Company Also Announces New Business
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TAMPA, Fla.--(BUSINESS WIRE)--Aug. 12, 2003--PlanVista Corporation
(OTCBB:PVST), which provides medical cost containment and business
outsourcing solutions to the medical insurance and managed care
industries, today reported net income of $0.5 million for the quarter
ended June 30, 2003, including a previously-announced after-tax
expense of $0.7 million for costs related to a transaction with
ProxyMed, Inc. and severance pay, compared to net income of $1.2
million during the same period in 2002. Adjusted for the ProxyMed
expense and severance pay, net income for the quarter ended June 30,
2003 would have been $1.2 million.

Financial Results

The Company reported operating revenue of $7.9 million for the
second quarter, compared to $8.5 million for the same period in 2002.
Income before income taxes totaled $0.8 million in the second quarter
of 2003, compared to $1.5 million for the second quarter of 2002. For
the quarter ended June 30, 2003, net income totaled $0.5 million
($0.03 per diluted common share), compared to $1.2 million ($0.07 per
diluted common share) during the second quarter of 2002. The Company's
EBITDA(i) (a non-GAAP measure defined as earnings before interest,
taxes, depreciation and amortization) for the second quarter of 2003
was $1.6 million ($2.6 million excluding the ProxyMed expenses and
severance pay referenced above), compared to $2.8 million for the same
period in 2002 and $2.7 million during the first quarter of 2003.
For the six months ended June 30, 2003, the Company reported
operating revenue of $15.9 million, compared to $16.4 million for the
same period in 2002. Income before income taxes totaled $2.6 million
for the six months ended June 30, 2003, compared to $1.2 million for
the same period in 2002. For the six months ended June 30, 2003, net
income totaled $2.0 million ($0.11 per diluted common share), compared
to $1.8 million ($0.11 per diluted common share) for the 2002 period.
The Company's EBITDA(i) (as defined above) for the first six months of
2003 was $4.3 million ($5.2 million excluding the ProxyMed expenses
and severance pay referenced above), compared to $5.3 million for the
same period in 2002.
The 2003 results include previously-announced pre-tax expenses
totaling $1.0 million taken in the second quarter of 2003, which
relate to the agreement with ProxyMed ($0.9 million) and severance pay
($0.1 million). The amount relating to ProxyMed includes a non-cash
expense of $0.5 million for a warrant issued to ProxyMed that will
allow for the purchase of 15% of the Company's common stock for $1.95
per share if exercised, as well as cash payments totaling $0.4 million
over the first six months of the agreement for exclusivity and for
various data services.
"While we are disappointed with the absence of growth in revenues
compared to the prior year, we are pleased that the level of sales is
relatively stable as we continue our efforts to improve our balance
sheet and capital structure," said Phillip S. Dingle, PlanVista's
Chairman and Chief Executive Officer. "We continue to believe we are
better positioned to penetrate the payer market, because of our
continued enhancement of our core and new business products and the
support of our new financial partners. Our expected new revenue of up
to $5 million from new business since March 2003 reflects that
positioning. In addition, we are excited about the potential new
business from our relationship with ProxyMed. ProxyMed is the second
largest healthcare transaction processing business in the United
States. Our out-of-network claims repricing services have been
packaged with ProxyMed's core transaction processing business, and we
believe that ProxyMed's customers will be receptive to this
value-added product offering."

