| Medicode, Inc. | |||
| Proposed Ticker: | MECD | 5225 Wiley Post Way, Suite 500 | |
| Exchange: | NASDAQ-National Market | Salt Lake City, UT 84116 | |
| Industry: | High-Tech (SIC Code 7371) | (801) 536-1000 | |
| # of Employees: | 218 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/24/97 | |
| U.S. Shares Filed: | 2,000,000 | Filing Range: | $12.00 - $14.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $26,000,000 | |
| Primary Shares: | 2,000,000 | Expenses: | - | |
| Secondary Shares: | 0 | Shares Out After: |
| Manager | Tier | Phone |
| Robertson, Stephens & Company | Lead Manager | (415) 989-8500 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| Wessels, Arnold & Henderson | Co-manager | (612) 373-6105 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
| Auditor: | Ernst & Young |
| Registrar/Transfer Agent: | Norwest Bank of Minnesota |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $32.62 | $13.99 | $11.81 | Assets: | $9.61 |
| Net Income: | $1.63 | $0.28 | -$0.23 | Curr Assets: | $8.09 |
| EPS: | $0.30 | $0.05 | Liabilities: | $7.13 | |
| Prior EPS: | $3.35 | $1.61 | Curr Liabilities: | $6.96 | |
| Cash Flow/Oper: | $3.21 | -$0.68 | -$0.90 | Equity: | $2.47 |
| Cash Flow/Fin: | -$0.75 | -$0.52 | -$0.58 | Cash: | $5.19 |
| Cash Flow/Inv: | -$0.82 | -$0.52 | Working Cap: | $1.13 | |
| Business Description |
| The company is the leading provider of health care information products which reduce administrative costs associated with the reimbursement process, control clinical costs and increase the efficiency of the health care delivery process. The Company's products are used by payors, providers and self-insured employers to (i) accurately code and measure utilization of health care services, (ii) screen and edit claims for accuracy, consistency and compliance, (iii) efficiently evaluate, negotiate and implement provider payment arrangements, and (iv) track and analyze all aspects of care for a particular medical condition from initial diagnosis to treatment. The foundation for the company's solutions is its proprietary database of over 500 million geographically dispersed ambulatory patient care records, which is leveraged through the Company's clinical and technical expertise in data collection, mapping and analysis. |
| Competition |
| The health care information systems market is intensely competitive. The Company believes that the principal competitive factors in the market include the breadth and quality of system and product offerings, access to proprietary data, the proprietary nature of methodologies and technical resources, and the price and the effectiveness of marketing and sales efforts. Many of the Company's existing and potential competitors have significantly greater financial, technical, product development and marketing resources than the Company. Competitors vary in size and in the scope and breadth of the products and services offered, and the Company's products compete with various products in their relevant markets. The Company's potential competitors include specialty health care information companies, health care information systems companies, software vendors and large data processing and information companies. The Company also competes with the internal information resources and systems of certain of its prospective and existing customers. Furthermore, other major information companies not presently offering clinical health care information services may enter the markets in which the Company competes. There can be no assurance that future competition will not have a material adverse effect on the Company's business, financial condition or results of operations. |
| Business Plan |
| Key elements of the company's growth strategy include: (I) Develop and Market New Products Based on Database and Database Management Expertise, (ii) Leverage Large Customer Base, (iii) Target Provider and Self-Insured Employer Segments, (iv) Target Larger Customers, (v) Emphasize Repeat and Recurring Revenue and (vi) Acquire Complementary Products and Businesses. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used working capital and for general corporate purposes. |
| Officer Name | Title | Age |
| Thomas F. Stephenson | Chairman of the Board of Directors | 55 |
| Kevin W. Pearson | Chief Operating Officer, Chief Financial Officer, Treasurer and Secretary | 40 |
| Jerold G. Seare, M.D. | Medical Director | 48 |
| Eugene Santa Cattarina | President, Chief Executive Officer and Director | 50 |
| Terry L. Cameron | Senior Vice President, Provider Group | 31 |
| Eileen Shanon | Senior Vice President, Purchaser and Payor Group | 48 |
| Thomas R. Martin | Senior Vice President, Software Development | 43 |
| Kevin M. Marcum | Senior Vice President, Syndicated Data Group | 36 |