MedAssets, Inc. (NASDAQ:MDAS) Announces Fourth Quarter Results, Extends Share Buy Back Program

MedAssets, Inc. (NASDAQ:MDAS) released results for its fiscal fourth quarter and year ending 2014. Net revenue for the quarter came in at $198.2 million which was a gain of 16.3% compared to the same-period last year. The company’s SCM unit was a big help and it contributed $125.3 million and that was a growth of 17% of its contribution from the same-period last year.

Top technical indicators for MDAS.

They acquired Sg2 in the fourth quarter of 2013 and that has added to MedAssets, Inc. (NASDAQ:MDAS)’s returns also. Service fees increased along with performance-related fees. The RCM segment also grew its contribution to net revenue coming in at $73 million or a change of 14%. Service related revenue rose a strong 32%.

Bad Bottom Line

The company showed a solid gain for the period and EBITDA was $63.5 million or a 20% difference over the same period. The bottom-line wasn’t as pretty though and the company lost $42.4 million for the quarter. This equates to .71 cents per share. During the same period last year the company showed a profit of $7.8 million. MedAssets, Inc. (NASDAQ:MDAS) took an impairment write-off that amounted to $52.5 million, hurting the bottom-line significantly. For the full year the company grew revenue at 6% and recorded a total of $720 million. Net loss for 2014 totaled $230 million.

Late Developments

MedAssets, Inc. (NASDAQ:MDAS) also added that it has appointed R. Hasley Wise to be its board of director’s chairman. Wise has been on the board since early 2014 and replaces John Bardis, who resigned for personal reasons. They also stated they will expand their share buyback program and raised the total of the program to $100 million. They plan to utilize various methods for buying the shares back including open market and privately negotiated purchases. They have already bought $42 million shares under the original version.

Technicals

The stock is trying to break through a ceiling at $20. It made an attempt but settled back. This is the end of a slow downtrend and it seems the chart has resolved any issues.

About the Author

Adam is a staff reporter for US Markets Daily Publications & Media, covering foreign affairs and domestic policy.

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