position the Company to capture additional growth opportunities within the dynamic U.S. healthcare marketplace. In January 2014, the Company implemented a strategic restructuring plan to reduce costs, improve resource efficiency and enhance organizational effectiveness. The Company believes this plan will further strengthen its ability to help provider clients optimize their financial performance to ensure the sustainability of their patient care missions.
The Company has initiated a number of strategic initiatives based on direct feedback from clients to more effectively allocate the necessary resources to enhance client service and drive growth and innovation. To date, the Company has made progress across the following areas:
- Strengthening front-line teams – The Company is redeploying corporate resources to its front-line teams at client sites, including the relocation of resources closer to clients, to enhance execution and client engagement. As part of this initiative, the Company has also launched a certification process for on-site employees to ensure that they are providing best-in-class support and services.
- Increasing investment in IT – As part of its initiative to enhance client service, the Company is investing over one-third of its 2014 IT budget in technologies to enable it to more seamlessly integrate with clients’ existing technologies. The Company plans to continue to deploy resources to bolster its already robust IT infrastructure to drive additional value for clients. In February 2014, the Company hired Patrick Funck as Chief Information Officer, an industry veteran with 25 years of experience.
- Simplifying the measurement model – The Company has made progress in simplifying its model to measure results for clients, and will provide a further update upon the completion of its restatement.
- Improving the consistency of results for clients – The Company has developed a more rigorous and systematic approach to gather and apply the insights it gains from daily operations across the entire client base. The Company intends to leverage this scale and depth to drive innovation and standardize processes to create a best-in-class operating system.
- Boosting sales and marketing efforts – New business development remains a priority at Accretive Health, and the Company has continued to expand its sales force with the addition of new sales personnel in recent months. The Company is also integrating its marketing effort and has launched a new client website. In addition, it has integrated its AccretivePAS clinical sales capabilities with its revenue cycle sales organization to offer clients multiple paths to engage with Accretive Health’s core business.
About Accretive Health
At Accretive Health, our mission is to partner with healthcare communities to serve as a catalyst for a healthier future for all. For more information, visit www.accretivehealth.com.
This press release contains forward-looking statements, including the Company’s statements regarding its ability to complete its restatement and make required SEC filings, the anticipated consequences of the restatement of the Company’s financial statements described above, and statements regarding the Company’s strategic initiatives. All forward-looking statements contained in this press release involve risks and uncertainties. Our actual results and outcomes could differ materially from those anticipated in these forward-looking statements as a result of various factors, including the possibility that any restatement that may be required could have unanticipated consequences and the factors set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed with the SEC on November 8, 2012, under the heading “Risk Factors”. The words “strive,” “objective,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected.
All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The Company cautions readers not to place undue reliance on any forward-looking statement that speaks only as of the date made and to recognize that forward-looking statements are predictions of future results, which may not occur as anticipated. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the uncertainties and factors described above, as well as others that the Company may consider immaterial or does not anticipate at this time. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, the Company does not know whether its expectations may prove correct. The Company’s expectations reflected in its forward-looking statements can be affected by inaccurate assumptions it might make or by known or unknown uncertainties and factors, including those described above. The risks and uncertainties described above are not exclusive, and further information concerning the Company and its business, including factors that potentially could materially affect its financial results or condition or relationships with customers and potential customers, may emerge from time to time. The Company assumes no, and it specifically disclaims any, obligation to update, amend, or clarify forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements. The Company advises investors, however, to consult any further disclosures it makes on related subjects in our periodic reports that it files with or furnishes to the SEC.
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
Oct. 25, 2016 02:00 AM EDT Reads: 579
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
Oct. 25, 2016 01:15 AM EDT Reads: 1,402
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Oct. 25, 2016 01:15 AM EDT Reads: 1,016
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Oct. 25, 2016 01:15 AM EDT Reads: 4,028
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
Oct. 25, 2016 01:15 AM EDT Reads: 3,607
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 25, 2016 12:30 AM EDT Reads: 938
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Oct. 25, 2016 12:15 AM EDT Reads: 1,854
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Oct. 25, 2016 12:00 AM EDT Reads: 4,176
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
Oct. 25, 2016 12:00 AM EDT Reads: 4,059
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 24, 2016 11:45 PM EDT Reads: 1,982
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Oct. 24, 2016 11:15 PM EDT Reads: 3,852
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Oct. 24, 2016 11:00 PM EDT Reads: 2,016
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 24, 2016 09:45 PM EDT Reads: 1,377
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Oct. 24, 2016 08:45 PM EDT Reads: 1,042
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
Oct. 24, 2016 08:30 PM EDT Reads: 1,349