 2Q20 Total Revenue of 142.7 Million, -15.2 vs. 2Q19; YTD20 Total Revenue -0.7 vs. YTD19 2Q20 Net income of 6.6 Million vs. 29.1 Million in 2Q19; YTD20 Net Income -60.4 vs. YTD19 2Q20 GAAP EPS of 0.07 Per Diluted Share vs. 0.33 per Diluted Share in 2Q19 2Q20 Adjusted EPS of 0.19 Per Diluted Share vs. 0.34 per Diluted Share in 2Q19 excluding 2Q 2019 Reserve Release Benefit 2Q20 Adjusted EBITDA of 27.8 Million, -41.6 vs. 2Q19; YTD20 Adjusted EBITDA -15.5 vs. YTD19 excluding 2Q 2019 Reserve Release BenefitIRVING, Texas, Aug. 07, 2020 GLOBE NEWSWIRE -- HMS Holdings Corp. Nasdaq: HMSY today announced financial results for the second quarter ended June 30, 2020.HMS is showing its organizational agility and financial strength, and the fundamentals of our business remain strong as our nation and the world continue to address the circumstances surrounding COVID-19, said Bill Lucia, Chairman and CEO. With lower utilization rates, client work pauses, and shifts in industry focus, COVID-19 had a negative impact on our Companys second quarter financial performance, with revenue, net income and adjusted EBITDA declining on both a sequential and year-over-year basis. Despite these challenges, we maintained robust cash flows, with cash and cash equivalents up 38.6 since the end of 2019 to reach 193 million at the end of the second quarter.Our organization moved swiftly to remain fully operational in support of our clients while protecting our employees health and safety. We continue to invest in our business to bolster future growth as well as deliver strong client value to meet the industrys evolving needs. We believe strong cost containment and clinical outcome capabilities are going to grow in importance both during and after this health crisis, particularly as State budgets are pressured due to lower revenue and higher Medicaid costs.Regardless of the recent headwinds we have encountered, we remain well positioned to deliver value to our clients and our business outlook for the second half of 2020 and full year 2021 remains positive. We are seeing signs of improving healthcare utilization and other trends that should be beneficial for the HMS business. For example, elective procedures are beginning to increase; Medicaid enrollment is rising due primarily to higher unemployment; and, our Payment Integrity business line is expected to improve during the third quarter as CMS and other clients are lifting pauses on certain medical record requests and audits enacted during a COVID-19 emergency period to reduce administrative burden on hospitals, Lucia concluded.Second QuarterTotal revenue in the second quarter of 2020 was 142.7 million, compared to total revenue of 168.2 million in the prior year second quarter -15.2. 2Q 2019 included 10.5 million in revenue as the Company released its remaining contract-related balances under its original Medicare RAC Contract the 2Q 2019 Reserve Release. Revenue in the second quarter of 2020 from the Accent business, which was acquired at the end of 2019, was 10.8 million. Organic revenue in the second quarter of 2020, excluding Accent and the 2Q 2019 Reserve Release, declined 16.4.Coordination of Benefits COB revenue was 106.7 million in the second quarter of 2020 compared to 105.1 million in the prior year second quarter 1.6. Organic COB revenue, excluding Accent, was 95.9 million -8.8 due to lower claim volumes resulting from circumstances related to COVID-19.Payment Integrity PI revenue was 24.4 million in the second quarter of 2020, compared to 49.1 million in the prior year second quarter -50.3. Excluding the 2Q 2019 Reserve Release, total PI revenue decreased 36.8 compared to the prior year quarter due to lower claim volumes, primarily driven by temporary suspension or reduction of certain client contract work resulting from circumstances related to COVID-19, as previously disclosed. Population Health Management PHM revenue was 11.5 million in the second quarter of 2020, compared to 14.0 million in the prior year second quarter -17.6 due to the suspension of certain consumer engagement programs primarily related to COVID-19 circumstances which more than offset an increase in COVID-19-specific program activities.Net income in the second quarter of 2020 was 6.6 million, or 0.07 per diluted share, compared to net income of 29.1 million, or 0.33 per diluted share, in the second quarter of 2019. Net income in the second quarter of 2019 included a net benefit of 0.07 per diluted share related to the 2Q 2019 Reserve Release.Adjusted EBITDA in the second quarter of 2020 was 27.8 million, compared to 47.6 million excluding a net benefit of 8.2 million related to the 2Q 