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Health Revenue Assurance Holdings, Inc. Reports Financial Results for the Second Quarter 2013; Company To Host Earnings Conference Call August 12, 2013

HRAA

Plantation, FL, Aug. 9, 2013 (GLOBE NEWSWIRE) -- Health Revenue Assurance Holdings, Inc. (OTCQB: HRAA), a provider of technology and revenue integrity solutions for healthcare organizations, announced its financial results for the second quarter ended June 30, 2013.

Second Quarter Highlights:

  • Total quarterly revenue of $2,067,464 increased 101% as compared to $1,028,266 for the prior year's second quarter;
  • Gross profit of $1,091,832 at the end of the second quarter of 2013 as compared to a gross profit of $575,033 in the same period of 2012;

"During the second quarter our total revenues more than doubled to $2,067,464, compared to the same period last year as our pipeline for our solutions package, including our revolutionary ICDVisualizerTM, continues to be in demand," stated Andrea Clark, HRAA's Chairman, CEO and Founder. "We had a significant customer win this quarter with the signing of Vanderbilt University Medical Center for our ICD-10 transition services. With over 60 locations and 2,200 clinical provider physicians serving 1.7 million patients annually, VUMC is one of the premier academic medical institutions in Tennessee and Kentucky and will be a benchmark for HRAA's services."

Mrs. Clark continued, "As we near the deadline for ICD-10, we continue to add seasoned professionals to our leadership team. During the quarter, we hired Evan McKeown as our new Chief Financial Officer. Evan is a 25+ year finance veteran in the technology and healthcare industries where he has served in the CFO capacity for more than half his career. We also recently added Peter Russo and Michael Brainerd as new members to our Board of Directors. Peter is the former CFO of magicJack and Michael is an experienced corporate strategist. We are confident their financial experience and industry knowledge are perfect fits for our Company as we continue to meet the increasing demands placed on health systems by the upcoming ICD-10 deadline."

Second Quarter 2013 Financial Results

For the second quarter of 2013, total revenues were $2,067,464, an increase of $1,039,198 or 101%, from revenues of $1,028,266 for the second quarter of 2012.

Operating expenses were $1,960,844 for the second quarter of 2013, compared to $1,081,133 for the prior year's second quarter. The increase in operating expenses is due to increased SG&A expenses as the company increased its staff from 75 employees to 115. The Company had an operating loss in the second quarter of 2013 of $(869,012), compared to an operating loss of $(506,100) for the prior year's second quarter.

The Company recorded a net loss of $(1,097,061), or $(0.02) per basic and diluted share, for the second quarter of 2013, as compared to a net loss of $(511,022), or $(0.01) per basic and diluted share, for the second quarter of 2012.

Conference Call

The Company will be holding a conference call on Monday, August 12, 2013, at 8:00AM ET (5:00AM PT) to review the first quarter 2013 results.

Robert Rubinowitz, President and Chief Operating Officer and Evan McKeown, Chief Financial Officer of Health Revenue Assurance Holdings, Inc., will be on-line to discuss these results.

To listen in, please call one of the following teleconferencing numbers at least 5 minutes before the conference call commences.

Toll-Free: 888-516-2411

Toll: 719-457-2693

Passcode: 163147

A telephone replay of the call will be available by contacting HRAA's office at 1-954-472-2340.

About HRAA

HRAA (OTCQB: HRAA) interprets data to ensure that healthcare is efficient and effective for everyone by pulling medical data together to create a predictive window to understand cost and revenues looking back and going forward.Founded in 2001 and based out of Plantation, FL, HRAA combines years of industry expertise with best-in-breed technology to create market leading business intelligence products and consulting services to ensure hospitals are reimbursed for every pill they prescribe, every procedure they perform and every test they administer. HRAA both trains and supplies the high tech workforce to hospitals to generate the predictive data used by the whole healthcare system and offers a full suite of solutions needed to keep up with the ever-changing healthcare industry including data analytics software, business intelligence technology, medical coding, auditing, education, revenue cycle consulting, and ICD-10 transition solutions. For more information please visit: http://www.hraa.com

Caution Regarding Forward Looking Statements

Certain statements in this news release and such conference call are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, growing revenues and profits through organic growth and acquisitions, attracting new business that will increase HRAA's revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of HRAA's selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in HRAA's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.

-Tables Follow-

HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, Dec 31,
2013 2012
(unaudited)
Assets
Cash $ 171,183 $ 893,458
Accounts receivable 1,510,690 1,246,814
Prepaid expenses 91,270 3,600
Other current assets 12,831 688
Total Current Assets 1,785,974 2,144,560
Property and Equipment, net 411,120 365,017
Software 940,305 258,933
Other assets 8,865 8,871
Finance costs, net 2,313 2,477
Total Other Assets 951,483 270,281
Total Assets $ 3,148,577 $ 2,779,858
Liabilities and Stockholders' Equity
Accounts payable $ 338,296 $ 207,741
Due to officer 75,000 75,000
Accrued expenses 136,152 64,077
Accrued payroll 641,621 412,186
Loan payable to factor 552,439 827,075
Accrued interest -- 4,524
Lines of credit, current portion 74,791 25,000
Capital Leases, current portion 21,972 16,923
Notes payable, current portion, net of discount 574,718 202,557
Long term debt, current portion 32,610 37,513
Settlement Payable 23,056 115,278
Total Current Liabilities 2,470,655 1,987,874
Capital Leases (net of current portion) 30,565 23,974
Line of credit (net of current portion) 111,637 125,000
Notes payable (net of current portion), net of discount 287,355 273,751
Long term debt (net of current portion) 168,029 181,457
Total Liabilities $ 3,068,241 $ 2,592,056
Stockholders' Equity:
Common stock ($0.001 par value, 75,000,000 shares authorized, 46,511 39,055
46,511,409 shares and 39,054,867 issued and outstanding at
June 30, 2013 and December 31, 2012, respectively)
Additional paid-in capital 4,150,511 2,738,545
Subscription receivable -- (5,000 )
Accumulated deficit (4,116,686 ) (2,584,798 )
Total Stockholders' Equity 80,336 187,802
Total Liabilities and Stockholders' Equity $ 3,148,577 $ 2,779,858

HEALTH REVENUE ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(for the three months ended)
June 30, June 30,
2013 2012
Revenues $ 2,067,464 $ 1,028,266
Cost of Revenues _975,632 453,233
Gross Profit 1,091,832 575,033
Operating Expenses
Selling and administrative expenses 1,941,675 1,047,334
Research and development -- 20,920
Depreciation and amortization 19,169 12,879
Total Operating Expenses 1,960,844 1,081,133
Operating Loss (869,012 ) (506,100 )
Other Income (Expense)
Other income, net 635 --
Interest expense (228,684 ) (4,922 )
Total Other Income (Expense), net (228,049 ) (4,922 )
Loss before provision for income taxes (1,097,061 ) (511,022 )
Provision for income taxes -- --
Net Loss $ (1,097,061 ) $ (511,022 )
Net Loss Per Share
basic and diluted $ (0.02 ) $ (0.01 )
Weighted Average Number of Shares Outstanding
basic and diluted 45,422,517 35,229,195

CONTACT: Investor Contacts: KCSA Strategic Communications Philip Carlson / Alex Woodbury +1 212.896.1233 / +1 212.896.1267 pcarlson@kcsa.com / awoodbury@kcsa.com

Source:Health Revenue Assurance Associates, Inc.