Business Highlights

The Company announced that since March 2003, it has sold new
business which is expected to contribute up to $5.0 million in revenue
in 2003. The new customers include American Republic Insurance
Company, HealthScope Benefits, National Rural Electric Cooperative
Association, and other national customers.
Under the terms of the new arrangements, which have effective
start dates between March and September 2003, PlanVista has
established network access and is delivering medical claim repricing
solutions utilizing the Company's own internally-developed EDI and
internet claim repricing systems. By processing medical claims
electronically, PlanVista is able to enhance the repricing accuracy,
speed, and claim turnaround time for the payer.
According to PlanVista President and Chief Operating Officer
Jeffrey L. Markle: "We are pleased to welcome these significant payers
to PlanVista. Being chosen in a competitive process reinforces the
value that our customers place in our network access, repricing
technology, and medical claim cost containment services."
Markle continued, "Since our March 2003 announcement regarding
Commonwealth Associates' investment in PlanVista, we have seen a
renewed payer confidence in our products, services, and long-term
growth strategy."
The Company's preferred provider network business sold and
implemented 11 new payers in the second quarter resulting in new
business revenues of $0.5 million during the quarter. The increase in
operating revenue from new business, compared to the second quarter of
2002, was offset by a decrease in operating revenue due to the
departure of customers that are no longer in business, a reduction in
utilization of our services by other customers, and a lower percentage
of high-dollar claims.
The Company's other cost containment products, which generated
revenues of $1.8 million in fiscal year 2002 and include business
process outsourcing products PayerServ and PlanServ, as well as bill
negotiation, accelerated funding, and other services, generated
revenues of $0.7 million and $1.6 million in the three and six months
ended June 30, 2003, respectively, compared to $0.1 million and $0.6
million during the same periods in 2002, respectively. These revenues
represented 10.1% of the Company's operating revenue in the first six
months of 2003.
The Company's ClaimPassXL(R) internet repricing system generated
$2.6 million in revenue in the second quarter of 2003, or 33.0% of the
Company's operating revenue for the quarter, compared to $2.4 million
during the second quarter of 2002. The Company processed 145,000
medical claims via the Internet in the second quarter, compared to
146,000 claims during the same period in 2002. In total, the Company
processed 929,000 medical claims in the second quarter, compared to
921,000 claims during the same period in 2002.
Dingle concluded: "We are pleased with our business prospects and
growth opportunities, particularly with the potential prospects
generated by our joint sales and marketing efforts with ProxyMed,
which have been encouraging to date. Accordingly, we remain confident
of meeting the previously-announced revenue estimates of between $34
million and $36 million for 2003. Further, we are continuing to
explore alternatives, including the possible sale of equity
securities, to refinance our debt, reduce our obligations,
recapitalize the Company, and provide additional liquidity. As these
activities progress, we hope to resolve the uncertainties surrounding
the number of fully diluted shares outstanding, which relate primarily
to our convertible preferred stock and pro forma ownership of the
Company, and place our Company in a better position to grow."

Preferred Stock Accretion

In connection with our April 12, 2002 debt restructuring, the
Company was required to adopt the accounting principles prescribed by
Emerging Issues Task Force No. 00-27, "Application of Issue No. 98-5
to Certain Convertible Instruments" ("EITF 00-27"). In accordance with
the accounting requirements of EITF 00-27, to date the Company has
reflected approximately $78.6 million as an increase to the carrying
value of its Series C Convertible Preferred Stock with a comparable
reduction to its additional paid-in capital. The amount accreted to
the convertible preferred stock is calculated based on (a) the
difference between the closing price of the Company's common stock on
April 12, 2002 and the conversion price per share available to the
holders of the convertible preferred stock, multiplied by (b) our
estimate of the number of shares of common stock that will be issued
if or when the convertible preferred stock is converted. This amount
is accreted through October 12, 2003, the contractual life of the
convertible preferred stock. This non-cash transaction does not affect
the Company's net income or its total stockholders' equity but does
reduce the net income deemed available to common stockholders for
reporting purposes. Net income deemed available to common stockholders
is further reduced by dividends paid on the convertible preferred
stock. As a result of the dividends and accretion on the convertible
preferred stock, net loss deemed available to common stockholders per
diluted share was $(0.99) and $(0.78) for the three months ended June
30, 2003 and 2002, respectively, and $(1.92) and $(0.77) for the six
months ended June 30, 2003 and 2002, respectively.

(i) EBITDA is a metric that Company management believes is a
meaningful measure of operating performance. The calculation of EBITDA
has no basis in Generally Accepted Accounting Principles.

PlanVista Solutions provides medical cost containment and business
process outsourcing solutions to the medical insurance and managed
care industries. Specifically, we provide integrated national
preferred provider organization network access, electronic claims
repricing, and network and data management services to health care
payers, such as self-insured employers, medical insurance carriers,
third party administrators, health maintenance organizations, and
other entities that pay claims on behalf of health plans. We also
provide network and data management services to health care providers,
such as individual providers and provider networks. Visit the
Company's website at http://www.planvista.com.

Caution Concerning Forward-Looking Statements:

This press release, particularly the statements made by Mr. Dingle
and Mr. Markle, includes forward-looking statements related to
PlanVista that involve risks and uncertainties including, but not
limited to, our ability to expand our client base; the success of our
new products and services; our ability to maintain our current
provider network arrangements; our ability to manage costs and comply
with the terms of our senior credit facility; our ability to reduce
and restructure debt; and our ability to maintain and update our
information technology. These forward-looking statements are made in
reliance on the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. For further information about these
factors that could affect the Company's future results, please see the
Company's filings with the Securities and Exchange Commission. Copies
of these filings are available upon request from the Company's chief
financial officer. Prospective investors are cautioned that
forward-looking statements are not guarantees of future performance.
Actual results may differ materially from management expectations.