2019 Reserve Release in the prior year second quarter -41.6.Adjusted EPS in the second quarter of 2020 was 0.19 per diluted share, compared to 0.34 per diluted share in the second quarter of 2019 excluding the 2Q 2019 Reserve Release of 0.07 per diluted share -44.1. Six Months Ended Total revenue for the six months ended June 30, 2020 was 314.1 million, compared to 316.1 million in the prior year period -0.7. For the six months ended June 30, 2019, total revenue included 10.5 million from the 2Q 2019 Reserve Release. Revenue in the six months ended June 30, 2020 from the Accent business was 21.7 million. Excluding the 2Q 2019 Reserve Release and revenue from the Accent business, total revenue decreased 4.3 compared to the prior year period.COB revenue for the six months ended June 30, 2020 was 224.8 million, compared to 210.9 million in the prior year period 6.6. Organic COB revenue for the six months ended June 30, 2020, excluding Accent, was 203.1 million -3.7.PI revenue for the six months ended June 30, 2020 was 63.7 million, compared to 76.8 million in the prior year period -17.1. Excluding the 2Q 2019 Reserve Release, total PI revenue for the six months ended June 30, 2020, decreased 4.0 compared to the prior year period. PHM revenue for the six months ended June 30, 2020 was 25.6 million, compared to 28.3 million in the prior year period -9.8.Net income for the six months ended June 30, 2020 was 19.3 million, or 0.21 per diluted share, compared to 48.7 million, or 0.55 per diluted share, in the prior year period. For the six months ended June 30, 2019, net income included 0.07 per diluted share related to the 2Q 2019 Reserve Release and discrete tax benefits recorded in the first quarter of 2019 totaling 0.07 per diluted share.Adjusted EBITDA for the six months ended June 30, 2020 was 74.9 million, compared to 96.8 million in the prior year period, which included a net benefit of 8.2 million related to the 2Q 2019 Reserve Release -22.6. Excluding this benefit, Adjusted EBITDA decreased 15.5 compared to the prior year period.Adjusted EPS for the six months ended June 30, 2020 was 0.51 per diluted share. Adjusted EPS was 0.75 per diluted share in the comparable prior year period, including 0.07 per diluted share related to the 2Q 2019 Reserve Release and discrete tax benefits recorded in the first quarter of 2019 totaling 0.07 per diluted share. Excluding the 2Q 2019 Reserve Release and discrete tax item in 2019, adjusted EPS for the first six months of 2020 was 0.51 per diluted share, compared to 0.61 per diluted share in the prior year period -16.4.Cash Flow and Capital ResourcesNet cash provided by operating activities for the six months ended June 30, 2020 was 65.8 million compared to 78.1 million in the first six months of 2019. Capital expenditures were 11.5 million for the six months ended June 30, 2020, compared to 8.4 million in the comparable prior year period.The Companys balance sheet at June 30, 2020 included 193.1 million of cash and cash equivalents and 240.0 million in outstanding bank debt, compared to cash and cash equivalents of 139.3 million and outstanding bank debt of 240.0 million at December 31, 2019. Financial GuidanceThe Company revised its full year 2020 financial guidance, as follows: in millionsReported FY 2019 Adjusted FY 2019 Revised FY 2020 Guidance Y - Y Change from Adjusted FY 2019 Total Revenue626 616 1 680 - 690 10.5 - 12.1 Net Income87 69 2 66 - 74 4.3 - 7.2 Adjusted EBITDA180 164 3 177 - 187 7.9 - 14.0 1 Reported FY 2019 revenue includes 10.5 million related to the 2Q 2019 Reserve Release. Including the 2Q 2019 Reserve Release, total FY 2020 revenue growth is expected to be 8.6 - 10.2. Excluding the 2Q 2019 Reserve Release, then total FY 2020 revenue growth is expected to be 10.5 - 12.1.2 Reported FY 2019 net income includes 6.0 million related to the 2Q 2019 Reserve Release, 5.6 million related to the 3Q 2019 Gain on Investment and 6.5 million related to discrete tax benefits. Including the 2Q 2019 Reserve Release, 3Q 2019 Gain on Investment and discrete tax benefits, then FY 2020 net income growth is expected to be 24.1 - 14.9. Excluding the 2Q 2019 Reserve Release and 3Q 2019 Gain on Investment, net income growth is expected to be 4.3 - 7.2.3 Reported 2019 adjusted EBITDA includes 8.2 million related to the 2Q 2019 Reserve Release and 7.7 million related to the 3Q 2019 Gain on Investment. Including the 2Q 2019 Reserve Release and 3Q 2019 Gain on Investment, adjusted EBITDA growth is expected to be 1.7 - 3.9. Excluding the 2Q 2019 Reserve Release and 3Q 2019 Gain on Investment, then FY 2020 adjusted EBITDA growth is expected to be 7.9 - 14.0. 