(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2003

OR

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File No. 1-13772

PLANVISTA CORPORATION
(Exact Name of Registrant as Specified in Its Charter)

Delaware

13-3787901

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

4010 Boy Scout Boulevard, Suite 200, Tampa, Florida

33607

(Address of Principal Executive Offices)

(Zip Code)

(813) 353-2300

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)

Yes   x

No   o

Yes   o

No   x

Page No.

Part I - FINANCIAL INFORMATION

Item 1.

Condensed Consolidated Balance Sheets March 31, 2003 (unaudited) and December 31, 2002

2

Condensed Consolidated Statements of Operations (unaudited) Three Months Ended March 31, 2003 and 2002

3

Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) Three Months Ended March 31, 2003 (unaudited)

4

Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2003 and 2002 (unaudited)

5

Notes to Condensed Consolidated Financial Statements (unaudited)

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

24

Part II - OTHER INFORMATION

24

March 31,
2003

December 31,
2002

ASSETS

Current assets:

Cash and cash equivalents

$

1,906

$

1,198

Accounts receivable, net of allowance for doubtful accounts of $2,256 and $1,985 at March 31, 2003 and December 31, 2002, respectively

8,101

7,989

Prepaid expenses and other current assets

488

174

Refundable income taxes

1,326

1,600

Total current assets

11,821

10,961

Property and equipment, net

1,492

1,541

Other assets, net

714

678

Goodwill, net

29,405

29,405

Total assets

$

43,432

$

42,585

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current liabilities:

Accounts payable

$

2,744

$

2,903

Accrued liabilities

5,242

5,574

Deferred revenue

950

950

Current portion of long-term debt

356

356

Total current liabilities

9,292

9,783

Long-term debt and notes payable

45,089

45,188

Other long-term liabilities

953

1,003

Total liabilities

55,334

55,974

Commitments and contingencies

Common stock with make-whole provision (813,273 shares)

5,000

5,000

Stockholders’ equity (deficit):

Series C convertible preferred stock, $0.01 par value; 40,000 shares authorized, 31,092 issued and outstanding

94,164

77,217

Common stock, $0.01 par value, 100,000,000 shares authorized, 15,977,084 issued at March 31, 2003 and 15,956,021 at December 31, 2002

159

159

Additional paid-in capital

28,655

45,602

Treasury stock at cost, 7,940 shares at March 31, 2003 and 7,940 at December 31, 2002

(38

)

(38

)

Accumulated deficit

(139,842

)

(141,329

)

Total stockholders’ deficit

(16,902

)

(18,389

)

Total liabilities and stockholders’ equity (deficit)

$

43,432

$

42,585

For the Three Months Ended
March 31,

2003

2002

Operating revenue

$

8,054

$

7,949

Cost of operating revenue:

Marketing allowance

147

80

Personnel expense

2,253

2,252

Network access fees

1,494

1,297

Other

971

1,376

Depreciation

135

112

Total cost of operating revenue

5,000

5,117

Bad debt expense

530

537

Interest expense, net

706

2,558

Total expenses

6,236

8,212

Income (loss) before provision (benefit) for income taxes

1,818

(263

)

Provision (benefit) for income taxes

331

(932

)

Net income

1,487

669

Preferred stock accretion and preferred stock dividend

(16,947

)

—  

(Loss) income applicable to common stockholders

$

(15,460

)

$

669

Basic and diluted (loss) income per share applicable to common stockholders:

Net income

$

0.09

$

0.04

Preferred stock accretion

(1.01

)

—  

(Loss) income per share applicable to common stockholders

$

(0.92

)

$

0.04

Basic weighted average number of shares outstanding

16,785

15,521

Diluted weighted average number of shares outstanding

16,785

15,910

Series C
Convertible
Preferred
Stock

Voting
Common
Stock

Additional
Paid-in
Capital

Treasury
Stock

Accumulated
Deficit

Total

Balance at December 31, 2002

$

77,217

$

159

$

45,602

$

(38

)

$

(141,329

)

$

(18,389

)

Accretion of Series C convertible preferred stock

16,947

—  

(16,947

)

—  

—  

—  

Net income

—  

—  

—  

—  

1,487

1,487

Balance at March 31, 2003

$

94,164

$

159

$

28,655

$

(38

)

$

(139,842

)

$

(16,902

)

For the Three Months Ended
March 31,

2003

2002

Cash flows from operating activities:

Net income

$

1,487

$

669

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

135

112

Non-cash interest expense

—  

636

Changes in assets and liabilities:

Accounts receivable

(112

)

(1,059

)

Refundable income taxes

274

(692

)

Prepaid expenses and other current assets

(314

)

(927

)

Other assets

(36

)

(679

)

Accounts payable

(160

)

1,157

Accrued liabilities

(331

)

989

Other long-term liabilities

(50

)

(21

)

Net cash provided by operating activities

893

185

Cash flows from investing activities:

Purchases of property and equipment

(86

)

(188

)

Net cash used in investing activities

(86

)

(188

)

Cash flows from financing activities:

Capital lease and debt payments

(99

)

(30

)

Proceeds from common stock issued

—  

25