PLANVISTA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands except per share data)

Three Months Ended Six Months Ended
June 30, June 30,
------------------- ------------------
2003 2002 2003 2002
-------- --------- --------- ---------

Operating revenues $7,879 $8,474 $15,934 $16,422
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Cost of operating revenue:
Personnel expense 2,239 2,170 4,492 4,421
Network access fees 1,428 1,417 2,923 2,715
Other 1,389 1,410 2,509 2,862
Depreciation 135 134 270 247
Cost related to ProxyMed
agreement 846 - 846 -
------- --------- --------- ---------
Total cost of operating
revenue 6,037 5,131 11,040 10,245
Bad debt expense 362 631 892 1,169
Interest expense 679 1,237 1,387 3,795
------- --------- --------- ---------
Total expenses 7,078 6,999 13,319 15,209
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Income before provision
(benefit) for income taxes 801 1,475 2,615 1,213
Provision (benefit) for income
taxes 324 322 654 (609)
------- --------- --------- ---------
Net income 477 1,153 1,961 1,822

Preferred stock accretion and
preferred stock dividend (17,187) (14,115) (34,135) (14,115)
--------- --------- --------- ---------
Loss applicable to common
stockholders $(16,710) $(12,962) $(32,174) $(12,293)
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Basic and diluted income (loss)
per share applicable
to common stockholders:
Income from continuing
operations $0.03 $0.07 $0.11 $0.11
Preferred stock accretion and
preferred stock dividend (1.03) (0.85) (2.03) (0.88)
------- --------- --------- ---------
Loss applicable to common
stockholders $(1.00) $(0.78) $(1.92) $(0.77)
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Basic and diluted weighted
average number of shares
outstanding 16,787 16,585 16,780 16,056
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EBITDA (1) $ 1,615 $2,846 $4,272 $5,255
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(1) EBITDA is a metric that management believes is a meaningful
measurement of operating performance as it allows for comparison of
performance between other competitors in the healthcare IT industry.
Additionally, management utilizes EBITDA as one of the factors in
determining its management performance rewards. The calculation of
EBITDA has no basis in Generally Accepted Accounting Principles
("GAAP").

Reconciliation to net income, a corresponding measure under GAAP, is
as follows:

EBITDA $1,615 $2,846 $4,272 $5,255
Deduct:
Depreciation (135) (134) (270) (247)
Interest expense (679) (1,237) (1,387) (3,795)
(Provision) benefit for
income taxes (324) (322) (654) 609
------ ------- ------- -------
Net income $477 $1,153 $1,961 $1,822
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PLANVISTA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

June 30, Dec. 31,
2003 2002
----------- ---------
(unaudited)

ASSETS
Current assets:
Cash and cash equivalents $2,711 $1,198
Accounts receivable 7,812 7,989
Prepaid expenses and other current assets 528 174
Refundable income taxes - 1,600
----------- ---------
Total current assets 11,051 10,961
Property and equipment 1,472 1,541
Other assets 1,006 678
Goodwill 29,405 29,405
----------- ---------
Total assets $42,934 $42,585
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $2,514 $2,903
Accrued liabilities 4,669 5,574
Income taxes payable 350 -
Deferred revenue 950 950
Current portion of long-term debt 38,489 356
----------- ---------
Total current liabilities 46,972 9,783
Long-term debt, less current portion 5,980 45,188
Other long-term liabilities 899 1,003
----------- ---------
Total liabilities 53,851 55,974
----------- ---------

Common stock with make-whole provisions 5,000 5,000

Common stockholders' deficit:
Series C convertible preferred stock 111,352 77,217
Common stock 168 168
Additional paid-in capital 11,969 45,593
Treasury stock (38) (38)
Accumulated deficit (139,368) (141,329)
----------- ---------
Total stockholders' deficit (15,917) (18,389)
----------- ---------
Total liabilities and stockholders'
deficit $42,934 $42,585
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PLANVISTA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)


Six Months Ended
June 30,
-------------------
2003 2002
--------- --------

Cash flows from operating activities:
Net income $1,961 $1,822
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 270 247
Bad debt 892 1,169
Non-cash interest expense - 738
Warrants issued in connection with ProxyMed
agreement 496 -
Warrants issued to consultants 15 -
Restructuring costs - (127)
Changes in assets and liabilities:
Accounts receivable (715) (2,678)
Income taxes 1,950 (370)
Prepaid expenses and other current assets (354) (773)
Other assets (328) (42)
Accounts payable (391) 944
Accrued liabilities (407) (692)
Other long-term liabilities (104) (18)
--------- --------
Net cash provided by operating
activities 3,285 220
--------- --------

Cash flows from investing activities:
Purchases of property and equipment (200) (256)
--------- --------
Net cash used in investing activities (200) (256)
--------- --------

Cash flows from financing activities:
Capital lease and debt payment (1,572) (146)
Proceeds from common stock issued - 25
--------- --------
Net cash used in financing activities (1,572) (121)
--------- --------
Net increase (decrease) in cash and cash
equivalents 1,513 (157)
Cash and cash equivalents at beginning of period 1,198 395
--------- --------
Cash and cash equivalents at end of period $2,711 $238
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